{"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

When the Fed Chair Admits the Failure of the Monetary System<\/h2>\n\n\n\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

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\"Jerome
Jerome Powell is the chair of the Fed.<\/figcaption><\/figure>\n<\/div>\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

The Agony of the Monetary System : Debt, Budget Chaos, and Political Deadlock<\/h2>\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