Introduction
In August 1971 the global monetary order changed overnight. By closing the “gold window” and ending the dollar’s convertibility into bullion, the United States replaced the Bretton‑Woods discipline with an elastic, debt‑based fiat regime. At first the new arrangement seemed almost magical: credit flowed freely, governments financed ambitious programs without immediate tax increases, and international trade surged under a dollar that no longer needed to be mined from the ground.
Half a century later the invoice has arrived. Inflation, once thought tamed, gnaws at purchasing power; public debt eclipses global output; financial crises ricochet from one continent to another; and ordinary savers watch the real value of their wages and pensions decline. This paper—the most comprehensive Globalgood Corporation has produced to date—explains why the post‑1971 system has reached its limits and how the Credit‑to‑Credit (C2C) Monetary System can restore the stability and fairness that fiat money has forfeited. It speaks to every constituency: national governments and multilateral agencies, corporations and investors, universities and schools, faith leaders, grassroots advocates, and the early benefactors we call Founding Holders.
1 · The Fiat Fallout—A Balance Sheet of Costs
Monetary Instability. Between 1971 and 2024 global broad money expanded more than fifty‑fold while real output grew roughly eight‑fold. The mismatch produced serial inflationary waves—double‑digit consumer‑price spikes in the 1970s, asset bubbles in the 1980s and 1990s, and the anything‑but‑transitory surge that followed the 2020 pandemic stimulus.
Exploding Public Debt. With no metallic brake on issuance, sovereigns borrowed freely. Worldwide government liabilities, a modest 30 percent of GDP when the gold link was severed, now exceed 100 percent—and that headline understates unfunded pension and healthcare promises. Servicing the interest diverts trillions of dollars each year from education, infrastructure, and climate adaptation.
Boom‑Bust Finance. Fractional‑reserve banking amplifies every credit upswing. Cheap money inflates housing, equity, and commodity prices; subsequent tightening punctures the bubbles, triggering bail‑outs that socialize private risk and perpetuate moral hazard. Each cycle leaves a deeper layer of debt sediment.
Eroding Purchasing Power and Inequality. A currency that loses three per cent of its value annually halves real savings in twenty‑five years. Those with hard assets ride the wave; those living on wages do not. The result is widening wealth gaps and growing skepticism about the fairness of the economic game.
2 · Principles of the Credit‑to‑Credit System
The C2C framework is a return to first principles: money must represent a quantified right to real economic output, not a legal right to future taxation.
Asset‑Backed Issuance. Every currency unit is created only after an equivalent amount of Primary Reserves—gold, Central Ura (URU), or audited receivables—has been deposited with an accredited custodian.
Full‑Reserve Banking. Commercial banks may lend only what savers explicitly choose to invest; ordinary deposits are kept 100 percent liquid, eliminating the alchemy that turns thin equity into giant balance‑sheets vulnerable to runs.
Production Link. New credit appears at the same pace that society produces goods and services. Monetary growth and GDP growth move in tandem, locking inflation expectations near zero.
Layered Oversight. National “Reserve & Issuance Authorities” manage local compliance, regional credit‑based central banks’ balance short‑term trade needs, and the forthcoming Global Ura Authority (GUA)—to be chartered under the Proposed Treaty of Nairobi—publishes open‑source audits, sets conversion protocols, and adjudicates disputes.
3 · How C2C Reclaims Stability
By constraining supply to verifiable reserves and output, C2C extinguishes the inflationary bias of fiat money. A saver can plan decades ahead without guessing how aggressively tomorrow’s central bank will monetize today’s deficit. Sovereign‑bond markets lose their coercive power because governments no longer issue large volumes of interest‑bearing paper; they fund themselves first from productive tax revenue and, where necessary, from explicitly asset‑backed credit instruments. Exchange‑rate gyrations—often sparked by speculative bets on future monetary loosening—diminish as all participating currencies share the same reserve logic.
4 · How C2C Advances Equity
When money decays slowly—or not at all—workers need not chase nominal wage hikes just to stand still. Mortgage rates converge toward real productivity returns rather than inflation premiums, placing home ownership back within reach of median households. Businesses, relieved from unpredictable input‑cost swings, can budget long‑term R&D. Nations freed from debt service reclaim fiscal space for universal healthcare or green infrastructure. And because the framework treats receivables and other non‑traditional assets as legitimate backing, emerging‑market producers can monetize export invoices without resorting to high‑interest loans.
5 · Institutional Mechanics—Central Ura, Central Cru, and Domestic Currencies
Central Ura (URU). Issued exclusively by Reserve & Issuance Authorities once they have lodged equivalent reserves with Central Ura Reserve Limited, URU acts as an interoperable reserve unit. A transparent algorithm maintains its real‑value floor—presently 1.69 grams of gold or roughly 136 U.S. dollars—shielding holders from fiat erosion.
Central Cru. Where firms or governments possess large volumes of rated receivables, the Central Cru protocol converts those claims into C2C‑compliant currency, providing liquidity without fractional leverage.
Domestic and Regional Units. The euro, dollar, naira, yen, and a planned pan‑African “Afro” all continue as identifiers but re‑launch under C2C rules. Each issuing jurisdiction shoulders its own audit schedule, publishes monthly reserve statements, and plugs into the GUA reporting grid.
6 · Path to Adoption—A Concise Timeline
Years 1‑2: Diplomatic canvassing, treaty negotiations, publication of model legislation, pilot audits in volunteer states.
Years 3‑4: Ratifications surpass the three‑nation threshold; provisional GUA board begins operations; first full “Making Whole” debt conversions retire a tranche of sovereign bonds.
Years 5‑6: Dual‑circulation periods roll out; digital wallets integrate URU and new domestic units; secondary‑school curricula update economics syllabi.
Year 7 onward: Majority of global trade invoices migrate to C2C‑anchored currencies; international crises triggered by currency panics decline sharply.
7 · Stakeholder Guidance
Governments gain fiscal autonomy and price‑level credibility. Central banks evolve into transparency leaders rather than discretionary market stabilizers. Corporations enjoy lower hedging costs and stable discount rates. Investors access genuinely risk‑adjusted yields rather than inflation sop. Educators find fertile ground for research in asset‑credit dynamics; students prepare for careers in reserve auditing and digital‑ledger architecture. Faith communities applaud the elimination of systemic usury. Citizens secure the promise that labor today will store value for tomorrow. Founding Holders and donors anchor the transition fund, receiving audited URU allocations and public recognition as underwriters of a historic monetary transformation.
8 · Compliance, Transparency, and Safeguards
All reserve custody is subject to independence, rotating audits under GUA protocols. Founding‑Holder URU doubling—never more than twice the initial fiat contribution—activates only after URU achieves international complementary‑currency recognition and in conformity with AML/KYC statutes. Public ledgers record every issuance event, enabling real‑time verification by any citizen with an internet connection.
Conclusion
The fiat experiment solved a post‑war liquidity problem but at the cost of chronic instability and widening inequality. Beyond the Fiat Fallout demonstrates that a realistic, technically sound alternative exists. The Credit‑to‑Credit System retains the digital efficiency of modern finance while restoring the asset backbone that protected savers and governments alike for centuries.
Globalgood Corporation invites every stakeholder—from presidents and portfolio managers to professors, pastors, and pensioners—to engage with this blueprint. Together we can build a monetary architecture that honours past productivity, secures present stability, and entrusts to future generations a currency worthy of their labour and their hope.
Further technical annexes, legal templates, and impact analyses are available at globalgoodcorp.org/publications-and-reports or by contacting info@globalgoodcorp.org.