Will the dollar be replaced by a Gold Backed BRICS Currency?

 

Will the dollar be replaced by a Gold Backed Brics Currency?

This has become a hotly debated issue. It has huge implications for the ability of the US to fund and service its massive debt.  Thus it has huge implications for US inflation.

This massive debt and the political stupidity of weaponizing our greatest financial advantage in the world, and thus turning our financial clients into our financial enemies is what is at the root of the problem.

The answer however, is that the dollar can not be replaced as a debt instrument because there are many hundreds of trillions of dollars in dollar denominated debt already in the world when you take into account the Eurodollar market.  And Quadrillions of dollar denominated debt when you take into account the OTC derivatives markets.

How do you replace that?  You can't.

HOWEVER - the real issue is what do GLOBAL CENTRAL BANKS use as reserves given the debt and weapnonization of the dollar?

The debt makes the dollar a depreciating asset.

The weapnonization makes the dollar a completely unstable asset.

The massive instability of our entire political class is the nail in the coffin,

The answer is upon us.

The GLOBAL CENTRAL BANKS are in the process of selling Treasuries and buying gold.  This has been going on at an increasingly faster pace for the last seven years.

Then the issue is for large internationals commodity trades is what currency do you use if not the dollar?

Do you really want Yen or Rubles or Yuan or even the Euro?

Or do you want something that has held its value and even appreciated against all other commodities and currencies of the the last 50, 100, 1000 years?

That would be gold.  At least sufficient gold in the Central Bank Reserves to assure that the currency will be stable enough against the traded commodity.

Or preferably a gold backed unit of settlement.  A BRIC settlement currency for example.

Commodities are already bein settled outside the dollar in bilateral trade agreements.  It won't be long before a settlement currency is in use.

This is real and happening.

Americans are not buying gold.  Yet.

The rest of the world is buying gold for these reasons.

This is a trend in its infancy.

If  you think you've missed out on the move, think again.

Because when Americans catch on, the trade will take its full force.