Global South: Gold-backed currencies to replace the US dollar (new term: R5+)

The Cradle ^ | January 19 2023 | Pepe Escobar

[C210N]

Let’s start with three interconnected multipolar-driven facts.

First: One of the key take aways from the World Economic Forum annual shindig in Davos, Switzerland is when Saudi Finance Minister Mohammed al-Jadaan, on a panel on “Saudi Arabia’s Transformation,” made it clear that Riyadh “will consider trading in currencies other than the US dollar.”

So is the petroyuan finally at hand? Possibly, but Al-Jadaan wisely opted for careful hedging: “We enjoy a very strategic relationship with China and we enjoy that same strategic relationship with other nations including the US and we want to develop that with Europe and other countries.”

Second: The Central Banks of Iran and Russia are studying the adoption of a “stable coin” for foreign trade settlements, replacing the US dollar, the ruble and the rial. The crypto crowd is already up in arms, mulling the pros and cons of a gold-backed central bank digital currency (CBDC) for trade that will be in fact impervious to the weaponized US dollar.

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The race to replace the dollar

One key takeaway is that energy-intensive major industries are going to be moving to China. Beijing has become a big exporter of Russian liquified natural gas (LNG) to Europe, while India has become a big exporter of Russian oil and refined products such as diesel – also to Europe. Both China and India – BRICS members – buy below market price from fellow BRICS member Russia and resell to Europe with a hefty profit. Sanctions? What sanctions?

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Economic dominance of BRICS+ may be no more than 7 years away – whatever toxicities may be concocted by that large, dysfunctional nuclear rogue state on the other side of the Atlantic. But first, let’s get that new currency going.

[Georgia Girl 2]

Everyone in the world is going to an asset backed system including the US. The dollar is going to be replaced by the new US Note which will be backed by gold and silver. The central banking system is on life support soon to be replaced by the QFS. In about 12-18 months from now you will be on a completely new system. Its going to get rid of the IRS and your money will not be required to run through a middle man (banks).

[dennisw]

Here is the opposite point of view>>>

Global Currency: The Dollar Ain’t Going Nowhere
Peter Zeihan on Geopolitics

2 weeks ago
If I had a nickel for every time I heard someone say the U.S. Dollar was going to collapse...I could probably draw Thomas Jefferson’s face from memory.

https://www.youtube.com/watch?v=LiR54FPQiCs&t=2s

[Georgia Girl 2]

We are going to a new financial system. The US dollar will be backed by gold and silver and will be very strong. So in a sense he’s not wrong.

[rottweiller_inc]

Seizing theirbfunds from the banks. Nothing says better that “we own you” than that

[rottweiller_inc]

That’s not the whole story either. In order for the United States to support a weak dollar they have to keep the price of gold artificially low which means that other central banks can turn around and buy up gold with cheap dollars

[rottweiller_inc]

People may not trust BRICS, But they do trust gold

[rottweiller_inc]

Well I think they’ll try to do that but There is a little problem of debt and inflation. See the woke geniuses in government think that by switching currencies to another currency that they can get rid of this debt and deficit. The problem is that the people holding that debt aren’t going to see it that way