Posted on 08/22/2023 7:17:18 AM PDT by beejaa
Not just "common currency". World reserve currency. Unfortunately that allows criminal politicians to buy anything they want by just "printing" the currency. It allows "sanctions" games against 3rd parties that depend on the US Dollar trade settlements to be frozen via "SWIFT". The abuse and weaponization of the US Dollar are good reasons for others to seek an alternative that disconnects from use of the USD and defangs the abusive behavior. The BRICS+ currency will be backed by gold and tangible resources vs "the full faith of the Biden administration".
Maybe, but so are we.
This will erase all our debt. Our debt is in dollars.
Bottom line is that the only new BRICS members will likely be Communist countries like Cuba or Nicaragua and basket case economies tied to Chinese finance.
The Founders tried hard to keep government in a tightly controlled box, but the Uniparty opened the box and released curses upon Americans.
FJB will rescue us, he has 81 million voters behind him.
Does it say what will replace the dollar?
The ruble is worth less than a cent.
The yuan was just devalued (again.)
India? Their economy is big…but not very good.
South Africa? They are on the verge of a race war.
Brazil? They just want to be able to export stuff without dealing with Euro banks.
A basket of feces might be better than the individual component feces…but it’s still feces.
Now if someone came up with a gold backed currency that is convertible…then perhaps it would take hold. Until then the dollar will remain in charge.
“ What do we really get by being the common currency?”
————
When a country is the reserve currency that get to print as much as they want—and still maintain a decent inflation rate in their country. They control the interest rates in the markets because everyone NEEDS to use their currency for trade.
When a country loses that position it becomes susceptible to interest rates out of their control, dollars not needed for trade will fly back to the central bank, and that would lead to significant import inflation. Within a country it might not be noticeable right away, but the lack of absolute control over interest rates will destroy their economy.
I don’t think the dollar is going anywhere soon. But if it did, life would be different in a pretty short time.
A silent Camera stellata to eliminate this socialist crap may be needed .......
https://en.wikipedia.org/wiki/Star_Chamber
Well I do know it’s only 20% “backed” by gold. And in the modern world where almost none of the money is printed I wonder if really anything is backed. Frankly that’s just a post dated concept.
I’m still not sure. Again in this digital world how much global money out there is REALLY in dollars? Just to pick on members of BRIC if a Brazilian company buys $200 million of stuff from a Chinese company are REALLY paying in dollars? Or are they just using that to translate?
It might bump us around a little, but we’ve been the reserve currency for a long time and other countries’ economies seem to hold together.
We’ll see I guess.
No matter who is in power, the US enjoying world reserve currency status is because it has a mighty military that patrols the seas and ensures that trade can be made. Without the reserve currency status, then these other nations will have to step up and do the job - and I don’t think they’re cut out for it. Nothing is gonna dethrone the dollar. Reject the dollar - reject the US military defense. It’s that simple.
We are nowhere near the status of China or Russia right now.
They are both a house of cards ready to vaporize.
Yes, I agree we have problems. What China and Russia are
ushering in is a global monetary collapse.
Do you have any idea what would happen to all these nations
if the Dollar did collapse? 30-50% of China’s trade would
vanish. That figure would go higher as the ripple effect
ran through other nations.
They way it works is that the contract is written in dollar amounts. China (or the company) will transfer dollars to the customer in, say Brazil. Brazil will go to their international banker, sell the dollars and convert them to reals. ( I think that’s what they use.)
So, let’s say they agree to trade in their own currencies. The Chinese would make the contract in yuan at the existing yuan:real exchange rate. The Chinese would then either just send yuan (which would be used in further trade going back the other way) or it would be converted at their local bank.
What is missing is the need for dollars. The banks selling and buying the dollars to handle each end of the trade are no longer involved and they don’t need the dollars. So, those banks sell those dollars for…gold, silver, oil….whatever. And those dollars will eventually start to fill up the national banks because the system no longer needs them. In the end you have a market flooded with dollars chasing after fewer goods. That is the definition of inflation.
Are these “dollars” physical? Nope. 99% of them are merely ledger changes. What most people miss in this discussion is that when bankers convert currencies into dollars…they take a little sliver off from every dollar that moves through their banks.
And..the dollars are not just used between US companies and foreigners. It is between any country. So, it’s a huge amount of dollars.
Imagine trillions of dollars NOT moving through these banks and NOT getting skimmed. A lot of money going into these international banks will stop going into them. That is where the real deep state lives. They are not used to losing money. And that will be the cause of some deep trouble.
If BRIC became the reserve I’d guess US banks would use the dollars to buy BRICs (honestly I’m digging on the name). Could be bumpy I guess. We’ll find out. Not like there’s anything we can do about it. Like so much economic stuff, we’re really along for the ride.
Thanks for all the answers.
They are saying the Bric will be based on a weight of gold. It doesn’t say “backed with gold, or “convertible to gold”. So…gold can be pretty easily manipulated because it’s not a huge market. It will be fun to see how they deal with that.
It sounds like a “pretend” target that cannot be defended. They would be better off using Bitcoin. Lol.
And since the US is such a huge market for all of these member countries, I don’t see them dumping the dollars in transactions with us.
Yeah, that’s always the other part. What do they we buy, like 75% of the world’s finished products or something huge like that? They’ll be getting dollars one way or the other.
Well put! I'd substitute "political supremacy" for "political stability". The Rats'n'RINO Tribe, criminals or criminal enablers all, deals only with corrupted people ... they can't trust anyone who's honest as they have no leverage on them. Graft is their tool of choice, and every new session of Congress allocates ever more resources and debt to maintain their unholy alliances and maintain their clenched fist power.
The result: accelerating inflation; an inflation tax that's easily seen; a distressing dilution of everyone's dollar assets. That will indeed be the US dollar downfall if it isn't put in serious check, and soon.
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