Not Just A Tweak: A Foundation-Overhaul Of Our Entire Monetary System.

[Luigi1]

Here's some articles/with video of GCR-NESARA interests...

-The Fed Just Made It’s Biggest Move Since 2008.

-Could this event be the kick off of our GCR-Nesara?

-We must have a level playing field.

Treat as a rumor.  Not verified.  Your opine.

 

 

 

Mark Moss:  The Fed Just Made It’s Biggest Move Since 2008.

ARTICLE:  The financial world is abuzz with the talk of a significant transformation brewing at the heart of US monetary policy.

 

A recent video outlines a compelling narrative regarding the new Federal Reserve Chair, Kevin Warsh & the most substantial monetary regime change witnessed since 2008.

 

This isn’t just a tweak; it’s presented as a foundational overhaul, moving away from decades-old practices & setting a new course for the economy.

 

Unlike his predec essors, who largely operated within established frameworks, Kevin Warsh is described as an architect of structural reform. His appointment is particularly noteworthy, having been handpicked by Treasury Secretary Scott Bessent.

 

Both Warsh & Bessent share a common background as former partners of the renowned investor Stanley Druckenmiller, bringing a potent blend of deep macroeconomic understanding & real-world investing acumen to the highest levels of economic stewardship.

 

Their mission?  To dismantle a legacy framework that, since 1971, has arguably linked government deficits to persistent inflationary pressures & cheap debt.  Warsh’s strategy is multi-faceted, focusing on three key structural reforms designed to reshape how the Federal Reserve operates.

 

The proposed changes are profound and aim to fundamentally rewrite the monetary playbook:

 

Rethinking Inflation Measurement: 

At the core of this shift is a change in how inflation is measured. The legacy framework relied on the core Personal Consumption Expenditures (PCE) inflation gauge.  The new regime, however, proposes adopting a “trimmed mean PCE” metric.  This alternative largely excludes volatile, one-off price shocks, which has a significant implication: inflation figures could appear closer to the Fed’s target without requiring drastic price declines.  This strategic adjustment could enable the Fed to potentially adjust interest rates while maintaining the narrative of controlled inflation.

 

Eliminating Forward Guidance: 

The era of explicit forward guidance, often characterized by the Fed’s “dot plot,” appears to be drawing to a close.  Warsh’s approach seeks to dismantle this system, moving towards a monetary policy focused more on direct rate-setting rather than liquidity interventions.  This doctrinal break represents a significant departure from the practices of the last four Fed chairs, who largely operated within a similar inflation-targeting paradigm tied to a fiscal-monetary symbiosis.  The goal is a more autonomous & market-driven approach to monetary policy.

 

Shrinking The Balance Sheet: 

To reduce reliance on quantitative easing (QE), a hallmark of post-2008 monetary policy, the new regime aims to shrink the Fed’s balance sheet.  This move signals a desire to return to more conventional tools for managing economic stability, lessening the dependence on large-scale asset purchases that have characterized recent decades.

 

These monetary reforms are not isolated; they are presented as integral to a broader national economic strategy.

 

The video highlights a focus on financing critical initiatives such as re-industrialization, the development of critical mineral mining & refining capabilities, advancements in energy infrastructure & leadership in the burgeoning AI technology race.

 

This strategic alignment echoes historic debt management strategies, particularly the post-World War II period where robust economic growth helped erode the burden of nat'l debt rather than relying solely on outright repayment.

 

The outlook suggests a dynamic where inflation is expected to run “hot but controlled,” asset prices could outpace inflation & real interest rates might remain low, all designed to fuel this ambitious growth agenda.

 

Within this evolving landscape, certain assets are highlighted as playing unique roles.  Bitcoin & gold are positioned as key “liquidity sponges” or productive stores of value.

 

The idea is that these assets could absorb monetary expansion without experiencing significant devaluation, offering a stable haven amidst economic shifts.  Intriguingly, the video suggests an institutional endorsement of Bitcoin, recognizing its potential as “digital gold” for younger generations within this new monetary framework.

 

Ultimately, the video conveys a powerful message: the monetary “train” of deficit spending & easy money is unlikely to be halted.

 

For individuals & investors, the imperative becomes deciding whether to position themselves to potentially benefit from this new regime or risk being left behind as the anticipated economic boom unfolds.

 

For a deeper dive into these insights and further information, be sure to watch the full video from Mark Moss.

Google key words in above title to bring up VIDEO at source.

 

Ariel: We Must Have A Level Playing Field Right?

ARTICLE:  Are You Listening?

Are You Paying Attention?

Are You Moving Yourself Into Position?

 

What has Donald Trump repeatedly said since winning office in 2016?

 

We Must Have A Level Playing Field - Right?

 

Meaning currencies from around the world must be of equal value.

 

Now does the statement from @MazinAlEshaiker a week or so ago about pegging the IQD to USD at 1:1 make more sense to you now?

 

Senator Cynthia Lummis: (on X) The Clarity Act doesn't pick winners.  It creates a level field where the best ideas win.  That's how America is supposed to work.

 

I swear you all wake up 1st thing in the morning looking for something to disappoint you.

 

 Iraqi OFFICIALS have said on multiple occasions that the 3 Zero Project is for their country internally.  The revaluation is for the external int'l markets.

 

That is why the 1:1 is financially considered a revaluation.  Let Iraq help their people 1st by a in-country redenomination.  Then they will help the world by revaluation.

 

They can not do this without balancing their books 1st.

 

 

 

Luigi's two cents worth...

It appears everything is coming together on or before the US 250th.

HUGE changes in Iraq & the US are in the works.

One would have to be blind or living in a cave to not see what's going on.

Trump hinted our 250th will be an event to be celebrated & remembered.

As TNT always says..."be ready so you don't have to get ready"

The best days are yet to come.

Go RV.   Go MAGA.

[Luigi1]

Here's another article related to the GCR...currency exchange by law...

 

 

Rob Cunningham: Currency Exchange By Law.

ARTICLE:  The Currency Exchange By Law.
 

Natural law separates creative power from corruptive power.

 

Positive aligned with positive multiplies life, trust, order, value, peace & truth.

 

Positive Mixed With Negative Does Not “Balance” Truth:
It contaminates it.

It converts soundness into compromise.

Clarity into confusion & Trust into transaction:

• What is true must not be traded for what is useful.
• What is sound must not be blended with what is corrupt.
• What is real must not be exchanged for imitation.

 

Because once the positive is subordinated to the negative, the negative rules the exchange:

Turns clarity into confusion & Trust into transaction.

 

This is why evil/lies rarely begin by destroying the good/true, openly.  It first blends with it, redefines it, monetizes it, then exchanges it for power.

 

That is not religion or conspiracy:

That is arithmetic, morality & natural law converging.

 

True Currency Exchanges require honestly weighed & measured value, otherwise power accrues to those corrupting the exchange process.

 

A Global Stablecoin Exchange System is a GENIUS Architectural upgrade that all but centralized fiat exchange racketeers hate.

 

From 1 World Reserve Currency to 195 World Verifiable Stablecoins flips the perverted moneychanger tables right side up.

[Luigi1]

Kimberly Armadeo:  Why Countries Peg Their Currencies To The USD.

 

ARTICLE:  A dollar peg is when a country maintains its currency's value at a fixed ER to the USD.  The country's central bank controls the value of its currency so that it rises & falls along with the USD. 

 

The Dollar's value fluctuates because it’s on a floating ER. 

 

At least 66 countries either peg their currencies to the USD or use the Dollar as their legal tender.

1- The Dollar is so popular because it's the world's reserve currency.  World leaders gave it that status at the 1944 Bretton Woods Agreement.

 

The runner-up is the Euro.  Twenty-five countries peg their currencies to it.  The 19 eurozone members use it as their currency.

 

Key Takeaways:

The Dollar peg is used to stabilize ER between trading partners.

 

A country that pegs its currency to the USD seeks to keep its currency’s value low.  A lower value currency vis-à-vis the Dollar allows the country’s exports to be very competitively priced.

 

Compared to the floating ER, Dollar-pegging promotes anti-competitiveness in trade with the US.

 

The Yuan’s peg to the Dollar allows the US to buy cheap imports from China.  But the price of such an advantage is the loss of US manufacturing jobs.

 

How It Works:

A Dollar peg uses a fixed ER.  A country's central bank promises to give you a fixed amount of its currency in return for a USD.  The country must have lots of Dollars on hand to maintain this peg.  As a result, most of the countries that use a USD peg have significant exports to the US.  Their companies receive lots of Dollar payments.  They exchange the Dollars for local currency to pay their workers & domestic suppliers.

 

Central banks use the Dollars to purchase UST bonds.  They do this to receive interest on their Dollar holdings.  If they need to raise cash to pay their companies, they may sell Treasurys on the secondary market.

 

A country's central bank will monitor its currency ER relative to the Dollar's value.  If the currency falls below the peg, it needs to raise its value & lower the Dollar's value. 

 

It does this by selling Treasurys on the secondary market.  That gives the bank cash to purchase local currency.

 

By adding to the supply of Treasurys for sale in the market, their value drops, along with the value of the Dollar.  This adjustment reduces the supply of local currency, raising its value & the peg is restored. 

 

Keeping the currencies equal is difficult since the Dollar's value changes constantly. That's why some countries peg their currencies' value to a Dollar range instead of an exact number.

 

Example Of A Fixed Exchange Rate:

China switched from a fixed exchange rate in July 2005.  It is now more flexible but still managed with a close eye. 4 It prefers to keep its currency low to make its exports more competitive.

 

China's currency power comes from its exports to America.  The exports are mostly consumer electronics, clothing, and machinery. In addition, many US-based companies send raw materials to Chinese factories for cheap assembly. The finished goods become imports when they are shipped back to the US.

 

Chinese companies receive American Dollars as payment for their exports, which they deposit into their banks in exchange for Yuan to pay their workers.  Local Chinese banks transfer Dollars to China's central bank, which stockpiles them in its foreign currency reserves.  The Chinese Central Bank holdings reduce the supply of Dollars available for trade.  That puts upward pressure on the Dollar.

 

China's central bank also uses the Dollars to purchase UST.  It needs to invest its Dollar stockpile into something safe that also gives a return & there's nothing safer than Treasurys.  China knows this will further strengthen the Dollar & lower the Yuan's value.

 

 

Why Countries Peg Their Currencies To The Dollar:

The USD's status as the world's reserve currency makes many countries want to peg.

 

One reason is that most financial transactions & int'l trade are made in USD.  Countries that are heavily reliant on their financial sector peg their currencies to the Dollar.

 

Examples of these trade-reliant countries are Hong Kong, Malaysia & Singapore.

 

Other countries that export a lot to the US peg their currencies to the Dollar to maintain competitive pricing. They try to keep the value of their currencies lower than the Dollar.

 

The lower currency value gives them a comparative advantage by making their exports to America cheaper. 

 

Japan doesn't exactly peg the Yen to the Dollar.  Its approach is similar to China.  It tries to keep the Yen low compared to the Dollar because it exports so much to the US.  Like China, it receives a lot of Dollars in return.  As a result, the Bank of Japan is the largest purchaser of U.S. Treasurys.

 

Other countries—like the oil-exporting nations in the Gulf Cooperation Council—must peg their currencies to the Dollar because oil is sold in Dollars.

6 - As a result, they have large amounts of Dollars in their sovereign wealth funds. 

 

These petrodollars are often invested in US businesses to earn a greater return.  For example, Abu Dhabi invested petrodollars in Citigroup to prevent its bankruptcy in 2008.

 

Countries that do a lot of trading with China will also peg their currencies to the Dollar. 

 

They want their exports to be competitive with the Chinese market.  They want their export prices always to be aligned with the Chinese Yuan & pegging their currencies to the Dollar accomplishes that.

 

 

 

 

[screwball]

9 hours ago, Luigi1 said:

We Must Have A Level Playing Field - Right?

 

Meaning currencies from around the world must be of equal value.

 

Now does the statement from @MazinAlEshaiker a week or so ago about pegging the IQD to USD at 1:1 make more sense to you now?

 

[screwball]

9 hours ago, Luigi1 said:

It appears everything is coming together on or before the US 250th.

HUGE changes in Iraq & the US are in the works.

One would have to be blind or living in a cave to not see what's going on.

Trump hinted our 250th will be an event to be celebrated & remembered.

As TNT always says..."be ready so you don't have to get ready"

The best days are yet to come.

Go RV.   Go MAGA.