The dollar is going to crash, the dollar is going to crash,… we hear this all the time. It’s never been different. Mike Maloney doesn’t think the dollar is going to crash, he thinks the dollar will play a different role in the next world monetary system.

The global monetary system changed a couple of times the last century with every time a different role for the US dollar:

• Before World war I there was a system fully backed by gold  with the Bank of England as a clearinghouse.
• After World war I the system was backed by a mixture of British consoles, US bonds and gold with the clearinghouse for gold in London and New York.
• After Bretton Woods the structure changed to a backing by the US dollar and treasuries. The dollar was the currency backed by gold redeemable by the New York Fed.
• Finally when Nixon cut gold in 1971, the US Dollar was only backed by a promise and future debt.

Every 30 to 40 years there is a new world monetary system. This one lasts already 44 years and counting. It’s certainly overdue. History will repeat. After some emergency meetings a new world monetary system will arise with a different role for the US dollar.

Maloney believes this will happen before the end of the decade.

It feels like the markets have topped and a new recession is near. Every 2 to 9 years the US has a recession, there has never been an expansion longer than 9 years. This expansion lasts already 7 year so this is also overdue.

So it seems Mike Maloney’s timeframe could be a good call.

Video length: 00:05:11