Determining RV Currency and Bond Exchange Rates [Pt 1]

Devaluing Fiat Currencies vs. the Purchasing Power of Gold

The exchange and redemption rates for our RV/GCR currencies and bonds have always been about the relationship between fiat currencies and the purchasing power of gold.

Significant (high) RV exchange and redemption rates come down to establishing a gold standard, global core trade currency (or stablecoin) that is directly convertible into IQD, VND, ZIM, and so on…

Over the past years, there has been no shortage of exchange rate predictions ranging from the reasonable to the absurd. I think the strangest predictions I have ever seen was back around 2012-2014 with some online folks stating an exchange rate of one-to-one between the US Dollar and the 2008AA, 100 trillion Zimbabwe dollar bond. One hundred trillion USD per note? Say what?!!

If this were true, it would mean that the USD has hyper-inflated so much that a $1 million home today would cost around $1 quadrillion in that ZIM rate scenario.

Ok… back to reality…

In a previous article, I explained how Iraq would face insurmountable financial and economic challenges if the GOI decided to RV at $3.00 per IQD by instituting a new exchange rate peg (to the dollar, or a basket of reserve currencies) on a fiat-to-fiat rate control policy.

Also see: The $21 Trillion RV Question: Iraq’s Economic IQD Dilemma and the Gold Solution

While it may seem perfectly plausible that Iraq could peg the IQD at $3.00 similar to what Kuwait, Bahrain and Oman are doing, the primary difference regarding Iraq is that there are likely well over 7.5 trillion IQD held by foreigners, like you and me, outside of Iraqi borders and their banking system.

All of this foreign-held IQD presents a big problem for the government of Iraq.

If Iraq were to institute a new $3.00 peg, all of us will immediately rush to exchange our IQD for dollars, euros, and so on. This means that Iraq would have to have over $23 trillion dollars on hand to pay for our IQD exchanges in short order.

The purchasing power of gold vs the devaluation of fiat currencies offers a practical solution.

When executed correctly, the purchasing power of gold over devalued fiat currencies can yield significantly beneficial exchange and redemption rates.

It’s no secret that central banks and governments have been accumulating physical gold at record levels over the past several years. They continue to accumulate to this day. There’s a reason for that. The largest central bank not accumulating gold is the US Federal Reserve (or US Treasury).

Also see: Europe’s Gold Agreement and Plans for a Gold Standard Currency (Part 1) and Ready for Fiat System Collapse: Dutch Central Bank Admits Gold-Backed Currency Plan

It appears that everyone in power knows that the age of the global fiat currency system is reaching its logical conclusion. It is a fact that all fiat currency systems ever implemented by any nation on earth have collapsed throughout all of human history.

Gold and silver have always been the most stable, true form of money.

Also see: Historical Proof That All Fiat Currencies Collapse

There are two primary scenarios to achieve RVs at high exchange rates against the fiat dollar.

1. The full release of the RV/GCR General Redemptions utilizing the tens of thousands of off-ledger gold (Elder/Royal Gold held in the Global Collateral Trust Accounts).
2. A slower adoption of an alternative gold-backed trade currency to compete with the dominant global fiat currency system we have today. The BRICS alliance is well on their way to putting a gold-backed trade currency into place.

Scenario 1 is self-explanatory and has been the core of the GCR landscape.

Scenario 2 would require Iraq, Vietnam, Zimbabwe, etc. to be fully accepted into the growing BRICS+ Alliance. All of these countries have publicly expressed interest in joining BRICS at this time.

How significant RV exchange and redemption rates would be achieved comes down to establishing a gold standard core trade currency that is directly convertible into IQD, ZIM, VND, etc. This scenario could also take advantage of modern financial technology (FinTech) by utilizing a gold-backed stablecoin as part of the financial infrastructure.

Still, both scenarios require that a specific weight of gold be assigned to each GCR currency and bond that give them significant purchasing power advantage over current fiat currencies.

Gold’s purchasing power over the US Dollar has already been rising at the fastest pace in history over the recent 12 months. It will continue to do so.

Yet I expect that gold’s purchasing power will also be revalued against fiat currencies much further as a part of the RV/GCR plan.

I will provide more details of gold purchasing power and rate determination in my next article.