The Problem of Fiat Currency and Impending Crises
The Western world faces a potentially catastrophic situation tied to the nature of fiat currency. The term fiat money refers to currencies that are no longer backed by gold but can be printed as needed. The decoupling of the US Dollar from the gold standard in 1971 laid the groundwork for a system in which debt continues to grow, and inflation escalates. Countries like the United States carry massive national debts that increase exponentially as governments spend more than they collect. This tendency toward mounting debt ultimately leads to rising inflation rates as more money is printed to cover the deficits.
The BRICS Nations and Their Role in the Global Economy
In contrast to the Western world, the BRICS nations (Brazil, Russia, India, China, and South Africa) are working on an alternative currency system, which is planned to be backed 40% by gold and 60% by resources. This proposed “Unit” currency aims to reduce reliance on the US Dollar and other Western currencies. The BRICS nations have recognized that Western currencies are becoming increasingly unstable and are seeking ways to shield themselves from a looming currency collapse. They are striving for greater economic independence to break the dominance of the dollar.
The Consequences of Monetary Policy and Potential Inflation
The uncontrolled issuance of fiat money without a link to valuable goods like gold leads to the continued devaluation of currencies. Experts like Andy Scheckman warn of an impending financial collapse of biblical proportions. As inflation rises, prices for everyday goods such as bread and milk will skyrocket. This is not just a temporary phenomenon but a long-term devaluation of the currency that will make daily life more difficult. Historical examples, such as the hyperinflation in Germany following World War I, show how dramatic the consequences can be when a currency is devalued by endless money printing.
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Link to the YouTube video with English subtitles: https://youtu.be/O8qQLHn3wIg