BRICS Nations To Issue NEW Currency BACKED BY GOLD To Further Weaken The US Dollar

I can't believe I used to have you blocked years ago. Either imust have been really sensitive or you've mellowed alot since then.

 

That wasn't obvious?

 

We aren't in risk of losing reserve currency status. Nowhere near that. We will face having additional currencies used for international trade but that isn't what reserve currency means. My guess is that more people will prefer to trade in dollars than in Yuan.

 

As obvious, I had thought, as that I was making my comment, tongue in cheek.

I had posted a very similar opinion to yours, before I came across your own post. Of course, the word of the leaders of those autocratic, closed societies, does not suffice as proof.

 

The prophecy of the dollar fall started over 50 years ago when the dollar value was disconnected from the value of gold and and many America haters are getting schadenfreude every time the dollar is weaken. I envy them, over 50 years of pure happiness

 

Just silliness.

 

Weve gone from 71% of reserve currency 20 years ago to 59% today. Most of that drop in the last 10 years.

 

You may want to do some reading to learn about what a reserve currency is. It is not the currency used in buying and selling.

 

??? I know what a reserve currency is. Did you have a relevant point you wanted to make? Did you want to dispute my figures? Or just lame attempts at insult because you have nothing relevant with which to reply?

 

I disputed your knowledge of a reserve currency. It wasn't an insult. You made a post that indicated that China and Russia are attacking the dollar as a reserve currency. I see it differently. They are attacking it as transactional currency, most notably a currency for use in purchasing oil. The dollar is the largest reserve currency, bigger than all the others combined as you indicated. For China and Russia to launch a new currency doesn't affect anything unless the world accepts it for international trade. I think it is not going to compete well with the dollar.

Having said that, federal government's awful mismanagement of its finances and spending causes the dollar to lose value against currencies from countries with better fiscal management. That affects the dollar's value as a reserve currency as well and we should expect it to decline in popularity. Reserve currencies aren't vaults full of paper money. They are held mostly in bonds that are denominated in the reserve currency. If the bond investments lose value as they do, the dollar will continue to decline as a reserve currency. China's new currency has a way to go to become a replacement. There really isn't a good candidate as a replacement. Hence my comment that the dollar as a reserve currency isn't really in jeopardy. As a day to day transactional currency, it has a problem if things don't change. And history says they won't change. Government spenders are addicted to vote buying.

 

I said no such thing. You are confused again. I SAID and you quoted-

And you spouted off about what I needed to go read about in reponse,
"You may want to do some reading to learn about what a reserve currency is. "
without disputing anything Ive said.

 

Unpleasant conversation. I'm done.

 

So to review.

Sooo that would be a no, another no and yes on the last question. I thought so.

 

How the hell can a gold back currency work? Does that mean that your economy can't grow unless you dig up...gold?

"Gold-backed currency is a monetary system where the value of the currency is tied to the value of gold. In such a system, the amount of currency in circulation can grow if there is an increase in the supply of gold.

One way that the supply of gold can increase is through gold mining. As more gold is mined and enters the market, the supply of gold increases, and the value of gold may decrease slightly, leading to an increase in the amount of gold-backed currency that can be issued.

However, it is important to note that the growth of a gold-backed currency is limited by the amount of gold reserves held by the central bank. If the supply of currency grows faster than the supply of gold, the value of the currency may decline relative to gold, potentially leading to inflation. In order to maintain the stability of the currency, the central bank must ensure that the growth of the currency supply is in line with the growth of its gold reserves."

That doesn't sound very flexible. Seems to be the case that your currency would be locked in on value. No amount of trades/exports innovation, property value...?

Yikes.

"Hey can I borrow some money!?" "No sorry...we have no more gold"

 

Exactly!
Today's fiat fake money and gold money are inherently and equally bad.

 

No .. NO .. and NO

1) you are assuming there is not enough gold around -- that currency equivalent to amount of gold is printed .. you don't have to dig up any gold to increase the currency . but you do have to have more gold in a vault somewhere for each new dollar printed to back that dollar.. thus - that dollar then has what is known as "intrinsic value" as opposed to fiat which has ZERO intrinsic value

2) A Gold backed currency does not need to be backed 1 to 1. There is such a thing called a "Fractional Reserve" .. where you would have 1/10th of a part of gold for every dollar printed in a vault somewhere

3) a Gold backed currency is much different than fiat. The fact that you have to have gold in a vault somewhere for every dollar printed acts as a deterrent to Gov'ts creating more debt .. this is not so with fiat .. and as such .. is why every Gov't that has adopted fiat has gone bankrupt .. because without something restraining Gov'ts from debt Creation .. Gov'ts create more and more debt until the ship sinks. .. cause that is what Gov't is wont to do ... in every case.

 

The value of gold which is arbitrary as it could be argued that lithium is a much more valued finite commodity. But whatever, the United States has the largest gold reserve currently and is the 4th in the world in creating more gold.

And then what happens when we figure out how to simply "make" gold?
https://nypost.com/2018/12/28/scientists-figure-out-how-to-make-gold-from-cheap-copper/

Still not gold, however...it should point you in the direction of how technology can progress and there could be a time in the near future where gold becomes useless.

Then what?

Then I guess you need to roll onto another commodity, huh?

 

the value of gold is not arbitrary .. what follows from false assumption is not worth discussing .. nor are dreams of alchemy a factor

 

https://www.thoughtco.com/how-is-gold-formed-4683984
"Theoretically, it's possible to form gold by the nuclear processes of fusion, fission, and radioactive decay. It's easiest for scientists to transmute gold by bombarding the heavier element mercury and producing gold via decay."

Fission? Hrm...

Remind me again if we have several countries racing towards the development of fission?

"Japanese physicist Hantaro Nagaoka first synthesized gold by bombarding mercury with neutrons in 1924. While transmuting mercury into gold is easiest, gold can be made from other elements—even lead! Soviet scientists accidentally turned the lead shielding of a nuclear reactor into gold in 1972 and Glenn Seabord transmuted a trace of gold from lead in 1980."

Never say never fella.

 

OMG -- Please help me .. these are dreams of future technology - that you don't understand .. at all .. and have zero to do with a Gold backed Currency - a different topic of which you are also ill informed.

 

It's pointing out one issue with having a currency backed by a commodity.

 

A failed attempt at pointing out an issue with a Gold backed Currency. A success at making a false claim however, and demonstrating ineptitude in the subject matter .. and with the second post the inability to correct error and learn from mistake.

 

Manipulating the supply is a very real way that one could crash a gold standard currency. It can't be done to an exact, but as I've shown...science has gotten close in the past. If any country wanting to undermine such a currency decided to science that ****...never say never.

Regardless, I don't think the USD is going anywhere.

 

The problem is there isn't that much gold. Each bill, however it will be denominated if the currency is going to be widely distributed won't be worth much gold and, then how would you redeem it for the gold. On top of that it's being created by the shakiest countries in the world.

 

You should research Zeihan before you dis him.