It’s a bold statement, but Mike Maloney predicts that based on history, the US will be forced into a new monetary system by the end of this decade.
As he explains in his new video, Reason #8 Why I Own Gold and Silver, the world has formed a new monetary system every 30-40 years. The US is overdue.
Many citizens aren’t aware of it, but America has had four monetary systems in just the past 100 years:
That’s why Mike believes the US dollar is overdue for its demise…
History Says the US Dollar Has an Expiration Date
When we read about George Washington, we learn about leadership and heroism. When we look at the history of Lincoln, the abolishment of slavery and the civil war come to mind.
And when you study monetary history, one glaring fact sticks out: fiat currencies don’t last!
A fiat currency is one that has no backing of gold or any other commodity. “Fiat” means by decree, so the dollar bill in your wallet is currency because the government says it is currency.
Unfortunately, monetary systems over the past 100 years or so have gradually moved from asset-backed currencies to faith-based currencies. The US dollar had full gold backing… then partial gold backing… then “some” gold backing. Today, it has no gold backing.
This gradual decline in the backing of the world’s reserve currency doesn’t come free of consequences. History repeatedly shows that faith-based currencies eventually go bust or are pushed to the back of the currency bus. This means the US dollar’s reign is limited.
We thus shouldn’t assume our dollars will, in their present state, last indefinitely. That has never happened in history.
We may still be using dollar bills with Hamilton and Jackson on them, but it’s the monetary system that supports them that Mike insists will be changed.
And it won’t be just the US dollar. The sobering fact is that for the first time in history, all currencies today are fiat.
This means that the global financial system is more vulnerable than it has ever been in history.
Just like in 1922, 1944 and 1971, there will likely be an emergency meeting to hash out a new monetary system.
And it will affect the entire world—all 180+ currencies in use today—because the US dollar represents over half of all currency in circulation. With this kind of dominance, faith in all fiat currencies could fail once dollar falls.
Make no mistake… transitions like this are never smooth. They cause not just economic turmoil but a massive loss in purchasing power of the currencies in use.
Those who own gold and silver, on the other hand, will not just survive but thrive in the transition.
Original Source: Gold Silver