The Big Reset: Gold Wars and the Financial Endgame
Amsterdam University Press, 2014 - 261 páginas
What is money really worth anymore? This compelling study outlines the rise of fiat money and its associated economic implications. Until 1914, almost all major currencies were backed by gold but as the costs of World War I grew, most European countries were forced to abandon the gold standard and fiat money was born.
Since the US took the dollar out of the gold standard in 1971, gold became financial enemy number one. The author provides enough circumstantial evidence to claim a secret War on Gold, ongoing since the London Gold Pool of the 1960s. It also explains gold s traditional role as the anchor of financial systems.
To combat the economic fallout of the credit crisis, governments have allowed their budgetary deficit to increase dramatically. In order to address that problem they have to sell enormous amounts of bonds. As more and more investors stop buying them, central banks have to step up to the plate. By turning on the (digital) printing presses more frequently they are in the process to monetize the debts.
Due to all the emergency support, government debts have risen to a dangerous level, as one country after another gets into financial difficulties. Piling more and more bad debt onto the balance sheets of central banks is not a sustainable way to revive the economy. Middelkoop highlights the process as part of our economic endgame which will eventually lead to a big reset of our worlwide financial system."