Urgency of Transition: Why Credit Should Be Measured in Terms of Grams of Gold
Government and Policy Makers | Central Ura Organization
The global economy is at a pivotal moment where financial instability, mounting national debts, and fiat currency depreciation have become critical issues. As nations navigate these mounting economic challenges, the Credit-to-Credit Monetary System provides a transformative solution. This system advocates that the value of credit be measured in grams of gold, ensuring long-term financial stability and safeguarding national economies from the risks inherent in fiat currency systems.
Why Gold? The Case for Measuring Credit in Grams of Gold
1. Stability in an Age of Fiat Currency Instability
For decades, governments have relied on fiat currencies, which are not backed by tangible assets but instead supported by government decree. Since the decoupling of the USD from the gold standard in 1971, the U.S. dollar and other fiat currencies have been subject to devaluation. As inflation steadily rises, the purchasing power of fiat currency has consistently diminished. In contrast, the price of gold has risen from USD 35 per ounce in 1971 to USD 2,500 per ounce in 2024, underscoring the depreciation of fiat currencies.
Gold has proven to be a stable store of value, immune to the inflationary pressures and devaluation that plague fiat currencies. By measuring credit in grams of gold, nations can protect their economies from fiat currency volatility and secure financial stability for the future.
2. Preserving Economic Sovereignty
Countries that issue credit in fiat currency often face external financial pressures, leading to the erosion of economic sovereignty. When credit is measured in fiat currencies like the USD, nations are vulnerable to external market fluctuations and inflationary policies that can destabilize their economies.
By measuring credit in grams of gold, countries can assert greater control over their financial systems. Gold is independent of foreign monetary policies, allowing governments to manage their national credit based on real, tangible assets. This ensures that economies remain resilient and protected from external shocks, enhancing economic independence.
3. Protecting Purchasing Power
One of the most significant flaws of fiat currency systems is their inability to preserve purchasing power. Inflation and monetary expansion continuously erode the value of fiat currencies, leaving citizens and businesses vulnerable to economic instability.
The Credit-to-Credit Monetary System, where credit is measured in grams of gold, protects purchasing power over the long term. Gold’s historical consistency in value shields economies from inflationary cycles, ensuring that the value of money and credit is preserved. This protection strengthens national economies and fosters financial security for businesses and individuals alike.
Why Now? The Urgency for Transition
1. Mounting National Debts
Governments globally are grappling with unprecedented levels of national debt, driven by the issuance of fiat currency in debt-based systems. The continual cycle of borrowing to finance deficits is unsustainable and undermines long-term economic health. The result is a growing national debt burden, which constrains future economic flexibility and growth.
The Credit-to-Credit Monetary System, which ties the issuance of credit to tangible assets such as gold, offers a way out of this crisis. By transitioning now, governments can halt the cycle of debt, issue credit backed by real assets, and regain control over their financial futures.
2. Fiat Currency Depreciation and Inflation
Inflation is eroding the value of fiat currencies at an alarming rate. As governments issue more currency to cover debts, the real value of money continues to decline. The USD, once the world’s strongest currency, has steadily lost value due to inflation and overissuance.
In contrast, by measuring credit in terms of grams of gold, its value remains stable and inflation-proof. Gold’s historical strength as a hedge against inflation ensures that national credit retains its purchasing power, even as fiat currencies weaken.
3. Stabilizing Global Financial Systems
The shift to the Credit-to-Credit Monetary System is not only crucial for national stability but also for the global economy. As more nations adopt this system, the global price of gold will stabilize, providing a secure, universally accepted measure of value. This shift will reduce market volatility, promote economic resilience, and encourage sustainable growth worldwide.
A large economy, such as the USA, transitioning to this system would lead to a global financial transformation, similar to the Gold Standard but with added flexibility. This new system, built on the principles of asset-backed credit, is more adaptable to modern economic realities while maintaining the stability of the Gold Standard.
Why the Credit-to-Credit System Is Not a Return to the Gold Standard
It is essential to clarify that measuring credit in grams of gold is not a return to the Gold Standard. Under the Gold Standard, currencies were tied to a fixed amount of gold, limiting monetary flexibility and often constraining economic growth during times of financial crisis.
The Credit-to-Credit Monetary System offers a modern solution by linking the value of credit to a basket of reserve assets, with gold being one of the key assets. This approach retains the stability of gold while allowing the flexibility needed for contemporary economic conditions. As a result, this system provides the best of both worlds—long-term stability through asset-backed credit and the adaptability required for today’s complex global financial markets.
Global Stabilization of Gold Prices
As more countries transition to the Credit-to-Credit Monetary System, the global price of gold will stabilize, reducing speculative volatility. If the USA, with its current position as the provider of the global reserve currency, transitions to this system, it would stabilize the price of gold globally. This would create a financial environment similar to the Gold Standard, but with greater flexibility due to the redefinition of reserve assets under the Credit-to-Credit system.
Conclusion: Why Governments Must Act Now
The window to transition to the Credit-to-Credit Monetary System is rapidly closing. Fiat currency systems, burdened by inflation, debt, and devaluation, are becoming increasingly unstable. Governments and policy makers must act now to secure their economies’ long-term stability by adopting a system that measures credit in grams of gold.
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