There is more than one meaning that is attached to the phrase Global Currency Reset. A standard definition would be a return to a global currency system that all nations would agree upon. The last time nations gathered together to agree upon a new global currency system was in Bretton Woods, New Hampshire. While World War II was still going on leaders from nations around the world decided on a new global currency system. This led to the formation of global organizations like the International Monetary Fund and GATT, which later became the World Trade Organization. The world’s allied nations agreed on a fixed currency rate which was sort of based on a global gold standard. The U.S. dollar was the currency that nations used to back their currency under this agreement. The reason for this was because the United States was in possession of most of the world’s gold supply at this time. America benefited greatly from this new currency system and the dollar made its way into central banks around the world. In time we left the fixed rate system. Richard Nixon stopped backing U.S. dollars with gold globally in 1971. This was known as the Nixon Shock. Today all the major currencies float on a global market. While some things have changed we are still on the remnants of the Bretton Woods System. Many Central Banks still have the dollar in their reserves and it remains in high demand today. After the 2008 global meltdown, many have speculated that we are going to return to another gold standard. Some believe that there will be another monetary system altogether. Many armchair economists have emerged to claim that some nations may even base their currency values on their resources. The claim is that all currencies will revalue based on the countries’ assets. This will cause gold to skyrocket as people begin to seek a hedge of protection from depleting currency values. The problem with this theory is that there are major obstacles to overcome. First, central banks around the world would need to agree to this and this would put major constraints on their monetary policies. Second, there would need to be a lot of cooperation with governments from all over the world in order to implement this new system or to return to an older system. Some nations would gain from this while others would lose. Third, nations would want to preserve their wealth while moving to a new system. If most of their wealth is in dollars then this will present a problem. Fourth, global organizations like the IMF, the WTO, and The World Bank, are relics from the Bretton Woods era. They would fight to have a relevant role in the new system. So these same armchair economists predict that the dollar is going to collapse in a night. They claim the whole global economy is going to come crashing down in a day. This will force nations around the world to negotiate a new global currency system. Many cite the 2008 economic crisis as proof of a coming collapse. Others rewrite history and insert bad economic theories as proof. Today the Global Currency Reset has become a major conspiracy theory that believes the dollar will crash. This theory proclaims that nations around the world will abandon the dollar. As a result, people have started to prepare for a future dollar crash. They invest in precious metals, they buy foreign currencies, and many have even become preppers and they stockpile food. This conspiracy theory has become big business as many people have made money selling several different types of items that relate to a belief in an any minute overnight dollar collapse. This belief system has many converts and it is cultic in nature. Part of the belief system has its origins in New Age philosophies, while other parts of this belief system are tied into biblical prophecy. As a result, new converts are made all the time and people are driven more by emotion and their worldview rather than being driven by sound economic advice and principles.
This is not my original work
