Quote Originally Posted by NeverQuestion View Post
The only real way out of this for the Fed is to go to a new monetary system. If you look back over the last 100 years they have gotten out of tough situations by slowly removing the gold backing on the dollar. Today there is no gold backing on the USD.

So my guess is that they will switch. But only when there is no other option. This Recession will be scary.

Hope I'm wrong.
Jim Rickards in his book Road to Ruin says SDRs(Special Drawing Rights) created by the IMF in 1969 will be the new monetary system when the next financial crisis comes. SDRs are not issued in the conduct of normal monetary policy. They are not issued to bail out individual firms or even countries. SDRs exist primarily to provide liquidity from thin air when there is a liquidity crisis or lost confidence in other money forms. SDRs are a world money fire brigade to douse financial infernos. The most recent issuance was in August 2009; the last issuance before that was in 1981.
In the coming collapse, the financial system will be frozen because central banks are unable to reliquefy the system as in the past. The G20 will convene an emergency meeting, as happened in November 2008, and direct the IMF to reliquefy the system with SDRs. If successful, banks and brokers will gradually reopen. Customers will be allowed to access cash. Transactions in cash and securities will still be denominated in dollars, euros and yen. The SDR, not the dollar, will be the reference point, or numeraire for world trade and finance. This transition has been under way for decades. A curious aspect of the SDR’s rise as world money is that individuals can’t have any. SDR’s are issued by the IMF to its multilateral organizations including the United Nations and World Bank. The dollar will be devalued against SDRs. World money means the dollar is worth what the G20 and IMF decide.

https://www.youtube.com/watch?v=lJNW2IwBJg8
Jim Rickards - Road to Ruin - Animated Book Summary