From that day till now I have been telling as many people as I could that before the end of this decade (before 2020) there will be an emergency meeting of the G-20 finance ministers (or something like that) to hash out a new world monetary system. It’s normal. No man made monetary system can possibly account for all of the forces in the free market. They get old… they develop stress cracks… then they implode.
We have had four different monetary systems in the past 100-years. The system we are on today is the U.S. dollar standard. It is an ageing system that is way overdue for its own demise. It is now developing stress cracks, and will one day implode. Like I said, it’s normal.
But what is different this time around is that the last three transitions were baby-steps from full gold backing, to partial gold backing, to less gold backing, to no gold backing. In each of these transitions the system we were transitioning from had a component that could never fail… gold. This time we will be transitioning from a system based on something that always fails… fiat currencies. The key component to this transition from the U.S. dollar standard to some new standard is of course the U.S. dollar. By the time the emergency meeting takes place the U.S. dollar will be in the final stages of the terminal condition known as fiat failure.
But the U.S. dollar represents more than half of the value of all the world’s currency. A dollar crisis would cast doubts on all fiat currencies, and the cascading effect of loss of faith could cause the rest of them to fall like dominos. The central bankers will try everything they can think of to keep the fiat game going, but when everything they try fails they’ll look around and say, “What worked before.” And once again the pendulum will swing back to quality money.
The only beneficiaries of this event will be gold and silver, and those who own them.
- Source, Mike Maloney's Top Ten Reasons to Own Gold and Silver: