STEP 1. Discredit the Old System.
Need of a New Frame Work.
Many economists believe that the present global financial system needs a major reform. In 2014 the UN, (United Nations) World Bank and IMF, (International Monetary Fund), held high-level discussions about `the new framework for the global financial and economic system.
Jean-Claude Trichet, the former president of the ECB, (European Central Bank) told the forum that `New rules have been discussed not only inside advanced economies, but with all emerging economies..` This was later confirmed by a high-ranking executive of China`s largest bank, (ICBC), “With the status of the U.S. dollar as the international reserve currency being shaky a new global currency setup is being conceived.”
HISTORY
1944 After WW2.
The last monetary reset of the `global financial order,` was executed in 1944, at the end of WW2, when the U.S. invited 44 countries to the Bretton Woods conference. The U.S. proposed a new monetary system centred on the U.S. dollar, which would be backed by gold. The U.S. convinced the European countries with the promise that paper dollars could always be exchanged for gold. This promise was the only reason the Europeans accepted the American plan.
However when the U.S. started to print large amounts of dollars in the 1960`s to finance the Vietnam war, more and more countries became nervous about the future value of the dollar and started to exchange surplus dollars for gold. In just a few years, the U.S. lost half of their 20,000 tonnes gold reserves.
