What Is The Global Currency Reset

     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