This article was written by Brandon Smith and originally published at Birch Gold Group
World reserve status allows for amazing latitude in terms of monetary policy. The Federal Reserve understands that there is constant demand for dollars overseas as a means to more easily import and export goods. The dollar’s petro-status also makes it essential for trading oil globally. This means that the central bank of the US has been able to create fiat currency from thin air to a far higher degree than any other central bank on the planet while avoiding the immediate effects of hyperinflation.
Much of that cash as well as dollar denominated debt (physical and digital) ends up in the coffers of foreign central banks, international banks and investment firms where it is held as a hedge or used to adjust the exchange rates of other currencies for trade advantage. As much as one-half of the value of all U.S. currency is estimated to be circulating abroad.
World reserve status along with various debt instruments allowed the US government and the Fed to create tens of trillions of dollars in new currency after the 2008 credit crash, all while keeping inflation under control (sort of). The problem is that this system of stowing dollars overseas only lasts so long and eventually the consequences of overprinting come home to roost.
The Bretton Woods Agreement of 1944 established the framework for the rise of the US dollar and while the benefits are obvious, especially for the banks, there are numerous costs involved. Think of world reserve status as a “deal with the devil” – You get the fame, you get the fortune, you get the hot girlfriend and the sweet car, but one day the devil is coming to collect and when he does he’s going to take EVERYTHING, including your soul.
Unfortunately, I suspect the time is coming soon for the US and it may be in the form of a brand new Bretton Woods-like system that removes the dollar as world reserve and replaces it with a new digital basket structure. Global banks are essentially admitting to the plan for a complete overhaul of the dollar-based financial world and the creation of a CBDC-centric system built on “unified ledgers.”
There have been three recent developments all announced in succession that suggest the dollar’s replacement is imminent (before this decade is over).
The IMF’s XC Model – A Centralized Policy For CBDCs
The IMF’s XC platform was released as a theoretical model in November of 2022 and matches closely with their long discussed concept of a global Special Drawing Rights basket, only in this case it would tie together all CBDCs under one umbrella along with “legacy currencies.”
It’s promoted as a policy structure to make cross-border payments in CBDCs “easier” and this model is focused primarily on currency exchanges between governments and central banks. Of course, it places the IMF as the middle-man in terms of controlling the flow of digital transactions. The IMF suggests that the XC platform would make the transition from legacy currencies to CBDCs less complicated for the various nations involved.
As the IMF noted in a discussion on centralized ledgers in 2023:
“We could end up in a world where we have connected entities to some degree, but some entities and some countries that are excluded. And as a global and multilateral institution, we’re sort of aiming to, you know, provide a basic connectivity, a basic set of rules and governance that is truly multilateral and inclusive. So, I think that is—the ambition is to aim for innovation that is compatible with policy goals and that is inclusive relative to the broad membership of, say, the IMF.”
To translate, decentralized systems are bad. “Inclusivity” (collectivism) is good. And the IMF wants to work in tandem with other globalist institutions to be the facilitators (controllers) of that economic collectivism.
Bank For International Settlements Unified Ledger
Not more than a day after the IMF announced their XC platform goals, the BIS announced their plans for a unified ledger for all CBDCs called the ‘BIS Universal Ledger.’ The BIS specifically notes that the project is meant to “inspire trust in central bank digital currencies” while “overcoming the fragmentation of current tokenization efforts.”
While the IMF is focused on international policy control, the BIS is pursuing the technical aspects for the globalization of CBDCs. They make it clear in their white papers that a cashless society is in fact the end game and that digital transactions need to be monitored by a centralized entity in order to keep money “secure.” As the BIS argues in their extensive overview of Unified Ledgers:
“Today, the monetary system stands at the cusp of another major leap. Following dematerialisation and digitalisation, the key development is tokenisation – the process of representing claims digitally on a programmable platform. This can be seen as the next logical step in digital recordkeeping and asset transfer.”
“…The blueprint envisages these elements being brought together in a new type of financial market infrastructure (FMI) – a “unified ledger”. The full benefits of tokenisation could be harnessed in a unified ledger due to the settlement finality that comes from central bank money residing in the same venue as other claims. Leveraging trust in the central bank, a shared venue of this kind has great potential to enhance the monetary and financial system.
There are three major assertions made by the BIS in their program – First, the digitization of money is unavoidable and cash is going to disappear primarily because it makes moving money easier. Second, decentralized payment methods are unacceptable because they are “risky” and only central banks are qualified and “trustworthy” enough to mediate the exchange of money. Third, the use of Unified Ledgers is largely designed to track and trace and even investigate all CBDC transactions, for the public good, of course.
The BIS system deals far more in the realm of private transactions than the IMF example. It is the technical foundation for the centralization of all CBDCs, governed in part by the BIS and the IMF, and it is scheduled to go into wider use in the next two years. There are already multiple nations testing the BIS ledger today. It’s important to understand that whoever acts as the middle-man in the process of the global exchange of money is going to have all the power, over governments and over the populace.
If every movement of wealth is monitored, from the shift of billions between governments to the payment of a few dollars from an individual to a retailer, then every aspect of trade can be throttled on the whims of the observer.
SWIFT Cross Border Project – Another Way To Control The Behavior Of Countries
As we’ve seen with the attempt to use the SWIFT payment network as a bludgeon against Russia, there is an ulterior motive for globalists to have a high speed large scale monetary transaction hub. Again, this is all about centralization, and whoever controls the hub has the means to control trade…to a point.
Locking Russia out of SWIFT has done minimal damage to their economy exactly because there are alternative methods for transferring money to keep the flow of trade running. However, under a CBDC based global monetary umbrella, it would be impossible for any country to work outside the boundaries. It’s not only about the ease of shutting a nation out of the network, it’s also about having the power to immediately block the transfer of funds on the receiving end of the exchange.
Meaning, any funds from any Russian source could be tracked and cut off before they are allowed to get into the hands of, say, a recipient in China or India. Once all governments are completely under the thumb of a centralized monetary system, a centralized ledger and a centralized exchange hub, they will never be able to rebel and this control will trickle down to the general population.
I would also remind readers that the majority of nations are going right along with this program. China is most eager to join the global currency scheme. Russia is still part of the BIS, but their involvement in CBDCs is still unclear. The point is, don’t expect the BRICS to counteract the new monetary order, it’s not going to happen.
CBDCs Automatically Require The End Of The Dollar As World Reserve
So what do all these globalist projects with CBDCs have to do with the dollar and its venerated position as the world reserve currency? The bottom line is this: A unified CBDC system completely excludes the need or use-case for a world reserve currency. The Unified Ledger model takes all CBDCs and homogenizes them into a puddle of liquidity, each CBDC growing similar in characteristics over a short period of time.
The advantages of using the dollar disappear in this scenario and the value of currencies becomes relative to the middle-man. In other words, the IMF, BIS and other related institutions dictate the properties of CBDCs and thus there is no distinguishing aspect of any CBDC that makes one more valuable than the others.
Sure, some countries might be able to separate their currency to a point with superior production or superior technology, but the old model of having a big military as a way to ensure Forex and trade favors is dead. Eventually the globalists will make two predictable arguments:
1) “A world reserve currency under the control of one nation is unfair and we as global bankers need to make the system “more equal.””
2) “Why have a reserve currency at all when all transactions are moderated under our ledger anyway? The dollar is no longer any more easy to use for international trade than any other CBDC, right?”
Finally, the dollar has to die because it’s an integral part of the “old world” of material exchange. The globalists desire a cashless society because it is an easily controlled society. Think of the covid lockdowns and the attempts at vaccine passports – If they had a cashless system in place at that time, they would have gotten everything they wanted. Refuse to take the experimental vaccine? We’ll just shut off your digital accounts and you will starve.
This was even partially attempted (think Canadian trucker protests), but with physical cash there’s always a way around a digital embargo. Without physical cash you have no other options unless you plan to live completely off the land and barter goods and services (a way of life most people in the first world need a lot of time to get used to).
I believe that a sizable percentage of the American populace will go to war before they accept a cashless society, but in the meantime, there is still the inevitability of a dollar crash to deal with. Globalist organizations are pushing CBDCs to go active VERY quickly, and as this happens along with the centralized ledgers the traditional dollar will swiftly lose favor. This means that those trillions in greenbacks held overseas will start flooding back into America all at once causing an inflationary disaster well beyond what we are witnessing today.
As much as the economy has benefited from world reserve status in the past it will suffer equally as the dollar fades, only to be replaced by a framework even worse than fiat. That is, unless there’s a dramatic upheaval that removes the globalist order from the equation entirely…
If you would like to support the work that Alt-Market does while also receiving content on advanced tactics for defeating the globalist agenda, subscribe to our exclusive newsletter The Wild Bunch Dispatch. Learn more about it HERE.
As the world moves away from dollars and toward Central Bank Digital Currencies (CBDCs), is your 401(k) or IRA really safe? A smart and conservative move is to diversify into a physical gold IRA. That way your savings will be in something solid and enduring. Get your FREE info kit on Gold IRAs from Birch Gold Group. No strings attached, just peace of mind. Click here to secure your future today.
You can contact Brandon Smith at:
You can also follow me at –
TwitterX: @AltMarket1
How do you see the “Great Taking” concept of David Rogers Webb in this context, part of the program? Could it be sooner than end of decade?
Great Taking was about DTCC. DTCC just purchased Securrency which I suspect utilizes Steller Lumens to Tokenize assets. The CBDC will be a “Receivership Coin” and your bank bail ins will prove you own nothing…All encumbered assets now the property of the bank-Your home with a 10k carpet loan included… And all on a brand new spankin ledger that spits off UBI’s, gas credits, and corn meal paste
You believe bank bails will include cash deposits and mortgages?
Dodd Frank changed that game.
I agree that it’s risky to buy anything with any loan, including a car or home, partially because making the payments may become impossible if the currency and economy collapses, but more so because they may simply take them.
I’m kind of at the opinion now if the banks attempt to take ALL property and the sheeple say or do nothing then maybe they deserve what they get.
For the past twelve months Australia has been conducting a Senate inquiry into regional bank closures and I was fortunate to attend the final meeting last month.
I don’t believe that a digital currency will be viable in Australia. Twenty five percent of Australians are digitally excluded from electronic banking and when there is a natural disaster the digital currency won’t work.
I think that some point they will have to include a cash component of the CBDC.
They won’t need electronic banking access, only a cell phone, which the government will probably issue at some point if people don’t have them. Also, I don’t think they care if a certain percentage of people fall by the wayside and starve. Cash will probably still exist for a few years, but they will eventually remove physical money completely if we allow them.
New Zealand has a post office bank that competes against the banks. A lot of people in Australia are pushing for an Australian post office bank. But as you can guess the banks and a lot of politicians are attempting to stop its implementation.
This article is already on Zero Hedge, it never ceases to suprises me how quickly Zero Hedge posts your articles. It’s a real credit to you.
We humans used to have a real and honest system of trading value-for-value. I give you so many chickens and you give me so many hogs. Things like that. Something real that has value in and of itself for something else that has real value in and of itself. Nice, clean, fair trade with both parties benefitting. Real, honest, within our own control.
.
As humans developed (?) over time, the thing we trade with began to have no value at all. Fake money conjured out of thin air and not even worth the air that it isn’t made out of. Fake value for fake value. A dark magic trick. A giant shell game with all of us as the suckers. Not real, not honest, and totally out of our control.
.
Now the Dark Masters who control our finances want to take this really bad magic trick even further into the netherlands. Just arrange pixels on a screen and call that ‘money’. Don’t even use real paper to conjured your fake money any more. Now, use nothing but empty pixels to impersonate money and call that… ‘money!’.
.
Of course it had to come to this. They have so degraded the value of whatever we are using to call money now that this piece of paper with ink on it isn’t worth 2 cents any more of what used to be a whole dollar. Worthless ‘money’ representing virtually no value.
.
So, in the future we all get to extend this game of ‘Let’s Pretend This Is Real Money’ to next absurd level. Let’s treat pixels arranged into shapes on computer and phone screens and call that… Money! Weeee! Who said finance was tough?
.
Since we are all living in the Age of Fake it was only a matter of time before our means of exchange was fully fake as well.
.
But in this coming World of even more fakery, we get to have The Dark Side totally controlling our ‘money’ supply. And if we don’t ‘believe’ property or we dare to use our heads in ways They don’t like… you get NOTHING! Weeee! I told you this game was easy!
.
Clown Money for Clown World. Conjured by Clowns and peddled to We the People to use as Monopoly Money in our daily lives for as long as They allow us to breathe. Totally out of our control and totally under the control of Dark State Clowns to a population that is too financially stressed and too afraid to laugh.
.
Bozo the Clown himself should be running this kind of coming financial (?) system. If he were…at least this scheme would have one honest thing about it.
.
When they fully unveil this Mark of the Beast money scheme… take a good look at the folks pushing it. And hope they are all wearing badly-oversized pants and big red noses. Because their ideas are even more silly than how they will look.
Seems likely that the disparate national CBDCs are just a stalking horse – a group of badly-coded crap by national governments that have been bribed or blackmailed into producing national CBDCs with planned obsolescence, in order to manufacture consent for a single CBDC to rule us all?
BIScoin, used initially during the coming monetary crisis to buy stuff from the company store (Amazon)
“If you would like 1000 free BIScoin (current value $1000) every month paid into your BIS account, just sign up for your digital ID here. Amazon have already agreed to accept BIScoin.”
If it isn’t a coin made of Gold, Silver or Copper Nickle of a specified weight and purity it should be illegal and its introduction and or production and use punishable by death.
The penalty for counterfeiting should also be death. No exemptions for governments either. Apart from bad people many of the evils of the last 300 plus years have been largely due to the production and use of bad money.
Agreed!
Could individual States just ban CBDC’s? In Florida, Gov. DeSantis has said he would not allow CBDC’s in our State.
https://www.flgov.com/2023/03/20/governor-ron-desantis-announces-legislation-to-protect-floridians-from-a-federally-controlled-central-bank-digital-currency-and-surveillance-state/
Yes, there are measures that individual states and counties can take to block CBDCs and introduce alternative money, just keep in mind that the globalists will try to cut off those states from international and even many domestic transactions and trade. It all really depends on how many states break from digital systems and band together. Frankly, it will take a war and the erasure of globalist institutions to truly defeat CBDCs.
After seizing total control, the Middle Men will have the power to also force one nation to sell a particular good(s) to another nation – possibly to their own detriment.
That will signal the end of national sovereignty – equally, of course.
By your description, the BIS/IMF will inherently create a massive black market alternative. There are always humans who despise such power wielders. The question will then arise as to whether the BIS/IMF is actually running the black market…..
I’m starting to wonder if the inevitable implosion of the Japanese Yen will be a “trigger point” towards this. Are you following this development Brandon?
“As much as the economy has benefited from world reserve status in the past it will suffer equally as the dollar fades”.
The Bretton Woods Agreement in 1944 established the U.S. Dollar as the world’s reserve currency. That system has been in place for 80 years. The Dollar’s demise will happen in a MUCH shorter time span. The rate of change of the Dollar’s destruction will be exponentially faster, meaning that the pain of it’s collapse will be exponentially greater than the benefits of over 80 years time. Technically, the dollar died in 1971, but they have been playing games to keep it ‘looking’ alive (think Weekend at Bernie’s).
This system has existed for thousands of years – it’s known as “Mystery Babylon”. It finds it’s way into civilizations as a parasite and hollows it out causing that civilization to collapse. It then moves on to a new growing society . Wash, rinse, repeat throughout history. Read Revelations for a better understanding.
FYI:
https://ofac.treasury.gov/recent-actions/20240429
I remember your article: “The East-West divide is about the dollar, not nuclear war.”
It’s still relevant today.
“Pawns in the Game”. William Guy Carr. Dauphin publications.
A deep read into the money Barons.