The next great global default

Question: Dear Martin
Can you describe in detail what you expect when talking about the collapse of the monetary system?
Will there be differences between countries like Germany and Switzerland for example? Especially with regard to pension systems.
I suppose there may be significant differences between countries.
Many thanks and best regards,
R was found.

Answer: The monetary system collapsed with the victory of the American Revolution. The state and Continental Federal currencies were exchangeable for the new currency, which became the US dollar. There was a wide disparity between the states as each was rated by the swap market. Even when they created the euro, there were differences between each currency.

The International Monetary Fund is now pushing aggressively behind the scenes to replace the dollar with an IMF digital currency they want to become the reserve currency. This would be very dangerous for the IMF deep in corruption. China’s complaint, for example, is that the dollar is the reserve currency and they see that as a dangerous force in the hands of an adversary.

I’ve written a lot about the real problem of the dollar serving as the reserve currency and that this has pushed the Fed into the default role of the world’s central bank. The problem is all the anti-Fed propaganda spun by gold pros that completely distorts the real crisis. They are trying to sell gold solely based on the quantity theory of money dating back to the 17th century. It’s outdated and funny. It is entirely focused on the domestic level to the exclusion of the global economy and international capital flows. Unfortunately, the Fed also lives in the past and only sees the economy in domestic terms, making it Fed policy versus fiscal policy, over which they have no control.

Only when you understand the movement of international capital flows will you be able to peek into the real world. World War I prompted the capital to flee Europe and rush to America. And because the capital was here, it increased domestic purchasing power and Europeans did the results-focused 1920s. They were involved in Auto-Stock-Boom.

The first G4 was held in 1927 when other central banks argued that the United States should lower interest rates in order to divert the international capital it needed into Europe to rebuild. In fact, capital inflows peaked in 1927 and began to decline. But it was the sovereign debt crisis of 1931 that forced large capital outflows to cover losses at home.

Hoover explained the crisis in 1931 in his memoirs. To answer your question, we will receive a major report that I intend to publish. The topic is very complex and there will be significant differences that people need to be aware of. The bottom line is that all governments intend to default on their past debts. This is what happened even with the collapse of the Continental government after the victory of the American Revolution.

We see similar results also in France with their revolution. We are staring into the eyes of a major global debt default, and we are on a cyclical timetable for the next sovereign default.

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