From gold, to gold standard, to fiat money, the global financial system is at a breaking point. Inflation has steeply increased for the past decades, way surpassing wages, making modern life increasingly unsustainable. Despite the rhetoric of free trade and trickle-down economics, emerging markets cannot grow without protection. Rich people do not trickle down wealth to the poor. In fact, the gap between rich and poor has widened greatly since half a century ago.
The reality is, the money you have in your pockets is getting more and more worthless by the day. The simplest gauge is your current financing structure. How long does it take you to pay off your car or house today, as compared to say 50 years ago? The answer might astound you. The current system we have today is not ancient, it is very recent. The fiat money system we have today was created on 15 August 1971, when the US unilaterally terminated convertibility of the US dollar to gold, effectively bringing the Bretton Woods monetary framework to an end. Since then, the money you have in your hands is not pegged to any tangible valuable commodity but to the US dollar as a reserve currency. A blow to the US economy creates a devastating ripple effect to the global monetary system, and this will not sustain. Is this the end of the current system? What will replace it?
At the International Strategy Institute (ISI), we cover deep issues that affect the social and business world. Stay tuned for more!! Follow us through our ISI Insights newsletter, FB, Instagram and Linkedin or our website at www.istrategy.global for regular updates on our programmes.