How Deleting Three Zeros Will Change the Iraqi Dinar: Awake-In-3D

How Deleting Three Zeros Will Change the Iraqi Dinar

On May 20, 2024 By Awake-In-3D

The critical differences between currency re-denominations and exchange rate purchasing power explained.

In This Article

• Introduction to Currency Re-Denominations

• IQD: Practical Examples and Misconceptions

• The Impact on Salaries and Real-Life Scenarios

• Kuwaiti Dinar: Understanding Currency Exchange Rates and Purchasing Power

Currency re-denominations and exchange rate purchasing power are essential concepts to clearly understand in a global financial system.

They influence how money is valued and used in different economies.

Introduction to Currency Re-Denominations

Currency re-denomination involves changing the face value of a country’s currency by removing zeros from the notes. They are not rare.

Romania, for instance, re-denominated their currency in 2005 by deleting five zeros. Both the old and new notes remained in circulation together.

Romania deleted five zeros from their currency in 2005

This process does not alter the currency’s actual purchasing power. It is typically undertaken to simplify transactions and accounting.

Practical Examples and Misconceptions

Example: Iraq

Consider Iraq, where a 1,000 IQD note currently buys a single loaf of bread.

If Iraq re-denominates its currency by removing three zeros, the new note would be a 1 IQD note. Despite this change, the new 1 IQD note would still buy the same loaf of bread.

The purchasing power remains unchanged because the value of the currency relative to goods and services stays the same.

Common Misconceptions

Some people believe that removing zeros from a currency increases its purchasing power.

For example, they might think that the new 1 IQD note would buy 1,000 loaves of bread instead of one. This misconception ignores the fundamental principle that re-denomination is merely a cosmetic change.

The actual value of the currency, and what it can buy, does not increase.

The Impact on Salaries and Real-Life Scenarios

To further clarify, let’s consider a salary scenario.

If an individual in Iraq earns 100,000 IQD per month, a re-denomination removing three zeros would change their salary to 100 IQD per month.

The new 100 IQD salary would still have the same purchasing power as the old 100,000 IQD salary, allowing them to buy the same amount of goods and services.

Historical Context: Zimbabwe

Zimbabwe’s experience with re-denomination provides a similar example in reverse.

During periods of hyperinflation, Zimbabwe repeatedly added zeros to its currency, creating notes worth trillions of ZIM.

Zimbabwe 2008 100 Trillion note.

However, these new notes did not buy more than the previous billion ZIM notes, illustrating that re-denominations do not enhance purchasing power.

Understanding Currency Exchange Rates and Purchasing Power in Kuwaiti Dinar (KWD)

Determining a currency’s purchasing power relative to other currencies involves complex calculations, especially with fiat currencies.

For example, Kuwait’s dinar (KWD) has the highest exchange rate against the US dollar. However, this does not mean that the average Kuwaiti has higher international purchasing power than the average American.

Salaries in Kuwait are lower in KWD terms, reflecting the exchange rate’s impact.

Example: Moving from the USA to Kuwait

If someone earning $100,000 per year in the USA moves to Kuwait for work reasons, they cannot expect to earn 100,000 KWD per year.

This would be equivalent to earning $260,000 per year instead of the previous $100,000/year.

It would be great for the person moving to Kuwait, yet it is a completely unrealistic scenario.

Instead, their salary in Kuwait would be adjusted to match the KWD/USD exchange rate, likely around 38,000 KWD per year at current rates.

This ensures that their salary purchasing power remains reasonably consistent across currencies.

The Bottom Line

Currency re-denominations and exchange rates are vital in understanding how money functions globally.

Re-denomination changes the face value of money but not its purchasing power.

Similarly, exchange rates impact how much goods and services can be bought in different currencies.

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VND Update: U.S. Trade Upgrade Promises Stronger Exchange Rate

VND Update: U.S. Trade Upgrade Promises Stronger Exchange Rate

On May 18, 2024
By Awake-In-3D

New Market Economy Status Could Transform Economic and Trade Relations

In This Article:

1. Overview of the U.S. Department of Commerce Review

2. Advocates’ Arguments for Vietnam’s Market Economy Status

3. Concerns from U.S. Industries

4. Broader Economic and Geopolitical Implications

The United States is considering a significant economic move for upgrading Vietnam from a non-market economy (NME) to a market economy.

This change seeks to end high anti-dumping and countervailing duties on Vietnamese imports, while boosting Vietnam’s economy and its struggling VND currency exchange rate with the US Dollar.

Overview of the U.S. Department of Commerce Review

The U.S. Department of Commerce is set to complete its review of Vietnam’s economic status by late July 2024.

Currently, Vietnam is among 12 countries designated as NMEs, subjecting its goods to higher duties. Proponents argue that Vietnam has made substantial progress in currency convertibility, labor rights, and openness to foreign investment, qualifying it for an upgrade.

Advocates’ Arguments for Vietnam’s Market Economy Status

Vietnam’s Ministry of Industry and Trade (MOIT) and other proponents highlight several key improvements.

They point to enhanced currency convertibility, improved labor rights, and increased openness to foreign investments.

Major investors such as Samsung, Intel, and Nike have significantly contributed to Vietnam’s economic landscape, demonstrating confidence in its market reforms.

Concerns from U.S. Industries

Opponents, including U.S. steelmakers and agricultural groups like the Southern Shrimp Alliance, express concerns about potential negative impacts on American industries.

They argue that ongoing state intervention and unfair trade practices in Vietnam could harm U.S. businesses.

The decision also faces scrutiny from U.S. domestic politics, particularly in swing states like Pennsylvania, where the impact on local industries is a critical consideration.

Broader Economic and Geopolitical Implications

Changing Vietnam’s status holds broader implications beyond trade.

Economically, it would strengthen the VND and enhance Vietnam’s position in the global market. Geopolitically, it could counterbalance China’s influence in the region, fostering closer U.S.-Vietnam economic relations.

The potential upgrade also reflects Vietnam’s infrastructural and business reforms, offering growth prospects for U.S. firms and increasing foreign direct investment, which rose to $3.5 billion in 2022.

The Bottom Line

The potential upgrade of Vietnam’s economic status by the U.S. Department of Commerce could significantly impact trade relations and strengthen the Vietnamese dong.

The decision, expected by late July 2024, will play a crucial role in shaping the future of U.S.-Vietnam economic and geopolitical dynamics.

Supporting article: Vietnam Briefing MAY 9th 2024

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How Gold Could RV To $27,374 Against The Fiat Dollar: Awake-In-3D

How Gold Could RV To $27,374 Against The Fiat Dollar

On May 19, 2024   By Awake-In-3D

Understanding the Revaluation of Gold in the Face of Fiat Currency Debt Implosion and Gold-Backing the US Dollar

In This Article:

• Gold’s Path to $27,000

• The Underlying Analysis: Why Gold Could Surge

• Historical Precedents and Lessons

• The Supply and Demand Dynamics

• Doing the Math

The intrinsic value of gold is set to revalue significantly against the fiat currency system, particularly the US Dollar.

As global economic uncertainties rise, gold’s stability offers the only safe haven.

Here’s why one globally recognized financial expert believes that gold would exceed $27,000 per ounce in the near future.

Gold’s Path to $27,000

A rather straight forward and simple analysis now indicates that gold might surpass $27,000.

This forecast isn’t speculative but grounded in historical data and economic models.

While no forecast guarantees certainty, the tools and methodologies applied here have proven accurate across various contexts.

The Underlying Analysis: Why Gold Could Surge

The analysis starts with a crucial question: What’s the implied non-deflationary price of gold under a new gold standard?

Central bankers currently control fiat currencies and have little interest in a gold standard. However, should confidence in fiat currencies collapse due to factors like excessive money creation, Bitcoin competition, or a new financial crisis, a return to gold will become necessary.

Under such a scenario, determining the proper price for gold becomes essential to maintain economic equilibrium.

Historical Precedents and Lessons

Historical events provide valuable lessons. The UK’s return to the gold standard at an unrealistic price in 1925 led to an early entry into the Great Depression.

Conversely, the US devalued the dollar against gold in 1933, spurring commodity price rises and aiding economic recovery.

The key policy goal is to find the “just right” price to balance gold and dollars, something the US is well-positioned to achieve with its substantial gold reserves.

The Supply and Demand Dynamics

The supply side of gold shows a significant decline in new mining output.

Despite rising gold prices, US mine production has decreased by 28% over seven years.

This trend suggests that while output could potentially expand, current conditions support higher prices.

On the demand side, central banks, ETFs, hedge funds, and individual purchases drive demand. Notably, central bank gold demand has surged by 1,000% from 2010 to 2022, with no signs of slowing down in 2024.

This scenario of flat supply and rising demand supports the forecast of higher gold prices.

The Bottom Line

The revaluation of gold against the US Dollar is not just a possibility but a plausible outcome based on rigorous analysis.

As economic conditions fluctuate and confidence in fiat currencies potentially wanes, gold stands to gain significantly.

The recent discussion that BRICS is creating a new currency based on 40% gold-backing, the math for the same gold-backing of the US Dollar.

Doing the math for gold reaching $27,374 per ounce

1. Current M1 Money Supply: The U.S. M1 money supply today is $17.9 trillion.

2. Gold Backing Ratio: Assume a 40% gold backing for the money supply (historical precedent from 1913–1946).

3. Gold Required for 40% Coverage: Calculate 40% of $17.9 trillion, which equals $7.16 trillion.

4. Total U.S. Gold Reserves: The U.S. Treasury holds 261.5 million troy ounces of gold.

5. Implied Gold Price Calculation: Divide the required gold value by the total gold reserves: $7.16 trillion divided by 261.5 million troy ounces equals approximately $27,374 per troy ounce.

Thus, based on these calculations, the implied non-deflationary equilibrium price of gold under a new gold standard could exceed $27,000 per ounce.

Supporting article: https://dailyreckoning.com/27000-gold/

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What is The Unit? BRICS Unveils Its Grand Plan for a New Gold-Backed Financial System

What is The Unit? BRICS Unveils Its Grand Plan for a New Gold-Backed Financial System

On May 17, 2024 By Awake-In-3D

The Unit’s structure, anchored in gold and BRICS+ currencies, provides for de-dollarization, along with a stable and decentralized monetary framework.

In This Article:

1. Introduction to the BRICS+ Unit

2. Addressing Global Financial and Payment Issues

3. Economic and Political Benefits

4. Technological Features and Adoption Prospects

In 2024, the global financial landscape is poised for a significant transformation with the introduction of a groundbreaking concept: it’s called the Unit.

A boring and unremarkable name, but it makes total sense and it’s financial implications will be profound.

Proposed by the financial services and investments working group of the BRICS+ Business Council, the Unit aims to establish a decentralized monetary ecosystem.

Expected to become official BRICS+ policy by 2025, the Unit seeks to address critical geoeconomic issues, particularly the global crisis of trust in existing monetary frameworks.

Introduction to the BRICS+ Unit

The Unit, conceptualized by Alexey Subbotin, founder of Arkhangelsk Capital Management, is designed to tackle the inherent flaws of centralized monetary systems established over 80 years ago at Bretton Woods.

This financial sovereignty is particularly appealing to countries seeking an alternative to the current centralized, dollar-based systems.

These flaws include chronic deficits, speculative bubbles, politically motivated sanctions, and a lack of fair arbitration.

The Unit proposes a reliable, quick, and economically efficient solution for cross-border payments, functioning as a new form of international currency issued in a decentralized manner and regulated at the national level.

Addressing Global Financial and Payment Issues

The current global financial system faces numerous challenges, including speculative bubbles and politically motivated sanctions.

The Unit aims to address these issues by providing a decentralized monetary framework that is both reliable and efficient for cross-border payments.

By doing so, it tackles the root problems of chronic deficits and lack of fair arbitration, offering a solution that can restore trust in the global financial system.

Economic and Political Benefits

The Unit offers numerous benefits, particularly for the Global Majority, by providing a form of apolitical money. It aims to harmonize trade and financial flows, maintaining independence from political pressures.

This financial sovereignty is particularly appealing to countries seeking an alternative to the current centralized systems. The Unit’s structure, anchored in gold (40%) and BRICS+ currencies (60%), provides a stable and trustworthy monetary framework.

Technological Features and Adoption Prospects

Technologically, the Unit is designed to be compatible with both traditional banking operations and the newest forms of digital banking.

It aims to upend unfair pricing in commodity trading by establishing the Eurasian Mercantile Exchange, where trading and settlement can be conducted in this new currency.

This approach facilitates the development of new financial products for foreign direct investment (FDI), bridging trade flows and capital.

The Unit employs distributed ledger technology to ensure transparency and prevent capital controls or exchange rate manipulation.

This technology allows connections to all open decentralized exchanges (DEX) and digital platforms operated by both commercial and central banks worldwide.

The end goal is for everyone to use the Unit for accounting, bookkeeping, pricing, settling, paying, saving, and investing.

Implementation Timeline and Adoption Prospects

The BRICS Business Council has already backed the Unit, and it is on the agenda for the upcoming ministerial meeting in Russia.

The roadmap for its adoption will be discussed at the BRICS+ summit in October 2024 in Kazan.

With the potential for implementation as early as 2025, the Unit presents a feasible technical solution for creating a globally recognized payment and trade system immune to political pressure.

The Bottom Line

The Unit represents a groundbreaking approach to addressing the shortcomings of current centralized monetary systems.

By offering a decentralized, apolitical currency, it promises economic and political benefits for the Global Majority. Its technological innovations and potential for wide-scale adoption position it as a key player in the future of global finance.

Stay tuned! More articles on all of this, and what it means are coming soon.

Supporting article: The coming of a BRICS decentralized monetary system.

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The New Gold Standard: Why Gold and Silver are Winning Over Fiat Currencies: Awake-In 3D

The New Gold Standard: Why Gold and Silver are Winning Over Fiat Currencies

On May 14, 2024   By Awake-In-3D

As economic instability looms, precious metals like gold and silver present a promising refuge against fiat currency devaluation.

In This Article:

• Historic Surge in Precious Metals

• Shifts in Monetary Policy and Interest Rates

• Implications of U.S. Economic Policies

• Financial Risks and Negative Trends Driving Gold and Silver Higher

• Future Projections for Gold and Silver

It isn’t rocket science to understand that, in today’s increasingly volatile economic landscape, the value of gold and silver relative to global fiat currencies has significantly intensified. This trend will continue, if not accelerate, from here on out.

Since October 2023, these precious metals have seen dramatic increases in value, contrasting sharply with the unstable trajectory of fiat currencies.

This article explains the enduring appeal of gold and silver as robust investments, particularly as economic indicators suggest a potential decline in the value of traditional currencies.

Historic Surge in Precious Metals

Gold’s value surged from just over $1,600 in October 2023 to a remarkable $2,300 recently.

Despite a decline in physical gold holdings by Gold Depositories, Gold Funds, and Gold ETFs, and a 96% drop in coin sales from major mints, the price of gold continues its upward trajectory.

This pattern underscores a significant shift as humanity increasingly views precious metals as a safe haven amidst economic uncertainty and fiat currency debasement.

Shifts in Monetary Policy and Interest Rates

The reversal of the U.S. interest rate trend in 2020 marked the beginning of a secular uptrend, with predictions of rates exceeding 10% due to inflation pressures from growing government deficits and debt worldwide.

This scenario places traditional monetary instruments under strain, particularly as central banks face challenges in controlling interest rates amid rampant government debt issuance.

The predicted end to rate cuts further complicates the financial landscape, enhancing the appeal of gold and silver as more stable store of value and purchasing power against falling fiat currency value.

Implications of U.S. Economic Policies

The U.S. economic outlook, likened to a Ponzi scheme, predicts grave financial instability.

With the Congressional Budget Office forecasting that interest costs will surpass defense spending by 2024, reaching $1.6 trillion annually, the U.S. financial situation appears increasingly precarious.

These developments not only threaten the nation’s status as a global power but also elevate the strategic importance of investing in precious metals.

Financial Risks and Negative Trends Driving Gold and Silver Higher

1. US Federal Debt: The current US Federal Debt is around $35 trillion, with projections indicating it could rise to $100 trillion by 2034.

2. Interest Rate Trends: Predictions suggest that interest rates could exceed 10% by 2036 or earlier, reminiscent of rates in the 1970s and early 1980s but with significantly higher debt levels.

3. US Treasury and Sovereign Debt Outlook: There’s an exponential increase in the issuance of US treasuries and most sovereign debts expected, with repayment options ranging from deferral to default.

4. Financial System Stability: US banks have reported unrealized losses on bonds totaling $650 billion, which could worsen with rising interest rates, indicating systemic financial instability.

5. US Treasuries and Sovereign Bonds: The attractiveness of US treasuries and other sovereign bonds is questioned, with a near-certainty of not recovering invested money due to significant devaluation and potential default scenarios.

Future Projections for Gold and Silver

Given the profound shifts in global economic policies, the outlook for precious metals remains highly optimistic.

Historical trends and the ongoing devaluation of fiat currencies suggest that gold and silver will continue to be essential components of investment portfolios.

Countries like Russia, with significant commodity reserves, are poised to recover more swiftly from global economic disruptions, indicating a broader move towards commodity-backed value storage, away from fiat currencies.

The Bottom Line

The case for gold and silver continues to be increasingly compelling.

Their ability to act as a hedge against inflation and currency devaluation, coupled with the growing economic instability and ineffective monetary policies, positions them as prudent choices for safeguarding wealth.

As traditional currency systems face unprecedented challenges, the intrinsic value of gold and silver shines brighter than ever, promising security in our increasingly uncertain future.

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Unprecedented: Gold and Dollar Rip Higher Simultaneously as Japan and China Hang in the Balance

Unprecedented: Gold and Dollar Rip Higher Simultaneously as Japan and China Hang in the Balance

On April 11, 2024   By Awake-In-3D

The Global Fiat System is Undoing Itself as the Japanese Yen and Chinese Yuan Hold a Delicate Financial Dance

Fiat currency inflation keeps rising.

Central Banks are losing control while telling us “everything is resilient and robust…”

In spite of rapidly increasing U.S. dollar strength against all major global currencies, gold and silver are defying gravity and all sense of normalcy.

Meanwhile, the Japanese Yen teeters on requiring massive intervention by the government and Bank of Japan.

China is dealing with its own Yuan FX peg management and self-inflicted real estate crisis.

China may have to dump their Japanese Yen reserves and sell off significant US debt treasuries to keep their economy afloat.

We’re not in Kansas any more my dear Dorothy

The Bank of Japan (BOJ) finds itself in an increasingly precarious position, caught in a financial maelstrom of its own making.

Japan’s debt-to-GDP ratio has soared to a staggering 260%, with the central bank holding 70+ percent majority of this government debt.

This situation has placed the Japanese economy on a razor’s edge, balancing between sustaining its import trade costs and managing national inflation, all the while battling a rapidly weakening yen.

The BOJ is faced with a daunting challenge: the only apparent solution to strengthen the yen – raising interest rates – could trigger a catastrophic default on its colossal debt load.

Such a move risks not only domestic financial stability but also has far-reaching implications for global markets.

Complicating matters further is Japan’s intricate economic interdependence with China.

As China confronts its own economic turmoil, notably a massive real estate sector default that threatens to undermine 40% of its GDP, the balance between the yen and the yuan becomes critically important.

If China were to liquidate its Japanese yen reserves in an effort to stabilize its real estate market, the consequences for Japan could be dire.

Such a scenario would not only precipitate a financial collapse in Japan but could also trigger a domino effect, potentially leading to widespread economic contagion affecting the United States and Europe.This all is sounding an alarm, suggesting that the current trajectory of these intertwined economies points towards a broader collapse of the fiat currency system.

This looming financial disaster, they caution, is not a matter of if, but when.

Central Banks are anxiously, hoping for a solution that can avert a catastrophic economic downturn.

Yet, the only path forward is a complete financial and currency reset.

The race to the fiat system collapse is not a sprint … it’s a marathon.

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Is the U.S. on the Verge of Adopting a Beneficial Financial System Reset? Awake-In-3D

Monetary Revolution: The Fed Considers Ditching Fiat Currency For Gold

On April 7, 2024   By Awake-In-3D

Is the U.S. on the Verge of Adopting a Beneficial Financial System Reset?

An unbelievable financial report was recently released outlining mathematically modeled scenarios for moving from Fiat to Gold financial systems.

I couldn’t believe my eyes when I read this Philadelphia Federal Reserve Bank’s February 2024 analysis and Working Paper.

The Fed, a principal overlord of modern fiat debt currency finance, is seriously contemplating a move that seems straight out of history books: bringing back a gold-backed currency for the United States and the global financial system.

How does an economy behave in a historical environment where gold is the international monetary standard? We find that key features of this monetary system are long-run price stability and the nonneutrality of money in the short run. The Philadelphia Federal Reserve Bank Working Paper. February 2024

This isn’t a drill or a speculative thought experiment.

Given the dire predictions for our current fiat currency system, which is not backed by physical commodities and is on a crash course toward certain failure, this old-school idea suddenly makes all the sense in the world.

About the Philadelphia FED’s Surprising Working Paper

In a groundbreaking analysis released by the Philadelphia Federal Reserve Bank in February 2024, a compelling case is made for a significant pivot in the United States’ monetary strategy: the return to a gold-backed currency system.

This detailed examination, rooted in meticulously crafted economic modeling and historical insights, raises critical questions about the sustainability of the current fiat currency system.

The Federal Reserve’s exploration into this territory is not merely an academic exercise but a profound indication of the serious considerations at play to avert a financial system collapse that everyone knows is “mathematically certain and inescapable.”

The study, while complex, digs deeply into the foundational principles of the gold standard, underlining how such a system historically ensured long-term price stability and economic equilibrium.

In essence, the gold standard acts as a self-regulating mechanism for the money supply, linking the issuance of currency directly to gold reserves. This link curtails the propensity for unchecked money printing, a critical flaw in fiat systems that often leads to inflation or worse, hyperinflation.

Understanding the Gold Standard

Allow me to break down what this all means.

The gold standard is a monetary system where a country’s currency has a direct link to gold. So, if you have paper money notes, you can exchange it for a certain amount of gold.

Historically, this system kept economies stable because it prevented governments from printing money willy-nilly, which can lead to inflation or even hyperinflation.

The Fed’s report points out that with a gold standard, we’d likely see a more stable long-term economy, with fewer sudden spikes or drops in prices.

Why This Matters Now

You might wonder, why consider this now? The Fed’s analysis shines a light on three big reasons:

1. Long-term Price Stability: Gold ties the hands of those who print money, ensuring that over time, prices don’t wildly fluctuate. Think of it as a financial thermostat that keeps the economy at a comfortable temperature.

2. Money That Means Something: Right now, if the economy starts to falter, the government can just decide to print more money. Under a gold standard, this wouldn’t be as easy. Money would have real value tied to something physical, and as a result, its impact on the economy would be more predictable and steady.

3. Protection from Economic Storms: The world economy is a complex web of trade and investment. The Fed believes that linking money to gold could act as a buffer against sudden shocks from abroad that can send our economy into a tailspin.

The Challenge Ahead

However, don’t think transitioning back to gold would be easy. It would require a delicate restructuring of international trade, balancing how much gold comes in and goes out of the country.

The Fed’s report is clear-eyed about these challenges. It talks about the need for careful policy planning and international cooperation to manage these complex dynamics effectively.

The very fact that the Fed is even considering this move is a wake-up call. It signals a profound concern about the sustainability of our current financial system.

This isn’t about looking backward with nostalgia. It’s suggests a forward-thinking strategy aimed at preventing a total economic collapse.

View the FED’s working papers in full here:

• https://www.philadelphiafed.org/the-economy/monetary-policy/price-level-determination-under-the-gold-standard

• https://www.philadelphiafed.org/the-economy/macroeconomics/a-model-of-the-gold-standard

• https://www.philadelphiafed.org/the-economy/macroeconomics/the-undoing-of-the-gold-standard

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The Great Fiat Currency Reset: Myth or Inevitable Reality? : Awake-In-3D

The Great Fiat Currency Reset: Myth or Inevitable Reality?

On April 1, 2024  By Awake-In-3D

The prospect of a “Fiat Currency Reset” stirs the pot of financial discourse, promising or threatening to redraw the very lines of our monetary system.

Over the past 15 years, global discussion and expectation of a “Fiat Currency Reset” has emerged as a phoenix rising from the ashes of economic uncertainty.

With central banks and governments worldwide losing control of inflation, currency devaluation, and mounting debts, the question of whether a reset is a mere myth or an inevitable future becomes increasingly pertinent.

The Genesis of the Debate

The idea of a fiat currency reset revolves around the comprehensive overhaul of the global monetary system, specifically the revaluation or devaluation of national currencies not backed by physical commodities.

Unlike the gold-standard era, today’s fiat currencies derive their value from government decree and public trust. However, this trust is under scrutiny as inflation rates soar and debts balloon to unsustainable levels.

Economic Indicators and Potential Triggers

A closer examination of economic indicators reveals troubling signs. Inflation rates in several major economies have reached heights unseen in decades, eroding purchasing power and igniting fears of stagflation. Concurrently, global debt, swelled by plandemic-related spending and expansive monetary policies, has reached a staggering $313 trillion, according to the Institute of International Finance.

Such conditions are ripe for speculation on a fiat currency reset. Historically, economic crises have prompted drastic monetary reforms, from the Bretton Woods Agreement to the Plaza Accord. Today’s triggers could range from a catastrophic debt default by a major economy to a sudden loss of confidence in a leading fiat currency.

Central Bank Policies: Fuel to the Fire?

Central banks find themselves at the epicenter of this debate. Their policies, particularly quantitative easing and low interest rates, have been double-edged swords. While stabilizing economies during downturns, these policies have also inflated asset bubbles and debt levels, raising questions about their long-term sustainability.

The advent of Central Bank Digital Currencies (CBDCs) adds another layer to the discussion. Proponents argue that CBDCs could offer more efficient payment systems and greater financial inclusion. However, critics fear they may grant governments unprecedented control over financial transactions, potentially paving the way for a fiat reset through digital means.

The Role of Gold and Devaluation Trends
Gold has traditionally been a barometer of financial health and a hedge against fiat currency devaluation. In times of economic turmoil, investors flock to gold, driving up its value as confidence in fiat currencies wanes. This dynamic underscores gold’s significant relevance in discussions about a fiat currency reset.

Moreover, currency devaluation trends highlight the vulnerability of fiat money. Countries engaging in competitive devaluation to boost export competitiveness inadvertently fuel a race to the bottom, undermining global financial stability and reinforcing the case for a reset.

Implications for Savings and Investments

For the average person, the prospect of a fiat currency reset holds great uncertainty. Savings and investments denominated in fiat currencies could face significant risks in the event of a reset, from devaluation to conversion into new monetary units. Financial experts advocate for diversified portfolios, including assets less susceptible to inflationary pressures and currency risks, such as precious metals, real estate, and cryptocurrencies.

Surviving a Fiat Currency Reset

Survival strategies in a fiat currency reset scenario emphasize financial prudence and diversification. A growing list of financial planners recommend building a reserve of physical assets, such as gold and silver, and exploring digital currencies as alternative stores of value. Additionally, staying informed about central bank policies and global economic trends is crucial for timely adjustments to financial strategies.

Conclusion: Navigating Uncharted Waters

The debate over a fiat currency reset encapsulates the broader challenges facing the global financial system. While a comprehensive reset remains unpredictable, the underlying economic pressures are undeniable.

In this era of government and central planner fiscal insanity, the prospect of a global fiat currency reset challenges us to rethink our assumptions about money, purchasing power value, and stability.

Whether or not a reset materializes the way we expect, the discussion it sparks is invaluable, pushing all of us to confront the realities of our fiat currency financial system experiment and consider the path forward with positivity, engagement, and courage.

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The New Gold Standard? Zimbabwe’s ZiG Currency and Its Quest for Economic Stability

The New Gold Standard? Zimbabwe’s ZiG Currency and Its Quest for Economic Stability

On April 5, 2024
By Awake-In-3D

Gold-Backed and Geared Up: Is ZiG the Solution to Zimbabwe’s Monetary Meltdown? Here’s a factual deep-dive into this revolutionary currency launch.

Zimbabwe’s latest maneuver in its long-standing battle against economic instability is nothing short of revolutionary.

The introduction of the Zimbabwe Gold (ZiG), a new gold-backed currency, marks a bold stride toward economic stabilization and away from decades of monetary turmoil.

As someone deeply entrenched in the analysis of currency and economic trends, I can’t help but view this development through a lens of cautious optimism and perhaps a dash of skepticism.

Here’s my deep-dive into the what, why, and how of new ZiG.

The Reserve Bank of Zimbabwe (RBZ), under the guidance of incoming governor John Mushayavanhu, has rolled out ZiG in various denominations, from the 1 ZiG note to the lofty 200 ZiG note, even including fractional values like a half and a quarter ZiG.

This initiative isn’t just a change of currency; it’s a strategic overhaul aiming to peg the nation’s monetary value (purchasing power) to something as universally valued as gold, alongside foreign currencies and precious minerals.

The Zimbabwean economy has been on a roller coaster of crises for the last 25 years, with the RTGS (Real Time Gross Settlement) currency plummeting in value and inflation rates reaching alarming highs.

The introduction of ZiG is a bid to anchor the economy on the stable and universally recognized value of gold, ensuring that the currency has tangible backing beyond mere government promises.

But how does the RBZ plan to implement this ambitious project?

Zimbabweans are given a mere 21-day window to exchange their old, inflation-ravaged notes for new ZiG currency, a tight time frame that underscores the urgency of the transition.

Moreover, the multi-currency system remains, allowing the ZiG to coexist with the US dollar, which notably accounts for 85% of transactions in Zimbabwe. This inclusivity of foreign currencies alongside the ZiG suggests a much more pragmatic approach to stabilizing the economy while retaining flexibility in transactions.

The crux of the matter, however, lies in whether the ZiG can truly lift Zimbabwe from its monetary and economic abyss.

The promise is there: a currency backed by gold and precious minerals offers a buffer against the hyperinflation that has historically plagued Zimbabwean currency.

Yet, history whispers warnings of past attempts that faltered despite initial optimism. The bond note, introduced with similar hopes, crashed as the government resorted to printing money recklessly.

Despite these cautionary tales, the strategic underpinnings of the ZiG – particularly its backing by a “composite basket of reserves” and its structured implementation through banking systems – present a glimmer of hope.

The insistence on a gold-backed currency, governed by tangible assets rather than the whims of printing presses, suggests a commitment to stability and value preservation.

The setting of the exchange rate for the Zimbabwe Gold (ZiG) currency at US$1 to 13.56 ZiG is a pivotal element in Zimbabwe’s latest attempt at economic reform.

It represents a calculated attempt to bridge the vast purchasing power differential between the beleaguered Zimbabwean dollar and the global benchmark of the US dollar, seeking to offer a semblance of stability and confidence in the new currency.

This strategic peg against the US dollar is intended to ground the ZiG’s value in the international currency market, providing a clear benchmark for both domestic and international stakeholders.

Moreover, by anchoring the ZiG to a defined US dollar rate, the Reserve Bank of Zimbabwe aims to mitigate the rampant inflation and value erosion that has plagued previous currencies, positioning the ZiG as a viable and stable monetary unit in the eyes of the world.

This exchange rate is not merely a financial metric; it’s a worldwide broadcast of Zimbabwe’s commitment to economic stability and a testament to the central bank’s strategic foresight in leveraging the intrinsic value of gold to back its currency.

However, skepticism remains warranted.

Zimbabweans’ trust in their central bank is tenuous, at best, following years of economic mismanagement. Moreover, the external challenges, such as the severe drought affecting the country’s maize production, complicate the ZiG’s potential success.

These factors, combined with the public’s subdued reaction to the ZiG’s launch, highlight the uphill battle facing Zimbabwe’s latest economic strategy.

While the ZiG represents a daring and potentially transformative step towards finally achieving economic stability, its success hinges on the government’s discipline, the central bank’s transparency, and the international community’s reception.

Will the ZiG finally lift Zimbabwe out of its economic quagmire?

Only time will tell.

Supporting articles:

• https://www.bbc.co.uk/news/world-africa-68736155.amp

• https://www.aljazeera.com/news/2024/4/5/zimbabwe-introduces-new-gold-backed-currency-to-tackle-inflation

© GCR Real-Time News

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Financial revolution or regression? The covert push towards a Central Bank Digital Currency through centralized asset tokenization.

A Wolf in Sheep’s Clothing: The Secret CBDC Agenda Behind Tokenizing All Financial Assets

On March 22, 2024 By Awake-In-3D

In CBDCs and Digital Finance

Financial revolution or regression? The covert push towards a Central Bank Digital Currency through centralized asset tokenization.

In case you missed it, during a conversation with Bloomberg on January 4th, 2024, Larry Fink, the CEO of BlackRock, cast a spotlight on what he perceives as the inevitable future of finance: the tokenization of all financial assets.

We believe the next step forward will be the tokenization of financial assets, meaning that every stock and bond will have its own unique identifier and be recorded onto one general ledger. Every investor, including you and me, will have our own number or identification.

Larry Fink, CEO BlackRock

With conviction, Fink outlined a future where every stock and bond not only boasts its own unique CUSIP identifier but also finds a place on a unified digital ledger.

What is a CUSIP?

A CUSIP (Committee on Uniform Security Identification Procedures) number is a unique identification code assigned to all stocks and registered bonds in the United States and Canada. CUSIP numbers are used by brokers, dealers, clearing corporations, and depositories throughout the securities industry to support the accurate and efficient clearing and settlement of securities, as well as in reporting and record-keeping activities.

The implications of this shift are monumental, yet beneath the surface, there’s a narrative unfolding that suggests a move towards something much larger – a Central Bank Digital Currency (CBDC), albeit cloaked in the guise of modernization and efficiency.

Let’s break down Fink’s vision into simpler terms.

Imagine a world where every financial asset you own is transformed into a digital token, a kind of virtual representation that lives on a blockchain.

This isn’t just about making things digital – we’ve had digital banking for decades. No, this is about fundamentally changing the way these assets are recorded, traded, and owned.

Each of these tokens would be as unique as a fingerprint, tied to a massive, all-seeing ledger that tracks who owns what in real-time.

Here’s where the bait-and-switch scenario deepens.

By centralizing financial assets onto a single ledger, we edge closer to a system that mirrors the characteristics of a Central Bank Digital Currency.

For the uninitiated, a CBDC is a digital form of a country’s fiat currency, issued and regulated by its central bank.

The concept may sound benign or even beneficial at a glance, promising increased efficiency, reduced illicit activities, and a more inclusive financial system.

However, the shift towards a ledger-centric financial world, as posited by Fink, carries with it dystopian implications for privacy, autonomy, and control.

The adoption of a ledger-centric system, underpinned by the principles of tokenization, could be the trojan horse for CBDCs, sneaking under our radar in the guise of technological progress

A single (central or unified) ledger, particularly one with ties to or under the influence of central banking systems, could provide unprecedented oversight over individuals’ financial transactions.

This could potentially lead to a scenario where financial privacy is significantly eroded, as every transaction becomes an open book to certain eyes.

Moreover, the idea that this system could serve as a foundation for CBDCs isn’t far-fetched – even if it isn’t named or designated as a CBDC.

With assets tokenized and centralized, the leap to a government-issued digital currency that operates within this framework is short and straightforward. Such a move could herald a new era of monetary policy, where central banks have direct control over the money flowing in and out of individual wallets.

Critically, this isn’t just about what we stand to gain – instant settlements, enhanced efficiency, and the democratization of financial strategies. It’s also about what we might lose.

The adoption of a ledger-centric system, underpinned by the principles of tokenization, could be the trojan horse for CBDCs, sneaking under our radar under the guise of technological progress.

I recognize the transformative potential of tokenization and the efficiencies it can bring to the financial sector.

However, we must also be wary of the broader implications.

The path towards a single ledger system could very well be the path to a centralized digital currency, changing the face of financial privacy, autonomy, and control in the digital age.

Transcript of BlackRock CEO, Larry Fink Interview

“We believe the next step forward will be the tokenization of financial assets, meaning that every stock and bond will have its own unique identifier (CUSIP) and be recorded on one general ledger. Every investor, including you and me, will have our own number or identification. This approach could rid us of all issues surrounding illicit activities related to bonds and stocks by digitalizing them through tokenization. More importantly, tokenization allows for the customization of strategies to fit every individual. We would benefit from instantaneous settlement, considering the current costs associated with settling bonds and stocks. If everything were tokenized, transactions would be immediate, as each would simply be a line item on the ledger. We believe this represents a technological transformation for financial assets.”

“Another aspect worth discussing is voting and the choices it entails. If we know at every moment who the owner of a stock is, then when it’s time to vote, every individual owner can be identified and allowed to vote their own shares. This raises the question: Is this the end of mutual funds? While many people might consider mutual funds merely a wrapper, it’s not the end of them. However, I would argue that the dominant form of bringing products to market going forward will likely be in the form of ETFs (Exchange Traded Funds).”

Watch the Bloomberg interview with Larry Fink here:

https://youtu.be/HTveRlW7QPo

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https://ai3d.blog/a-wolf-in-sheeps-clothing-the-secret-cbdc-agenda-behind-tokenizing-all-financial-assets/

Gold or Bitcoin: Which Will Survive the Imminent Fiat Currency Apocalypse? : Awake-In-3D

Gold or Bitcoin: Which Will Survive the Imminent Fiat Currency Apocalypse?

On March 19, 2024 By Awake-In-3D

In CBDCs and Digital Finance, Fiat Debt System Collapse

When Monetary Titans Collide in the Creation of a Superior Monetary System

WHAT’S IN THIS ARTICLE:

• Bitcoin’s historic value milestone compared to gold.

• The intriguing battle for dominance between gold and Bitcoin.

• Predictions on the fall of fiat currency and rise of hard assets.

• The revolutionary potential of a gold-backed digital currency: Golden Bitcoin.

Two superior assets stand tall in their quest for dominance: gold, the ancient standard of value, and Bitcoin, the preeminent digital disruptor.

In April 2017, Bitcoin reached a monumental milestone, achieving parity with gold, and it has since soared to require over 30 ounces of gold to buy a single Bitcoin.

This signals not just a shift, but a revolution in how we perceive value.

A Tale of Two Competing Assets

Gold and Bitcoin’s journey from obscurity to prominence is a tale as old as time, yet as new as the technology that powers Bitcoin.

With Bitcoin’s market cap escalating by over $883 billion last year alone, and annual gold production valued at about $254 billion (approximately 118 million ounces per year), the scale of Bitcoin’s ascent is not just impressive; it’s historic.

Yet gold’s centuries-tested store of value, as a tangible asset you can hold in your hand, offers a competitive advantage that cannot be ignored.

What Is Money, Anyway?

Money, in its essence, is a medium for storing and exchanging value.

Contrary to the convoluted theories peddled by academia and media, understanding money is straightforward. It’s something that retains value over time and space.

Today, we find ourselves at a critical crossroads where fiat currency, gold, and Bitcoin vie for the title of the best vehicle for preserving and exchanging value.

The Fall of Fiat and the Rise of Hard Assets

As we anticipate the imminent extinction of fiat currencies, the question isn’t if, but when.

With an estimated $96 trillion stored in global fiat currencies, the colossal shift towards more stable store-of-value assets like gold and Bitcoin is inevitable.

This shift heralds a new era, one where the reliance on tangible and digital assets becomes paramount as the fiat system crumbles.

Evaluating the Contenders for a Future Currency

The competition between gold and Bitcoin is fierce. Gold, with its millennia-long history as a reliable store of value, faces off against Bitcoin, a digital currency that offers unparalleled security and growth potential.

This battle isn’t just about which asset performs better; it’s about redefining what we consider money. With Bitcoin’s market cap experiencing a more than threefold increase over the value of global gold production last year, the stakes have never been higher.

The Ultimate Showdown: Gold vs. Bitcoin’s Future

Predicting the victor in the gold versus Bitcoin debate is a challenge, filled with variables and uncertainties.

However, the implications of either asset becoming the dominant form of money are profound.

If Bitcoin outshines gold, it could fundamentally alter the global economic landscape, catapulting Bitcoin to a position of unrivaled financial dominance.

Market Dynamics and the Path Forward

The alignment of market forces indicates a potential surge in Bitcoin’s value.

With Bitcoin’s market cap already roughly equivalent to 9% of gold’s $14 trillion market cap, a tenfold increase in Bitcoin’s value could position it on par with gold.

This isn’t just speculation; it’s a possibility grounded in Bitcoin’s history of exponential growth and the increasing interest from corporations, investors, and nation-states.

Free Market Decides: The Best Money Wins

In the end, the free market will crown the ultimate form of money. Through trillions of transactions and the collective decision-making of billions of people, the superior asset, whether it be gold or Bitcoin, will emerge.

This isn’t just about financial gains; it’s about setting the stage for a future where the best money facilitates global economic stability and growth.

But What About A Gold-backed Bitcoin Hybrid?

Now imagine the emergence of a new monetary asset that seamlessly blends the enduring value of gold with the cutting-edge potential of Bitcoin.

This hybrid asset, let’s call it Golden Bitcoin, represents a revolutionary step forward, uniting the best monetary attributes of both physical gold and Bitcoin into a singular form of money.

The Stability of Gold Meets Digital Innovation

At its heart, Golden Bitcoin proposes a revolutionary concept: each unit of this digital currency is backed by a specific amount of physical gold.

This backing ensures that Golden Bitcoin inherits gold’s tangible value and historical reliability as a store of wealth, addressing one of the primary criticisms of cryptocurrencies—their volatility and lack of intrinsic value.

By anchoring itself in gold, Golden Bitcoin offers a stable and trustworthy foundation, appealing to those wary of the often turbulent crypto markets.

The Best of Both Worlds: Currency Security and Portability

Golden Bitcoin capitalizes on gold’s reputation as a safe haven asset while embracing the technological advantages of Bitcoin.

This combination ensures unparalleled security, leveraging blockchain technology to provide a tamper-proof and transparent record of ownership, free from the manipulation risks associated with traditional fiat currencies.

Moreover, Golden Bitcoin inherits Bitcoin’s portability and divisibility, enabling seamless global transactions without the physical limitations of transporting gold.

This hybrid asset thus promises a level of convenience and efficiency that neither gold nor traditional Bitcoin can offer on their own.

A New Era of Monetary Sovereignty

The creation of Golden Bitcoin symbolizes a significant leap towards monetary sovereignty for individuals.

By melding gold’s historical significance as money with Bitcoin’s digital autonomy, Golden Bitcoin empowers users with unparalleled control over their wealth.

This new form of money is not only resistant to inflation and devaluation by governments but also enables direct, peer-to-peer transactions across borders, bypassing the need for intermediaries and reducing transaction costs.

Financial Inclusion and Stability: No Bank Account Required

The advent of Golden Bitcoin has the potential to catalyze a new era of financial inclusion and stability.

By providing a digital currency that is both easy to transact with and fundamentally backed by a universally recognized store of value, Golden Bitcoin can bridge the gap between traditional banking systems and the digital economy.

This inclusivity could bring financial services without the need for bank accounts worldwide, offering them a stable and accessible form of money.

Contributing article: https://internationalman.com/articles/gold-vs-bitcoin-the-ultimate-competition-to-be-the-worlds-best-money/

© GCR Real-Time News

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