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Fasten Your Seatbelts: The Coming Global Monetary Reset

Andrew_McKIllop-2Andrew McKillop
21st Century Wire

The big currency reset. It’s not a case of ‘if’ – it’s a case of when.

Don’t expect your provincial Secretary of Treasury or Chancellor Exchequer to warn you about what is coming around the corner, because they are either too stupid to know, or too busy covering their own backsides.

To understand where we are, it’s very important to understand how we got here (another point which bureaucrats and backers do not want the general populace to know).

A quick history lesson then…

The Opposite of Emerging is Submerging

Lulled and distracted by the antics of developed country central banks and emerging economy central banks – to constantly “pump-up the jam” and flood the economy with paper casino chips from either Fort Knox or Mount Gox, the real tectonic shift of the global economy since 2008 has been more or less ignored by financial gurus and sages. It is taken as “normal” that deflation, or disinflation is operating in the developed economies, but now we can see that rip-roaring inflation operating in the emerging economies.

Supposedly, this is ‘Muddle Through’, but since 2008 the North-South paradigm has all but dissolved – the developed OECD economies are locked in a death embrace with the Emerging economies. The developed economies are now locked into chronic globalization – exporting monetary inflation while importing cheap industrial goods, services and resources.

Since 2008 the always-promised ‘world shift’ of the economy from west to east, and from north to south has happened, but the net result is a shock. Pretending “we didn’t know” is comforting, but ultimately stupid.

This is an unstable equilibrium, or an interregnum – even a sideshow, because the current global economic context and process is the exact opposite of sustainable. Harm to both North and South is now the main impact of the post-2008 process of overreach and intense fiat paper shuffling. Listing the consequences and causes of this overreach is not easy and always open to argument, but possibly the best summary is to suggest that since 2008, ‘Ricardo’s comparative advantage‘ paradigm has been inverted. Economic and above all monetary globalization is now the path to ruin and poverty. From win-win to lose-lose. The worse it gets, expect the architects of ruin – establishment politicians, central bankers and financial pundits, to retreat into even deeper denial.

The Production Bubble That Triggers the Collapse

Another simple way to argue the global economy has overreached is that industrial and economic production capacity in the Emerging economies (EMs), starting with the BRICs, is now massively over-sized. This means the EMs can and will saturate the post-industrial, deflating North with industrial supply at every stage and opportunity as technology, design and product development throw up a new market openings everywhere. Examples like the car and cellphone, fashion wear and off-shore call center industries are relatively “classic”. All of these are already saturated with capacity – but the EMs are still adding more. Previous historical “classic examples” of this process for example included the ship building industry, but the scale paradigm has been woefully ignored.

BRAZILIAN SKILLZ: Production of top-line automobiles in Brazil has surpassed many of its ‘developed’ counterparts.

Since 2008, the process has intensified, creating an increasingly certain outlook for a forced and fiat end to the willingness of the EMs to accept the fiat currency endlessly printed to finance the deflating, de-industrializing DMs (developed economies).

This will not necessarily be a politicized process, of the type hinted at by India’s central bank governor (see http://finance.fortune.cnn.com/tag/raghuram-rajan/), due to the rapidity and scale of the crisis, but instead trigger the collapse of the current global fiat monetary order dictated by national economic self-defence and survival in the EMs.

The economic jump start of the Ricardo model, which has run riot for the last quarter-century, and went into over-drived from 2008 – will be abandoned.

Deflation/Inflation: Two Sides of the Same Bitcoin

Ricardo’s original model held sunny Portugual as a producer of cork and sherry, while rainy England could produce wine casks from its oak forests and wool from its sheep flocks. The money used in a basically resource-based exchange using then-rapidly growing maritime transport capabilities was held to be stable and gold-linked (or based). Later on, low-cost labor resources were built into Ricardo’s paradigm called “comparative advantage”. The EMs since the 1980s have played the role of resource providers while the DMs were the solvent market suppliers.

While there was a clear limit on cork, wine, oak casks and woolens supply and demand, this does not really apply to modern global fiat money and modern industrial technology. These are high gain positive feedback processes which only stop when they hit a brick wall.

The Ricardo comparative advantage model does not apply to post-1980’s globalization and super economies – like those of China and India, where industrial technology has raced ahead of infrastructure development. This is simply a bomb waiting to explode, alongside the industrial capacity growth, the EMs engaged massive growth of credit, mushroom growth urbanization, neglect of the agriculture and food sector, and turning a blind eye to rampant or even “structural” corruption. Inflation was the sure and certain result. 

The results do not stop there. While inflation took off inside the EMs, with their economies producing more than they can consume, and exporting to the DMs which consume more than they produce, the EMs are also exported deflation to the developed market economies. At the same time, the emerging market economies mined out their capital bases to maintain their breakneck growth of industrial capacity.

On an almost daily basis now, the EMs are all shifting to current account deficit with the inevitable consequences of national currency devaluation, further inflation, and of course – higher interest rates.

Win-Win to Lose-Lose: Global Fiat Currency Crisis

The post-1980’s economic globalization paradigm can be called an initial ‘Win-Win’ model which eventually morphed to Lose-Lose.

The industrial nations of the DMs, which formerly benefited from the resource nations of the EMs under the previous ‘Ricardo-type’ model, are now mired in debt and de-industrialization, making it impossible for them to “grow their way out of crisis”. The EMs on their present industrial expansion path can only grow themselves into rapidly-deepening crisis.

The “money-in-the-middle” especially concerns the US dollar and its subsidiary partner, the euro, both of which are vastly overvalued fiat currencies – but against what? Almost inevitably, this will feature a big rebound for gold, playing the starring role of in this latest episode of “Canary in the Monetary Coal Mine”. From a personal standpoint, or national (for those who have any), physical gold and silver could end up providing solid protection against the exposure of a monetary reset.

Conversely, commodities are unlikely to profit on an enduring sustained basis, due to economic restructuring, re-centering and contraction being almost certain.

Commenting on the IMF’s latest report on global capital flows since 1980, Reuters on 30 January said that while the IMF estimates net capital inflows to emerging economies as $7 trillion or more only since 2005, this was a “legacy trend” hinged on the EMs running a much higher GDP growth differential above the DMs than present. The IMF report noted that for 2014, economic growth in the BRICs will go on declining, and for Russia and Brazil, they will be less even than the GDP growth of the US and Britain. While the IMF’s economists do not allow themselves to project break-of-series change to the global economy, the process of what Gordon T. Long calls “Global collateral impairment” can easily default as the net result of apparently ‘unrelated and complex’ runaway processes.

This collateral impairment will inevitably trigger multi-national currency protection measures, a situation already clear in countries like Turkey, India, Argentina and other EMs.

For DMs in the North, plans are likely already underway. Will the reset feature a brand new reserve currency, or the introduction a fledgling single global, or virtual currency? If so, what will it be backed by (or maybe it won’t). It’s hard to know right now, but a shift of that magnitude could provide for the introduction of something new in the mix.

It’s a case of problem, reaction, solution, and one can assume that this Hegelian equation has already been mapped out on the back of a napkin in an executive dining floor of the one of the world leading central banks, possibly written using Christine Lagarde’s lip stick. 

As a result, sacrificing GDP growth to protect the national money in the EMs will be inevitable. In turn, this will send a severe shock wave North to the DMs ,which have surfed on the latter-day version of the Ricardo paradigm for the last 30 years, and are now left unable to adapt.

The basic conclusion is that a global monetary reset is now overdue.

There will be shock waves, and haircuts too.

Brace yourself for impact, because it’s coming.

READ MORE ARTICLES BY THIS AUTHOR: 21st Century Wire McKillop Files





We are a North American and European-based, grass-roots, independent blog offering geopolitical news and media analysis, working with an array of volunteer contributors who write and help to analyse news and opinion from around the world.


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  • nomercy55

    im spending it as fast as i make it..!!

  • Binary Recoil

    I spotted the “brick wall” from the “crows nest” about a year ago. We’re to the technological level of proficiency (as a species) that atoms are manipulated on a sub-atomic level daily. Every day, we’re one second from “midnight”, on the funeral for all monetary systems. When the news finally leaks out that we’ve begun manufacturing atomic structures, by directly manipulating the placement of sub-atomic particles- it’ll be an instant “Martial Law until we sort this out” scenario. Nothing will have value anymore because the dirt you’re standing on will have the ability to become any other substance you require; Food, Water, Air, a replacement Kidney, etc.

  • checker99

    Let me just say that anyone who has money in an IRA or bank savings account is very vulnerable to confiscation – and it will happen.

  • Tim Wise

    It’s the Jew bankers, stupid! Suicide is a horrible thing, but if you must kill yourself, take some Jews with you!

    • Heyhey

      You said “It’s the Jew bankers” do some research on who actually runs and controls these so-called Jewish bankers, a good place to start is with this article ‘The Rothschild Dynasty is Jesuit – The Rothschilds are Jesuits’ after you’ve read that you’ll realize that it is ran by the Vatican!

      • Y Diddy

        Rothschilds are Jewish, not Jesuit.

        • Heyhey

          Mayer Amschel Bauer was brought to power when the Jesuit order was banned in more then 80 Countries (by a papal Bull from Pope Clement 14th) and were unable to carry out their counter reformation against the Protestants , this crumbled the temporal (Political) power of the Papacy..
          Mayer Amschel Bauer became a Knight of Malta (which symbol is a Red Shield) Red Shield = Roth schild in German. The Rothschilds have gotten their name from the Jesuit Controlled Knights of Malta and became the Guardians of The Vaticans Treasury.
          Its since 1776 that Papal Jews were brought to places of power , to serve the Jesuit Agenda’s at the same time the people who would research it all would end up blaming the Jews in general for everything , we can see this happening all over the Internet these day’s. That’s why video’s like this one are very important to get rid of the lies and deceptions.

  • veerar

    I do not know about BRICKS or the EMs.
    India’s Rupee was DELIBERATELY weakened to hike the price of petroleum fuels,to benefit the Oil Oligarchs Indian and Foreign.QE makes the US Dollar weak and other Currencies can become weak against it ONLY if the Central Banks print notes unnecessarily.Euro,Pound and yen also become weak against other Currencies when ECB,BoE and BoJ resort to QEs,in tandem with the USA,a tactic to make the US Dollar look apparently stronger,despite massive QEs.
    QEs create ONLY Inflation and any Disinflation or Deflation claims, are frauds,misusing the Derivatives etc.It is like a Glutton claiming to starve, after over-eating.

  • Bluetides

    The tectonic economic gyrations like “Resets” used to worry me, but no more.

    The pace of technology is breathtaking and often it eclipses the science. Two weeks ago my Seattle Patent Lawyer advised me we are now at Patent Pending for our Precious Metals Making Technology. The proof of concept phase is completed and in 2013 we made high yield gold beads and in 2014 we
    will pour gold bars. Yes folks, garage innovation is alive and well and we make real gold from synthetic crystalline seed ores in an LENR process, designs are in place for a profitable gold making pilot plant with an eventual scale up price point somewhere near that of aluminum.

    To hell with the Reset, banker derivative madness and the rest of it. Within two years I see gold at $10 K / oz and our gold making production cost will be less than $50 an ounce. We are accepting $25 K share subscriptions from accredited investors and you too can say to hell with the resets and join the blue eagle millionaires club.

    To see a discovery background video and me making gold in the lab go to: https://www.kickstarter.com/projects/56975959/2129178196?token=7173274e

    Note: we have decided not to do the kickstarter raise.

  • Justinwalker

    Every sovereign nation has the ABSOLUTE RIGHT to issue its own debt-free and interest-free money through its treasury (not its privately/IMF/Bank for International Settlement’s controlled central bank) based on the credit and wealth of that nation to meet the needs, security and happiness of that nation. This is the BIG SECRET they (the NWO) don’t want you to know. Check out the Bradbury Pound in its centenary year, Executive Order 11110, the Greenback Dollar and Colonial Scrip if you want proof. This is THE solution to all of our problems. Cut off the international banker’ ‘right’ to issue the world’s money supply and they die! NWO RIP!

  • Geoff Bridges

    To add weight to this article it would be nice to know the credentials of the person who wrote it but I cannot find any information or link to Andrew McKillop. Anyone know anything about him?

  • ChewyBees

    Despite the fact that currencies are accurately called “fiat” (meaning not real – or imaginary – or make believe) the article, comments, and the society of the world still put faith in what is obviously a construct of centuries of brainwashing, to get a mass populace to claim as fact that which is fake.

    Money is and has been for centuries the claim that paper or metals are equal to the value of a man’s labor. The only reason that money exists is to act as a middle man between actual (real) labor and the exchange for goods or other services (also real). But the means of exchange, pieces of paper with fancy printing, is in the real worth next to nothing. Even gold and silver have speculative value, and that speculation isn’t based on the labor necessary to produce it, but rather the machinations of the controlling class of men to manipulate that value based on what enables them to take and hoard the labor value of others to the greatest degree.

    The only thing of value, in my estimation, is the labor value of men, be it physical or intellectual, or both. It is because of this that a man’s labor value is immediately converted into fiat currency, after the skimming of taxation of course, and then that fictional middle man can be manipulated in any manner those above labor deem fit.

    I chuckled a bit when the article talked about Britain exchanging materials gained through labor with other nations. That value, even if true, exists only after the MPs, the Royal Family and every other centuries old grifter and thief takes their share. This is a great example of why fiat currencies are continually pushed and demanded by the elite as the only means of exchanging labor value. Using these fiat currencies, the elite will never have to physically labor from birth to their abortion.

    All of this is based on a belief system, similar to a religious belief system. The public has “faith” that when their labor is converted into monetary units it will be held safe, which is why banks are so high and mighty as the purveyors of financial safety. All that the banks and the paper or digital units keep safe is the belief system that enriches the elite. This article is an example of that belief system crumbling at the edges. When men no longer believe that their labor value is safe when transferred into a computer, or converted into a paper form, they will revolt against it, or simply stop using it. Yet since all governmental law (also elite based) is also fiat (de facto) paper, the usual effect is an upheaval and a revolution.

    This may come as a shock to some, but the thing that referred to as “the world” is an imaginary construct overlaid onto the the real, which is called the planet earth, life, and reality. Mankind has such a powerful connected consciousness, that billions of people and hundreds of collective nation minds can hang on to a belief system that dwarfs every religion ten fold. “The World” is the master belief system, and all other belief systems – i.e. religion, economy, government, organization – are all subsets of that master, global imagination. This is the system that allows things like money to suck the life out of men for their whole life. But also keep in mind that world has ended in myriad ways thousands of times. A prime example is any indigenous tribe after missionaries infiltrated, or even the rome. None of these “worlds” exist any longer, at least not in the form that each held in their greatness, but each is known as a world. Therefore, the current, and IMO pathetic world of the human condition isn’t all so crucial that a reset doesn’t make sense.

    What is curious to me, is if men can evolve after the reset and allow advancements in technology to exist in harmony with the healing of earth. When the earth and the world exist in marriage, the golden age of men can again be claimed.

    • Wenona Rbe Makeit-happen

      money is just a tool, and we can/should move on from using it because there’s a better way now. If anyone is interested, check out resource based economy, The Venus Project and The Zeitgeist Movement for more info.

  • Y Diddy

    mount gox? it’s not ‘mount’ gox!

    Magic: The Gathering Online eXchange

    it’s got nothing to do with mount!

  • Carl Jones

    Andrew, you use a very strange language to explain your ideas. I for one can`t follow your line of thought as clearly as I`d like.

    I keep saying this, because it adds a bit of context.

    I was posting about the coming DESIGNED financial collapse on the BBC Today forms in 2001/2/3. You call it “win, win, lose, lose”. I look at it in terms of a simple bell curve that started after WW2 and peaked, as in Western benefit, during the mid 70`s. Since the 70`s its been all down hill for the average worker.

    Just listening to BBC Radio 5 live and since 73 petrol has gone up by 2000%! Bread by 1500% and a pint of beer by 1500%!! And while this scam was going on, the real inflation rates were massively under reported with pay rises below inflation.

    As a result of this, less tax is collected, more public debt and more personal debts off set by notional rises in property values which conned most people into this idea that they were better off. There are lots of other mechanisms at work here.

    The politicians are in the bankers pocket and this just pottered along until the vacuous dotcom bubble arrived and when this popped, there really wan`t anything left in the tricks box, well nothing that had been used before.

    First, you need to realise that Clinton and the Bush`s are great crime buddies and were working together before G.H.W. Bush reached the Oval office. Clinton repealed the Glass Steagall Act in preparation for Dubyas arrival. Dubs had his agenda which required a sweet US and global economy.

    Given that globalisation no longer worked and that everyone was debted out, the cost of borrowing was slashed by the US Fed and other Central Banks and the printing presses were ramped up. So the designed financial collapse properly started when Bush was handed the Oval office and 9 months later the NWO started the sham war on terror by demolishing the WTC.

    The bankers had lots of cash coming their way and acted as expected by the Central Bankers. Sure, some on the senior people at the big banks knew what was going on. But in the main, this was a super elite crime of truly biblical proportions. This was a crime that was never intended to be fixed and it hasn`t to this day, it just rolls on and is far worse than in 2008! This is because the designed financial collapse is just one part of a bigger plan.

    Sure, there is staggering over capacity, but there is also a collapse in trade. Recently the BDI (Baltic Dry Index) tanked. They say there is over capacity in the merchant fleets. There is maybe some truth in this, but it does not bode well.

    The rigging and fixing of economic data is mind boggling. This is why its pointless using or quoting official numbers. You need to develope a gut instinct.

    The other day I read an article in the Daily Telegraph about some market research company saying 150,000 new jobs were created in the last three months. So 50,000 per month. The US creates around 150,000 jobs per month. This is still 50k short of covering US population growth. So Amerika has nearly 5 times the UK population (63/313), yet we are creating one third more of what Amerika creates…the US job data is fixed, so only God knows how much the UK are fixing there job/employment data. The article also used a job creation number of around 180,000 pq, but I used the lower number to illustrate the level of manipulation.

    DON`T BELIEVE ANYTHING THEY SAY…develope your own instincts,

    I go further. I believe THEY hacked the traders screens with false falling prices and did this to crash target banks and businesses.

    The idea that no one saw this coming is ridiculous. I know from talking with a senior investment banker that banks were having trouble shifting bundles of debt in late 2006 and other bankers have told me that in the three years prior to 2008, banks were essentially “pushing paper about”…so that takes us back to late 2005!

    Then we have the case of David Walton who was a star economist with Gold Sachs, HM Treasury and then sat on the BoE MPC. During the first half of 2006, Walton was calling (demanding) an interest rate rise…every meeting he demanded a rate rise and then in late June 2006 Walton died of a flesh eating disorder. I think he was murdered. Not that far fetched when you think of Gareth Williams found naked in a zipped up holdall and Litvinenko who did not die from polonium 210. Had Walton been alive today, no one could say “we never saw it coming”.

    Everyone involved with the designed financial collapse has got away with it Scot free. Not only that, the post collapse elite have continued with this biblical crime and now we see Japan going Weimar, China has a massive debt bubble that could explode anything. The Chinese are fixing their economic data, but the reality is that their economy is shrinking. They need a GDP of 7% just to sand still with population growth and their last number was 7.1%. The US is bankrupt and has spending liabilities that it can never afford. Britain is just a bankrupt dysfunctional economy that requires someone to put is out of its misery.

    But, they do have options which I think are being rolled out. We see a similar pattern to Europe in the 1930`s…it is different, but it is the same. These constructs are NWO manufactured and both are baiting Russia.

    I`ll admit this is more or less impossible to predict. The designed financial collapse was relatively easy for me and I wasn`t the only person to predict it, but I think I was they only one to suggest it was all planned.

    Globalisation is broken. The article talks about deflation, currency wars and over capacity. But these are just consequences. These none NWO countries know exactly how the NWO axis of evils conducts it`s business. Putin is being very careful…in the Crimea, but he is not in wider Ukraine yet. The Chinese are on simmering point with Japan and we see the US escalating both…B2`s stationed in Japan and US ships in the Black Sea and F16`s sent into the local theater.

    Then we have another sub plot. Germany is now the global economic powerhouse. They, refused to play ball with the bankers and as a result, the bankers have backed off on the Southern EU states. Germany now controls the EU. Britain is a busted flush and if anything, why would the EU want a totally bankrupt state like Britain? Forget Merkel`s pleasant words, she is just taking the piss. The most important relationship in Europe is the Germany, Rusisia relationship…can it be broken??

    The British military has been weakened to a state of pre WW2 readiness…its ripe for a “Kitchener moment” and as it happens, two Tories have a private members bill winging its way through parliament that will bring back conscription!!!!!

    The youth of Britain have been kicked by the MSM and government. They are well angry and very pissed off. The elite needs to weaken this internal threat and send them off to some distant land to die for the bankers.

    Compounding the problems of British youth and for that matter, people everywhere, but more so in the West, is that we have HUGE employment changes coming. We know that pubs have been in decline for decades. What if I told you that country pubs that survive, are going to be very good businesses in the future? It is very simple. Driverless cars are on the cusp. And there is more…you run a taxi firm, drivers need to sleep, but what about cars that run 24/7, 365 days per year and only stop to be serviced and recharged?? No bus drivers, no coach drivers, no pilots and no train/tube drivers!! With new advanced software, robotics and wifi, not just transports jobs are under threat, but countless jobs are going to vanish. At the moment we have an average UK working week of just over 30 hours…many people are on zero hours contracts. Within 10 years, you will be doing well if you get 10 paid hours work per week. Remember when the heavy industries left Britain and the mines closed? Well, the changes that are coming are way, way bigger and this time no one is talking about it! We already have 500k of graduates that have never worked. When I came to London in 84, the London Evening Standard had pages of jobs in their Thursday edition. This Thursday there were barely half a page. I realise the way people look for work has changed, but I saw an ad the other week advertising a two day job fair, so newspapers aren`t dead yet. The fact is, there aren`t any jobs and the kiddies keep leaving school in their droves. Sending them off to some distant land looks like a pretty good elite policy.

    The next thing is a man made pandemic. We could go through HIV, SARS, H5N1, A-H1N1 and the rest in detail. But the fact is, these are man made viruses. I won`t go into detail. But a regular flu incubates over 3/4 days…swine flu takes 11 days! Why the sudden jump? Well, the extra 6 days allows for a much greater infection rate/area before it is detected. My guess is that certain areas will be vaccinated via air spraying and that areas where they want high rates of mortality, they`ll do sweet FA. We already see genetic selection with AIDS, SARS and H5N1.

    Whatever the next system looks like, it won`t have 7.5 billion people in it.

    If you think we have problems with our youth, then just take a minute to think about the worry facing the Chinese and Indian elites? Would these elites not be tempted into a human cull?

    I don`t want to be seen as a trouble maker, but if 21st Century Wire wants a bigger audience and thus a greater impact, it needs to keep it simple. There used to be a business acronym called “KISS”..keep it simple silly. Sure, some people like to get into the minutiae, but this is a small fish bowel when we should be swimming in the ocean. Keen people tend to dwell on the detail and then get lost like those who spend all their time focusing on 9/11 or JFK. Mean while the same elite have carried out another three massive crimes. I don`t dwell in the designed financial collapse… I was on this a long time ago. I am more into the end game and I can`t get my head around the next system.

    Sorry about the rant on a Friday evening, but I am suffering a big cold, not quite real flu, but bad enough.lol

  • Dennis Richardson

    Heyhey Do you know something? You know something! The Jesuits are in control despite what Jews might be involved. Heyhey is correct.