by John Rubino
Dollar Collapse
Excerpted From James Turk’s just-published Money and Liberty: In The Pursuit Of Happiness & The Theory Of Natural Money:
Since the 1944 Bretton Woods conference, the U.S. dollar has been the world’s reserve currency. This term is still used today to describe the international role of the dollar, but it is meaningless to speak of a reserve currency when it is not redeemable in gold. In fact, that is what the term ‘reserve’ means. It is the supply of gold held for safety in a fractional reserve system that is not needed at the moment but is available if required, for example, to settle a payment obligation in money instead of currency. But for now what serves as the international monetary system have twisted the word ‘reserve’ to give it a new definition that fits what exists today.
These word games are intended to delay the end of the U.S. dollar’s role as the world’s reserve currency. While the timing of events is always problematic, monetary history shows that reserve currencies have a limited life. The reserve currency role is lost when the currency eventually becomes too abused and debased by government mismanagement to continue serving internationally, as clearly illustrated in Figure 15.