Synopses & Reviews
Gold backed almost all major currencies until 1914, when the enormous cost of World War I forced most European countries to abandon the gold standard. The United States followed suit in 1971. Since then, argues Willem Middelkoop, gold has emerged as the financial industrys greatest enemy. In
The Big Reset, he contends that the fight against gold, with the creation of almost unlimited amounts of unbacked currency, sparked a decades-long process that has poised the worlds financial system for collapse.
Exploring golds traditional role as the anchor of financial systems, Middelkoop traces the secret war against it to the 1960s, when central banks across the United States and Europe agreed to pool their gold reserves in the London Gold Pool in an attempt to control the gold price and, thereby, to support the dollar. He then outlines the history of gold-backed currencies and todays fiat currencies (state-issued money that has no fixed value in terms of an objective standard). Recently, fiat currencies have allowed many governments to print huge numbers of bonds to finance their budgets. But Middelkoop warns that piling debt onto the balance sheets of central banks is not a sustainable way to revive the economy. Ultimately, he shows, this process will lead to a collapseand subsequent resetof our worldwide financial system.
Review
“This is a wonderful history and description of gold and it would be in everyones interest to understand its conclusion.”
Review
“An outstanding book about the coming transfer of the economic world power due to the decline of the world supremacy of the United States. Written from an economic point of view it leads to the same result as in the famous book of Samuel Huntington, The Clash of Civilizations. Willem Middelkoops best book so far.”
Review
“Willem Middelkoop and
The Big Reset is right in the thick of the action! Great book; awesome statistical reference to go along with the analysis.”
Review
“[A] readable, persuasive book. . . . Recommended.”
Synopsis
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 golds 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.
Synopsis
A system reset is imminent. Probably even before 2020, the worlds 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 Chinas 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.
About the Author
Willem Middelkoop is a journalist covering finance and economics and the founder of the Commodity Discovery Fund.
Table of Contents
Prologue
Introduction
1 The History of Money
2 Central Bankers: The Alchemists of Our Time
3 The History of the Dollar
4 A Planet in Debt
5 The War on Gold
4 The Big Reset
Epilogue
Bibliography
Appendix I: Demonetized Currencies (1700-2013)
Appendix II: Wall Street Fines (2000-2013)
Bibliography