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

Of course it works .. it worked for many decades .. when we had a gold backed currency ... which was not one to one.. I do not think you are understanding the concept of "Fractional Reserve" .. meaning you don't need to have dollar of gold in a vault for every dollar of currency...

We came off the Gold backed currency around 1973 .. How did that system not work ?

I will tell you what did happen when we went off Gold .. the restraints to Gov't borrowing came off at the same time .. but, before I tell you what happened when we went off Gold .. Let me tell you what happened to the last 3 world economic empires -- when they went off Gold - Spanish, Dutch, British.

20-25 years after going off Gold --each of that last 3 economic empires went into decline .. and the reason for each was because of the accumulation of massive debt .. due to going off gold.

We lasted a couple years longer .but this is expected as this is a bigger wave .. of Grand Supercycle magnitude. We made it 27 years .. The Dow peaking at 12,000 round Feb 2000 .. then dropping by half 50% .. not making a new constant dollar high until the Trump Bump in 2017 what I will call the "Crest of the Tidal Wave" only because the book of that name is good.. by Robert Prechter .. and we are still in that crest .. and all of of the things predicted to happen during this period in the cycle .. are happening right on time .. complete with the loss of Sole reserve currency Status.

When you wake up in the morning - and find there is a valid competitior to the US dollar's "SOLE" reserve currency status .. will be the day the history books will record as the defacto end of the US World Economic Empire Full Stop .

 

This plan for a BRICS currency is only one effort to reduce or eliminate the dollars influence on global
affairs. If any or some or all become reality it will be catastrophic for the U.S. with our $30 trillion federal debt.

https://www.forbesindia.com/article...-currencies-to-break-dollar-dominance/84063/1

Petro-Yuan or Petro-BRICS: The need for better alternative reserve currencies to break dollar dominance

As international groups go, BRICS is most suited for an alternative trade or reserve currency system. It’s a purely economic grouping of the “next large economies” dominated by the Global East and Global South—a perfect diversification anecdote to the Global West’s Petro-dollar system. Being purely economic grouping also helps nations with disparate geopolitical goals to come together. Having commodity producers and consumers, fiscal deficit, and fiscal surplus nations in the group also augurs very well for creating a sustained trade group.

Interestingly, the modern prevalence and acceptance of digital currencies have made the execution of such global virtual digital currency possible. A wholesale Central Banking Digital Currency (CBDC) for global trade and settlement is within reach now—a possible BRICS CBDC as a new currency of global trade and settlement, backed by the reserves and assets of constituent countries such as Russia, India, China, and others.

The first step in attaining this is to create Petro-BRICS, i.e., oil trade also starts happening in BRICS CBDC along with the dollar. Lately, there has been fair activity on that front too. Several oil-producing countries, including Iran and Saudi Arabia, have expressed interest in joining BRICS. In the recent G20 meeting, Russian Foreign Minister Sergey Lavrov emphasised expanding alternate payments in national currencies within BRICS, SCO, and EAEU. He mentioned at least 12 applications are pending for joining BRICS. More interestingly, there has been a spate of CBDC trials across countries in the last few months—from India to Singapore, Indonesia, Turkey, Iran, and so on.
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For shts and giggles -- US money supply M2 -- is roughly 21 Trillion .. value of all gold in world is estimated at 7.5 Trillion

Immediately we can see that if we went to a fractional reserve at say 10% .. that would be enough for 75 Trillion dollars in circulation more than 3 times the gold needed on a theoretical basis. Note however that this is still a significant amount of the entire world Gold supply - such that - if we were to announce that we were going to be going to a 10% gold backing .. the price of gold would move higher .. some folks claiming ten times higher but even if it doubled .. we now have enough Gold for 150 Trillion dollars.

 

OK-- then what is your proof of that^^,
which you are trying to use, in lieu of proof?

I doubt you know me well enough, to validate your contention.

 

Take those Xs out of your eyes. You had said:

VanceMack said: ↑
No...Biden isnt...he is an embarrassing clown that literally no one respects.


And I'd answered:


DEFinning said: ↑
Unlike your opinions.


Had I said, for example, "just like you"-- then your calling it a personal attack, might have some basis. But I was merely confirming the sound foundation, from which you rendered judgement, of no one respecting our country's President Biden. If I were to add, that I am sure that you are far more respected than the U.S. President, would you consider that a personal attack, as well?

 

https://www.imf.org/en/Blogs/Articl...oreign-exchange-reserves-drops-to-25-year-low

Some info in the IMF link

 

raise your hands, how many here would trade their American dollars for BRICS dollars

 

Wait until someone organizes and accumulates enough of this currency to corner its gold market!

 

My exact point.

 

I assume being debased means losing value. The dollar has lost more than 90% of its value over my lifetime. Using the dollar as a reserve currency is risky for this reason. However using other currencies is just as risky. I recommend gold and silver or real estate as a reserve currency. It is what we used in the old days.

 

All currencies have lost value at the same rate, which is why USD vs Euro, or Sterling has not changed, as a matter of fact USD has fared better than them. Heck, you could buy a 3 br house for 10K back in the day ,and now its monthly income for many people.

 

Why would a currency from another country backed by anything "weaken" the US dollar?

That makes absolutely no sense. And there is a damned good reason why the world left commodities as a backing for currency. They are too vulnerable to manipulation on the world market.

 

Glad finally agree with me.

 

Most people have little to no idea on how this all works. And I have not only watched foreign currencies fluctuate against the US$, it has affected me.

The first time I lived in Japan, the exchange rate was around 160 yen to the dollar. This made purchasing things out in town attractive as the purchasing power of the dollar was high. Most of us exchanged yen for dollars to shop out in town.

When I returned a few years later, that had fallen to around 110 yen to the dollar. Suddenly, exchanging your money and buying out in town made little sense as the price was almost the same. You could buy an item in the exchange for the same price it would cost you out in town, so a lot less people were buying things like electronics on the local economy. Compared to several years before, I only exchanged enough money to use the local public transit (which only accepted yen), and made all my purchases in US$.

And back around 2000 a lot of people were talking about the "Falling Dollar" when compared to the Euro. However, that was never accurate as when compared to all other currencies the dollar was actually still amazingly stable, it was only the value of the Euro that was rising, the Dollar was not declining. And in the last two decades the Euro has been on a roller-coaster ride.



That is 20 years of the Euro compared to the US$. But the climbs and falls have nothing to do with the dollar, it is the rise and fall of the value of the Euro.

Having lived in multiple countries on multiple continents, I have often had to convert my money. But it is also amazing how often I have not, as most nations gladly accept US money. Some like Belize and Panama even make it easy as they peg the value of their money to that of the US. A Panamanian Balboa is exactly equal to US money, the Belize Dollar is pegged 2:1, so US$1 is equal to B$2.

And yes, the US$ has done very well against the Euro, as the financial crisis in that Continent around 15 years ago threw the value of their currency into a tailspin that it has yet to really recover from.

But no matter how bad the Euro may be, at least it is not Venezuelan Bolivar. Where the value completely crashed in 2015 and has yet to recover. Where currently, the value of a Bolivar is US$0.04. If it was a publicly traded stock it would have long ago been delisted and shoveled into the OTC junk stock category. And it is comically sad that the fictional gold currency in World of Warcraft is worth more than the currency of a nation.

 

They are talking about it, which isn't new.

 

There is plenty new in this latest Talk .. a whole different level of NEW - which includes acting on the talk ..in the immediate to violate sanctions - The current US Petro-Dollar as the Sole unit of Exchange for oil is history .. in very short order ... if not already - depending on how one quantifies "significant competitor" I will say we are not there yet .. but big moves have been made towards that goal .. not just Talk - and darn tootin thats new ..

 

You may not take Mark Taylor seriously... but what he wrote back in 2011 on this topic is intriguing.......

https://www.sordrescue.com