Why Credit Should Be Measured in Terms of Grams of Gold Government and Policy Makers

Why Credit Should Be Measured in Terms of Grams of Gold Government and Policy Makers

Government and Policy Makers | Central Cru

The global economy stands at a critical juncture where financial instability, rising national debts, and fiat currency depreciation have become significant challenges. As nations confront these mounting economic threats, the Credit-to-Credit (C2C) Monetary System offers a transformative solution. This system advocates for credit to be measured in grams of gold, providing a stable foundation for long-term financial security and protecting national economies from the inherent risks of fiat currency systems.

Why Gold? The Case for Measuring Credit in Grams of Gold

  1. Stability in an Era of Fiat Currency Volatility

For decades, fiat currencies—backed solely by government decree rather than tangible assets—have dominated global financial systems. Since the U.S. dollar was decoupled from the gold standard in 1971, fiat currencies have been subject to devaluation and inflation. Over this period, inflation has steadily diminished the purchasing power of fiat currencies, while the value of gold has risen sharply, from USD 35 per ounce in 1971 to USD 2,500 per ounce in 2024. This stark increase highlights the instability of fiat currencies.

Gold has consistently proven to be a reliable store of value, immune to the inflationary pressures that undermine fiat currency systems. By measuring credit in grams of gold, nations can protect their economies from the volatility of fiat currency markets and ensure financial stability well into the future.

 

  1. Preserving Economic Sovereignty

Countries that rely on fiat currency credit face significant external pressures, often resulting in a loss of economic sovereignty. When credit is measured in fiat currencies like the U.S. dollar, national economies are vulnerable to external market fluctuations and inflationary policies set by foreign powers, weakening domestic economic stability.

By measuring credit in grams of gold, governments can regain control over their financial systems. Gold, as an asset independent of foreign monetary policies, allows nations to base their credit on tangible assets, ensuring resilience against external shocks and enhancing economic independence.

 

  1. Protecting Purchasing Power

One of the most significant weaknesses of fiat currencies is their inability to preserve purchasing power. As governments expand the money supply and inflation increases, the value of fiat currencies steadily declines, leaving individuals and businesses vulnerable to economic instability.

The Credit-to-Credit (C2C) Monetary System, where credit is measured in grams of gold, protects purchasing power over the long term. Gold’s historical stability ensures that credit retains its value, safeguarding economies from inflationary cycles. This approach strengthens national economies and provides financial security for businesses and individuals.

Why Now? The Urgency of Transition

  1. Mounting National Debts

Governments worldwide are grappling with unprecedented levels of national debt, driven by the issuance of fiat currency in debt-based systems. This unsustainable cycle of borrowing to finance deficits jeopardizes long-term economic health and limits future economic flexibility.

The C2C Monetary System offers a pathway out of this crisis by tying credit issuance to tangible assets like gold. Governments that transition to this system can halt the cycle of debt accumulation; issue credit money backed by real assets, and regain control over their financial futures.

  1. Fiat Currency Depreciation and Inflation

Inflation is rapidly eroding the value of fiat currencies. As governments continue to print money to cover mounting debts, the real value of fiat currencies steadily declines. The U.S. dollar, once considered the world’s strongest currency, has lost significant value due to over-issuance and inflation.

By measuring credit in grams of gold, nations can create a currency that is both inflation-proof and stable. Gold’s long-standing reputation as a hedge against inflation ensures that national credit retains its purchasing power, even as fiat currencies weaken.

  1. Stabilizing Global Financial Systems

Adopting the C2C Monetary System is not only crucial for national stability but also for the global economy. As more countries adopt this system, the global price of gold will stabilize, providing a universally accepted and reliable measure of value. This shift will reduce market volatility, promote economic resilience, and foster sustainable growth worldwide.

If a major economy like the United States were to transition to this system, it would trigger a global financial transformation akin to the Gold Standard but with added flexibility. This modernized system, based on asset-backed credit, combines the stability of gold with the adaptability required to meet today’s complex global financial challenges.

The distinguishing feature of credit is that it represents an existing obligation rather than a potential or speculative one. This is what sets credit apart from other financial assets that may depend on uncertain future events. Credit is an asset that exists now and is payable in the future.

Why the Credit-to-Credit System Is Not a Return to the Gold Standard

It is essential to note that measuring credit in grams of gold does not represent a return to the traditional Gold Standard. Under the Gold Standard, currencies were tied to fixed amounts of gold, which often limited monetary flexibility, especially during financial crises.

The C2C Monetary System offers a modern solution by linking the value of credit to a basket of reserve assets, with gold as a key component. This approach retains the stability of gold while allowing the flexibility needed for contemporary economic conditions. The result is the best of both worlds—long-term stability through asset-backed credit and the adaptability required for today’s complex global financial systems.

Global Stabilization of Gold Prices

 

As more countries adopt the C2C Monetary System, the global price of gold will stabilize, reducing speculative volatility. If the U.S., with its current role as the provider of the global reserve currency, were to transition to this system, it would stabilize gold prices globally. This shift would create a financial environment similar to the Gold Standard, but with greater flexibility due to the C2C system’s diversified approach to reserve assets.

The window to transition to the Credit-to-Credit Monetary System is rapidly closing. Fiat currency systems, burdened by inflation, debt, and devaluation, are becoming increasingly unstable. Governments and policymakers must act swiftly to secure their economies’ long-term stability by adopting a system that measures credit in grams of gold.

This transition will stabilize national economies, reduce the risks associated with fiat currencies, and promote a resilient global financial system. By acting now, nations can position themselves for financial security, stability, and prosperity for future generations.

To learn more about transitioning to the Credit-to-Credit Monetary System, contact Globalgood Corporation or explore the opportunities provided by Central Ura Banks (CUBs) and Central Ura Investment Banks (CUIBs).

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