Posted on 07/12/2022 9:27:58 AM PDT by marshmallow
Since its creation in the mid-2000s, the BRICS group of major emerging economies has promoted extensive cooperation between members, and recently, has begun pushing for a global realignment of geopolitical power to better match members' economic, geographic and demographic potential with their position in the international order.
The BRICS group of nations could create a new world reserve currency to better serve their economic interests, former president and prime minister Dmitry Medvedev, who now serves as deputy chairman of Russia's Security Council, has indicated.
"The best protection against the rotting euro will be the transition to new payment methods in trade with our reliable partners, including through the use of national currencies - the Russian ruble, the Chinese yuan, the Indian rupee, etc. In the future, the creation of a new reserve currency of BRICS countries is also possible. The dollar, euro and pound sterling are clearly not enough for the modern world," Medvedev wrote on his Telegram page on Tuesday, commenting on the parity reached between the euro and dollar exchange rate.
The crisis in the euro zone has been a long time coming, and is the result of the self-inflicted crisis Brussels has voluntarily pushed itself into, the former prime minister said.
"First, EU members shot themselves in the head with a sanctions pistol. Now, they are reaping the bitter fruits of a decline in production, postcritical inflation in food prices, the loss of competitiveness of their goods and expectations of a winter in freezing ice houses without our gas. In global terms, this serves as a confirmation of the extremely ill-conceived nature of the sanctions slapped on Russia. Sanctions don't work. Sanctions are harmful to the Europeans themselves. So the euro is weakened," Medvedev wrote.
(Excerpt) Read more at sputniknews.com ...
Brazil, India, China, and etc. are not going to backstop the ruble.
All of the nations on that list are gold bugs. Opinions as to whether it would go that direction in some manner?
“All of the nations on that list are gold bugs. Opinions as to whether it would go that direction in some manner?”
There simply isn’t enough gold out there. Russia has one of the largest reserves, but they still only have $130 billion in gold for a $1.4 trillion economy. That’s only 10%
For China they only have enough gold to cover 1% of their much larger economy.
I could create a currency between my neighbors. In august we can use it to buy tomatoes from each other. Other than that, we don’t produce much else.
So?
Really?
https://www.ft.com/content/df240b8a-d7be-4f38-a289-8b5ebb09fba1
https://www.voanews.com/a/6493140.html
Good luck BRICS! Shatter the IMF, the FED, the Biden crime family!
https://en.wikipedia.org/wiki/Foreign-exchange_reserves_of_China
What do you think would happen to our dollar if China no longer needs 3.15 trillion of them?
What do you think would happen to the value of the USD? Do you think it would be worth more or less than the Mexican Peso?
What do you think that does to our influence on the global stage?
If BRICS were to actually go through with that, do you think others might want a stake in that too even if just partially, like Saudi Arabia?
“There simply isn’t enough gold out there. Russia has one of the largest reserves, but they still only have $130 billion in gold for a $1.4 trillion economy. That’s only 10%”
This makes the massively crazy supposition that the current prices in gold adequately represents would the market WOULD price gold if the central bankers did not launch a frenzy of paper gold selling every time it pokes it head up. Silver and gold are the most manipulated metals ever. The COMEX alone had 100+ “contracts” for every physical ounce of gold they have. Google “Andrew Macguire” for this story in silver (the same, but worse”
There is no such thing as “not enough gold to back the currencies” the only thing “not enough” is the value of gold. All that tells you is that the world’s currencies have been staggeringly inflated.
“BRICS Could Create Its Own Reserve Currency, Russia’s Medvedev Says”
sure, why not ... in fact go ahead and make it crypto/DeFi/digital and call it BRICScoin ... i’m sure it’ll be a smash hit!
Without the reserve currency/petro dollar the US would no longer be able to export inflation.
Tick Tock.
How does China get rid of all those dollars?
Do you think it would be worth more or less than the Mexican Peso?
Far more.
What do you think that does to our influence on the global stage?
Our influence on the global stage has been diminishing for the past six years or so.
If BRICS were to actually go through with that, do you think others might want a stake in that too even if just partially, like Saudi Arabia?
Hard to say. All nations diversify their foreign currency holdings. They hold a basket of dollars, Euros, Pounds, etc.
“There simply isn’t enough gold out there.”
That has absolutely nothing to do with a gold backed currency. 1000 pounds would be enough. The only thing that matters is that “X” amount of currency equals “Y” amount of gold. It isn’t about whether or not you have a gold coin to bite. It is that there is a hard limit on how much currency can be created.
A gold backed currency does not require gold coins in citizen pockets to function.
Yep, but 70% of the consumer goods in the US are Chinese. Piss them off and you’d have to buy it in their currency.
They already have. Check the value of the Ruble which rose to record highs after Dementia Joe's laughable “sanctions”.
Their currency is pretty much junk.
Even they hate trading in it.
“That has absolutely nothing to do with a gold backed currency. 1000 pounds would be enough. “
How long would that last? The core of the gold standard is convertibility. Owners of paper money need to be able to exchange it for metal.
A large hedge fund could use that to drain any nation’s gold reserves in a few weeks if a real gold standard was in place.
“They already have. Check the value of the Ruble which rose to record highs after Dementia Joe’s laughable “sanctions”.”
You are aware that only happened was Russia offering a 17% return on the ruble (vs 0.5% of Euro or Dollars). Is that a good sign of economic health?
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