Global fund group pitches gold-based monetary system

An international movement for the use of gold as a medium of exchange can bring fair and sustainable economic development worldwide if adopted by countries, the Global Gold Monetary Fund said this week.

"There will be an agreement where we have the use of the gold but not its ownership," the fund's spokesperson, Joseph Allain Lenferna de la Motte, explained Wednesday to The Daily Tribune on its show Straight Talk.

"It's simply transferred, and we then apply our technology to it and convert it into units and distribute it on behalf of the country," De la Motte added.

The fund, which claims to have 39 original founding members, aims to convince at least 249 countries to join the movement to recognize the intrinsic value of gold as a "God-given resource."

It recently came up with two-page advertisements in the Philippines' top newspapers, including in DAILY TRIBUNE, to pitch its advocacy.

In the exclusive interview, de la Motte underscored the feasibility and value of maximizing gold as an alternative to all fiat currencies and a way for countries to control their wealth.

"For instance, the Bank of America is predicting that gold will to go up to $3,000.  Since gold has an intrinsic value that does not change — think of it as a flat line — it is the value of the dollar that will fall relative to gold's unchanging value," de la Motte pointed out.

"It is more palatable to perpetuate the illusion that gold is appreciating in value, which is not the case, when in fact it is fiat currencies that are depreciating relative to the intrinsic value of gold," he added.

According to the Forbes Advisor, the price of gold, as of 8:17 a.m., ET, was $1,908 per troy ounce, down 0.03 percent from yesterday's price of $1,909.

Compared to last week, gold price is down 1.54 percent, and it's down from 1.82 percent one month ago. "The 52-week gold price high is $1,977, while the 52-week gold price low is $1,890," Forbes Advisor said.

Weaponized dollar

But the downtrend in gold prices at present did not bother de la Motte.

"If you have a certain amount of gold, it's costing you money to have the gold stored. To make it liquid as a medium of exchange and a store of value we're advocating a return to gold's intrinsic value as a medium of exchange where all links to the fiat currency are removed." he said.

De la Motte averred that the problem with the weaponization of the US dollar, the world's reserve currency, will have a ripple effect on the finances of countries whose fiat currencies are pegged to the Dollar.

"Central banks are creating debt instruments (fiat currencies) out of thin air in order to finance projects and governments, but there is no foundation to that money except good faith and the credit of a government. If the reserve currency falls, all of the currencies tied to it are going to fall with it," he explained.

As a solution, De la Motte advocates a return to gold as a medium of exchange. He moves for a parallel system to the existing fiat currency of a country, which would initially be pegged to one unit of gold, as defined for that country.

In the Philippines, for instance, one Philippine peso would have the same conversion value as one gold unit (or gold peso), the fund's spokesman pointed out.

He added that since gold can be used as an equalizer to correct economic injustices, the fund has categorized the 249 countries of the world into 26 groups to identify the most advantaged and disadvantaged countries in terms of income disparity in terms of per capita GDP (gross domestic product).

For instance, Sierra Leone, a gold-rich country, ranks in its 26th lowest category ($784 a year per person compared to the United States' $50,000+).

De la Motte said the Philippines, also a gold-rich country, ranks in the 23rd lowest group. "Your country is very disadvantaged despite the fact that there is a lot of gold in the Philippines," he said.

Buffer

"The new system of gold units will protect countries and their local economies from financial shocks that result from central bankers' interventions to regulate liquidity and exchange rates.  The fund's 64,000 exchange rates (254 x 254) that assign an exchange value to each country's gold units relative to the gold units of every other country will be fixed for 50 years.  This will bring the type of stability and predictability that will allow local economies to thrive," he noted.

"To promote decentralization, the fund will license public and private sector institutions to distribute its gold units widely, whether in the form of printed gold money, debit cards, prepaid cards or in digital form (e.g., e-wallets)."

De la Motte was quick to add that the fund's gold units are not another "crypto" scheme, but a  global platform based on a system of banking as a service, or baaS.