The Big Reset

The Big Reset: War on Gold and the Financial Endgame

Willem Middelkoop
Copyright Date: 2014
Pages: 261
https://www.jstor.org/stable/j.ctt6wp7j0
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  • Book Info
    The Big Reset
    Book Description:

    A system reset is imminent. Probably even before 2020, the world's financial system will need to find a different anchor. The dollar has been at the center of the monetary system since the Second World War, but decades of money printing have caused a gradual but relentless dollar devaluation. In a desperate attempt to maintain this dollar system, the United States has waged a secret war on gold since the 1960s. China and Russia have pierced through the American smokescreen around gold and the dollar and are no longer willing to continue lending to the United States. Both countries have been accumulating enormous amounts of gold, positioning themselves for the next phase of the global financial system.

    There are only two options: a financial reset planned well in advance, or a hastily implemented one on the back of a dollar crisis. The United States, realizing the dollar will lose its prominent role, seems to be planning a monetary reset that will surprise many. It will be designed to keep the United States in the driving seat, but will include strong roles for the Euro and China's Renminbi. And it is likely gold will be reintroduced as one of the pillars of this next phase of the global financial system. Insiders claim gold could be revalued up to $7,000 per troy ounce during this process.

    eISBN: 978-90-485-2219-4
    Subjects: Business, Finance

Table of Contents

  1. Front Matter
    (pp. 1-6)
  2. Table of Contents
    (pp. 7-8)
  3. Prologue
    (pp. 9-9)

    One year before the fall of Lehman Brothers, my first book was published in the Netherlands (Als de dollar valt – If the Dollar Collapses, 2007). After studying the financial system for over ten years, I had come to the conclusion that a collapse of the unstable global financial system – and its mountain of debt – was ‘only a matter of time’. After the house of cards collapsed just one year later, my life changed dramatically. Within a short period of time, I became a well-known personality in the Netherlands. I decided to quit my job as market commentator for the business...

  4. Introduction
    (pp. 10-13)
    Willem Middelkoop

    Before World War I, almost all major currencies were backed by gold. This was the era of the gold standard. The money supply was restricted to the growth of the gold supply. As European countries needed to create money in order to finance the high costs of the war, most were forced to abandon the gold standard in the 1910s. The gold standard was replaced by a fiat money system in most countries, although silver coins were still being used in most European countries until the 1980s.

    Unlike fiat money, gold has always maintained its purchasing power. An old Roman...

  5. Chapter 1 The History of Money
    (pp. 14-48)

    Although we talk about money on a daily basis and most of us work hard for it, few stop to reflect on what money actually is and what it means. Even people working in the world of finance often do not comprehend what money is all about. The fact that money is created out of thin air and in the form of credit is quite difficult to understand. This important little secret is not taught at most schools and is actually only understood by a confined group of financial insiders. This is not necessarily a bad thing. According to Henry...

  6. Chapter 2 Central Bankers: The Alchemists of our Time
    (pp. 49-64)

    The very first form of banking started well over 5,000 years ago, while fractional and fiat money systems began appearing almost 1,000 years ago. The first central bank appeared some 500 years ago. (Central) bankers, the alchemists of our time, have a monopoly on the creation of money, just like the police and army have a monopoly on violence. In the last century, central bankers have succeeded in turning paper into gold³⁶ and gold into paper.³⁷ The bank notes of the European Central Bank (ECB) no longer refer in any way to any intrinsic value, although the ECB still owns...

  7. Chapter 3 The History of the Dollar
    (pp. 65-87)

    Many of the Founding Fathers were strongly opposed to the formation of a central bank because England had tried to place the American colonies under the control of the Bank of England.

    Robert Morris, a former government official, founded the first central bank in the US in 1781. He is seen as the father of the system of credit in the United States. His Bank of North America was based on the model of the Bank of England and could create as much money as needed through fractional reserve banking. Interestingly, the bank’s collateral was a large quantity of gold...

  8. Chapter 4 A Planet of Debt
    (pp. 88-126)

    The decoupling of gold and money made creating new money very simple. As a result, with the end of the gold exchange standard in the 1970s, an unprecedented credit bonanza was allowed to take off. In order to understand the build-up of debt, we must go back in time to 1981 when Fed Chairman Volcker was forced to raise interest rates to 20% in order to save the dollar’s position as the world’s reserve currency.

    The dollar recovered as a result of Volcker’s interest rate hike, and with inflation tamed, interest rates started to decrease sharply. The decline in interest...

  9. Chapter 5 The War on Gold
    (pp. 127-162)

    The days of the dollar as a world reserve currency are numbered, which explains why gold is making a remarkable comeback and why a flight to hard assets including farm land and old masters has started. Every year, more and more physical gold is moving from vaults in the West to the East as a symbol of a change in the world power balance.

    The US wants its dollar system to prevail for as long as possible. It therefore has every vested interest in preventing a ‘rush out of dollars towards gold’. By selling (paper) gold, bankers have been trying...

  10. Chapter 6 The Big Reset
    (pp. 163-193)

    The world economy and its currency system can be compared to supertankers. All route changes have to be planned well in advance. If history has taught us anything, it is that a currency tends to lose its world reserve status over a long period of transition. The ‘endgame’ is often drawn out over decennia. The British pound first suspended its gold standard²³⁸ at the start of World War I in 1914, but it was not until 1944 before the dollar became its successor (during the last Big Reset).

    Although the US understands that the dollar will one day lose its...

  11. Epilogue
    (pp. 194-196)

    History reveals countless examples of failed monetary systems. After the debasement of the Roman Denarius and the subsequent fall of the Roman Empire, it took five hundred years before a developed civilization re-emerged in Europe.

    In the 1980s, the leaders of the Soviet Union were convinced their communist regime would last forever and continued waving from the balcony until the bitter end. After the collapse of the Soviet Union, savers and pensioners reliant on the value of the ruble remained behind in poverty.

    We Westerners concluded our capitalist system, based on free markets, was a superior one because communist countries...

  12. Appendix I Demonetized Currencies (1700-2013)
    (pp. 197-221)
  13. Appendix II Wall Street Fines (2000-2013)
    (pp. 222-250)
  14. Bibliography
    (pp. 251-258)
  15. Register
    (pp. 259-262)