Friday, July 7, 2023

BRICS Opts for Gold - Vox Popoli

 This move by the anti-Clown alliance is almost the exact opposite of surprising:

In a surprising move, the BRICS+ countries – a group including Brazil, Russia, India, China, and South Africa, plus additional emerging economies – plan to introduce a new currency, likely linked to a weight of gold. This plan, set to be unveiled at their annual leaders’ summit conference, marks a significant challenge to the dollar’s reign in international finance.

The initiative, principally driven by Russia and China – the world’s largest gold producers – aims to link the new currency to a specific weight of gold. This strategy leverages their gold-rich status and presents a formidable challenge to the dollar’s pre-eminence. Experts are closely watching the development and analyzing the potential repercussions for global markets.

Understanding the implications of this currency shift requires an exploration of the dollar’s standing in international finance. Traditionally, the dollar has enjoyed an unchallenged position, serving as the world’s primary reserve currency. It’s used widely in international trade, providing stability and convenience to global transactions. However, the introduction of a new gold-linked currency could disrupt this balance, challenging the dollar’s omnipresence and potentially displacing it as the dominant payment currency.

The impact on the dollar will be best understood by gauging its strength in gold rather than comparing it with other currencies. If the gold price rises significantly, it would indicate a devaluation of the dollar and a collapse of confidence in major currencies. While this is speculative at the moment, it’s a possibility that global markets cannot afford to overlook.

It’s exactly the right thing to do to undermine the dollar-based financial system that is one of the two pillars of Clown World: the dollar and the US military. I’ve been wondering what has taken BRICS so long to reach this point, since it was an obvious need, but I suppose there has been considerable negotiation behind the scenes in determining precisely who will get to call the shots.

It’s one thing to be mutually opposed to something, it’s another thing to cooperatively work together. But this is probably the biggest global financial development since Russia unexpectedly survived the multiple waves of sanctions.

And the fact that there will be an objective foundation for the alternative currency will make it extremely attractive to unaligned parties.