Economics, Awake-In-3D Dinar Recaps 20 Economics, Awake-In-3D Dinar Recaps 20

Rising BRICS Gold Reserves Could Trigger Worldwide Currency Revaluation (RV)

Rising BRICS Gold Reserves Could Trigger Worldwide Currency Revaluation (RV)

Awake-In-3D  October 18, 2024

BRICS countries are positioning themselves to redefine currency values across the globe by building massive gold reserves.

BRICS Gold Purchases Signal Global Financial Realignment

Over the past two years, BRICS nations—particularly China—have increased their gold holdings, collectively purchasing thousands of tons. China alone holds over 2,800 tons, with other member states following closely. Analysts increasingly suggest these BRICS gold purchases go beyond hedging against inflation, indicating a strategy to reshape the global financial order.

Rising BRICS Gold Reserves Could Trigger Worldwide Currency Revaluation (RV)

Awake-In-3D  October 18, 2024

BRICS countries are positioning themselves to redefine currency values across the globe by building massive gold reserves.

BRICS Gold Purchases Signal Global Financial Realignment

Over the past two years, BRICS nations—particularly China—have increased their gold holdings, collectively purchasing thousands of tons. China alone holds over 2,800 tons, with other member states following closely. Analysts increasingly suggest these BRICS gold purchases go beyond hedging against inflation, indicating a strategy to reshape the global financial order.

By reducing US Treasury bond holdings and dollar reserves, the BRICS bloc is building a multilateral financial framework to diminish the dollar’s influence. This strategy is not just about economic security; it lays the foundation for a more substantial financial transformation.

The Multilateral Shift: BRICS Gold and the Decline of Dollar Influence

The development of the BRICS mBridge payment system plays a central role in this shift. Designed to promote trade using local currencies and gold, it provides a practical alternative to SWIFT, the US-dominated financial messaging system.

With BRICS nations moving toward gold-backed trade, they reduce exposure to currency volatility and economic sanctions. This transition aligns with the concept of a Global Currency Reset (GCR), which envisions a financial system built on asset-backed standards, reducing reliance on fiat currencies.

The New UNIT Stablecoin and Currency Revaluation Outlook

The BRICS bloc is also developing the UNIT stablecoin, a digital currency backed by 40% gold and 60% BRICS currencies, all convertible to gold. The UNIT could serve as a catalyst for currency revaluation (RV), offering a new valuation standard tied to tangible assets.

Currency revaluation involves adjusting exchange rates to reflect a currency’s true value in the global economy. The transparency and stability offered by the UNIT may prompt other nations to realign their currencies with gold-backed models, reducing volatility and restoring financial trust.

How the Global Currency Reset (GCR) Could Unfold

The introduction of the UNIT and the BRICS mBridge platform signals a shift toward a new global financial system. Several key developments may shape the unfolding of the GCR:

  1. Gold-Backed Valuation Model
    Currencies linked to gold-backed systems will see their exchange rates recalibrated to reflect real asset values, driving revaluations worldwide.

  2. Diversification from the Dollar
    As more nations adopt gold-backed currencies, the decline in dollar reserves will lower the dollar’s value, encouraging others to redefine their exchange rates independently.

  3. Regional Currencies Anchored to Gold
    Countries outside the BRICS framework may restructure their currencies around gold-backed standards, creating a new global exchange rate system based on tangible assets.

  4. Impact on Developing Nations
    Emerging economies could benefit from joining the BRICS payment system, aligning their currencies with gold-backed models. This shift may trigger revaluations, reducing dependency on the dollar and increasing financial autonomy.

Challenges and Future Implications

The transition to a new financial system presents challenges. Resistance from countries heavily invested in the dollar-based system is expected, and the rollout of the UNIT and the BRICS mBridge must be carefully managed to avoid disruptions.

Geopolitical risks are also likely, as the US and its allies may respond with sanctions or other economic measures to defend the dollar’s dominance. However, with the BRICS bloc accounting for over 37% of global GDP, efforts to halt this shift may not be sufficient to stop the momentum toward de-dollarization.

The Bottom Line: A Period of Economic Realignment

The accumulation of BRICS gold reserves and the development of a gold-backed financial system mark the beginning of a global economic shift. As the group advances the UNIT stablecoin and the BRICS Bridge payment platform, the financial system is poised for a Global Currency Reset (GCR).

This reset will likely result in currency revaluations (RV) worldwide, as nations adopt gold-backed standards for greater financial stability and independence from the dollar. Though challenges remain, the BRICS gold-backed strategy represents the rise of a multipolar financial order that will redefine global trade, finance, and currency valuation.

=======================================

© GCR Real-Time News

Visit the GCR Real-Time News website and search 100’s of articles here: Ai3D.blog

Join my Telegram Channel to comment and ask questions here: GCR_RealTimeNews

Follow me on Twitter: @Real_AwakeIn3D

Read More
Awake-In-3D, Economics Dinar Recaps 20 Awake-In-3D, Economics Dinar Recaps 20

Awake-In-3D: Trade Wars and Sanctions Now Setting Us Up for the Biggest Collapse in History

Trade Wars and Sanctions Now Setting Us Up for the Biggest Collapse in History

Awake-In-3D   October 9, 2024

Are we repeating the mistakes that led to the Great Depression and World War II?

This article explains how past economic disasters, like what happened in Germany after World War I, can help us understand what’s happening in the world today. By looking at how trade issues, financial penalties, and economic crises led to radical political changes back then, we can see similarities with today’s global economy.

The purpose is to show how history is repeating itself and why we may be heading toward the biggest financial collapse in human history if things continue the way they are.

Trade Wars and Sanctions Now Setting Us Up for the Biggest Collapse in History

Awake-In-3D   October 9, 2024

Are we repeating the mistakes that led to the Great Depression and World War II?

This article explains how past economic disasters, like what happened in Germany after World War I, can help us understand what’s happening in the world today. By looking at how trade issues, financial penalties, and economic crises led to radical political changes back then, we can see similarities with today’s global economy.

The purpose is to show how history is repeating itself and why we may be heading toward the biggest financial collapse in human history if things continue the way they are.

The study of past economic collapses offers invaluable insights into the forces that drive economies toward disaster. The rise of fascism and Adolf Hitler’s ascent in Germany is a powerful case study, showing how trade disputes, economic sanctions, and financial instability can shape world events.

If we don’t learn from this history, we risk repeating it—and many signs suggest that we are on the brink of another unprecedented financial crisis.

US President Joe Biden recently announced a significant rise in tariffs for Chinese imports, including electric vehicles (EVs) and solar panels. One of the most significant steps is the decision to raise duties on Chinese electric vehicles to 100 percent.

The Role of Economic Sanctions and Trade Disputes in Historical Collapses

Economic sanctions, trade disputes, and punitive measures have long been used to isolate nations. In post-World War I Germany, these tools played a direct role in driving the country to financial ruin.

The Treaty of Versailles demanded massive reparations from Germany, strangling its economy and blocking any real recovery. The inability to trade internationally compounded the problem, leaving Germany cut off from vital markets and resources.

As economic isolation intensified, inflation spiraled out of control, wiping out savings and deepening poverty. Germans faced severe unemployment and social unrest, making them receptive to extremist ideologies.

Hitler seized on these conditions, using the widespread economic misery to gain support. The lesson here is clear: economic collapse can open the door to radicalism, and today’s growing trade wars and sanctions could create similar conditions.

How the Treaty of Versailles Enabled Radicalism in Germany

The Treaty of Versailles humiliated Germany economically, with reparations and territorial losses that crippled the nation’s ability to function. In the years following World War I, Germans watched their currency become worthless.

Children playing with worthless German currency and a cart full of marks could not buy a daily meal in 1930

By the time the Great Depression hit in 1929, Germany was relying on foreign loans—especially from the U.S.—to stabilize its economy. When those loans dried up, Germany’s economy collapsed once again.

The collapse of international trade and financial support left Germany in an even worse position. Mass unemployment and desperation became the norm. In this climate, Hitler’s Nazi Party rose, offering promises to rebuild the economy, restore pride, and make Germany powerful again.

This is eerily similar to the struggles many countries face today, where economic hardship is driving people to seek out extreme solutions and political figures who promise to fix everything.

Parallels Between the Great Depression and Today’s Financial Risks

The Great Depression serves as an important reminder of how quickly global economies can unravel. When the U.S. stock market crashed in 1929, it triggered a worldwide financial collapse.

After 2,000 jobs were made available for park improvements, about 5,000 unemployed people gathered outside City Hall in Cleveland, Ohio, in 1930 during the Great Depression. (AP Photo)

Countries like Germany, already weakened by debt and trade restrictions, plunged into a deeper crisis. Protectionist policies and tariff wars, like the U.S. Smoot-Hawley Tariff, only worsened the situation by choking off global trade.

Fast forward to today, and we see similar warning signs. Global tensions, trade wars, and massive debt levels are putting immense pressure on economies. Inflation is surging, supply chains are breaking down, and many people are struggling to make ends meet.

Just as in the 1930s, these financial pressures are creating a fertile environment for social and political unrest. Many fear that the world is again teetering on the edge of a catastrophic economic collapse.

What History Teaches Us About the Coming Financial Disaster

The history of economic crises shows us that they often follow predictable patterns. Trade disputes, financial isolation, and economic sanctions create the conditions for collapse.

Germany in the 1930s offers a blueprint for what can happen when economic pressure drives a society to desperation. And today’s world looks dangerously similar.

Countries around the globe are facing rising inflation, trade conflicts, and unsustainable levels of debt. The gaps between the wealthy and the poor are widening, and the middle class is being squeezed.

As in the past, when economic conditions deteriorate, people begin searching for drastic solutions, often turning to radical movements or leaders who offer simple answers to complex problems. If the current trends continue, the world could be headed for the greatest financial disaster in history.

The Bottom Line

The economic collapse of post-World War I Germany and the Great Depression offer crucial lessons for understanding the looming financial disaster we face today.

Rising trade tensions, economic sanctions, and the strain on global economies all point to a similar outcome. If we don’t understand the past, we risk repeating it—and this time, the stakes are even higher.

Prepare for the worst, because the next global collapse may be unlike anything the world has ever seen.

=======================================

© GCR Real-Time News

Visit the GCR Real-Time News website and search 100’s of articles here: Ai3D.blog

Join my Telegram Channel to comment and ask questions here: GCR_RealTimeNews

Follow me on Twitter: @Real_AwakeIn3D

Read More
Awake-In-3D, Economics Dinar Recaps 20 Awake-In-3D, Economics Dinar Recaps 20

Iraq Now Moving Backwards in Battle to Strengthen the IQD

Iraq Now Moving Backwards in Battle to Strengthen the IQD

Awake-In-3D   August 22, 2024

Iraq’s struggle to stabilize the dinar worsens as growing reliance on dollars, rising imports, and inflation risks signal a shift in the wrong direction.

Iraq is facing serious financial challenges as it tries to reduce its dependence on the U.S. dollar and strengthen its own currency, the Iraqi Dinar (IQD). Despite efforts from the government and the Central Bank, Iraq is relying more on the dollar than ever before.

Iraq Now Moving Backwards in Battle to Strengthen the IQD

Awake-In-3D   August 22, 2024

Iraq’s struggle to stabilize the dinar worsens as growing reliance on dollars, rising imports, and inflation risks signal a shift in the wrong direction.

Iraq is facing serious financial challenges as it tries to reduce its dependence on the U.S. dollar and strengthen its own currency, the Iraqi Dinar (IQD). Despite efforts from the government and the Central Bank, Iraq is relying more on the dollar than ever before.

This makes it harder for the country to build a stable economy. Instead of improving the value of its own money, Iraq’s economy is moving in the wrong direction. By printing more dinars and buying record amounts of dollars, the country risks weakening its currency and becoming more dependent on foreign markets.

What you will learn reading this article:

  • Why Iraq’s increasing purchases of U.S. dollars signal deeper economic issues

  • How issuing more Iraqi dinars is weakening the currency and fueling inflation risks

  • The impact of rising foreign currency transfers on Iraq’s dependency on imports

  • Why current economic policies are falling short of creating long-term stability for Iraq’s economy

Iraq is struggling to gain control over its currency as its reliance on the U.S. dollar grows. Despite efforts by the Central Bank of Iraq (CBI) to strengthen the IQD and reduce dependence on foreign currency, the country’s economic strategy appears to be faltering.

Recent financial activities suggest that Iraq is moving backward in its quest for economic independence, raising concerns about the future of the nation’s financial stability.

Record-Breaking Dollar Purchases Signal Alarming Economic Trends

One of the clearest signs of Iraq’s deepening economic troubles is the Central Bank’s substantial purchases of U.S. dollars. In July 2024, the Central Bank of Iraq bought an unprecedented $9.6 billion worth of dollars from the Ministry of Finance, marking a record high since such transactions began in 2003. The trend is not confined to a single month either; in 2024, monthly purchases of U.S. dollars have averaged $5.9 billion.

This pattern of heavy reliance on the dollar is driven largely by the government’s growing expenditure, which requires more Iraqi dinars to fund its operations. As the government spends more, it turns to the dollar to keep the economy running. However, these purchases erode the strength of the IQD, pushing Iraq further from its goal of economic sovereignty.

Issuance of More Iraqi Dinars Weakens Its Value

To meet the Ministry of Finance’s financial needs, the Central Bank has issued more Iraqi dinars, but this strategy is creating new problems. Printing more dinars risks oversupply, which weakens the currency and threatens to fuel inflation. Historically, Iraq has struggled with inflationary pressures, and the current influx of newly minted dinars could reignite those issues.

Rather than stabilizing the currency, this approach is diluting the dinar’s value, putting Iraq in an even more precarious position. Instead of fostering a strong IQD, the country is becoming increasingly dependent on foreign currency reserves, predominantly U.S. dollars, to maintain its financial balance.

Rise in Foreign Currency Transfers Highlights Dependency on Imports

Another backwards trend is the rise in foreign transfers of U.S. dollars, which surged by 99% in recent months, reaching over $264 million in a single auction. The Central Bank uses these transfers to pay for imports and settle international accounts. The spike in foreign transfers is evidence of Iraq’s reliance on international markets to meet domestic needs.

This dependence on foreign goods and services weakens the IQD and diminishes the prospects of building a robust domestic economy. Each dollar sent abroad is a reminder of Iraq’s continued dependence on foreign markets, making it increasingly difficult to achieve economic independence.

Economic Policies Fall Short of Long-Term Stability

While the Central Bank has made efforts to ease the process for private banks to transfer money overseas, these policy changes are far from a solution. Such measures may keep imports flowing and help Iraqi banks pay international suppliers, but they fail to address the core issues plaguing Iraq’s economy.

The real problem lies in the country’s dependence on the U.S. dollar and its lack of a comprehensive strategy for strengthening the IQD. Unless Iraq shifts its focus to long-term growth and economic independence, these short-term policy changes will only provide temporary relief without resolving the underlying challenges.

Supporting Sources:

=======================================

© GCR Real-Time News

Visit the GCR Real-Time News website and search 100’s of articles here: Ai3D.blog

Join my Telegram Channel to comment and ask questions here: GCR_RealTimeNews

Follow me on Twitter: @Real_AwakeIn3D

 

Read More
Awake-In-3D, Economics Dinar Recaps 20 Awake-In-3D, Economics Dinar Recaps 20

Awake-In-3D: When Will the RV/GCR Happen?

When Will the RV/GCR Happen?

On August 17, 2024 By  Awake-In-3D

Endgame GCR Podcast Episode 4

What you will learn in this episode:

  • What is Japan’s Economic Influence on Current Financial System?

  • What are the Signs of the Fiat Currency System’s Collapse?

When Will the RV/GCR Happen?

On August 17, 2024 By  Awake-In-3D

Endgame GCR Podcast Episode 4

What you will learn in this episode:

  • What is Japan’s Economic Influence on Current Financial System?

  • What are the Signs of the Fiat Currency System’s Collapse?

* Why Inflation is a Key Driver of Fiat Financial System Weakness

  • How Carry Trades Create Global Financial System Instability

  • The Problem With Central Bank Interest Rate Manipulation

  • Why Demand for Commodities and Precious Metals is Related to the RV/GCR

  • What Will Happen if the United States Begins Buying Gold?

  • Why the New BRICS Gold-Backed Financial System is Important

  • The Revaluation of Currencies Amid a Fiat Financial System Collapse

  • Rejecting the “Shotgun” GCR/RV Event Narrative

  • What are the Key Indicators to Watch in the Coming Financial Collapse?

In this episode, the focus is on answering the central question: “When will the Global Currency Reset (GCR) and the Revaluation of Currencies (RV) happen?” It becomes clear that the RV/GCR will align with the collapse of the global fiat currency system. This sets the stage for the discussion, which explores current financial events that are leading towards this shift.

What is Japan’s Economic Influence on Current Financial System?

We look at Japan’s recent economic instability and how it affects the global financial landscape. Japan’s interest rate hikes and market volatility are early signs of a broader shift. Given Japan’s role as the fourth-largest economy and its status as a key reserve currency, its actions have a significant impact on the future of the global financial system.

What are the Signs of the Fiat Currency System’s Collapse?

Key indicators of the impending collapse of the fiat currency system are examined. The idea that the collapse will unfold “slowly at first, then all of a sudden” is discussed. The gradual breakdown of the fiat system is directly linked to the eventual realization of the GCR and RV, making it essential to track these developments.

Why Inflation is a Key Driver of Fiat Financial System Weakness

Inflation is identified as one of the main factors weakening the fiat currency system. It is described as a hidden tax that reduces the purchasing power of currencies around the world. This episode points out that inflation is unique to fiat systems and accelerates their collapse, driving up the cost of goods and services.

How Carry Trades Create Global Financial System Instability

There’s a detailed exploration of the carry trade, particularly between Japan and the US. The way investors profit from borrowing in low-interest countries and investing in higher-interest markets is explained. The unwinding of the carry trade is recognized as a key indicator of financial instability and is a sign of bigger disruptions to come.

The Problem With Central Bank Interest Rate Manipulation

We take a closer look at how central banks around the world manipulate interest rates in an attempt to manage inflation. These adjustments are contributing to a global recession and could even lead to a depression. The manipulation of interest rates plays a significant role in weakening the fiat system and preparing for its collapse.

Why Demand for Commodities and Precious Metals is Related to the RV/GCR

The episode also addresses the growing global demand for commodities, especially gold, silver, and other industrial metals. More individuals and central banks are diversifying into precious metals to safeguard against future instability. The increasing purchases of gold by central banks are a clear signal that they are preparing for the collapse of fiat currencies and the transition to a gold-backed system.

There’s further discussion on how central banks are using gold as a hedge against the coming collapse of the fiat system. Despite what is said publicly, their ongoing accumulation of gold shows that they are preparing for a post-fiat world where gold-backed systems will dominate.

What Will Happen if the United States Begins Buying Gold?

The episode emphasizes the unique position of the US dollar as the world’s reserve currency, being used in over 80% of global transactions. Speculation arises over what would happen if the US started buying gold, which would signal a loss of confidence in the dollar and likely cause panic in global markets.

Why the New BRICS Gold-Backed Financial System is Important

The discussion also explores the efforts of BRICS nations to create an alternative gold-backed financial system. This system could challenge the dominance of the US dollar and potentially force the Federal Reserve to adopt a similar gold-backed approach. Such a shift would create significant changes in the global financial landscape.

The Revaluation of Currencies Amid a Fiat Financial System Collapse

As the fiat currency system collapses, opportunities for currency revaluation (RV) are expected to emerge. This transition will likely happen gradually, with the RV being part of a larger shift towards a gold-backed system.

Rejecting the “Shotgun” GCR/RV Event Narrative

There’s a clear rejection of the idea of a sudden, global “shotgun” GCR/RV event. Instead, the transition is expected to be gradual, with notifications and preparations required from governments and central banks. An overnight switch is deemed unrealistic, and a step-by-step process is considered far more likely.

What are the Key Indicators to Watch in the Coming Financial Collapse?

The episode concludes by recapping the five key indicators that signal the collapse of the fiat system and the opportunity for currency revaluation: inflation, interest rates, carry trade unwinding, central bank gold purchases, and the US dollar’s position as the world reserve currency. These factors provide a roadmap for understanding and tracking the impending shifts in the financial system.

Approximate Time Markers For Each Topic

0:00 – Introduction to the GCR and RV Timeline
2:00 – Japan’s Economic Influence on Global Finance
6:00 – Signs of the Fiat Currency System’s Collapse
9:00 – Inflation as a Key Driver of Fiat System Weakness
13:00 – The Carry Trade and Its Role in Global Financial Instability
19:00 – Central Bank Interest Rate Manipulation
23:00 – Increasing Demand for Commodities and Precious Metals
27:00 – Gold Purchases as a Hedge Against the Fiat Collapse
30:00 – The US Dollar as the World’s Reserve Currency
33:00 – The BRICS Gold-Backed Financial System
36:00 – The Revaluation of Currencies Amid the Fiat System Collapse
39:00 – Rejecting the “Shotgun” GCR/RV Event
43:00 – Key Indicators to Watch for the Coming Collapse

Podcast Links:

Endgame GCR Episode 4 on Rumble

Endgame GCR Episode 4 on YouTube

© GCR Real-Time News

Visit the GCR Real-Time News website and search 100’s of articles here: Ai3D.blog
Join my Telegram Channel to comment and ask questions here: GCR_RealTimeNews
Follow me on Twitter: @Real_AwakeIn3D

https://ai3d.blog/when-will-the-rv-gcr-happen/

https://www.youtube.com/watch?v=Eqfa12rI6LU&feature=youtu.be

Read More
Awake-In-3D, Economics Dinar Recaps 20 Awake-In-3D, Economics Dinar Recaps 20

Global Currency Reset: Record Bank Gold Buying Happening Now

Global Currency Reset: Record Bank Gold Buying Happening Now

On August 13, 2024  By Awake-In-3D

Central Banks Are Stockpiling Gold Like There is No Tomorrow as They Prepare for a Global Currency Reset As economies around the world face challenges like rising debt and inflation, I think we can all agree that we’re on the verge of a significant financial system shift—a “global currency reset.”

In recent years, there’s been a growing sense that the current global financial system, which relies heavily on paper money (or fiat currencies), is clearly on its path to a logical conclusion in the form of a worldwide systemic crash.

Global Currency Reset: Record Bank Gold Buying Happening Now

On August 13, 2024  By Awake-In-3D

Central Banks Are Stockpiling Gold Like There is No Tomorrow as They Prepare for a Global Currency Reset

As economies around the world face challenges like rising debt and inflation, I think we can all agree that we’re on the verge of a significant financial system shift—a “global currency reset.”

In recent years, there’s been a growing sense that the current global financial system, which relies heavily on paper money (or fiat currencies), is clearly on its path to a logical conclusion in the form of a worldwide systemic crash.

This means that countries will move away from relying solely on traditional fiat currencies like the U.S. dollar and instead turn to something real, like gold, to back their currencies.

To prepare for this possible reset, central banks in various countries have been buying large amounts of gold. They see gold as a safe and reliable asset that can protect their economies if the value of paper fiat currency falls.

This article will explore why central banks are making these moves and what it means for the future of our financial system.

In This Article:

  1. Record Gold Purchases by Central Banks in 2024 Signal Preparation for a Global Currency Reset

  2. Key Factors Driving Central Bank Gold Accumulation

  3. How Gold Will Anchor a Global Currency Reset

  4. The Global Economic Impact of Central Banks’ Gold Strategy

As concerns about the stability of the global fiat currency system grow, central banks around the world are aggressively purchasing gold.

By mid-2024, these purchases had set a new record, indicating preparations for an impending global currency reset.

Central banks added a net 483 tons of gold in the first six months of the year, reflecting a strategic move towards gold as a hedge against the risks of the current financial system.

Record Gold Purchases by Central Banks in 2024 Signal Preparation for a Global Currency Reset

Central banks globally have been on a gold-buying spree in 2024, with a net addition of 483 tons in the first half of the year.

This surge represents a 5 percent increase from the previous record of 460 tons set in the first half of 2023. Despite a slight slowdown in the second quarter, central banks bought 183 tons of gold during this period, a figure that remains historically high.

This activity is largely driven by concerns over a potential global currency reset, as trust in the fiat currency system continues to erode.

Key Factors Driving Central Bank Gold Accumulation

The concept of a global currency reset is gaining traction as central banks increasingly view gold as a safeguard against the vulnerabilities of the current financial system.

Countries like China, India, and Turkey have significantly increased their gold reserves, reflecting their strategic intent to diversify away from fiat currencies, particularly the U.S. dollar. China, which paused its official gold purchases in May and June, is speculated to be acquiring gold off the books, contributing to the demand.

This move aligns with broader concerns about the sustainability of the fiat currency system and the potential for a financial reset anchored by gold.

How Gold Will Anchor a Global Currency Reset

The possibility of a global currency reset is prompting central banks to accumulate gold, positioning it as a key element in a new financial system.

With the fiat currency system showing signs of strain—exacerbated by high levels of debt and inflation in major economies—gold is being viewed as a stable alternative. Poland, for instance, has made significant strides to increase the share of gold in its total reserves to 20 percent.

This strategy reflects a broader trend where central banks are preparing for a possible transition to a gold-backed system, which could offer more stability in a rapidly changing economic landscape.

The Global Economic Impact of Central Banks’ Gold Strategy

The strategic accumulation of gold by central banks is a clear indicator that a global currency reset is on the horizon.

The World Gold Council’s recent survey reveals that nearly 30 percent of central banks plan to add more gold to their reserves over the next 12 months. This widespread interest in gold underscores its value in a future where fiat currencies may no longer hold any level of trust.

As central banks continue to stockpile gold, the global economy will witness a significant shift towards a system where gold plays a central role, altering the dynamics of international trade, investment, and monetary policy.

The Bottom Line

The record-setting gold purchases by central banks in 2024 highlight a growing consensus that the global fiat currency system is approaching its end.

As fears of a global currency reset mount, central banks are turning to gold to protect their economies. This trend suggests that gold will soon become the cornerstone of a new financial system, reshaping the global economic order in profound ways.

Supporting Article:

=======================================

© GCR Real-Time News

Visit the GCR Real-Time News website and search 100’s of articles here: Ai3D.blog

Join my Telegram Channel to comment and ask questions here: GCR_RealTimeNews

Follow me on Twitter: @Real_AwakeIn3D

 

Read More
Awake-In-3D, Economics Dinar Recaps 20 Awake-In-3D, Economics Dinar Recaps 20

Top 10 Reasons We’re Now Facing a Global Financial System Crash

Top 10 Reasons We’re Now Facing a Global Financial System Crash

On August 13, 2024  By Awake-In-3D

The evidence is clear—You won’t believe how close we are to the largest collapse in history We’re standing on the edge of an financial system crash, and may people don’t even realize it. Yet!

The signs are all around us—record government spending, mounting consumer debt, and major corporations hoarding cash like never before.

Even the world’s biggest economies, like the U.S., Japan, and Germany, are struggling to keep their heads above water.

Top 10 Reasons We’re Now Facing a Global Financial System Crash

On August 13, 2024  By Awake-In-3D

The evidence is clear—You won’t believe how close we are to the largest collapse in history

We’re standing on the edge of an financial system crash, and may people don’t even realize it. Yet!

The signs are all around us—record government spending, mounting consumer debt, and major corporations hoarding cash like never before.

Even the world’s biggest economies, like the U.S., Japan, and Germany, are struggling to keep their heads above water.

This article breaks down the top 10 reasons why we’re facing what could be the worst financial crash in history.

I’m going to walk you through what’s happening, why it’s happening, and what it means for all of us.

In This Article

  1. The Top 10 Reasons the Global Financial System Crash is on Our Doorstep

  2. Government Spending: The Core of this Financial System Crash

  3. Central Bank Policies Causing Unprecedented Market Distortions

  4. Consumer Financial Behavior as a Warning Sign of the Approaching Financial System Crash

  5. Global Economic Indicators Pointing to a Deepening Crisis

The global financial system is facing a financial system crash of unprecedented scale. With three of the five largest economies heading towards economic catastrophe, the risks are mounting.

The Top 10 Reasons the Global Financial System Crash is on Our Doorstep

Here’s a logical progression of the top 10 reasons we are in a global recession, followed by an economic depression and then the grand finale, a complete financial system crash:

  1. Unsustainable Government Spending: U.S. government spending as a percentage of GDP is nearing historic levels, creating a precarious fiscal situation.

  2. Skyrocketing Consumer Debt: U.S. credit card debt has reached record highs, with interest rates at unprecedented levels, mirroring unsustainable government financial practices.

  3. Distorted Central Bank Policies: The Bank of Japan’s excessive ownership of ETFs and government bonds has caused significant market distortions, leading to instability.

  4. Massive Insider Stock Sales: U.S. executives are selling off stocks at the fastest pace in over a decade, signaling a lack of confidence in the markets.

  5. Surging Cash Holdings by Corporations: Companies like Berkshire Hathaway are hoarding cash, indicating a lack of confidence in the economy and anticipation of a downturn.

  6. Persistent Manufacturing Recession: The U.S. manufacturing sector has been in recession for an extended period, signaling broader economic warning signs.

  7. Extended Recession in Major Economies: Germany has been in recession for over two years, reflecting broader global economic fragility.

  8. Declining Unemployment Claims Participation: A low percentage of unemployed Americans filing for benefits suggests the official data is understating the true level of economic distress.

  9. Long-term Devaluation of Fiat Currencies: The U.S. dollar and other major currencies have lost significant value against gold, indicating long-term economic instability.

  10. Rising Public and Household Debt: U.S. public and household debt levels have reached all-time highs, creating the potential for a systemic financial crisis.

Government Spending: The Core of this Financial System Crash

U.S. government spending has reached levels not seen since World War II. At 43% of GDP, it is just 1% below the peak during the Great Financial Crisis.

These unsustainable spending habits are breaking the economy, setting the stage for severe financial turmoil.

Japan faces its own challenges. The Bank of Japan’s extensive intervention in the economy, owning about 80% of the country’s ETFs and 55% of its government bonds, has caused significant market distortions.

The recent rate hikes by the Bank of Japan have already triggered a 12% drop in the Nikkei 225, underscoring the instability.

Central Bank Policies Causing Unprecedented Market Distortions

Central banks, particularly the Bank of Japan, have been heavily involved in the financial markets, creating artificial support that cannot be sustained indefinitely.

The consequences are now becoming apparent, with volatile markets and a loss of confidence among investors.

The Bank of Japan’s recent actions indicate that even the slightest change in policy can have dramatic effects, as seen with the substantial decline in the Nikkei 225.

Consumer Financial Behavior as a Warning Sign of the Approaching Financial System Crash

Consumer debt in the U.S. has skyrocketed, with credit card debt hitting a record $1.14 trillion in the second quarter of 2024. Interest rates have also reached an all-time high of 22.76%, mirroring the reckless financial practices of the government.

This growing debt burden is pushing consumers closer to financial collapse.

Corporate behavior is also flashing red warning signs. Berkshire Hathaway, one of the largest and most successful corporations, has increased its cash reserves to 25% of its total assets, the highest level since 2005.

This massive cash hoarding indicates a lack of confidence in the current economic environment and suggests that major corporations are bracing for a severe downturn.

Global Economic Indicators Pointing to a Deepening Crisis

Germany, one of the world’s largest economies, has been in recession for over two years, with its GDP contracting in five of the last nine quarters.

This prolonged economic decline signals a broader global economic fragility, which could trigger a domino effect across other major economies.

Insider stock sales in the U.S. have reached their highest levels in over a decade, particularly among executives in tech giants like Nvidia. This rapid sell-off indicates that those closest to the markets are preparing for a downturn, further fueling fears of an imminent crisis.

The long-term devaluation of fiat currencies, particularly the U.S. dollar, adds another layer of risk to the global financial system.

The U.S. dollar has lost 98.5% of its value against gold since 1971, with other major currencies like the Euro and Yen experiencing similar declines.

This loss of purchasing power is eroding trust in fiat currencies, pushing investors towards alternative assets.

The Bottom Line

The interconnected nature of global economies means that the problems facing the U.S., Japan, and Germany are not isolated.

With government spending spiraling out of control, distorted central bank policies, rising consumer and corporate debt, and prolonged recessions in major economies, the world is on the brink of an unprecedented financial crisis.

Contributing Articlehttps://www.businessinsider.com/recession-fears-fueling-stock-market-crash-wall-street-chaos-positive-2024-8?op=1

=======================================

© GCR Real-Time News

Visit the GCR Real-Time News website and search 100’s of articles here: Ai3D.blog

Join my Telegram Channel to comment and ask questions here: GCR_RealTimeNews

Follow me on Twitter: @Real_AwakeIn3D

Read More
Awake-In-3D, Economics Dinar Recaps 20 Awake-In-3D, Economics Dinar Recaps 20

Was Deep State Interference Exposed in Blocking Iraq’s Currency RV?

Was Deep State Interference Exposed in Blocking Iraq’s Currency RV?

On August 8, 2024  By Awake-In-3D

Recent leadership changes at Iraq’s Central Bank have raised suspicions of a hidden agenda. Could deep state operatives be behind the move to obstruct Iraq’s currency revaluation?

If you’re curious about what’s really going on with Iraq’s Central Bank, you’re not alone. Recent changes in leadership have sparked a lot of intriguing questions in my mind about Western (G7) deep state interference.

Mustafa Ghaleb Mukheef, the former Governor, has been replaced by Ali Mohsen Al-Alaq, but why? Some say it’s because of the Iraqi Dinar’s sharp decline, but there’s a deeper story here.

Was Deep State Interference Exposed in Blocking Iraq’s Currency RV?

On August 8, 2024  By Awake-In-3D

Recent leadership changes at Iraq’s Central Bank have raised suspicions of a hidden agenda. Could deep state operatives be behind the move to obstruct Iraq’s currency revaluation?

If you’re curious about what’s really going on with Iraq’s Central Bank, you’re not alone. Recent changes in leadership have sparked a lot of intriguing questions in my mind about Western (G7) deep state interference.

Mustafa Ghaleb Mukheef, the former Governor, has been replaced by Ali Mohsen Al-Alaq, but why? Some say it’s because of the Iraqi Dinar’s sharp decline, but there’s a deeper story here.

Mukheef might have been involved in a covert agenda by Western deep state operatives to block Iraq’s efforts to revalue its currency.

This article explains the allegations, the investigations, and what these events mean for the future of the IQD.

In This Article

  • Leadership Changes Amidst Depreciation of the IQD Currency Rate

  • Scrutiny of the New Acting Governor

  • Investigations and Allegations of Mismanagement

  • The Deeper Implications: Hidden Agendas

The sudden replacement of Mustafa Ghaleb Mukheef, the Governor of the Central Bank of Iraq (CBI), has raised eyebrows. Was this merely a response to the depreciating value of the Iraqi Dinar (IQD), or are there deeper, more sinister reasons at play?

Leadership Changes Amidst Depreciation of the IQD Currency Rate

The Iraqi Dinar has depreciated significantly, losing around 7% of its value in just two months.

Mukheef’s replacement, Ali Mohsen Al-Alaq, who previously held the position from 2014 to 2020, has returned as the “acting” governor.

The conflicting reports about Mukheef’s departure—whether a resignation or dismissal by Prime Minister Mohammed Shia al-Sudani—add to the intrigue.

The depreciation of the IQD currency rate alone doesn’t seem sufficient to explain such drastic leadership changes. Could there be more to Mukheef’s exit than meets the eye?

Scrutiny of the New Acting Governor

Al-Alaq’s extended interim appointment has not gone without scrutiny.

Hadi Al-Salami, a member of Iraq’s Integrity Committee, disclosed ongoing investigations into Al-Alaq’s tenure. According to Al-Salami, the Prime Minister was urged to terminate Al-Alaq’s appointment due to alleged violations.

Despite these calls, Al-Alaq remains in his position, raising questions about his true role and influence.

Investigations and Allegations of Mismanagement

The Integrity Committee has referred several issues to the Integrity Commission and the Public Prosecutor, including alleged mismanagement of exchange rates and financial irregularities.

Substantial sums of money and benefits have reportedly accrued to various Arab and foreign banks, sparking further investigation.

Additionally, Al-Salami revealed that the Acting Speaker of Parliament has agreed to host Al-Alaq in upcoming sessions to address numerous questions about his actions as governor.

Al-Alaq’s defense centers on his claims of effective management and forthcoming discussions with the Federal Reserve and the US Treasury Department.

The Deeper Implications: Hidden Agendas

Mukheef’s replacement may not simply be about the depreciation of the IQD currency rate.

There are suspicions that Mukheef could have been a Western (G7) deep state operative, deliberately stalling Iraq’s progress towards the Iraqi Dinar revaluation.

Soran Omar, a member of the Iraqi parliament’s Economic Committee, announced that Al-Alaq has reached retirement age and submitted his resignation to the Prime Minister.

However, Al-Alaq’s continued presence, despite reaching the legal retirement age, suggests powerful backing that defies standard procedures.

The Bottom Line

The leadership changes at the Central Bank of Iraq raise more questions than answers.

While the official narrative cites the depreciation of the IQD currency rate, the persistence of allegations, the unusual circumstances surrounding appointments, and the shadow of potential Western deep state influence suggest a more complex reality.

As Iraq faces critical decisions on the Iraqi Dinar revaluation, the true motivations behind these moves warrant closer examination.

=======================================

© GCR Real-Time News

Visit the GCR Real-Time News website and search 100’s of articles here: Ai3D.blog

Join my Telegram Channel to comment and ask questions here: GCR_RealTimeNews

Follow me on Twitter: @Real_AwakeIn3D

Read More
Awake-In-3D, Economics Dinar Recaps 20 Awake-In-3D, Economics Dinar Recaps 20

Inside Zimbabwe’s New Plan to Replace US Dollar with Gold

Inside Zimbabwe’s New Plan to Replace US Dollar with Gold

On August 7, 2024  By Awake-In-3D

The key strategies behind Zimbabwe’s transition to the gold-backed ZiG currency, de-dollarization and what it means for the future.

What This Means in Simple Terms Zimbabwe is trying to stop using US dollars and start using a new gold-backed currency called ZiG. The government has made a plan for this change, but it’s not easy.

Inside Zimbabwe’s New Plan to Replace US Dollar with Gold

On August 7, 2024  By Awake-In-3D

The key strategies behind Zimbabwe’s transition to the gold-backed ZiG currency, de-dollarization and what it means for the future.

What This Means in Simple Terms

Zimbabwe is trying to stop using US dollars and start using a new gold-backed currency called ZiG. The government has made a plan for this change, but it’s not easy.

The ZiG is doing well so far, staying stable against other currencies. More people are using it, but many are still unsure because past local currencies didn’t work out. The government is working hard to make sure people trust and use the ZiG.

This change is part of Zimbabwe’s effort to control its own economy better and reduce dependence on the US dollar. The success of this plan will depend on continued government support and building public trust in the new currency.

The Government’s Dedollarization Roadmap

Zimbabwe’s cabinet recently approved a roadmap to phase out the US dollar in favor of the ZiG.

Information Minister Jenfan Muswere announced that a plan to operationalize the ZiG as legal tender is now in place, marking a significant step toward economic independence.

This transition is supported by penalties for unjust price hikes and manipulation, ranging from $200 to $5,000, aimed at reinforcing the currency’s use.

Stability of the ZiG Amid Economic Challenges

Since its launch in April 2024, the ZiG has maintained its stability against major currencies, including the US dollar.

Trading at 13.76 against the US dollar, the ZiG demonstrates resilience despite Zimbabwe’s complex economic environment.

The currency’s gold backing, initially set at $100 million and 2.5 tons of gold, has grown to over $375 million, reinforcing its value.

The US dollar, meanwhile, has seen fluctuations, with the dollar index (DXY) experiencing significant drops due to economic uncertainties in the US.

Growing Usage and Trust Issues

The use of the ZiG has more than doubled since its introduction, now accounting for about 30% of all transactions in Zimbabwe.

However, widespread acceptance remains a challenge. Many Zimbabweans, having experienced the failure of previous local currencies, are cautious. The government is addressing these concerns by increasing penalties for price manipulation and unfair trade practices to bolster confidence in the ZiG.

Despite these efforts, the transition is slow as the US dollar still dominates the market.

Economic Impacts and Future Prospects

Zimbabwe’s move to the ZiG aims to achieve economic sovereignty, but the country faces significant hurdles.

The ongoing El-Nino-induced drought has strained resources, and key exports like tobacco and platinum have seen declining prices. Despite these challenges, the government’s commitment to the ZiG demonstrates a clear, long-term vision for economic stability.

The ability of the ZiG to maintain its value will depend on the government’s continued support and effective management of the currency.

Contributing Sources:

=======================================

© GCR Real-Time News

Visit the GCR Real-Time News website and search 100’s of articles here: Ai3D.blog

Join my Telegram Channel to comment and ask questions here: GCR_RealTimeNews

Follow me on Twitter: @Real_AwakeIn3D

Read More
Awake-In-3D, Economics Dinar Recaps 20 Awake-In-3D, Economics Dinar Recaps 20

The Financial System Crisis Unfolding Now is Different and Way Worse

The Financial System Crisis Unfolding Now is Different and Way Worse

On August 6, 2024  By Awake-In-3D

The Current Financial System Crisis is more severe than 2008. Here’s what is coming and why.

I want to have a candid conversation with you today about something incredibly important. Many of us remember the financial system crisis of 2008 and the global turmoil it caused.

Now, we’re facing a situation that’s not only different but potentially much worse.

The global financial system is on the brink of a crisis that could see the collapse of the US dollar, something we’ve never experienced before.

The Financial System Crisis Unfolding Now is Different and Way Worse

On August 6, 2024  By Awake-In-3D

The Current Financial System Crisis is more severe than 2008. Here’s what is coming and why.

I want to have a candid conversation with you today about something incredibly important. Many of us remember the financial system crisis of 2008 and the global turmoil it caused.

Now, we’re facing a situation that’s not only different but potentially much worse.

The global financial system is on the brink of a crisis that could see the collapse of the US dollar, something we’ve never experienced before.

This isn’t just another recession; it’s an oncoming catastrophe that will change everything.

In This Article:

  • The Collapse of the Dollar: A Unique Catastrophe

  • Historical Comparisons: The 2008 GFC vs. Now

  • Key Factors Driving the Current Crisis

  • Preparing for an Unprecedented Financial Collapse

What we are now coming into is not just another recession.

What’s coming is the potential collapse of the dollar, an event that dwarfs the 2008 Global Financial System Crisis (GFC). The ramifications of such a collapse are unprecedented, threatening to plunge the global economy into chaos.

We should all hope that an alternative, gold-backed currency system is in place before this happens.

The Collapse of the Dollar: A Unique Catastrophe

Unlike past financial crises, this one involves the potential collapse of the US dollar, the world’s reserve currency. Such an event has never been experienced before.

The dollar’s collapse would lead to widespread economic instability, making the crisis far more severe than anything seen in recent history.

Historical Comparisons: The 2008 Global Financial Crisis vs. Now

The 2008 GFC was triggered by the collapse of the housing market and the failure of financial institutions.

In response, the Federal Reserve injected liquidity into the banking system, which temporarily stabilized the economy.

However, the measures taken back then have led to long-term consequences, such as inflated asset prices and increased national debts to historic levels, setting the stage for a more catastrophic crisis now.

Key Factors Driving the Financial System Crisis We’re Entering Now

The current financial system is teetering on the edge due to several critical factors:

1. Excessive Liquidity and Debt: The continuous injection of liquidity and low-interest rates since 2008 have led to unsustainable levels of debt. This “hallucinated capital” has created a massive bubble that is now on the verge of bursting.

2. Loss of Faith in the Dollar: With increasing global instability, there is a growing loss of confidence in the dollar. As soon as an alternative, more stable gold-backed currency emerges, the dollar could collapse, triggering widespread financial chaos.

3. Unprecedented Economic Shocks: Events such as government responses to COVID-19 and geopolitical tensions have strained the global economy. The repo market spasm in 2019 highlighted the fragility of the financial system, which was only exacerbated by the 2020 eoncomic shutdown and unfunded public stimulus programs.

4. Systemic Failures: The unprecedented, interconnected nature of the global financial system means that failures in one area will quickly spread, leading to a domino effect of collapsing markets and institutions.

Preparing for an Unprecedented Financial Collapse

As the great, global fiat financial system experiment reaches its logical conclusion, it’s critical to understand the gravity of the situation and take steps to prepare.

Unlike the 2008 GFC, the tools and tricks used by the almighty FED to stabilize the economy are now exhausted.

The focus should be on securing tangible assets that retain value, such as gold and silver, and preparing for the potential shutdown of banks and financial institutions.

The collapse of the dollar will lead to an epic revaluation of assets, with many losing significant value. This time, the so-called authorities are out of tricks and out of fake money.

Emergency interest rate cuts and liquidity injections won’t change the fundamental issues at play.

The Bottom Line

The financial crisis unfolding now is fundamentally different and much worse than the 2008 Global Financial Crisis.

The collapse of the dollar, driven by unsustainable debt, loss of confidence, and systemic failures, will have unprecedented global repercussions. Preparing for this collapse involves understanding the gravity of the situation, securing tangible assets, and bracing for widespread economic turmoil.

The wait is over, and the reality of a collapsing financial system is here.

=======================================

© GCR Real-Time News

Visit the GCR Real-Time News website and search 100’s of articles here: Ai3D.blog

Join my Telegram Channel to comment and ask questions here: GCR_RealTimeNews

Follow me on Twitter: @Real_AwakeIn3D

Read More
Awake-In-3D, Economics Dinar Recaps 20 Awake-In-3D, Economics Dinar Recaps 20

Has it Begun? Three Phases Now Lead to the Final Fiat Currency System Apocalypse

Has it Begun? Three Phases Now Lead to the Final Fiat Currency System Apocalypse

On August 5, 2024   By Awake-In-3D

Is the financial system crash upon us? Here’s what you need to know about the potential collapse of the fiat currency system apocalypse.

The global financial system today is showing signs of severe distress. But is it the beginning of global currency system apocalypse?

Has it Begun? Three Phases Now Lead to the Final Fiat Currency System Apocalypse

On August 5, 2024   By Awake-In-3D

Is the financial system crash upon us? Here’s what you need to know about the potential collapse of the fiat currency system apocalypse.

The global financial system today is showing signs of severe distress. But is it the beginning of global currency system apocalypse?

This Time, It Could Be Far Worse

Unlike the 2008 crisis, this time, the underlying issues are far deeper, and the usual remedies may not work.

Today’s alarming events may just be the beginning and the Federal Reserve’s usual tactics of cutting interest rates and pumping money into the financial economy might not be enough to save the Great Global Fiat Currency Debt System Experiment.

In This Article

  • Market Downturn and Margin Calls

  • Bear Market and Flight to Safety

  • Federal Reserve Intervention and Quantitative Easing

  • The Bottom Line

The current global financial situation is precarious. While today’s events were not disastrous, they signal potential future dangers.

The fundamental weaknesses from the 2008 financial crisis were never properly fixed, only temporarily covered up.

So let’s take a look at the three phases that could certainly lead to a final global currency system apocalypse.

1) Market Downturn and Margin Calls

A sudden and significant drop in global markets can trigger Margin Calls.

A Margin Call is a demand from a broker for an investor to deposit more money or securities to cover potential losses.

When this happens, large investment firms and hedge funds often sell assets like gold to cover their losses, which drives down the price of gold during market crashes.

For example, if the stock market plummets, investors who borrowed money to buy stocks (using leverage) must quickly provide additional funds or sell their assets to meet the broker’s requirements.

This forced selling can create a downward spiral, where falling asset prices lead to more Margin Calls and further selling, exacerbating the market downturn.

2) Bear Market and Flight to Safety

Continued sell-offs can lead to a Bear Market, which is a prolonged period where investment prices fall significantly, typically 20% or more from recent highs.

During a Bear Market, investors look for safer places to put their money. This rush to safety causes the prices of gold, the US dollar, long-term US Treasury bonds, and even Bitcoin to rise, as these are seen as safe investments.

A Bear Market reflects widespread pessimism and negative investor sentiment, where people expect prices to keep falling.

In such times, they often shift their investments to assets that are considered more stable and less risky. Gold is traditionally viewed as a safe haven because it maintains value better than most assets during economic downturns.

Similarly, the US dollar and US Treasury bonds are seen as secure because they are backed by the US government. Recently, Bitcoin has also been perceived as a hedge against traditional financial instability.

3) Federal Reserve Intervention (Bringers of the Currency System Apocalypse)

If the markets keep falling, the Federal Reserve (the central bank of the United States) may step in.

They will cut interest rates and use Quantitative Easing (QE), which means buying long-term securities to inject money into the economy and encourage lending and investment.

However, this can lead to the debasement of fiat currencies (making money less valuable) and eventually freeze credit markets, where businesses borrow money.

During the 2008 financial crisis, the Federal Reserve used massive QE to stabilize the economy. By purchasing large amounts of government bonds and mortgage-backed securities, the Fed increased the money supply, making it cheaper to borrow money.

While this helped to avert a deeper recession, it also set a precedent for relying on QE during crises. In today’s context, the effectiveness of QE is uncertain.

Further QE could lead to fast-rising inflation and erode the value of currencies. If banks, businesses and consumers lose additional confidence in the financial system, they might hoard cash instead of spending or lending, potentially leading to a freeze in the credit markets. It won’t take much.

The Bottom Line

Today’s financial troubles might be early warnings of a much larger crisis. The three phases—Market Downturn and Margin Calls, Bear Market and Flight to Safety, and Federal Reserve Intervention and Quantitative Easing—could lead to the collapse of the fiat financial system. It’s vital to stay aware and ready as these uncertain times unfold.

=======================================

© GCR Real-Time News

Visit the GCR Real-Time News website and search 100’s of articles here: Ai3D.blog

Join my Telegram Channel to comment and ask questions here: GCR_RealTimeNews

Follow me on Twitter: @Real_AwakeIn3D

Read More
Awake-In-3D, Economics Dinar Recaps 20 Awake-In-3D, Economics Dinar Recaps 20

Global Financial Contagion Now Unleashed as Japan’s Yen Crisis Erupts

Global Financial Contagion Now Unleashed as Japan’s Yen Crisis Erupts

On August 4, 2024  By Awake-In-3D

The Devastating Impact of Japan’s Economic Sickness on the Global Fiat Financial System

This weekend, the world has been waking up to headlines declaring global financial markets in chaos. Not due to any specific local issue, but triggered by a seismic economic upheaval in Japan.

This isn’t a hypothetical scenario; it’s happening now.

Global Financial Contagion Now Unleashed as Japan’s Yen Crisis Erupts

On August 4, 2024  By Awake-In-3D

The Devastating Impact of Japan’s Economic Sickness on the Global Fiat Financial System

This weekend, the world has been waking up to headlines declaring global financial markets in chaos. Not due to any specific local issue, but triggered by a seismic economic upheaval in Japan.

This isn’t a hypothetical scenario; it’s happening now.

In This Article

  1. What Makes Fiat Currencies So Fragile?

  2. Why Is Japan’s Economic Situation a Global Concern?

  3. How Are Global Markets Reacting to Japan’s Yen Crisis?

  4. What Does This Global Market Contagion Look Like?

  5. What Can We Learn from Japan’s Financial Catastrophe?

The foundation of our global financial system—fiat currencies, which derive their value from government assurances rather than tangible assets like gold—is showing its cracks.

Today, Japan’s catastrophic financial and economic situation is acting as a viral contagion, spreading instability and panic throughout the global fiat financial system. This isn’t just an isolated problem confined to Japanese borders.

The ripple effects are wreaking havoc worldwide, exposing the weakest link in our globally interconnected financial framework.

The message is clear: trust in government-backed FIAT currencies is dangerously misplaced.

As Japan’s crisis deepens, it serves as a clear warning that the foundations of our FIAT financial system are growing progressively more fragile and progressing to the point of collapse.

The global financial system, long upheld by fiat currencies, is now teetering on the brink of a crisis. Japan’s recent economic turmoil is exposing the fragile underpinnings of currencies not backed by tangible assets like gold.

What Makes Fiat Currencies So Fragile?

Fiat currencies rely solely on government trust rather than tangible assets. For decades, this system has functioned based on the perceived stability and reliability of governmental policies. However, the recent upheaval in Japan reveals how quickly this trust can disintegrate.

The yen’s sharp appreciation against the dollar—rising around 8% over the last month to 148.84 yen per dollar—highlights the deeper issues within Japan’s economy and its monetary policy, questioning the stability of fiat currencies worldwide.

Why Is Japan’s Economic Situation a Global Concern?

Japan’s decision to raise interest rates for only the second time in 17 years signifies a significant departure from its previous monetary easing policies. This shift has triggered a rapid rise in the yen, sending shockwaves through global markets.

The collapse of the carry trade, where investors borrow in yen at low interest rates to invest in higher-yielding assets, is causing widespread financial disruption. The yen’s surge is forcing massive sell-offs in U.S. equities, leading to a broad market slump.

How Are Global Markets Reacting to Japan’s Yen Crisis?

The yen’s appreciation and the subsequent sell-off of U.S. stocks illustrate the interconnectedness of global financial systems. As Japanese investors repatriate their capital, the impact is felt worldwide. This has led to significant declines in stock markets from the U.S. to Europe.

This downturn, exacerbated by weak U.S. manufacturing data and employment indicators, highlights just how a crisis in one country can ripple across the globe, affecting economies far beyond Japan.

What Does This Global Market Contagion Look Like?

The sudden and rapid appreciation of the yen and subsequent market sell-offs have led to widespread volatility and losses across major indices in Asia, the Pacific region, Europe and North America.

Here’s a snapshot of global market sell-offs in the last two trading days (August 1st and 2nd, 2024):

Austral-Asia Markets

  • Japan (Nikkei 225): Combined decline of 5.73%

  • China (Shanghai Composite Index): Combined decline of 1.40%

  • Singapore (STI Index): Combined decline of 2.15%

  • Australia (S&P/ASX 200 Index): Combined decline of 2.11%

European Markets

  • STOXX Europe 600 Index: Declined 1.2%

  • Germany’s DAX: Dropped 2.3%

  • France’s CAC 40: Fell 2.1%

  • UK’s FTSE 100: Shed 2.31%

U.S. Markets

  • Dow Jones Industrial Average: Decline of 2.71%

  • S&P 500 Index: Decreased 3.26%

  • Nasdaq Composite: Shedding 4.67%

What Can We Learn from Japan’s Financial Catastrophe?

Japan’s yen crisis serves as a stark reminder of the vulnerabilities within the global fiat currency system. The recent turmoil demonstrates the need to question our reliance on government-backed currencies and consider the potential benefits of assets backed by tangible resources like gold.

The era of unquestioned faith in fiat currencies may be coming to an end.

The Bottom Line

Japan’s yen crisis is a dire warning about the fragility of the global fiat currency system. As trust in government-backed currencies wavers, the interconnected nature of global markets becomes increasingly evident.

The stability of our financial future depends on acknowledging these vulnerabilities and taking proactive steps to mitigate risks. The era of blind trust in fiat currencies must give way to a more cautious and strategic approach to safeguarding our economic well-being.

Contributing Sources:

=======================================

© GCR Real-Time News

Visit the GCR Real-Time News website and search 100’s of articles here: Ai3D.blog

Join my Telegram Channel to comment and ask questions here: GCR_RealTimeNews

Follow me on Twitter: @Real_AwakeIn3D

Read More