Bretton Woods II: Back To Gold Monetary Anchoring?

July 25, 2019

The 75th Anniversary of the Bretton Woods Agreement is now upon us. 

Trouble is now for almost 50 years; the world has been running on a volatile boom-bust fiat currency, increasingly financialized, monetary and credit standard.

Perhaps we are drawing near a point at which the world will accept seemingly ever-larger financial crisis as predictable results of record-level debts and financial system leverage.

Could a Bretton Woods 2 be in our near future? What are some of the suggestions that are being published by think tanks who influence global financial system policies? 

Results in untying the global monetary system from a disciplined standard of value that endures over millennia have been predictable. 

We have since seen explosions in fiat currency base issuances and fiat currency based credit levels outstanding.

The current exacerbating disparity of wealth in the world is also a direct result of our increasing fiat currency fueled economy post-1971.

When might the financial powers that be, soberly accept and communicate the fact that many record level debts and loans won’t be worth near their current face values?

In general, US corporates traded on the US stock market, are also in worse financial shape than they were after the 2008 financial crisis. Many corporate and sovereign nation balance sheets have become bloated with increased debt levels. 

Corporate debt level expansions are much in thanks to stock share buyback trends since the GFC 2008. Fueled by corporate sector favoring low-interest-rate fiat currency-denominated loans. This latter-2010s phenomenon has especially helped bloat US equity prices to record nominal highs currently while also making raising interest rates any further a near-impossible challenge.

Source

Total published global debt levels are now near record-high levels of nearly USD $250 trillion in total and worldwide record debt levels have seemingly been newly attained year after year. 

It is no surprise then that virtually every sector in the worldwide economy is suffering under all time debt levels.

How might negative interest rate, fiat currency exacerbated trends, be reversed and or addressed?

A significant number of people have spoken about worldwide financial obligation resets. Yet few frequently address the sound steps required for proper execution.  

Willem Middelkoop composed an ongoing gold money related restoration article. He is the writer of the 2014 book "The Big Reset." A week ago, Middelkoop's gold-related article got distributed on the OMFIF website in London. 

The OMFIF is a well-respected association, which imparts to government policy heads and central bank authorities around the globe information with respect to monetary affairs. Given the controversy surrounding the corroding fiscal and monetary matters at hand, numerous OMFIF exchanges ongoing include central bank heads, and they regularly fall under agreed understandings of secrecy (e.g., Chatham House Guidelines).

Below you can find a backlink of Middelkoop’s gold-related OMFIF article.

OMFIF Article Source

In the following short video, you can find some of the forewarnings that the OMFIF gave the world about the Chinese yuan moving into the IMF’s SDR in late 2014. As well, we highlighted some influential words which were written in the Financial Times by former World Bank head in 2010, regarding gold’s involvement in a potential future Bretton Woods 2. 

And finally, you will hear a few passages from William Middelkoop’s 2014 book, regarding the future for gold in the international monetary system to come. Perhaps even in this coming decade, the 2020s.

Bretton Woods Two? 

^ Gold Financial Reset in the FT, 2010 ^

If you would like to watch an even longer perhaps more persuasive case for a pseudo-gold standard return, to possibly make the global financial system more stable and equitable. Perhaps no one this decade has made a more well-spoken argument favoring more stable universal monetary gold discipline, than Grant Williams' 'Cry Wolf' presentation.

You can learn more best-practices about both buying bullion and selling bullion, by picking up our free SD Bullion Guide via email right now.

As well you can bookmark and visit SDBullion.com/blog for more bullion-related content like this.

Original Article Source

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James Anderson has both worked and invested in the physical investment grade bullion markets before the 2008 global financial crisis. His twitter handle is @JamesHenryAnd and he authored SD Bullion’s complementary '21st Century Gold Rush Book.'

According to the Talmud you should keep one-third of your assets each in land, business interests, and gold.

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