Did Russia Set Off A Monetary System Reset?

 

Fiat currency is nothing more than a “promise” to repay a debt obligation. A hard asset-backed currency ensures that repayment will take place. 

Nixon’s severing of the last thread connecting currency to gold is regarded as Bretton Woods II. Pozsar argues that Bretton Woods III represents a return to a monetary system in which currency is backed by commodities rather than a sovereign issuer’s “full faith and credit.” 

Commodities are collateral, and collateral is money, and the current crisis is about the increasing allure of outside money over inside money. 

The term “inside money” refers to the interbank repo/lending mechanism that gives rise to the fractional bank reserve monetary system. Pozsar differentiates between “inside money” and “outside money.”

 

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#edgeforex #forextrading #forexsignals #forex #trading #debt #obligation #asset #system #currency #gold #brettonwoods #bank #cryptocurrency #bitcoin  

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