“BRICS (short for Brazil, Russia, India, China, and South Africa), a coalition of nations opposed to NATO (North Atlantic Treaty Organization) and its empirical global dominance, has introduced a gold-backed currency. This will be a major challenge to the United States dollar hegemony.
Russia and China have been working to undermine the dollar for some time, especially in light of sanctions and tariffs placed on them. There’s always a work around when the ruling classes try to control each other. But now, it is official.”
There You Go – It’s Official
‘BRICS planning to introduce new trading currency backed by gold at August summit’
‘Gold standard will be a great benefit to strengthening single currency’
‘41 countries have applied for BRICS-membership’
Source: RT / Russian Embassy pic.twitter.com/zmqOKiXlsa
— Willem Middelkoop (@wmiddelkoop) July 7, 2023
“The official announcement is expected to be made during the BRICS summit in August in South Africa,” Kitco reported over the weekend.
“At first glance, a new transaction unit, backed by gold, sounds like good money – and it could be, first and foremost, a major challenge to the US dollar’s hegemony,” Thorsten Polleit, chief economist at Degussa, said. –Quoth The Raven.
BRICS is set to introduce a new currency backed by gold, in contrast to the credit-backed US dollar, with the decision coming a month ahead of the bloc’s summit in Johannesburg. With the growing initiative, more and more countries are lining-up to join the group. pic.twitter.com/U5ExGv4IE3
— RT (@RT_com) July 5, 2023
Polliet continued: “For making the new currency as good as gold, a truly sound currency, it must be convertible into gold on demand. I am not sure whether this is what Brazil, Russia, India, China, and South Africa have in mind. Using gold as money, the unit of account would be a true game changer, no doubt about it. It could lead to a sharp devaluation of many fiat currencies vis-à-vis the yellow metal (including the BRICS fiat currencies), and it could catapult up goods prices in terms of fiat currencies. It could be a shock to the global fiat money system. I am not sure that this is what the BRICS wish to achieve.”
https://www.shtfplan.com/headline-news/brics-to-end-the-u-s-dollar-with-gold-backed-currency
P.S. Don’t forget Trump said we had “money for a rainy day.” I sure hope he means it.
BRICS (short for Brazil, Russia, India, China, and South Africa), a coalition of nations opposed to NATO (North Atlantic Treaty Organization) and its empirical global dominance, has introduced a gold-backed currency. This will be a major challenge to the United States dollar hegemony.
Russia and China have been working to undermine the dollar for some time, especially in light of sanctions and tariffs placed on them. There’s always a work around when the ruling classes try to control each other. But now, it is official.
There You Go – It’s Official
‘BRICS planning to introduce new trading currency backed by gold at August summit’
‘Gold standard will be a great benefit to strengthening single currency’
‘41 countries have applied for BRICS-membership’
Source: RT / Russian Embassy pic.twitter.com/zmqOKiXlsa
— Willem Middelkoop (@wmiddelkoop) July 7, 2023
According to Quoth The Raven, the images plastered all over RT this weekend had headlines like “New Money, New World” and “Gold Standard Will Be Of Great Benefit To Strengthening New Singly Currency”.
It is unclear but it may be a currency only used for large commodity trades rather than normal legal tender. At least I’ve heard that that’s the plan. This is calculated to replace the dollar as the world’s reserve currency rather than replace the yuan, ruble, rupee, etc. in their respective countries for day to day transactions.
Thus, each of these national currencies would be pegged to the new currency and the new currency would be backed by gold. This should have the effect of stabilizing the new currency and the national currencies pegged to it and destabilizing the fiat currencies.
Though I’m not a financial advisor, this is one reason why I’ve said, “Buy gold.” since the beginning of the Ukraine conflict. This could set off serious inflation in the West.
I’m not entirely sure currency tagged to gold is a bad idea, too bad it’s not something the U.S. isn’t considering. Instead, it appears the West will push digital. The one extends freedom and stability, the other top-down control yet instability.
AnonII, the DS isn’t as smart or as resourceful as we think them to be. They can make mistakes. One of the biggest was during the great trucker convoy that descended upon Ottawa. They got what they wanted (no mandatory vax) but it came at a high price: they got their bank accts frozen and their insurance policies cancelled.
However, we, the normal people, found out that the govt had the power to do this. It woke us up. It certainly woke me up.
As always, the devil is in the details. Unless the currency is pegged at or near its full designated value and preferably to a unit of currency valued to a specific quantity of gold, enough gold is vaulted and remains so to cover the entire issue, and is convertible in perpetuity, then it will ultimately be no more stable or advantageous than the current system of fiat currencies. (Or at least not for long. I don’t trust any government to maintain this when it becomes inconvenient.)
When money was literally coinage containing a specific weight of a monetary metal governments still managed to debase the currency by increasingly shorting the gold or silver content.
Yes, buy gold but you don’t really own gold unless you buy and take delivery of the physical metal. (Or vault it, preferably outside the US where it is out of reach of an executive order forcing its sale to the government under threat of confiscation, fines, and jail.)
Ntina, thanks for this excellent but concise explanation.
You are correct, however those of us who are goldbugs/hard-currency devotees (such as myself), hold that the coinage should never be debased/shorted/clipped. In this ideal situation, we would never have to worry about inflation/devaluation.
for 124 years, from 1789-1913, the U S dollar maintained its strength. So it can be done but for demogogues who preach to the people that they can vote themselves money from the public fisc.
So, I see your larger point.
If you don’t mind, I’d like to ask you this question: if the US/NATO are doing whatever they can to derail BRICS+ gold-backed currency from being issued, do you think they are doing so because they are scared that all of our allies are going to ask for their gold to be repatriated from the NY FED? And maybe it isn’t there?
FWIW, I keep hearing rumors that the gold has been depleted from Ft Knox.
“…maybe it isn’t there?”
Or Auric Goldfinger’s cunning plan succeeded
and all the gold is now too radioactive to use…?
Yes. Gold backed is not gold made. And the currency will initially only be used for large commodity transfers between countries. So most everyone will still be using their national currencies for mundane transactions and there won’t be any gold coins to shave.
But there’s a larger point. BRICS is not doing this to torpedo Western economies. BRICS is doing this to facilitate trade between themselves while staying clear of the dollar as an exchange currency. Due to their size, it will certainly vie with the dollar for dominance over time. But it is only as a secondary byproduct of their quest to become independent that their plan might have negative consequences for Western economies.
Now, it is also true that they are largely unconcerned about these consequences given Western imperialism. But as George says, there’s a reason that this is causing alarm in the West and that America is trying to obviate it and meretricious France has tried to opt in with the other 40 plus countries on the bandwagon.
For the record, there are now 40 nations that are part of BRICS.
Also, Putin will meet with Erdogan next week. Looks like Erdo was doing a Prigo and tossing some meager rations to NATO.
My only concern presently is: what will happen in Vilnius in a few days? NATO/EU is feeling the heat. Are they desperate? If so, will they do something desperate, all in an effort to stave off the new gold-backed currency?
We shall soon find out.
From what little I have seen it looks like they are doubling down and sending more ammo, etc., to Ukraine. I guess this is the hill that the U.S/West are going to die on.
While the rest of the world is joining BRICS and switching to a gold-backed currency for trade, the United States and its allies are running headlong into sever recession, or worse, and have all but disarmed themselves. If you want to see the future of our country, that’s it.
I am no expert on geopolitical matters. I do remember ( and just did a search) that the US sanctioned Russian gold. I have no idea how any of this works. The article I am presenting here is from March 2022. But if you read the last paragraph, it seems the US will sanction gold even if a BRICS is operating.
How could Russia use gold to evade sanctions?
The U.S. says that Russia can and has used gold to support its currency as a way to circumvent the impact of sanctions. One way to do that is by swapping the gold for a more liquid foreign exchange that is not subject to current sanctions. Another way would be to sell the bullion through gold markets and dealers. The gold could also be used to directly purchase goods and services from willing sellers.
How would the sanctions apply?
The U.S. announcement to block gold transactions was done alongside Group of Seven and European Union allies that will also impose the gold reserve ban. New guidance from the U.S. Treasury Department states that American individuals, including gold dealers, distributors, wholesalers, buyers and financial institutions, are generally banned from buying, selling or facilitating gold-related transactions involving Russia and the various parties that have been sanctioned.
What kind of impact would this have on Russia?
The move should further impact the country’s ability to launder money and will in effect apply secondary sanctions on people who trade in gold with Russia, experts say. “It is another way to close sanctions loopholes, and increase economic pressure on Russian entities,” said Rachel Ziemba, an adjunct senior fellow at the Center for a New American Security. The ban on gold transactions is also an attempt to prevent innovative financial transactions through other countries that continue to do business with Russia.
https://www.cbsnews.com/news/can-the-u-s-and-allies-freeze-russian-gold-yes-heres-how/
India (and very likely China as well)
will buy any gold Russia cares to sell.
At this point, I’m no longer concerned about Western sanctions on Russia. For a variety of reasons, they’ve proven to be impotent.
One reason of course is because almost all nations have been surreptiously buying Russian oil, coal and LNG despite the sanctions. Even the Ukraine!
Sanctions can work against smaller nations (e.g. Iran, Venezuela) but against a self-sustaining behemoth like Russia, I’d say they’re useless. Even with Iran & Venezuela, those countries have been able to move along. As for really crappy, very little countries like Cuba, which has been sanctioned for the better part of 60 years, they are still plodding along.
America and the collective West decided to FAFO, and they are currently on the “finding out” part.
IMHO this will be better for the world, probably painful for us here in the States and especially Europe, but, better overall for the world.
Alexander at The Duran talks about America being a continental power that is able to maintain itself and stay a super power just not the super power. But, that’s predicated on someone sitting in the Oval Office that is not actively trying to sabotage us, at the behest of his handlers.
Can we just finally say we’re officially in the midst of World War III? Because everything that’s been going on these past several years certainly indicates that fact. Only time will reveal the details.
I’ll say it. We’re in WWIII. 100%
BTW, to all, this is fascinating. Nothing to read. Just something to look at in a way you’re probably not used to seeing it. So cool. https://www.defconlevel.com/live-us-national-debt-clock.php
People have this specter of WWIII as some great catastrophic nuclear exchange between the US and Russia. But that’s not really a war as much as it is mutually assured destruction. It is good to have it as an object of avoidance, but what most people don’t realize is that what we are looking at now is a decisive conflict in the same sense that they think of a world war as being. It’s just that one side, the West, is afraid of using its nuclear arsenal and afraid of doing anything to provoke the other side, Russia, into using its nuclear arsenal.
But the will and intention of the West is clearly to wage a world war against Russia over the dominance of Europe. That is what we are witnessing. That Russia secured an alliance with China before this active phase of the conflict began probably means that this new alliance is indomitable and it all just has to play out in real time. But the correlation of forces has already assured a winner and loser.
“To the victor go the spoils.” That is the rule of such conflicts. To really understand what’s at stake, we need to ask ourselves what a Russian victory in the Ukraine would mean for the European economy and European political stability. That’s what makes it a world war.
Western elites are not entirely wrong about their assessment of the situation as justifying their pulling out all the stops that they dare, at least from their perspective. It should signal the death of American hegemony in Europe and the Rest. Now, given the abuses of American imperialism, I leave it to my fellow readers to place a value judgment on the outcome of the conflict.
America is run by Liberalism, Inc., and thus, IMHO, is intrinsically evil so long as it remains so. So, for me, this defeat of the West is more than welcome and long overdue. European governments have already changed hands due to secondary effects of the conflict. In time, the aftermath could displace the Uniparty elite, the fascist oligarchy ruining everything here through its reverse Midas Touch.
But, to each his own.
It is fascinating to consider the possible consequences of a Russian victory in the Ukraine. The whole dragged out process may only serve to enable those with foresight in the West to hedge their bets against continued American hegemony, while at the same time funding the MIC.
Assuming Russian control of all of the Ukraine, in one form or another, as the result of the conflict, the precedent has been set for Russia to retake territory based on the presence of ethnic Russians on such territory. Moreover, the right of Moscow to govern all of Rus’ will have been reestablished.
But more than that, Russia will have demonstrated that it cannot be contained in Europe except through the use by the West of tactical nukes, at a minimum. That will cast a long, long shadow over the European economy. Not only that, but the emerging economic block of BRICS+ will only increase in both economic and military power.
France openly asked to join BRICS. How long do you think it will be before Germany, et al , push to resume the import of Russian oil and gas? This winter? The next?
When your govt tells you that the Russians are not going to run out of weapons but we already have, it is a poor omen. I see no ceiling in the East nor bottom in the West.
Of course, the new reality will take time to play out. The West will maintain denial as long as it can. But eventually the lying governments will fall by whatever means.
The only silver lining I see is that in the aftermath, after the West is effectively contained and has to mind its own house, resources may more easily be directed to improving conditions for those in the US rather than for maintaining an extinct empire.
We can only hope and pray.
Worth a listen: https://www.youtube.com/watch?v=BIG1za16lZA
Why the US can’t allow the Ukraine to surrender:
https://twitter.com/WarClandestine/status/1679658916932616194
That’s because the Russians are going to demand war crimes tribunals.