King Dollar won’t fall overnight.
“The nations that make up the BRICS — Brazil, Russia, India, China and South Africa — reportedly plan to introduce a joint currency backed by gold when they meet for their summit on Aug 22-24 in Johannesburg. “
The Neocons/Globalists had OPTIONS after they got the Ukraine War started - sadly for Americans and Europeans they chose the one option that would DESTROY their Globalist Empire and the high living standards came with it - which was Suicide Sanctions against Russia (particularly cutting Russia off from SWIFT). Now the days of the US running the world are quickly closing.
Options that the Neocons/Globalists COULD HAVE taken include opening up the US/European economies by jettisoning the Green New Deal, rather than doubling-down on it, and also working to quickly end their Ukraine War with a peace deal.
So now our national debt and many other problems will quickly come due.
Like anything, the devil is in the details. Russia has significant gold ore. But how would that translate into a BRICs gold dollar? Each country would need to pay Russia for its gold and processing in their own currency. Is Russia going to do this out of the goodness of their heart? No, it will be sold at retail. Then, Russia will need to turn the foreign currency into products. Only the country of origin will really accept the currency back and again, that will be a retail transaction. So, you already have two profit transactions on the same currency. This is as opposed to one country making a gold backed currency all by itself. The next problem is the countries Russia will trade with have little to offer the Russians, meaning the countries will need to use their currency to trade for something from the West that Russia needs…another retail trade. Now, the BRIC country has some gold backed currency which already has several retail add-ons to it. They use it to buy something, but that something is being bought with a currency that is already “inflated” by the transactions necessary to create it. To make this worthwhile the BRIC gold dollar needs to trade at or below its gold value. We already see that can’t happen. Also, the BRIC currency requires that Russia deposit the gold someplace not in Russia. I doubt anyone will accept the BRIC gold dollar unless the gold is on deposit someplace. What is the difference between this and Russia just paying in gold? And why would Russia go through all these steps to create something that we’ve just demonstrated is not as valuable as just paying for something in gold?
Russia will be the only one to profit by this.
All thanks to the despicable “Democratic” Party and the perfidious Neocons.
As de-dollarization picks up more and more speed, expect to see increasingly higher and higher inflation while our economy goes into the toilet.
Let’s call it a hyper-stagflationary environment.
The killshot would be if they meet in August and agree not to accept the dollar anymore as payment.
A reversal of the agreement where the Saudis agreed to accept only US dollars as payment for oil, inverted to be the Saudis will accept anything BUT the US dollar for payment for oil... people gotta have the oil, so they would have little further use for the dollar...
All those shrinking dollars would start flowing back to US, what a good time it would be :-/
A word to the wise, it’s past time to be moving some assets out of dollars and into something that is real...
South Africa huh. Only the best people are apart of BRICS.
The most practical approach would be a new currency used for trade in goods and services.
Trade transactions are at least an order of magnitude less than financial transactions such as currency swaps, derivatives of various kinds, repos, bonds, stocks, and other paper assets.
There is really no reason for the BRICS to replicate the entire dollar casino in order to do trade without US interference.
This is the kick off of the new banking system that we will all soon be on. The petro dollar is dead. The Federal Reserve is on death watch. Pretty soon when you pull a dollar out of your pocket its going to say US Treasury note not Federal Reserve note and its going to be backed by gold.
And so, the US dollar, along with the Euro will remain the prominent currencies, but they will lose some leverage and the competitors will gain some influence. In the long term, I'd expect there to be more volatility in exchange rates, and US foreign policy will lose a tool that had been used too often for the wrong reasons.
This emerging bloc of countries are bound to become active in testing their newfound power, and while it might not hurt America, it will diminish our influence in the world.