Ex-minister: New monetary system coming – gold to play key role

The US dollar remains the reserve currency in the world. But how much longer? Not for a very long time, says former Canadian minister Maxime Bernier. In his view, the US dollar would become the dominant world reserve currency, backed by a basket of currencies including gold.

“A commodity-based monetary system is coming,” he declared. “I don’t know when, but a fiat money system can’t survive long. After decades, with all the credit and money printing in America, Canada and Europe, it has to end.

We have to tell the central bankers to keep the inflation target at zero,” he told kitco.com. “After that, I think we need an international monetary reset, money based on gold or other commodities that existed in the 19th century. Inflation is the result of bad monetary policy,” said Bernier, who was a minister under Prime Minister Stephen Harper from 2006 to 2015. “We have to balance the budget.” We have to stop spending money that we don’t have,” he said.

Bernier said that inflation is a tax that transfers resources from working people to the government. “We have 8.1 per cent inflation in Canada, inflation is a tax,” he said. “Average income growth in Canada this year will be around 5 per cent. So every Canadian would be 3 percent poorer. So we have a new 3 percent tax. He criticized Prime Minister Justin Trudeau’s spending during the Covid-19 lockdown, saying the “Bank of Canada is the federal government’s ATM” and that Canadians will now have to pay. It costs more.

Since 2010, Bernier has advocated a commodity-based currency system similar to the classic gold standard adopted by the United States and Canada in the 19th century. “Now you can see a trend of demonetisation with Russia, China and India,” he said, referring to the BRICS countries’ plans to introduce a new global reserve currency. “They are aiming for a new currency based on commodities and gold.

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