"For six hundred years, every reserve currency had an obvious heir. The dollar doesn't - and that changes everything."
Oh alas but it does, Jay, and a very sinister one brought about by the old tried and true Hagelian Dialectic:
Problem: dollar hyperinflation
Reaction: everyone is bankrupt
Solution: CBDC currency control grid
They are planning, testing, and building the infrastructure for the CBDC as we speak and have been for quite some time. Once all their ducks are in a row they will pull the plug on the dollar initiate the Hagelian switcharoo. Then your "money" will no longer be their "liability".
From the horse's mouth:
"A key difference with the CBDC [and cash] is the central bank will have _absolute control_ on the rules and regulations that will determine the use of that expression of central bank liability--and we will have the technology to enforce that." —BIS Chief Agustin Carstens
If we let it, CBDCs synergized with social credit, carbon allowances, vaccine passports, and the "one ring to rule them all" ID digital will emerge to create a technocratic living nightmare of total control over every aspect of our lives. . Obviously, we cannot allow this.
This is a rare perspective. There is a wider reason for this shift towards a globally coordinated CBDC. The end of net energy surplus is the death of a growth dependent, debt based fiat currency system. If we realise this, I suspect those at the top are ahead of us. Hence the next monetary system is already being designed. Are CBDCs the soft landing tool. Is a soft landing even possible? The next few years will be fascinating. Feel free to check out my writing. It’s part of a wider thesis around this subject.
And you believe people will trust this ... "Complete Bullshit Digital Currency"?
Watch "Everyone Is Lying to You for Money". For me, gold wit sit on the "throne" until something causes a change- and a blockchain that can be easily manipulated by a quantum computer is unlikely to receive world wide trust.
When the dollor is destoryed along with everyone’s currency based wealth, they will be crying out for any savior.
The central bank will arrive with their pre-planned solution, and replace their USD ballances with CBDC credits.
In other words:
The pattern is consistent. A crisis generates fear, fear generates demand for coordination, coordination requires standards, and standards require a standard-setter. The clearinghouse then applies those standards as the intermediary through which all transactions must pass. The same template has now been replicated across every major domain of human activity — technology, health, finance, information, resources, climate — with comprehensive institutional frameworks now pre-positioned and awaiting activation. It’s just a matter of drumming up the facilitating crisis. —esc
If you say so. Not republican or democrat. Here's Chompsky:
Create problems, then offer solutions: This method is also called “problem -reaction- solution. “It creates a problem, a “situation” referred to cause some reaction in the audience, so this is the principal of the steps that you want to accept. For example: let it unfold and intensify urban violence, or arrange for bloody attacks in order that the public is the applicant’s security laws and policies to the detriment of freedom. Or: create an economic crisis to accept as a necessary evil retreat of social rights and the dismantling of public services. —Noem Chomsky
Good article Jay,thank you.Vince Lanci of Goldfix fame recently pointed out howChina is opening the first of it's series of gold vaults in Hong Kong as collateral to support the Yuan, not a one to one backing.According to Alasdair Macleod ,China could hold up to 70,000 tons of gold, and it actively encourages it's populace to hold their savings in gold ( which they do). As you stated,gold is trust, so would this not encourage countries to use their currency if they have vaults around the world with collateral ( trust) stored in them? I'm wondering how this is going to play out in the face of the demographic and debt situation China is facing. Not sure if a 30 year U.S. bond scheme with settlement in gold way down the road will generate the same level of trust.
Bitcoin is the only asset on Earth with absolute monetary scarcity. Every reserve currency in history has eventually been debased by political incentives, but Bitcoin’s supply is permanently capped at 21 million coins and cannot be changed by any government, central bank, or corporation. It is borderless, censorship-resistant, instantly verifiable, and operates 24/7 without requiring trust in any nation. As global debt continues to rise and fiat currencies lose purchasing power through inflation, countries will increasingly seek a politically neutral reserve asset that no rival can control or confiscate. Gold served that role for centuries because it was scarce; Bitcoin is digital gold with perfect portability, divisibility, and auditability. In a digital economy, the logical reserve asset is digital money. If the world ultimately values monetary integrity over political discretion, Bitcoin is not just a contender—it is the inevitable global reserve currency.
It remains to be seen whether a very young finite specific crypto and asset accorded a value mainly on the basis of its own impressive speculative gains driven by a new generation of speculators but created out of and objectively constituting just that infinite hot air will keep that value and remain an asset at all.
Scarcity is necessary but not sufficient. I don’t believe there will be one reserve currency because of the ultimate cost to the issuer. I do believe that quality collateral will be required for all these international transactions, using what ever payment method is used. I don’t believe that there will only be one kind of acceptable collateral and that gold and possibly BTC will be a part of this new monetary system.
Tocanization of gold is the future. And it is happening.
Nowadays Gold is now more appreciated by world power than USD - just an oppinion.
At the start of the Iran crisis/war 2026, Turkey first ditched/sold the US Treasuries (in the range of 90%)then, sold the 60T-70T gold. Let's see what unfolds in the next few months.
What puzzles me comes even before the crown is passed. If the dollar fails, whether it fails into zero or into infinity, either way, this necessities the cancellation of zillions of contracts, including a whole lot of debt contracts and then contracts to pay in trade.
I once knew an american woman left destitute when her husband unexpectedly passed. She packed up her meager belongings, her documents including hjis social security payments, and her kids,, and transplanted in Estonia, only a couple of years after the USSR collapsed.
There3 was no cadastral system no registration of properties, simply everybody was told that they now owned the place where they were living, whether a house, a farm, or a tiny apartment. There was utter chaos for awhile. She understood the opportunity and began buying up condominiums for as little as $500 each, and went on to become a rich heiress.
So just imagine the anarchy if that were to happen in the USA....after all mortgages and all insurance contracts are simply voided and annulled.
Going back a mere hundred years the Shepard-Towner Act of 1921 and the beginning of birth registration coinciding with removal of gold as currency backing in 1933 the dollar became backed by the people of America and their property. A currency that was no longer redeemable in anything but another form of promise to pay (bill, bond, note etc.) internally, remaining externally, internationally exchangeable for gold. Through 1971 it remained till that ended, America profiting from the banking scam being run on the rest of the world admittedly for military protection. A debt backed system is workable in theory but not so much in practice with said debt being placed into circulation permanently with intention it depreciate continually it's acceptance being forced under military threat. The Triffin dilemma could be blamed for the production decline in America but so can policy choices from lack of understanding where the devaluation road always leads. I think people like to denominate debt in dollars because they know ultimately despite nominal interest the trade is profitable w/ respect to real things/commodities. These things just can't go on forever. But then again nothing does.
to Dan Miller comment on Bitcoin the capping of the amount of BitCoins available, The Bitcoin needs to split 1 for 10 new as the digital currency is out of reach for most people at 60000$US by splitting 1 for 10 puts the coin into the consumer's hands and out of their country's currency
Jay very good and the slow death of the Greenback has a slow knife of death as the Arabs saying "death by a thousand cuts" If the USA wants to continue as the world's reserve currency then the Yanks have to give trust to other world nations by being neutral in politics IE the freezing of assets of the US currency owed to other nations shows no confidence with those nations. The Yanks behave like those assets are theirs and not the countries that have place trust in the USA. Freezing of assets is the slow death as Iran and Russia and more nations that have had their financial assets frozen by the Yanks because the Yanks are playing politics does not give confidence and those countries will not return back to the USA for a reserve currency. China perhaps will take the reins as world reserve currency due to the overwhelming trade that country has with the rest of world. I can see countries will hold the country reserves that those countries have the biggest trade with both in trade and currency account balancing. The Yanks are no longer the world leader in trade as their focus is on weapons of high ticket items which skews the amount currency used to determine the biggest trade country in the world and not the amount of demand of customer products. The USA is now playing "second fiddle" to China which produces more than the USA as a world leader
Excellent work Jay! I love these deep dives. Well researched and explained. Very educational! You're doing great work. Keep it up! You are helping so many people! Much respect for that.
For me, it is clear that no one wants their currency to be the reserve. It is also clear that most nations are going into debt.
But "gold as money" (GAM) works for accounts (debits and credits) because there is a high degree of trust in Gold. And while it might work for a period a basket of currencies can dissolve due to tensions between sovereignties.
I had thought that e currencies might rise to the occasion - but that is unlikely. As dressing as this seems, for me, the answer is that the winner of the next global conflict (world war), assuming people survive and the world is still habitable, will inherit the undesirable burden of "reserve currency".
In the meantime, I accept the gold as a temporary refuge.
Given the activities of the Trumpist regime in Washington, I fear that they will attempt to replace the US dollar as the international reserve currency with Trump Stable Coin. With the billionaires in the Cabinet, there is enough stupidity to push the TSC as the synthetic currency to replace the US dollar, starting with making the TSC to only currency for purchasing US Treasury Bonds after a trial tun in parallel with the US Dollar. Not all at once, but over the next two years, I’m sure Lutnick and Bessent have enough of their own people in key places inside the banks like JP Morgan, who could offer discounts for using the TSC to get everyone hooked.
This is setting the stage for the biggest scam ever perpetrated on the world. World Liberty Financial has a significant commission on each transaction that puts money directly into the Trump heirs’ bank accounts. It will create the largest transfer of wealth ever, into the pockets of one family.
Once in place, when they have the oil trade using the TSC, then the US dollar can be disposed of, and TSC becomes the new world reserve currency.
The idea of a global synthetic reserve currency is a good one, if properly implemented. It cannot be under the control of any one bank or country, but under shared control. But to establish that shared control may be another ‘Gordian Knot’, and it may not be cut by a sword.
"For six hundred years, every reserve currency had an obvious heir. The dollar doesn't - and that changes everything."
Oh alas but it does, Jay, and a very sinister one brought about by the old tried and true Hagelian Dialectic:
Problem: dollar hyperinflation
Reaction: everyone is bankrupt
Solution: CBDC currency control grid
They are planning, testing, and building the infrastructure for the CBDC as we speak and have been for quite some time. Once all their ducks are in a row they will pull the plug on the dollar initiate the Hagelian switcharoo. Then your "money" will no longer be their "liability".
From the horse's mouth:
"A key difference with the CBDC [and cash] is the central bank will have _absolute control_ on the rules and regulations that will determine the use of that expression of central bank liability--and we will have the technology to enforce that." —BIS Chief Agustin Carstens
Him saying this: https://old.bitchute.com/video/mLVkHURKZp3S [1min]
Where this will deliberately lead step by step:
HELL ON EARTH IS COMING WITH CBDCs - Here is How: https://old.bitchute.com/video/C8Dm3BjdJm14 [11mins]
If we let it, CBDCs synergized with social credit, carbon allowances, vaccine passports, and the "one ring to rule them all" ID digital will emerge to create a technocratic living nightmare of total control over every aspect of our lives. . Obviously, we cannot allow this.
This is a rare perspective. There is a wider reason for this shift towards a globally coordinated CBDC. The end of net energy surplus is the death of a growth dependent, debt based fiat currency system. If we realise this, I suspect those at the top are ahead of us. Hence the next monetary system is already being designed. Are CBDCs the soft landing tool. Is a soft landing even possible? The next few years will be fascinating. Feel free to check out my writing. It’s part of a wider thesis around this subject.
Classic move - use a 4 letter acronym and don't define it - either obfuscation or ignorance - in any event it derides the argument as WGAF.
CBDC: Central Bank Digital Currency
And you believe people will trust this ... "Complete Bullshit Digital Currency"?
Watch "Everyone Is Lying to You for Money". For me, gold wit sit on the "throne" until something causes a change- and a blockchain that can be easily manipulated by a quantum computer is unlikely to receive world wide trust.
When the dollor is destoryed along with everyone’s currency based wealth, they will be crying out for any savior.
The central bank will arrive with their pre-planned solution, and replace their USD ballances with CBDC credits.
In other words:
The pattern is consistent. A crisis generates fear, fear generates demand for coordination, coordination requires standards, and standards require a standard-setter. The clearinghouse then applies those standards as the intermediary through which all transactions must pass. The same template has now been replicated across every major domain of human activity — technology, health, finance, information, resources, climate — with comprehensive institutional frameworks now pre-positioned and awaiting activation. It’s just a matter of drumming up the facilitating crisis. —esc
I sense many opinions offered as facts. Are you by any chance a US republican advocate?
If you say so. Not republican or democrat. Here's Chompsky:
Create problems, then offer solutions: This method is also called “problem -reaction- solution. “It creates a problem, a “situation” referred to cause some reaction in the audience, so this is the principal of the steps that you want to accept. For example: let it unfold and intensify urban violence, or arrange for bloody attacks in order that the public is the applicant’s security laws and policies to the detriment of freedom. Or: create an economic crisis to accept as a necessary evil retreat of social rights and the dismantling of public services. —Noem Chomsky
Isn’t Carstens that big fat Spanish slob?
Good article Jay,thank you.Vince Lanci of Goldfix fame recently pointed out howChina is opening the first of it's series of gold vaults in Hong Kong as collateral to support the Yuan, not a one to one backing.According to Alasdair Macleod ,China could hold up to 70,000 tons of gold, and it actively encourages it's populace to hold their savings in gold ( which they do). As you stated,gold is trust, so would this not encourage countries to use their currency if they have vaults around the world with collateral ( trust) stored in them? I'm wondering how this is going to play out in the face of the demographic and debt situation China is facing. Not sure if a 30 year U.S. bond scheme with settlement in gold way down the road will generate the same level of trust.
Lanci wrote a book that’s now out that delves into gold as the collateral asset. Lanci has been talking about this very topic for years.
Great article. Thank you.
Any thoughts on stopping all these sanctions and really leaning into the dollars power by bringing as many humans as possible into using it?
I think that is part of our ultimate strategy with Iran war-gulf states.
I mean... America will do the right thing after we've tried everything else, right...
Bitcoin is the only asset on Earth with absolute monetary scarcity. Every reserve currency in history has eventually been debased by political incentives, but Bitcoin’s supply is permanently capped at 21 million coins and cannot be changed by any government, central bank, or corporation. It is borderless, censorship-resistant, instantly verifiable, and operates 24/7 without requiring trust in any nation. As global debt continues to rise and fiat currencies lose purchasing power through inflation, countries will increasingly seek a politically neutral reserve asset that no rival can control or confiscate. Gold served that role for centuries because it was scarce; Bitcoin is digital gold with perfect portability, divisibility, and auditability. In a digital economy, the logical reserve asset is digital money. If the world ultimately values monetary integrity over political discretion, Bitcoin is not just a contender—it is the inevitable global reserve currency.
And what about Digital Gold tokens like PaxG or KinesisAu? The security of the Gold price and asset plus the instant transferability?
Who’s going to verify holdings?
Cryptos supply is infinite though.
It remains to be seen whether a very young finite specific crypto and asset accorded a value mainly on the basis of its own impressive speculative gains driven by a new generation of speculators but created out of and objectively constituting just that infinite hot air will keep that value and remain an asset at all.
Scarcity is necessary but not sufficient. I don’t believe there will be one reserve currency because of the ultimate cost to the issuer. I do believe that quality collateral will be required for all these international transactions, using what ever payment method is used. I don’t believe that there will only be one kind of acceptable collateral and that gold and possibly BTC will be a part of this new monetary system.
https://www.tgold.money
Many similar. Not promoting any.
Tocanization of gold is the future. And it is happening.
Nowadays Gold is now more appreciated by world power than USD - just an oppinion.
At the start of the Iran crisis/war 2026, Turkey first ditched/sold the US Treasuries (in the range of 90%)then, sold the 60T-70T gold. Let's see what unfolds in the next few months.
What puzzles me comes even before the crown is passed. If the dollar fails, whether it fails into zero or into infinity, either way, this necessities the cancellation of zillions of contracts, including a whole lot of debt contracts and then contracts to pay in trade.
I once knew an american woman left destitute when her husband unexpectedly passed. She packed up her meager belongings, her documents including hjis social security payments, and her kids,, and transplanted in Estonia, only a couple of years after the USSR collapsed.
There3 was no cadastral system no registration of properties, simply everybody was told that they now owned the place where they were living, whether a house, a farm, or a tiny apartment. There was utter chaos for awhile. She understood the opportunity and began buying up condominiums for as little as $500 each, and went on to become a rich heiress.
So just imagine the anarchy if that were to happen in the USA....after all mortgages and all insurance contracts are simply voided and annulled.
Gold is the base and foundation much is built on and what everyone resorts back to when shit hits the fan.... Not to mention no counter party risk.
Going back a mere hundred years the Shepard-Towner Act of 1921 and the beginning of birth registration coinciding with removal of gold as currency backing in 1933 the dollar became backed by the people of America and their property. A currency that was no longer redeemable in anything but another form of promise to pay (bill, bond, note etc.) internally, remaining externally, internationally exchangeable for gold. Through 1971 it remained till that ended, America profiting from the banking scam being run on the rest of the world admittedly for military protection. A debt backed system is workable in theory but not so much in practice with said debt being placed into circulation permanently with intention it depreciate continually it's acceptance being forced under military threat. The Triffin dilemma could be blamed for the production decline in America but so can policy choices from lack of understanding where the devaluation road always leads. I think people like to denominate debt in dollars because they know ultimately despite nominal interest the trade is profitable w/ respect to real things/commodities. These things just can't go on forever. But then again nothing does.
Great article. I’ll be sure to check out more of your work.
to Dan Miller comment on Bitcoin the capping of the amount of BitCoins available, The Bitcoin needs to split 1 for 10 new as the digital currency is out of reach for most people at 60000$US by splitting 1 for 10 puts the coin into the consumer's hands and out of their country's currency
Jay very good and the slow death of the Greenback has a slow knife of death as the Arabs saying "death by a thousand cuts" If the USA wants to continue as the world's reserve currency then the Yanks have to give trust to other world nations by being neutral in politics IE the freezing of assets of the US currency owed to other nations shows no confidence with those nations. The Yanks behave like those assets are theirs and not the countries that have place trust in the USA. Freezing of assets is the slow death as Iran and Russia and more nations that have had their financial assets frozen by the Yanks because the Yanks are playing politics does not give confidence and those countries will not return back to the USA for a reserve currency. China perhaps will take the reins as world reserve currency due to the overwhelming trade that country has with the rest of world. I can see countries will hold the country reserves that those countries have the biggest trade with both in trade and currency account balancing. The Yanks are no longer the world leader in trade as their focus is on weapons of high ticket items which skews the amount currency used to determine the biggest trade country in the world and not the amount of demand of customer products. The USA is now playing "second fiddle" to China which produces more than the USA as a world leader
Excellent work Jay! I love these deep dives. Well researched and explained. Very educational! You're doing great work. Keep it up! You are helping so many people! Much respect for that.
For me, it is clear that no one wants their currency to be the reserve. It is also clear that most nations are going into debt.
But "gold as money" (GAM) works for accounts (debits and credits) because there is a high degree of trust in Gold. And while it might work for a period a basket of currencies can dissolve due to tensions between sovereignties.
I had thought that e currencies might rise to the occasion - but that is unlikely. As dressing as this seems, for me, the answer is that the winner of the next global conflict (world war), assuming people survive and the world is still habitable, will inherit the undesirable burden of "reserve currency".
In the meantime, I accept the gold as a temporary refuge.
Anybody know a trusted gold token moving on XRP/RIPPLE architecture?
Given the activities of the Trumpist regime in Washington, I fear that they will attempt to replace the US dollar as the international reserve currency with Trump Stable Coin. With the billionaires in the Cabinet, there is enough stupidity to push the TSC as the synthetic currency to replace the US dollar, starting with making the TSC to only currency for purchasing US Treasury Bonds after a trial tun in parallel with the US Dollar. Not all at once, but over the next two years, I’m sure Lutnick and Bessent have enough of their own people in key places inside the banks like JP Morgan, who could offer discounts for using the TSC to get everyone hooked.
This is setting the stage for the biggest scam ever perpetrated on the world. World Liberty Financial has a significant commission on each transaction that puts money directly into the Trump heirs’ bank accounts. It will create the largest transfer of wealth ever, into the pockets of one family.
Once in place, when they have the oil trade using the TSC, then the US dollar can be disposed of, and TSC becomes the new world reserve currency.
The idea of a global synthetic reserve currency is a good one, if properly implemented. It cannot be under the control of any one bank or country, but under shared control. But to establish that shared control may be another ‘Gordian Knot’, and it may not be cut by a sword.