What is the IMF’s “Great Global Reset?”

The International Monetary Fund (IMF) is not nearly as loquacious as the Federal Reserve Board’s Federal Open Market Committee. But more and more frequently, new details are coming out about a deep-seated desire on the part of the IMF to do away with dollar dominance, and eventually the entire basket of approved global reserve currencies with special drawing rights. The Rothschild run magazine The Economist actually outlined original plans for such a reset in an article titled “Get Ready for the Phoenix,” back in 1988. The article boldly predicted that, “Thirty years from now, Americans, Japanese, Europeans, and people in many other rich countries, and some relatively poor ones will probably be paying for their shopping with the same currency.”

The original plan was not a nebulous idea. It was a very detailed outline that called for a consolidation of economic governance, headed presumably by the IMF, World Bank or Bank of International Settlements. But regardless, it called for the transfer of power from today’s franchise system of central banks to a single global monetary authority. Moreover, and probably its undoing at the time, was its argument for centralization of political power, so as to facilitate the reduction or even removal of sovereign and legislative impediments, in favor of safer and more universally beneficial financial regulation. Its publishing proximity to a peak in the Cold War didn’t play well with those eager to condemn it as communist propaganda.

Conversion to a One World Currency most probably won’t happen due to a global whim or even a vote. There are plenty of global economic “landmines” waiting to go off, but order and concentration of these explosive elements are sure to be at the source of a move to One World Currency. Whether it’s a global economic superpower that fails (like Deutsche Bank), a terrorist campaign that goes viral, or a combination of these and more, a simple fact of the matter is that the world has grown weary of the current global economic condition.  The United States recent and unexpected Presidential choice when combined with Britain’s decision to leave the European Union give keen insight to the tip of an iceberg in a sea of universal desire for “something better.”

To avoid fiat pitfalls and in order to provide universal stability, the One World Currency would most probably be fixed and anchored to the price of gold. Since global reserve currencies with special drawing rights are already in play, they make the perfect vehicle for conversion and the new gold-backed One World Currency, at least initially, would be freely convertible into gold or the local currency of any “participant” in the system. Participants would of course have to agree to all applicable rules. Depending on the mathematician you ask, if you take the global money supply and divide it by the global gold supply, you’ll arrive at a non-deflationary price for gold between $8,000 and $10,000 per ounce. Got Gold?

Although the information in this commentary has been obtained from sources believed to be reliable, American Bullion does not guarantee its accuracy and such information may be incomplete or condensed. The opinions expressed are subject to change without notice. American Bullion will not be liable for any errors or omissions in this information nor for the availability of this information. All content provided on this blog is for informational purposes only and should not be used to make buy or sell decisions for any type of precious metals.