CBDCs, SDRs, and the Re-Monetization of Gold Here’s What Happens Next – International Man

The current monetary system is on its way out.

Even the central bankers running the system can see that.

Thats why they are preparing for what comes next as they attempt to reset the system.

Its important to emphasize that nobody knows what the next international monetary system will look likenot even the elites. However, they know what they want it to look like and are working hard to shape that outcome.

Next, Ill examine their preferred outcome.

The new international monetary system the central bankers would prefer involves central bank digital currencies (CBDCs) and the International Monetary Funds Special Drawing Rights (SDR) replacing the US dollar as the worlds new reserve currency.

Despite all the hype, CBDCs are nothing but the same fiat currency scam with a new label on itand zero privacy. They will make it even easier for the government to inflate the currency, and thats what I expect them to do if they impose CBDCs on us.

However, its doubtful CBDCs can save otherwise fundamentally unsound currenciesas I believe all fiat currencies are.

If paper fiat currency is not viable as money, CBDCs are even less viable as they enable the government to engage in even more currency debasement.

Would a CBDC have saved the Zimbabwe dollar, the Venezuelan bolivar, the Argentine peso, or the Lebanese lira?

I dont think so.

And a CBDC wont save the US dollar or the euro either.

But that doesnt mean governments wont try to implement CBDCs out of desperation with immensely destructive consequences for many people.

Then theres the IMF, the quintessential globalist institution that acts as a global central bank. Faceless and unaccountable bureaucrats at the IMF create the SDR out of thin air.

The SDR is simply a basket of other leading fiat currencies. The US dollar currently makes up 42%, the euro 31%, the Chinese renminbi 11%, the Japanese yen 8%, and the British pound 8%.

In other words, the SDR is a fiat currency based on other fiat currencies.

In short, I dont think these gimmicksthe SDR and CBDCsare workable.

On the contrary, they have even worse flaws than the current failing fiat system. Nonetheless, the elites and central bankers are pushing hard for them.

I view it as the desperate last gasps of a dying system.

If CBDCs and the SDR fail to revitalize the fiat systemas I suspect will happenthen the central bankers have only one other option left.

They will have to find a way to restore confidence or risk the entire monetary system disintegrating. That would mean governments losing all their power, which they, of course, prefer to avoid.

If it comes down to thatand theres a good chance that it willgovernments will have no choice but to go back to gold as the foundation of the international monetary system.

Sound money advocate Ron Paul said it best:

What none of them (politicians) will admit is that the market is more powerful than the central banks and all the economic planners put together. Although it may take time, the market always wins.

Heres the bottom line.

Gold is a far better form of money than the rapidly inflating paper and digital currencies that central banks are peddling.

Governments cant force an inferior monetary goodfiat currencyon the whole world forever. Its inevitable economic reality will assert itself. And that moment could be soon.

Central banks and governments are the largest holders of gold in the world. Together they own over 1.1 billion troy ounces of gold out of the 6.6 billion that exist above ground.

This enormous stash of gold acts as a fail-safe option. Governments have it in their back pocket as a Plan B in case theres a monetary emergency and they need to restore confidence.

Central bankers dont want to go back to gold, but they will have no choice if their fiat system collapses, forcing their hands.

There are plenty of signs that governments are increasingly hedging their bets with gold recently.

Take Russia and China, for example. Its no secret that they have been stashing away as much gold as possible for many years.

China is the worlds largest producer and buyer of gold. Russia is number two. Most of that gold finds its way into the Russian and Chinese governments treasuries.

Russia has over 74 million ounces of gold, one of the largest stashes in the world.

Nobody knows Chinas exact amount of goldBeijing is notoriously opaquebut most observers believe it is even larger than Russias stash.

Russia and Chinas gold gives them access to an apolitical neutral form of money with no counterparty risk. Moreover, they can use their gold to engage in international trade and perhaps back the currencies.

Gold represents a genuine monetary alternative to the US dollar, and Russia and China have a lot of it. Moreover, they are already using gold to bypass various US financial sanctions.

Today its clear why China and Russia have had an insatiable demand for gold. Theyve been waiting for the right moment to pull the rug from beneath the US dollar.

And now is that moment

Russia and Chinas gold could form the foundation of a new monetary system outside of the control of the US.

Such moves would be the final nail in the coffin of the international monetary system based on fiat currency and the US dollar.

Editors Note: The economic trajectory is troubling. Unfortunately, theres little any individual can practically do to change the course of these trends in motion.

The best you can and should do is to stay informed so that you can protect yourself in the best way possible, and even profit from the situation.

Thats precisely why bestselling author Doug Casey and his colleagues just released an urgent new PDF report that explains what could come next and what you can do about it.

Click here to download it now.

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CBDCs, SDRs, and the Re-Monetization of Gold Here's What Happens Next - International Man