by Martin Armstrong, Armstrong Economics:
QUESTION: I only recently learned of your material and am still digesting it. I appreciate that you encourage critical thinking. I hope you find my questions of the same spirit.
In your recent article “Are Two-Tier Monetary Systems a Possible Tool?”, you illustrated how South Africa’s experience could provide an example for nations wanting to untangle their domestic currency from global obligations (i.e., US dollar, presumably others too).
Would you mind elaborating on this concept in relation to the following questions?
1) For this 2-tier approach to work, must every nation have a 2-tier money system, or would it suffice to have only the major players do so (i.e., USA, EU, etc)?
2) If every nation had a 2-tier money system, then how would that compare and contrast to a “global SDR” or some other global, non-national currency acting the reserve currency?