Central Banking & The Great Reset
How can we maintain our savings in times of global financial crisis?
The global economy is undergoing an economic transformation unlike any in history. It is imperative for us to save for the future, but when the nature of money itself is changing, how do we shepherd our savings through the transformation? Perhaps we should take a leaf out of the central banker’s playbook and hoard gold.
The unprecedented chain of events that created the current global economic lockdown is generating conditions that have precipitated a worldwide economic crisis. As the famous economist Milton Friedman once said:
“Only a crisis — actual or perceived — produces real change.”
The ownership of central banks represents a spectrum that runs from the publicly owned to the wholly private. Central banks are opaque by nature and appear to operate by their own set of rules. In the case of the US Federal Reserve, Alan Greenspan who was Chairman from 1987–2006, stated that “the Federal Reserve is an independent agency” and “there is no other agency of government which can overrule actions that we take”. By these standards the US Federal Reserve seems to be above and beyond the law that governs the rest of the country.
The precious metals analyst Ronan Manly presciently identified that beginning in 2013 there were announcements emanating from several central banks which indicated a coordinated deadline for 2020 to repatriate their national gold reserves. In a 2015 tweet, Mr Manly even went so far as to identify 2020 as the year for a “system reset”. Today, his Twitter account has been suspended. Let us examine the statements of three European central banks.
In 2013 Germany’s Bundesbank announced that:
“By 2020, the Bundesbank intends to store half of Germany’s gold reserves in its own vaults in Germany. The other half will remain in storage at its partner central banks in New York and London… To this end, the Bundesbank is planning a phased relocation of 300 tonnes of gold from New York to Frankfurt as well as an additional 374 tonnes from Paris to Frankfurt by 2020.”
In 2015 the Governing Board of Austria’s Oesterreichische Nationalbank stated:
“By the year 2020, 50% of Austria’s gold reserves are to be held in Austria, 30% in London and 20% in Switzerland.”
Both the German and Austrian central banks made statements to announce that they had completed their programs “ahead of schedule”.
In 2014 De Nederlandsche Bank, secretly repatriated 122.5 tonnes of gold to Amsterdam from the New York Fed. This represented almost a quarter of their total gold holdings at the time. They followed the repatriation process with this insightful statement:
“Gold is the perfect piggy bank — it’s the anchor of trust for the financial system. If the system collapses, the gold stock can serve as a basis to build it up again. Gold bolsters confidence in the stability of the central bank’s balance sheet and creates a sense of security.”
It was extraordinary luck that the repatriation schedules of these powerful central banks happened to coincide with the economic crisis we are facing today in 2020. It is also clear is that for central banks gold is not only economically valuable but provides the basis for rebuilding collapsed financial systems.
Central banks are not as independent as they might first appear. The Bank for International Settlements (BIS) is quite open in promoting itself as “a bank for central banks”. It also claims that its mission “is to serve central banks in the pursuit of monetary and financial stability”. We are left wondering: did this “bank for central banks” fail during the last financial crisis? If the world has another global economic crisis will the BIS have failed again?
The last global financial crisis occurred between 2007–2008 when systemic corruption and fraud were exposed at the heart of the international financial system. Instead of addressing this corruption, central banks responded by printing more fiat money. Prosecutions for those responsible failed to materialize and the people paid for these crimes through banking bail-ins, loss of property and the inflationary effects of quantitative easing. During the crisis, the global social movement Occupy was quashed to stop the growth and spread of activism that directed fury towards the bankers. The holes in the global financial system were covered up to buy time to prepare for its inevitable collapse.
We are not taught this in school but every fiat currency system in history has collapsed. The eighteenth-century Enlightenment writer Voltaire summed it up neatly when he said: “Paper money eventually returns to its intrinsic value: zero”.
The World Bank is now estimating that 115 million people could be pushed into extreme poverty due to the financial crisis precipitated by the global lockdown. The shocking reality of extreme poverty means these people will have nowhere to sleep and no food to eat. As this crisis unfolds the financial elite are calling for “A Great Reset”, a “New Bretton Woods Moment” and Central Bank Digital Currencies. These are the harbingers of a new economic system.
How can we defend our savings against the transformation that is about to be foisted upon us? One option is to move our savings into real-world assets such as gold which are proven economic save havens. The other option is cryptocurrencies such as Bitcoin. Gold offers a proven store of value and Bitcoin brings the convenience of a digital asset. MetalStream’s MSGLD straddles the two in the form of a digital asset which is backed by and redeemable for gold.
We live in unprecedented times and it will be necessary to keep our wits about us if we are to make it through and not experience the suffering of extreme poverty. History has proven that the financial elite do not operate on behalf of the people. The changes that are unfolding will require us to be agile and store our savings outside the fiat monetary system. Precious metals, cryptocurrencies and security tokens are some of the best options available to us to transfer wealth through these changes.
MetalStream is the issuer of the innovative gold-backed MSGLD token. Please visit our website for more information, and contact email@example.com for enquiries related to the purchase of tokens.