Will There Be A Global Currency Revaluation?

Hi Jerry, I truly appreciate your work. I recently received a copy of your book, Bankruptcy of our Nation, and I was introduced to so many new things that I never thought about before. Thank you for writing it! My question is about something called the global currency reset. Several websites have been warning that a global currency reset is coming and that we should all be ready. So my question is simple: What is the global currency reset and should I be concerned?
Thanks,

– Patty M. (Boise, ID)

Patty,
Thanks for your question. We do receive this question about a “coming global currency revaluation” or “reset” fairly often and so I appreciate the opportunity to address it in today’s Daily Briefing.

First, what is a global currency revaluation? Put simply, it would be a return to a new currency standard that all nations would agree upon, such as a gold standard. The last major global currency agreement occurred in the wake of World War II and was known as the Bretton Woods agreement. Under this agreement, the world’s allied nations agreed to a fixed international gold standard attached to the U.S. dollar. Because the U.S. dollar operated as the primary global medium of exchange under this post-war agreement, the U.S. economy greatly benefited at the expense of other nations. I have written extensively on the history and meaning of the Bretton Woods agreement both in my book and on this website.

Now, in the wake of the 2008 economic crisis, some are promoting the idea that we are on the cusp of yet another major ‘global currency revaluation.’ (A ‘Bretton Woods – Part Two,’ if you will.)

However, there are still a few obstacles that stand in the way of such a ‘reset’ that should be considered:

1. A true ‘global currency revaluation’ would require an insurmountable amount of cooperation and the surrender of monetary policy control on the part of many nations. Because the 1944 Bretton Woods agreement only became acceptable in the wake of a devastating world war, it is difficult to imagine nations voluntarily surrendering their monetary policy tools in our current time of relative peace.

2. A global currency revaluation would require central banks to willingly impose constraints upon their ability to conduct monetary policy. Under Bretton Woods, the constraint was a fixed price of gold, which forced central banks to operate within the realm of reason. Who honestly believes that foreign central banks are ‘chomping at the bit’ to willingly impose a new set of constraints upon themselves amid today’s volatile global economic environment?

This is not to say that a new global monetary regime will not eventually be implemented. I believe that such a shift is all but certain. But a quick Google search of the topic reveals that those who are promoting the idea of a ‘global currency reset’ as a current and imminent reality are usually looking to make a quick buck off of people’s fears.

As an economist who warned about the 2008 economic crisis, and who moved my own investments out of the markets prior to the 2008 market crash, I have been fascinated by all of the sudden ‘armchair economists’ who have set up shop, created a blog, and are touting themselves as economic ‘experts.’ Many of them tell fantastic tales that fail when confronted with basic logic.

Today, nearly half of Americans have less than one month of savings. Most don’t have a will and even fewer have a simple guardianship plan for their children. These are real problems that need to be addressed and are 100% within our own control.

A coming ‘global currency reset’ is a future problem that does not currently exist and is completely out of our control.

Perhaps some of those who have failed to create a financial plan secretly long for a ‘global currency reset’ which will level the playing field. But I wouldn’t hold my breath.

Instead, I would get busy solving those financial issues that I can personally control and spend less time worrying about things that are out of my control.

But let’s say I am wrong and a ‘global currency reset’ suddenly occurs tomorrow. (This is highly unlikely, but let’s just pretend.)

What can you do?

You would want your investments highly diversified, including some gold and silver.

You would want a minimum of six months in liquid savings.

You would want multiple streams of income.

Ironically, these are things that you can begin doing right now. There’s no need to wait…

So, Patty, my advice is to spend more time on actions that can improve your finances today and to spend less time on worrying about the “what-ifs” that will only paralyze you from taking action.

Until tomorrow,
Jerry Robinson

Inside this Issue

“Preparing — and Profiting — From the Coming Collapse”

Market Barometer Alert! (FTM Insiders Only)

Our Market Barometer is flashing an important alert. Investors, here’s what to do now…

Putin Expected to Sign China Gas Deal as Crisis Forces Hand

Vladimir Putin is more likely to sign a 30-year deal to supply pipeline gas to China next month after more than a decade of false starts because the crisis in Ukraine is forcing Russia to look for markets outside Europe.

Putin Warns Europe “No Alternative… Will Cut Gas Supplies”

European partners have left Russia with “no alternative” but to halt supplies of gas to Ukraine and Europe, according to a letter from Russian president Putin to European leaders.

IMF Warns U.S. Over Potentially Bumpy Exit From QE3

The IMF warns a bumpy exit from extraordinary monetary policy in the U.S. could undermine global financial stability.

China Will Implement Deposit Insurance “Probably” This Year

The Chinese government plans to implement a deposit-insurance system for bank accounts this year, a top official from China’s central bank said Thursday.

Report: 85% of Pensions Could Fail in 30 Years

Bridgewater warns that public pensions have just $3 trillion in assets to invest to cover future retirement payments of $10 trillion over the next several decades.

Top Economists Warn European Crisis As Dangerous As Ever

“Debts above 130% of GDP for Italy and 170% for Greece are a recipe for disaster once we go into the next downturn.”

Trailer Parks Lure Wall Street Investors Looking for Double-Wide Returns

The beauty of a trailer park — for its owner, anyway — is that once a tenant trucks a home to a site, then lowers it onto a pad, as it’s known in the business, and hooks up to the electricity and septic systems, he’s unlikely to leave.

Wal-Mart Partners With Wild Oats to Roll Back Prices on Organic Food

Walmart plans to roll out 100 Wild Oats packaged foods products to half of its 4,000 stores in the coming months after it’s own research revealed that 91% of its shoppers would purchase affordable organic products if they were offered.

Foreclosures Fall to Lowest Quarterly Level Since Mid-2007: RealtyTrac

March was the 42nd straight month where U.S. foreclosure activity dropped from year-ago levels.

Google to Sell Glass to Public Next Week

On April 15, the $1,500 wraparound Web-ready glasses will be available online.

View the Investor Wire Archive >>

---

---

“A Daily Stock Trading Idea for Short-Term Traders”
— Subscribers Only —

You are attempting to view premium content for subscribers only. If you are a subscriber, log in here. If you are not currently subscribed, you can learn more here.

Trade Alert – April 11
We currently have four stocks in play in the markets.

Enter the Trading Room to View all Trading Activity >>

View our Trading Performance >>

Not a subscriber? Learn more here >>

---

U.S. Financial Markets Real-time Gold and Silver Prices

Precious Metals Market Update with Tom Cloud

Read/Print the Audio Transcript
View Our Current Precious Metals Specials Here >>

---

“Daily Investment Trends for the Savvy Investor”

You are attempting to view premium content for subscribers only. If you are a subscriber, log in here. If you are not currently subscribed, you can learn more here.

View the Daily Chart Archive >>

---

“World News Headlines That We Are Tracking”

U.S. Army Goes to War with National Guard, Seizes Apache Attack Helicopters

The National Guard is following a direct order — but it’s not happy with it.

China Says Christianity’s Growth ‘Excessive’

Top Chinese official says Christianity’s growth had been “too excessive and too haphazard”.

Population of Rural America Continues to Fall

More people are squeezing into the cities…

Message in Bottle Arrives After 101 Years

A message in a bottle tossed in the sea in Germany 101 years ago has been recovered.

---

Stock Trading Bootcamp 2014: Part III

Broadcast Every Weekend – Hosted by Jerry Robinson

Topic: In Part III of our Stock Trading Bootcamp podcast series, Jerry Robinson shares three different approaches he personally uses to trade stocks.

Download Now >>
(Right click link above and ‘save as’ to your device)
Read This Week’s Show Notes >>

Other Listening Options

---

“A Daily Dose of Financial Wisdom from God’s Word”

“Also it is not good for a person to be without knowledge, and he who hurries his footsteps errs.”
Proverbs 19:2

---

incoming searches: global currency revaluation, global currency reset

Subscribe

Login

Notify of

new follow-up commentsnew replies to my comments

Label

{} [+]

Name*

Email*

Website

Label

{} [+]

Name*

Email*

Website

0 Comments

Inline Feedbacks

View all comments

Load More Comments