The coming 'two tiered' dollar system?
When the Bretton Woods system was put in place after WW 2, the US dollar essentially became a '2 tiered' system. For the next 25 years, the dollar was fully backed by gold internationally, but unbacked / fiat for domestic use within the US. Other countries could freely convert their dollars into gold, which provided full trust in the global dollar reserve system.
Today we find the US dollar system heading into big trouble due to the parabolic US domestic debt, and the rise of rival China-Russia-BRICS and their new gold-linked currency. So what options are there to avert the looming disaster? In addition to slowing down the rise of BRICS (see last posts), one possibility might be to create a 2 tier dollar system that somehow separates the domestic US debt problem from the dollar's key role as the world's reserve currency. Could this be where the crypto / CBDC / Bitcoin Strategic Reserve idea is heading? In Category A would be dollars held by the world's central banks, and in Category B would be the domestic US debt bomb problem, which could then be somehow neutralized, vaporized without affecting the dollar's all important global reserve role. Probably won't work, but desperate times require desperate measures.
Countries all over the world are working on their own domestic CBDCs, but the US situation is different due to the dollar's world reserve currency role. After the collapse of Bretton Woods in 1971, Kissinger & Co saved the day for the teetering dollar system by coming up with the Petrodollar system. Let's hope the current finance oligarchy is up to the task, but options are dwindling with current US Debt / GDP a staggering 123%, compared to 32% in 1981. So objectively, even a Kissinger couldn't get us out of this mess.
---
Market Data 
Markets 
AI
