Monetary Analysis · Fiat Vulnerability · Monetary Reform
How speculative capital overwhelmed national reserves — and how Good Money closes that chapter forever.
In the 1990s, George Soros became infamous as "the man who broke the Bank of England." His Quantum Fund's attack on the British pound forced the UK out of the European Exchange Rate Mechanism — and revealed a structural flaw running through every fiat currency on earth.
The pattern that began in London repeated itself across the globe. Speculative capital, moving faster than any central bank could respond, overwhelmed national reserves and destroyed the savings of ordinary citizens — while hedge funds pocketed the profits.
Over 17% collapse in a single day. Triggered the Asian financial contagion.
Catastrophic devaluation contributed to the fall of the Suharto regime.
Soros's short backfired. Quantum Fund suffered ~$2B in losses during the crisis.
I am basically there to make money. I cannot and do not look at the social consequences of what I do. — George Soros, 60 Minutes interview, December 1998
Traditional fiat currencies share a fatal flaw: they are not anchored in real intrinsic value — value rooted in genuine economic growth, as opposed to nominal growth arising from monetary inflation. The worth of fiat currencies depends entirely on political discretion, debt issuance, and artificial scarcity or oversupply.
Facing speculative attacks, central banks must defend with limited foreign currency reserves — always in short supply — or by raising interest rates to levels that suffocate the domestic economy. Neither is sustainable. The root cause: fiat currencies are backed by public and private debt, not by value created in the real economy.
Fiat money is created out of thin air. That ease of oversupply is precisely what enables short-selling attacks on national currencies — and the social mayhem that follows.
Good Money — initially implemented as the Choice Coin (C²) — is designed to end this vulnerability. It is fully backed by a diversified basket of publicly traded value stocks, selected according to Benjamin Graham's intrinsic-value principles: real companies, real earnings, real human value creation. Think Warren Buffett's investment approach, turned into money.
The system uses AI-driven smart contracts to enforce Hayek's redeemability criterion: every coin is redeemable at all times for its underlying assets.
Smart contracts mint new tokens, sell them, and use the proceeds to purchase additional value stocks. Reserves expand. Balance is restored.
Smart contracts repurchase tokens by selling value stocks to fund the buyback. Supply reduces. Balance is restored.
Had Soros attempted to short a Good Money currency, the system's arbitrage engine would have absorbed and neutralised the attack at each stage — turning anticipated profits into losses.
New money created to fund the short initially drives demand — and price — upward. Equal new reserves are automatically created by purchasing stocks, generating profit in transition.
When the new money is sold, the arbitrage engine automatically purchases the undervalued currency by selling the same value stocks initially bought — again generating profit in transition.
Soros's short position is absorbed by the system. Attempted profit becomes a loss. Knowing this, rational speculators would refrain from attacking in the first place.
Instead of governments burning reserves or raising interest rates to defend their currencies, Good Money's self-correcting mechanism ensures stability. Anchored in real productive equity — not debt or fiat promises — it protects savings, prevents crises, and fosters ethical abundance. No Cantillon Effects, no wealth transfer from the people to fiat elites.
Where fiat collapses under pressure, Good Money stands firm — proving that stability does not require scarcity, only redeemability of intrinsic value. — Good Money Thesis