{"id":8965,"date":"2025-06-10T16:41:09","date_gmt":"2025-06-10T15:41:09","guid":{"rendered":"https:\/\/investx.fr\/en\/?p=8965"},"modified":"2025-06-10T16:41:10","modified_gmt":"2025-06-10T15:41:10","slug":"monetary-system-brink-collapse","status":"publish","type":"post","link":"https:\/\/preprod.investx.fr\/en\/crypto-news\/monetary-system-brink-collapse\/","title":{"rendered":"Is the Global Monetary System Facing an Imminent Collapse ?"},"content":{"rendered":"\n
A statement<\/strong> made in recent days has gone almost unnoticed. However, it could mark a historic turning point in the global economic history. Jerome<\/strong> Powell<\/strong>, the chair of the US Federal Reserve<\/strong>, has half-heartedly admitted that the Central Bank has broken the monetary system as we know it.<\/p>\n\n\n\n In a speech on June 2, 2025<\/strong>, Powell referenced the end of the Bretton Woods agreements<\/strong> as the point where the global financial system started to derail. A stunning admission considering that it’s precisely from that period that the Fed has assumed a central role <\/strong>in the global financial balance.<\/p>\n\n\n It’s a bit like the manager of a McDonald’s standing at the entrance of the restaurant warning customers that the food is mediocre. The global economic compass now points to the problem… being the compass itself.<\/p>\n\n\n\n To grasp the extent of the crisis, we need to revisit the basics<\/strong>. The Bretton Woods agreements, signed in 1944<\/strong>, placed the United States at the center of the global economy with a dollar convertible to gold.<\/strong> This system came to an end in 1971<\/strong> when Nixon abandoned the gold standard, allowing the US currency to float freely.<\/p>\n\n\n\n This decision marked the beginning of an era where money is no longer tied to a finite material asset. Drawing a parallel with the crypto<\/a> world, it’s as if the supply of Bitcoin <\/a>suddenly transitioned from 21 million to infinity<\/strong>, with a single entity making all decisions.<\/p>\n\n\n\n Fifty years later, the outcome is clear: the financial system is broken. American debt<\/strong> has reached staggering heights:<\/p>\n\n\n\n To grasp the scale of these figures, a comparison is necessary:<\/p>\n\n\n\n Long-term projections are even more alarming. The debt could reach 195% of the GDP <\/strong>by 2050<\/strong> if nothing is done. It’s like hiking with a backpack, and with every kilometer, you add 1\/36th of the initial weight. In less than a day, the burden becomes unbearable, and you collapse.<\/p>\n\n\n\n Facing this critical situation, the Trump administration is implementing a two-phased strategy to try to save the US economy.<\/p>\n\n\n\n The first step was to establish the Department of Governmental Efficiency<\/strong> (DOGE), led by Elon Musk. Its mission was to drastically reduce public spending. The results look impressive on paper :<\/p>\n\n\n\n Despite these considerable efforts, Musk himself acknowledged the relative failure<\/strong> of this approach. The savings, while substantial, are insufficient in the face of the scale of US debt and deficit.<\/p>\n\n\n\n This is where the strategy takes a radical turn<\/strong>. The Trump administration shifts focus from deficit reduction to supporting economic growth, even if it means sacrificing the value of the dollar.<\/p>\n\n\n\n The “One Big Beautiful Bill Act,” passed by the House of Representatives on May 22, 2025<\/strong>, exemplifies this new approach. This massive spending plan aims to boost economic activity<\/strong> and reduce taxes, albeit through a deliberately inflationary policy.<\/p>\n\n\n\n This strategy, which has contributed to the recent clash between Trump and Musk, is based on a cynical calculation<\/strong> but potentially effective:<\/p>\n\n\n\n The flip side? Government employees, retirees, and all those reliant solely on the dollar for their purchasing power will see a significant decline in their standard of living. With 16% of the American population working in the public sector, this strategy could nonetheless “save” a majority of Americans while sacrificing a minority.<\/p>\n\n\n\n Analysts now agree on a well underway downward trend <\/strong>for the greenback. Some projections even suggest a potential devaluation of 30%<\/strong> of the US dollar in the coming months.<\/p>\n\n\n\n This perspective, which would have seemed catastrophic a few years ago, is now considered a pragmatic solution<\/strong> to the debt problem. By devaluing its currency, the United States could significantly alleviate the burden of its financial obligations.<\/p>\n\n\n\n This scenario is reminiscent of what happened in Turkey<\/strong> during the Turkish lira crisis. While the national currency was collapsing and government employees and retirees were tightening their belts, the Turkish stock market and Bitcoin were reaching new heights.<\/p>\n\n\n\n The logic is clear: when a currency collapses, the priority for holders is to exchange it as quickly as possible for more stable or high-growth potential assets.<\/strong><\/p>\n\n\n\n In the context of a planned devaluation of the dollar, cryptocurrencies<\/a> emerge as a particularly attractive alternative for investors seeking to preserve their purchasing power.<\/p>\n\n\n\n Several factors support this thesis:<\/p>\n\n\n\n Even more surprising, countries themselves are beginning to seriously consider cryptocurrencies<\/a> as a strategic reserve<\/strong>. Beyond El Salvador<\/strong>, a pioneer in this regard, countries like Argentina, Pakistan, Kenya, and Ethiopia are now actively leveraging Bitcoin using their governmental resources.<\/p>\n\n\n\n This trend is all the more remarkable as most of these countries are under agreement with the IMF<\/strong>, an institution that has traditionally shown strong hostility towards cryptocurrencies.<\/strong> The fact that these nations are taking the risk of displeasing the “banking cartel” indicates the growing allure of Bitcoin as an alternative to the traditional monetary system.<\/strong><\/p>\n\n\n\n The recent initiative of Russia’s largest bank, which has launched Bitcoin-indexed bonds, illustrates the global enthusiasm for cryptocurrencies. These bonds<\/strong>, which track both BTC fluctuations and the exchange rate between the dollar and the ruble, allow Russian investors to benefit from Bitcoin’s rise while being paid in dollars.<\/p>\n\n\n\n This convergence of interests around Bitcoin, from Washington to Moscow, Buenos Aires, and Islamabad, suggests that we may be witnessing the beginnings of a new global monetary system <\/strong>where cryptocurrencies would play a central role.<\/p>\n\n\n\n The concept of “Bitcoin Bonds” could foreshadow what a “Bretton Woods 2.0” would look like: a fusion between the old debt-dominated system and major banking institutions, and our fast-growing digital economy <\/strong>that relies less on debt.<\/p>\n\n\n\n In this new paradigm, cryptocurrencies would serve as “rails” for international payments <\/strong>and fundamentally transform the structure of global capital:<\/p>\n\n\n\n If the scenario of a controlled collapse of the dollar materializes, we could witness a widespread “Alt Season,” where all cryptocurrencies would benefit from a massive inflow of capital<\/strong>.<\/p>\n\n\n\n Several categories of digital assets could stand out:<\/p>\n\n\n\n The golden rule in this context would be simple: “Anything but the dollar!”<\/em> Investors would seek to exchange their fiat currency as quickly as possible for tangible<\/strong> or digital assets<\/strong> to safeguard their purchasing power.<\/p>\n\n\n\n
The Agony of the Monetary System : Debt, Budget Chaos, and Political Deadlock<\/h2>\n\n\n\n
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Trump’s Plan : A Two-Phase Strategy<\/h2>\n\n\n\n
Phase 1 : Elon Musk’s DOGE and Budget Cuts<\/h3>\n\n\n\n
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Phase 2 : Separating the Private Sector from the Public Sector<\/h3>\n\n\n\n
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Towards a Planned Fall of the Monetary System<\/h2>\n\n\n\n
Cryptocurrencies as the Ideal Haven<\/h2>\n\n\n\n
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Toward a New Bretton Woods with Bitcoin at the Center ?<\/h2>\n\n\n\n
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Which Cryptocurrencies Will Thrive ?<\/h2>\n\n\n\n
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