No need to make any corrections. The Empire is eternal. The Empire cannot fall.
In other words:
Posted on 07/08/2023 7:22:04 AM PDT by Enlightened1
In an op-ed posted on The Daily Reckoning on Tuesday, former CIA and Department of Defense advisor and investment banker James Rickards predicted that August 22 will be the day the U.S. dollar’s status, as the world reserve currency and medium for exchange will formally collapse.
Many factors are worth considering, including the weaponization of the dollar against Russia’s economy amid the conflict in Ukraine, the U.S.’ own national debt of $31 trillion, and recent talks on the part of the BRICS+ group to create an alternative trade and reserve currency that would rival the dollar.
“On August 22, about two-and-a-half months from today, the most significant development in international finance since 1971 will be unveiled,” Rickards writes in reference to the upcoming BRICS+ Leaders Summit which will unveil plans for substituting the dollar in global trade.
What is interesting to note is that on that same day in 1971, August 22 was also the day the U.S. dropped the gold standard. “It involves the rollout of a major new currency that could weaken the role of the dollar in global payments and ultimately displace the U.S. dollar as the leading payment currency and reserve currency,” Rickards added, noting that the shift could span over a period of “just a few years.”
Rickards says the push for a new currency spearheaded by the BRICS+ group will “affect world trade, direct foreign investment and investor portfolios in dramatic and unforeseen ways,” and cause an “unprecedented […] geopolitical shockwave.”
He also said that the BRICS+ plans for expansion are “the most important development of the BRICS system,” noting that eight countries have so far already applied for membership, along with twelve others expressing an interest in joining the bloc, including Saudi Arabia, which assisted the U.S. in propelling the dollar currency to the status of world hegemon through establishing the petrodollar system.
“There’s more to this list than just increasing the headcount at future BRICS meetings,” Rickards emphasized, pointing out that “if Saudi Arabia and Russia are both members, you have two of the three largest energy producers under one tent (the U.S. is the other member of the energy Big Three).”
On another note, the BRICS countries make up 30 percent of the world’s surface, with 50 percent of global wheat and rice production, and 15 percent of the planet’s gold reserves. It accounts for 40 percent of the world population, 28 percent of nominal GDP (pending Saudi Arabia’s membership), and 52 percent is measured under the PPP formula.
“By every measure—population, landmass, energy output, GDP, food output, and nuclear weapons—BRICS is not just another multilateral debating society. They are a substantial and credible alternative to Western hegemony,” Rickards said.
Accordingly, when the bloc launches its new currency, it will not simply “fall on an empty field,” but be integrated “into a sophisticated network of capital and communications,” which should “greatly enhance its chances of success,” he argued.
Elsewhere in the op-ed, Rickards said that the BRICS currency is expected to be pegged to a basket of trade commodities or gold, and will likely appear in the form of a digital currency instead of paper money.
He also said that chances for success for the BRICS currency to replace the U.S. dollar will depend on the formation of an alternative to the U.S. bonds market which is seen as the safest bet to safeguard assets value.
“The key is to create a BRICS+ currency bond market in 20 or more countries at once, relying on retail investors in each country to buy the bonds. The BRICS+ bonds would be offered through banks and postal offices and other retail outlets. They would be denominated in BRICS+ currency, but investors could purchase them in local currency at market-based exchange rates. Since the currency is gold-backed it would offer an attractive store of value compared with inflation,” Rickards writes.
He added that “if the BRICS+ use a kind of Liberty Bond patriotic model, they may well be able to create international reserve assets denominated in the BRICS+ currency even in the absence of developed market support. This entire turn of events—introduction of a new gold-backed currency, rapid adoption as a payment currency, and gradual use as a reserve asset currency—will begin on August 22, 2023, after years of development.”
The collective push to replace the U.S. dollar as the world reserve currency has much to do with Washington’s “weaponization of the dollar through the use of sanctions,” Rickards writes.
“On numerous occasions from 2007-2014, I warned U.S. officials from the Treasury, Pentagon, and intelligence community that overuse or abuse of dollar sanctions would lead adversaries to abandon the dollar to avoid the impact of sanctions. Such abandonment would lead to the diluted potency of sanctions, unforeseen costs imposed on the U.S., and eventually to the collapse of confidence in the dollar itself. These warnings were mostly ignored. We have now reached the first and second stages of this forecast and are dangerously close to the third,” the observer wrote.
Western sanctions imposed on Russia in 2022 have particularly hastened the process of de-dollarization, causing “many other nations” to realize that “they could be next if they run afoul of the U.S. on certain issues.”
In sum, Rickards predicted that the process of de-dollarization could occur at a “much faster” pace than he previously expected, owing to the fact that several countries are opting to carry out trade and financial transactions in local currencies, but also because of the “growing strategic relationship” between Beijing and Moscow “as the two superpowers jointly confront the U.S.”
This was published on June 7th, 2023.
Bidenomics.
BRIC countries have many of the same problems the US has for the same reason—massive financial and moral corruption of the elites.
Which should make the price of gold and silver go thru the roof, the US Dollar? well, stock up on wheel barrows because it won’t be worth very much when all is said and done.
Moneychangers doing what moneychangers do, DESTROY the value of the currency they control
To be a reserve currency, a currency has to be exported in sufficient quantity to form a reserve. That is only done by trade deficits. The US exported 4% of GDP in dollars using the Marshall plan when it was also the world's primary oil exporter to make the US dollar a reserve currency. All the BRICs run mercantilist economies, so how will that happen? The best you could get is a Chinese controlled Yuan trading bloc where Chinese loans get recycled by making imports from China.
I heard Germany may be joining BRICS. If Germany joins the BRICS, then we will see a collapse of the E.U. The WEF will go bye bye because Russia, China and the Middle East are not going to let Western Europeans aristocrats rule them.
I do not see how other countries would not join the BRICS. Which is a gold backed basket of currencies. Leaders in countries that are still using the dollars do not want to loose their power, and I could see them pivoting towards China and Russia.
The U.S. will lose its world reserve status we have had in place since Brenton Woods in 1944. Thanks to the sold out idiots that ran our country into the ground. The delusional WEF through they war going to run everything. No it will be China and Russia.
Their is corruption in every country. I don’t think that will be an issue.
A big part of the reason why these countries are so successfully besides the rigged trade deals are the low taxes in their countries. We have some of the highest taxes in the world. In addition, they have tariffs which makes it hard for us to export to them. While it’s cheap for them to export to us.
NeoCons have infested both parties’ ruling apparatuses & are the end of America.
Maybe?
Gold and Silver prices over the last 10 years have been controlled via the derivative markets.
I heard they were trading more silver on the Exchanges in 1 day than was mined in an entire year. So the derritives trading is the problem.
Put Glass-Steagall back into place, and we would see the price of gold and silver explode.
This was published on June 7th, 2023
^^^^^^^^^^^^^^^^^^^^^^^^
I wondered about the date line based on the following quote from the article (not that a few weeks would make that much difference in the whole scheme of things)
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“On August 22, about two-and-a-half months from today, the most significant development in international finance since 1971 will be unveiled,” Rickards writes in reference to the upcoming BRICS+ Leaders Summit which will unveil plans for substituting the dollar in global trade.
Let’s Go Brandon!
If the Dollar is abandoned - there will be no Global Reserve Currency. There is nothing that can replace it. Certainly nothing that the BRICS do could even come close.
Global trade would require gold swaps or barter. Either way, you are looking at an 80% decline in shipping. The results would be global depression, mass famine and a developing world in collapse.
North America would re-emerge as the global leader.
Germans will only go if the EU ties everyone into this. I don’t see that willing nature existing around Europe.
Worry? Not really, depends on your expectations. The USD hegemony IS under attack, however it will take some time maybe three to four years , for the slide to occur….do note 30 countries applied for BRICs entry. It will take some time for their alliance to “ gel” up.
But make no mistake, China, India, South America and ME are 70 percent of the world’s population.
Do note Argentina ( which USED to be tied to the USD) has just paid off some debt in Chinese Yuan- a Harbinger.
I don’t pretend to understand this. How can we prepare? Buy Gold, silver? Stockpile cash?
I know that gold and silver is heavily manipulated by the moneychangers using naked shorts and other fraudulent means, and Glass-Steagall being reinstituted would solve the problem, but it would also destroy and bankrupt the moneychangers, so it is highly unlikely they will bring it back. Much easier and better for the moneychangers to destroy the PEOPLE instead.
This will be one hell of a ride that we are getting on
As we all know, gambling addiction is real, especially when it is done using Other People's Money!
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