Will COVID-19 Reset The Global Monetary Order?
Will COVID-19 Reset The Global Monetary Order? By: Andrew Moran for Liberty Nation
Who will stand tall and who will fall to the Coronavirus after the pandemic?
In response to the Great Recession a decade ago, the international community fired off the big guns to stave off the inevitable decay of the global economy that had been manipulated and distorted through the Keynesian doctrine. Despite the massive fiscal and monetary stimulus at the time, many countries failed to recover from the financial crisis – and those that survived the market meltdown are still paying for the spending and bailouts. After pulling the trigger on the Coronavirus-targeted bazookas, the world’s pockets are empty, potentially creating a scenario for a reset in the global monetary order. On the other side of the lockdown, who will stand tall and reign supreme? If history is any indicator, it will either be the country with a lifetime supply of printing press ink or the one with a vault full of gold.
A New Monetary Order
Jp Cortez, the policy director at the Sound Money Defense League, believes the global pandemic could usher in a new era of sound money in the future. However, before that happens, he thinks the immediate fallout will lean against a fundamentally stable currency structure.
“Countries have massively overleveraged their economies, leaving them with two options: print now and deal with inflation later, or collapse,” Mr. Cortez explained during an interview with Liberty Nation. “While the printing presses are already running at high speed, politicians and unelected bureaucrats will seize this opportunity to pass measures with massive price tags.”
“The inevitable inflationary consequences will show up down the road as economic demand starts to recover and money velocity picks up,” he continued. “When rising inflation begins destroying the real value of trillions of dollars in U.S. Treasurys held by central banks around the world, that could be a catalyst for a monetary reset.”
The fiat monetary experiment has failed. The Modern Monetary Theory (MMT) and helicopter money proposals are nothing more than aggressive interventionist policy tools emanating from the minds of the globalist progressive Dr. Frankensteins. They might be marketed as feel-good measures to help the common man instead of the fat cats on Wall Street, but they are toxic eyes of newt to make the economy further dependent on the Leviathan.
Following the end of the Second World War, the international monetary order established the Bretton Woods system. This framework made payments based on the U.S. dollar, which was still convertible into gold. Thirty years later, the world entirely abandoned the precious metal and commercial and financial relations were executed on faith in paper. In the aftermath of the Coronavirus, something new could be constructed.