BRICS has its new currency
derryb
Posts: 37,560 ✭✭✭✭✭
It's gold.
BRICS banks have been stockpiling it (16% of global reserves) - gold is a leading reserve monetary asset for BRICS central banks.
BRICS have been trading their dollars for gold - reducing their exposure to a weaponized and weakening US dollar.
BRICS are trading with each other - using gold.
BRICS is the single most driver of gold prices in recent times.
Why is there a BRICS? The US, through it's weaponization of the dollar (sanctions) and it's inability to protect the dollar's buying power is responsible for these nations' desire to reduce their reliance on US dollar exposure and increase their economic independence. Another shot in the foot.
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Just like the French in the 1960's.
They'll win the mercantilism war. But they're going to lose the economic war.
yep, just a small minnow in the large pond. 2023 data (and growing):
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Wow...looks at all that red. A landslide!!! Lol
Knowledge is the enemy of fear
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Your trivialization of the obvious will not change the facts, or the trend.
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Trivial is the fact.
Knowledge is the enemy of fear
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In your mind, apparently yes.
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Apparently in yours as you first stated "trivialization". Im just ridin' your wave man!!
Knowledge is the enemy of fear
Now tell us how large and liquid their money markets are and how stable their currencies are and whether you can get your money out of the country.
They do have Ethiopia!!
Knowledge is the enemy of fear
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The important question is, will the BRICS continue to evolve, improve their ability to compete, and add new members ?
It may falter, or take a while.
But BRICS doesn't seem to be falling apart at this time.
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And we (the non-BRICS countries) have Zimbabwe !
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knowledge is the enemy of fear.
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That's just too bad as we have been trying to sensor knowledge for decades probably centuries, everything in current times suggests cut education, dumb the sheeple down and vote for fear. Welcum to 'Merika. DRWN waz rite!! SMH!!!
The whole worlds off its rocker, buy Gold™.
BOOMIN!™
Wooooha! Did someone just say it's officially "TACO™" Tuesday????
Money out of the country? I can't even drive in FL with a wad of cash without fear of asset forfeiture. Guilty until proven innocent. The only reason dollars are even somewhat stable is because years ago we strong armed Saudi Arabia to accept only dollars for their oil creating world wide demand for US debt. And now that is falling apart. Dollars liquid? Guess you are not aware of the growing liquidity crisis.
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Never found a single person on this great planet of ours that was unwilling to accept a USD. RGDS!
The whole worlds off its rocker, buy Gold™.
BOOMIN!™
Wooooha! Did someone just say it's officially "TACO™" Tuesday????
We are not a non-bric. We are the USA.
Knowledge is the enemy of fear
Might want to travel a bit.
There's nothing to fall apart. It's a non-affiliated grouping or club. They do nothing and are nothing.
Yes, if they don't screw up their economies (Russia !) they will grow and become wealthier. But they'll need decades to get credibility.
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1) Do the BRICS countries desire to bypass the US Dollar ?
Most certainly.
2) Will BRICS countries increase trade amongst themselves using their own currencies and/or gold ?
Maybe, because that is what they want to do.
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I've been all over the world both in the military and private business during my career. THKS!
The whole worlds off its rocker, buy Gold™.
BOOMIN!™
Wooooha! Did someone just say it's officially "TACO™" Tuesday????
Among the BRICS countries, there is really only one that counts: China. If the organization ends up creating a new payment mechanism or even something resembling a global currency, China will be driving things. It will not really be a collective effort.
PS: that is not to suggest that other countries, in particular India, Russia and Brazil are irrelevant to the global political and economic situation, only that if BRICS becomes a force, there will be a dominant player/leader, and that will be China. From this perspective, some BRICS participants, in particular India and Brazil, will participate in multiple systems and remain non-aligned. It will not be a matter of choosing us versus them.
PPS: and that is one reason why the BRICS initiative will move forward so slowly. The stated goals cannot be achieved, unless China significantly opens up their economy and financial system, which they are as yet unwilling to do.
Among the BRICS countries, there is really only one that counts: China. If the organization ends up creating a new payment mechanism or even something resembling a global currency, China will be driving things. It will not really be a collective effort.
India, Russia, Saudi Arabia and Brazil aren't trivial participants in more aspect than one. Other than Russia, they are all too willing to play both sides of the fence - and they do.
I knew it would happen.
@jmski52 said: “India, Russia, Saudi Arabia and Brazil aren't trivial participants in more aspect than one. Other than Russia, they are all too willing to play both sides of the fence - and they do.”
I totally agree. My main point is that if this takes off, China will be the leader of the initiative. In presenting BRICS to the world, it sounds nice to make it seem like a collaborative effort, but nothing will happen without Chinese direction and approval.
Problem is, "how many more dollars does it take today than it did last month?" We accept dollars only because there is not a better alternative. Lack of a better alternative does not make something great, it makes it only better than the alternative.
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They are growing union. As they grow they represent a larger portion of the world's GDP, population, but most importantly the world's oil. Addition of Saudi Arabia will be a game changer. Why do you think he really went to SA. Hint: it was not about an airplane. You obviously don't realize they are already disrupting the global use of dollars, formerly the world's reserve currency.
Their oil and there gold holdings already give them credibility.
You sound like what a British general was probably saying in 1775.
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You think billionaires or central banks or SWFs or Arab Petro-states are parking tens of billions with the Chinese Communist Party ?
Go ask Mark Mobius how that worked out.
He was trying to get out only a few million dollars.
Well, it took the U.S. about 150 years to become a great financial power.
but, like BRICS, it had to start somewhere
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@GoldFinger1969 asked:
“You think billionaires or central banks or SWFs or Arab Petro-states are parking tens of billions with the Chinese Communist Party ?”
I don’t think I said or even implied that in any of my posts.
Most of China's sovereign debt is held internally. However per the latest data I could find, foreign investors, including wealth managers, mutual funds, family offices and hedge funds, held 3.25 trillion yuan worth of Chinese bonds at the end of 2020.
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I was speaking rhetorically, Hig !!
At about 20 trillion dollars, foreigners own less than 5%.
Does that show foreigners dont want it? Or that most countries run a trade deficit with China and therefore have no need to buy it? Or that China is mostly closed to foreign investment?
Knowledge is the enemy of fear
I remember in the '80's my company offloaded some mfg work to China in exchange for them buying our planes. We found out that they were drilling thru the sheet metal using hand drills (brace). We laughed and laughed at the "stupid Chinese" not using power drills. Fast forward to today - they are in the process of designing and building their own commercial jet. I might add that they are doing it in large part with "borrowed" intellectual property from US and French/German companies but trade espionage seems to work for them. We thought we were superior (we were in terms of technology) but our arrogance hurt us and we can't put the genie back in the bottle, tariffs or not.