Value of Money in Terms of Grams of Gold
Value of Money in Terms of Grams of Gold
Why Measure Money in Grams of Gold?
- Preserving Purchasing Power
Since the decoupling of the U.S. dollar from gold in 1971, fiat currencies have steadily lost purchasing power due to inflation. Gold, however, has historically retained its value and served as a hedge against inflation. By measuring Money in grams of gold, the Credit-to-Credit Monetary System ensures that the value of Money is preserved over time and protects its users from the devaluation risks inherent in fiat currencies.
- Stability
Gold is widely recognized as a stable and trusted store of value. Unlike fiat currencies, which are susceptible to inflationary pressures and devaluation, gold offers a consistent and reliable measure of wealth. Aligning the value of Money to grams of gold ensures that national economies and financial institutions can rely on a stable measure of wealth that transcends national borders and economic fluctuations.
- Traceability
A key feature of the Credit-to-Credit Monetary System is transparency and traceability. When Money is tied to grams of gold, its value becomes tangible and understandable. This is in stark contrast to fiat currencies, which can be manipulated through monetary policy. Each unit of Central Ura or Central Cru can be directly linked to the grams of gold it can purchase, ensuring that its value remains clear and consistent.
The Role of Central Cru and Central Ura in the Credit-to-Credit System
Central Cru
Central Cru (CRU) is a critical asset in the Credit-to-Credit Monetary System, and today CRU1.00 is exchangeable for USD 55.00. This value is backed by sufficient receivables in USD to ensure that any additional assets required to maintain value in the event of USD devaluation are available. These receivables appreciate at 12.5% per annum, providing steady growth and ensuring the system remains fully asset-backed.
At today’s rate, USD 55.00 is approximately 0.684 grams of gold (with the price of gold at USD 80.35 per gram). By measuring Central Cru in grams of gold, its value remains protected, even as fiat currencies like the USD fluctuate. This inflation-proof method guarantees that Central Cru retains its value over time.
Central Ura
Central Ura (U1.00), currently valued at USD 136.04, can be directly related to 1.69 grams of gold. Should the USD devalue further, the asset base backing Central Ura, which appreciates at 12.5% per annum, ensures that additional assets can be added to maintain the purchasing power of Central Ura in terms of grams of gold.
Why Transition to the Credit-to-Credit Monetary System Is Urgent
- Mounting National Debts
Governments around the world continue to issue fiat currency through debt-based systems, resulting in ever-increasing national debts. This approach is unsustainable in the long run, eroding the real value of money and placing a financial burden on future generations. The Credit-to-Credit Monetary System allows governments to issue Money backed by real assets, halting the debt cycle and protecting the purchasing power of their citizens.
- Fiat Currency Depreciation
Since the 1971 decoupling of the dollar from gold, fiat currencies have experienced consistent devaluation. As inflation rises and governments issue more currency to cover debts, the real value of fiat money continues to decline. Measuring Money in grams of gold provides a stable alternative, safeguarding wealth from the inflationary pressures inherent in fiat currency systems.
- Stabilizing Global Economies
As more nations adopt the Credit-to-Credit system, the price of gold will stabilize, providing a secure and universally accepted measure of value. The transition of large economies, such as the USA, will play a pivotal role in stabilizing the global financial system, reducing volatility, and strengthening economies globally.
By adopting the Credit-to-Credit Monetary System, nations can stabilize their economies, prevent further devaluation, and ensure long-term financial stability. This system’s alignment with tangible assets such as gold provides a transparent and reliable foundation for global economic planning.
Why This Is Not a Return to the Gold Standard
While measuring the value of Money in grams of gold might evoke comparisons to the Gold Standard, this system is not a return to the rigid monetary policies of the past. Under the Gold Standard, currencies were directly convertible into gold at a fixed rate, which limited monetary flexibility.
The Credit-to-Credit Monetary System, however, ties the value of Money to a basket of reserve assets, including gold. This ensures that the system retains the stability of gold, while also offering flexibility for economic growth and innovation. This approach combines the best elements of an asset-backed system with the adaptability required for modern financial markets.
Global Stabilization of Gold Prices
As more nations transition to the Credit-to-Credit system, the global price of gold will stabilize. The increasing demand for gold as a standard measure of value will reduce speculative volatility. Furthermore, as large economies like the USA transition, the stabilization of gold prices will further enhance global economic stability. This will foster a system that combines the principles of asset-backed currencies, similar to the Gold Standard, with the flexibility of modern financial practices.
Invitation to Transition to the Credit-to-Credit Monetary System
The global economy is at a critical juncture. Continued reliance on fiat currencies risks further economic instability, unsustainable debt levels, and wealth erosion. Governments, Central Banks, and Policy Makers must explore the benefits of transitioning to the Credit-to-Credit Monetary System, where Money is backed by tangible assets such as gold.
This transition will stabilize national economies, preserve the purchasing power of money, and provide a sustainable financial framework for future generations.
To learn more about the Credit-to-Credit Monetary System and the roles of Central Ura and Central Cru, visit uracentral.com. Entrepreneurs and individuals can explore how this system benefits their financial future by visiting neshuns.com or contacting their local Central Ura Banks (CUBs) or Central Ura Investment Banks (CUIBs).