Measuring Credit in Terms of Grams of Gold
Measuring Credit in Terms of Grams of Gold
The Credit-to-Credit Monetary System introduces a fundamentally new approach to measuring value, aligning financial instruments with real-world assets to ensure stability and purchasing power over time. One of the key considerations for Governments, Policy Makers, and the general public is how Credit should be measured to avoid inflationary pressures and currency devaluation associated with fiat systems like the U.S. dollar.
Central Ura, as an asset-backed form of money, offers a sustainable solution by moving away from measuring Credit in fiat currency (USD) and instead adopting grams of gold as a more stable and reliable measure. This shift reflects the fundamental principles of the Credit-to-Credit system, ensuring that the value of money remains tied to tangible assets, protecting the economy from fluctuations in fiat currencies.
Why Measure Credit in Grams of Gold?
- Stability and Historical Provenance of Gold
Gold has long been a stable and enduring store of value. For thousands of years, it has served as a medium of exchange and a reliable measure of wealth. Unlike fiat currencies, gold is not prone to inflationary policies or devaluation by central banks. Its limited supply ensures consistent value across time.
By measuring Credit in grams of gold, the Central Ura Monetary System ties value to an asset with intrinsic value, preserving the purchasing power of Credit over time. This makes gold an ideal measure of value, especially in an era where fiat currencies are subject to long-term depreciation.
- Protecting Against Fiat Currency Depreciation
Since the decoupling of the U.S. dollar from the gold standard in 1971, the USD has lost significant purchasing power, as illustrated by the sharp rise in gold prices—from USD 35 per ounce in 1971 to USD 2,500 per ounce in 2024. If the USD continues to depreciate over the next decade, governments and financial institutions that measure Credit in USD will see a decline in the real value of their assets.
Conversely, when Credit is measured in grams of gold, its value remains consistent, immune to the devaluation trends of fiat currencies. This ensures Credit retains its purchasing power and offers a stable, inflation-resistant means of exchange.
- Current Exchange Rate and Projected Trends
As of 2024, 1 Central Ura (U1.00) = USD 136.04, which equals approximately 1.69 grams of gold (since 1 gram of gold is valued at USD 80.35). If the U.S. dollar continues to depreciate and gold prices rise to potentially USD 5,000 per ounce in the next 10 years, measuring Credit in grams of gold will become crucial to maintaining the long-term stability of Central Ura.
- Sustainability of the Credit-to-Credit System
The Credit-to-Credit Monetary System is structured to prevent over issuance of money, as the amount of Central Ura issued is directly tied to the value of the receivables backing it. These receivables, appreciating at 12.5% per annum, ensure sustainable growth. Measuring Credit in grams of gold allows the system to align with a historically proven store of value, protecting Credit from the fluctuations of fiat currencies.
This practice safeguards the system from fiat currency devaluation, ensuring that the value of Credit—and the purchasing power of Central Ura—remains intact.
Why This Is Not a Return to the Gold Standard
While the proposal to measure Credit in grams of gold might seem similar to the Gold Standard, it is not a return to the rigid monetary system of the past. Under the Gold Standard, currencies were directly convertible into gold at a fixed rate, limiting flexibility. In contrast, the Credit-to-Credit Monetary System ties the value of Credit to a basket of reserve assets, including gold, which provides stability but allows for the flexibility needed to adjust to modern economic conditions.
Measuring Credit in terms of gold grams ties the value of Credit to real assets without the constraints of the traditional Gold Standard. This enables a more adaptive financial framework while preserving the benefits of an asset-backed system.
Global Stabilization of Gold Prices
As more nations adopt the Credit-to-Credit system, the demand for gold as a stable measure of value will lead to a gradual stabilization of global gold prices. Unlike the speculative volatility seen in fiat systems, the introduction of gold as a stable measure across national economies will prevent extreme price fluctuations.
Furthermore, when the USA—as the current provider of the global reserve currency (USD)—transitions to the Credit-to-Credit Monetary System, it will play a pivotal role in stabilizing the global financial market. This system, with the flexibility to accommodate different reserve assets, will lead to a more stable price for gold, fostering confidence and balance across the global economy.
The Role of Central Ura and Gold in National Economies
For Governments and Policy Makers, adopting gold as a measure of Credit ensures a stable foundation for long-term economic planning. Nations that adopt the Central Ura Monetary System, measured in grams of gold, can protect themselves from the inflation and devaluation risks that plague fiat currencies, including rising national debts.
By transitioning to a system that ties Credit to tangible, appreciating assets such as gold, national economies can achieve long-term stability and financial sustainability, free from the constraints of fiat systems like the USD.
The Benefits of Transitioning to Gold-Based Credit Measurement
- Preserves Purchasing Power: Gold has historically retained its value, ensuring that Credit measured in grams of gold will not suffer the same devaluation as fiat currencies.
- Long-Term Stability: Gold offers a consistent measure of value, providing a stable foundation for fiscal policies and economic planning.
- Protects Against Inflation: Gold’s limited supply and its role as a hedge against inflation make it an ideal asset for measuring Credit, preventing the over issuance of money.
Invitation to Learn More
As the world faces increasing financial instability and fiat currency depreciation, it is essential for Governments, Central Banks, and Policy Makers to explore the benefits of measuring Credit in grams of gold. This approach stabilizes national economies and promotes sustainable economic growth over the long term.
Visit uracentral.com to learn more about how the Central Ura Monetary System provides a pathway to stability by aligning Credit with gold, and how your country can transition to this secure financial model. For entrepreneurs and the general public, more information is available at neshuns.com, or by contacting your local Central Ura Banks (CUBs) or Central Ura Investment Banks (CUIBs).