DJ: DID YOU KNOW
To understand how and why the GCR is inevitable, we need to peer into currency activity globally.
Since Zimbabwe is in the public’s view what’s up with the ZIM? Due to a mass exodus of much of Zimbabwe’s labor pool, from bad government policies of nationalizing the agricultural industry, the country’s financial system collapsed.
To support public project spending, the government printed surplus Zim dollars, too many, in fact. Printing too much currency creates inflation and by 2008 the Zimbabwe inflation rate climbed to 516,000,000,000,000,000,000 percent.
So in 2008 Zimbabwe printed the $100 trillion Zim note. By Jan 2009 it was worth $30 U.S. , by 2011 $5 and by 2015 it was worth 40 cents.
The government would go on to abandon its currency entirely and adopted the U.S. dollar and the South African rand as their official currency.
In 2019 Zimbabwe introduced its own new currency. The new Zim was supposed to be equal to the U.S. dollar, now in 2023 it takes $322 ZWL (Zimbabwe dollars) to equal $1 U.S. For these reasons and others, is what prevents the adoption of a universal currency.
But what we are seeing in the global activity is the integration of separate currencies within regions into unified currencies.
A notable example of this is the adoption of the euro. As of 2023, 20 countries in Europe use the euro instead of their local currencies. Eight West African countries, since 1945, use a common currency called the CFA franc, ( French Colonies in Africa) . Another six Central African countries have adopted the CFA franc.
The CFA now stands for the “African Financial Community”. It was renamed the “eco” in 2019 and pegged to the euro, but implementation has been delayed until 2027.
In 2008, Central American nations agreed to create a single currency for the region but as of 2023 it has not happened yet.
In Jan 2023, Brazil and Argentina announced plans to start work on a common currency, in which they would invite other Latin American countries to join. You see the same currency behavior in Asia, Asia Minor, the Middle East and Slavic nations.
This same concept of unified currency takes place throughout the different sectors of the world. The benefits of doing this makes it easier to compare prices and makes it cheaper and safer for businesses to buy and sell within their area.
The disadvantage is a debt-laden country can no longer devalue its own currency to make goods more attractive to buyers from other countries.
There are 180 currencies in the world circulating in 197 countries. The top ten currencies, traded daily, cover 90% of the global use of currencies with the U.S. dollar being over 50% of the 90%.
By unifying currencies by sector it strengthens their use (demand) and decreases the reliance of foreign currency in their respective nations’ economies, thus eliminating foreign manipulation and influence of their sovereign affairs.
The GCR only has to affect a portion of the 180 currencies to be implemented.
The objective is to level the playing field for cost of goods and services and insure a nation’s sovereignty. It will curb a country’s need to over-print its currency and potentially destroy its own economy.
The financial collapse of any nation’s economy has ripple effects globally.