The Biggest Monetary Transformation Since WWII

Mike Maloney explains that every 30 to 40 years the world has a new monetary system. And the global dollar standard is the worst design of all these systems — yet it’s 45 years old. So it’s way overdue for its own demise. And when this one crumbles, everyone is going to feel it.

Earlier this month we posted a video discussing the first issuance of Special Drawing Rights(SDR) bonds in 35 years:

In the video below, Maloney also discusses the significance of the SDR Bond as an important step in the change of the current monetary system.

He also talks about how the public didn’t really notice each time the global monetary system has changed over the past century. But how the next change of the current US Dollar system will create a massive impact.

Below is a link to the article that Maloney refers to at the 2:10 min mark with the paragraph:

“Soon other emerging nations, such as Vietnam, India, and other BRICS members, will begin to issue their own SDR denominated bonds.  Once the trend picks up steam the demand for Treasuries will decrease and interest rates will increase.  Without a doubt, this will be the biggest monetary transformation since the end of World War Two. “

Back in the early 2000’s only 17-18% of US Treasuries were held by foreigners but that has now expanded out to 33%. So these bond investors will look to diversify away from the US Treasury Bonds and the US dollar and instead into the SDR denominated bonds. This will cause interest rates to rise on Treasury Bonds to rise as demand lessens.

So there will be big changes coming.

However it’s important to note that as Jim Rickards and others have theorised, the use of the SDR at a global level will likely lead to inflation, as the IMF uses massive SDR issuance to “solve” the next financial crisis. But it will be inflation that people in each sovereign nation cannot blame on their own government or central bank as they will not understand the root cause of it.

This is explained well in an excerpt by Rickards taken from the below very well put together article on the SDR by Willem Middelkoop, founder of the Commodity Discovery Fund and author of The Big Reset:

“The brilliance of the SDR solution is that it solves Triffin’s dilemma. Recall that the paradox is that the reserve-currency issuer has to run trade deficits, but if you run deficits long enough, you go broke. But SDRs are issued by the IMF.

The IMF is not a country and does not have a trade deficit. In theory, the IMF can print SDRs forever and never go broke. The SDRs just go round and round among the IMF members in a closed circuit. Individuals won’t have SDRs. Only countries will have them in their reserves. These countries have no desire to break the new SDR system, because they’re all in it together. The United States is no longer the boss. Instead, you have the “Five Families” consisting of China, Japan, the United States, Europe and Russia operating through the IMF.

The only losers are the citizens of the IMF member countries—people like you and me—who will suffer local-currency infla- tion. I’m preparing with gold and hard assets, but most people will be caught una- ware, like the Greeks who lined up at empty ATMs in June 2015. This SDR system is so little understood that people won’t know where the inflation is coming from. Elected officials will blame the IMF, but the IMF is unaccountable.

That’s the beauty of SDRs—Triffin’s dilemma is solved, debt problems are inflated away and no one is accountable. That’s the global elite plan in a nutshell.”


So becoming your own central bank is the answer, owning real tangible assets and spreading the word as to what money is and what these changes to the monetary system will mean.


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