Peter Schiff has long highlighted systemic vulnerabilities in the fiat-currency-based global economy, including unsustainable debt, unchecked government spending, currency devaluation, and inflationary policies by central banks. Schiff’s central argument underscores that our monetary system, which relies on continuous borrowing and printing money without backing by tangible assets, is fundamentally flawed and poised for collapse.
In direct response, the proposed Credit-to-Credit (C2C) Monetary System, anchored by Central Ura (URU) and managed by a new international oversight body—the Global Ura Authority (GUA)—offers a robust, realistic, and timely solution. The establishment of the GUA through the Treaty of Nairobi represents a practical “Bretton Woods 2.0” approach, addressing the shortcomings of the fiat system while ensuring that money remains fundamentally sound.
Central Ura (URU): Money Backed by Real Value
Central Ura is engineered to restore what fiat currency lost decades ago: real, asset-backed value and purchasing power stability.
Principles behind Central Ura:
- Credit-backed issuance: URU can only be issued against verified credit (existing assets or real receivables), ensuring that every unit in circulation corresponds directly to tangible economic value.
- Gold-linked valuation: Each unit of Central Ura is pegged to the purchasing power equivalent of 1.69 grams of gold. This fixed real-value peg ensures inherent stability and protects against inflationary erosion, addressing Schiff’s critical point regarding currency debasement.
- Protective USD Floor: Even if the gold market experiences volatility, URU’s value never falls below USD 136.04 per unit. This floor provides consistent stability for holders, a critical factor for global confidence and reliable trade.
Credit-to-Credit (C2C) Monetary System: Ending Debt Dependency
The C2C system corrects the deep-seated flaws Schiff critiques—namely, reliance on debt and inflationary money printing—by prohibiting money from being created through debt.
Key components of the C2C System:
- Eliminating debt-based issuance: Currency creation through government borrowing ends entirely, halting the cycle of escalating sovereign debt.
- Nations become creditors, not debtors: Governments issue money against national assets or receivables. As Schiff highlights, continuous borrowing weakens economies; the C2C system reverses this dynamic, placing countries in positions of strength rather than dependency.
- Transparent issuance controls: Every monetary unit issued under the C2C system must be transparently matched by audited and verified reserves (assets), safeguarding economies against hidden debts and economic manipulation.
Global Ura Authority (GUA): A New Bretton Woods for Stability and Cooperation
The GUA, as the governing body established under the proposed Treaty of Nairobi, would oversee and enforce these revolutionary principles, ensuring global monetary stability and disciplined management of Central Ura.
GUA Structural Essentials:
- International governance: Unlike Bretton Woods, which primarily relied on the dominance of a single currency (USD), the GUA provides balanced multilateral oversight. No single country can dominate or manipulate the system, ensuring fairness and accountability.
- Expanding the Primary Reserve Basket: Addressing Schiff’s concern of overly narrow or volatile reserves, GUA maintains a diverse basket of primary reserve assets beyond gold—such as gold, Central Ura, stable commodities, and national receivables—minimizing reliance on any single commodity or asset.
- “Making Whole” Protocols: The Treaty of Nairobi incorporates mechanisms where existing fiat debts can be fully settled (“made whole”) through adequate URU allocations at the outset. No creditors lose during the transition, ensuring global financial stability as nations shift from debt-based to credit-based money.
- Creditor-of-Last-Resort Framework: Under the GUA, governments become creditors-of-last-resort, ensuring all receivables in their economies are honored with stable, credit-backed money rather than debt-financed instruments. This maintains liquidity, stabilizes financial markets, and prevents systemic collapse.
How This Directly Addresses Schiff’s Economic Collapse Concerns:
Peter Schiff has consistently warned about the following:
- Fiat Currency Devaluation and Inflation: Central Ura’s gold-pegged, credit-based issuance directly counters these effects, guaranteeing stable purchasing power.
- Excessive National Debt: The C2C monetary principle explicitly forbids debt-based currency issuance. Transitioning nations achieve a full reset, becoming immediately solvent and debt-free, eliminating future debt accumulation risks.
- Economic Bubbles and Crises Driven by Central Banks: The independent and internationally accountable GUA prevents reckless monetary expansion and currency manipulation, thus reducing the risk of economic bubbles and systemic financial instability.
- Investor Uncertainty and Market Manipulation: Transparent auditing by GUA ensures all issued money is asset-backed, eliminating hidden monetary manipulations and restoring investor confidence.
Ensuring Money Remains Money Under the Treaty of Nairobi:
The Treaty of Nairobi, in establishing the GUA, must clearly outline several critical pillars to guarantee the ongoing reliability and integrity of money:
- Mandatory audits and transparent reporting of national reserves to GUA by member nations.
- Enforceable legal mechanisms ensuring that new money creation strictly aligns with the credit-backed principle.
- Internationally recognized valuation standards for Central Ura, backed by periodic independent reviews and valuations.
- Mechanisms for dispute resolution and international arbitration within the GUA structure to promptly address breaches or monetary abuses.
- Clear “Making Whole” clauses and transparent transition frameworks for creditors during the shift to prevent economic shocks or sudden systemic breakdowns.
Historical Precedent and Practical Realism:
Addressing Peter Schiff’s warnings is not utopian. The original Bretton Woods Agreement was conceived amidst global instability after World War II. Similarly, the proposed Treaty of Nairobi and establishment of the GUA represent practical, achievable solutions at a moment when global leaders, including Prime Minister Mia Amor Mottley of Barbados and President Emmanuel Macron of France, openly call for a “global economic reset.”
Historical Lessons Integrated:
- Bretton Woods’ single-asset gold standard proved too restrictive, leading to its collapse under pressures that Schiff describes. The GUA diversifies reserves to include stable, verifiable assets beyond gold.
- Post-1971 fiat currency regimes, as Schiff rightly highlights, generated unsustainable debt and inflation. The C2C Monetary System prohibits these practices outright.
Conclusion: A Practical Path Forward
Central Ura, the Credit-to-Credit Monetary System, and the Global Ura Authority together form a comprehensive, practical, and historically informed response to Peter Schiff’s longstanding concerns. By grounding money in real, verifiable assets rather than debt, the Treaty of Nairobi’s C2C monetary reforms lay a stable foundation for global financial security and economic justice.
As a prospective Founding Holder, policymaker, or economist, your support contributes directly to establishing this urgently needed alternative. It’s not merely addressing Peter Schiff’s warnings—it’s securing a resilient monetary future for generations to come.
Join the movement. Become a Founding Holder today.