It might be worse for the US if BRICS doesn’t create a new currency
Three weeks ago, Russia’s state-backed RT news network stirred some excitement when it announced that BRICS – Brazil, Russia, India, China, South Africa – will announce the creation of a gold-backed currency.
However, South Africa’s ambassador to BRICS, Anil Sooklal, clarified that a new currency is not on the agenda. Instead, they are slated to talk about how to enhance trading using local currencies.
Many think this keeps the status of the US dollar a little safer.
It doesn’t. More than 40 countries are applying for membership. BRICS will not accept everyone, but if even just a quarter of the interested countries join, they would be able to trade amongst themselves more easily.
If they trade using their own currencies, their economies will strengthen. Their newly developed network could solidify them as a group of developed countries while the IMF and World Bank’s most influential countries, like the US, struggle economically.
In the meantime, all these countries will continue to hold an asset that is truly global to safely back their currency and set common standards between countries.
It comes back to gold. The precious metal has no counterparty risks, it is not beholden to any one government or entity, and it is a reliable safe-haven asset. If the world is genuinely starting to witness the demise of the U.S. dollar, countries will have to hold more gold in their reserves to give their currencies value and stability.
In recent years, Russia, China, and many other countries have been stocking up on gold in an unprecedented buying spree. It’s becoming clear why.
Gold is still the global currency.
It is in America’s best interest to maintain the position of the US Dollar but you should never rely on it alone.
Gold is the only asset class in the world that has remained consistent. It has an innate value and its industrial uses continue to grow. Gold is not only the preferred jewelry material, but it’s also being studied as a potential treatment for cancer and it’s helping NASA produce oxygen on Mars.
That is why it has remained the best hedge against any kind of economic distress and there is nobody that knows this better than Central Banks.
https://mail.yahoo.com/d/folders/1/messages/ADG1yoUlpyWaZNeQ6ALuAD_lfJo
Full Faith & Credit of a Bankrupt Insolvent Government – Bill Holter
By Greg Hunter’s USAWatchdog.com (Saturday Night Post)
Precious metals expert and financial writer Bill Holter says there is a long list of financial trouble coming to America sooner than later. There is the commercial real estate implosion, rising interest rates, an exploding federal budget, banana republic political problems, but the at the top of the list is the monster unpayable debt problem and the soon-to-be failing U.S. dollar.
Holter says, “You can’t have a third of the federal taxes paid out in interest, and that number is only going to grow over time. . . . If the markets would not collapse ahead of time, which they certainly will, but if they did not, we would get to the point where the interest would eat up all the tax receipts. That is a mathematical impossibility. We’re broke.
On the other side of it, we have two rules of law. We have one rule of law if you are a liar from the left and another rule of law if you are a conservative and you don’t support the bull crap rules they are putting out there. . . . This is an illustration that this country has already become a banana republic.
The problem with that is the dollar issued by this country is the world’s reserve currency. It’s a huge problem.”
Holter says the dollar is going to take a big hit in the next financial crisis that has already started. When it hits, Holter predicts, “The actual bottom line is dollars are just pieces of paper backed by our government. The dollar is backed by the full faith and credit of a bankrupt insolvent government, and people will figure that out very quickly.
When it comes to survival, people are not going to give up something real for nothing. . . . We are in the weeds right now because of interest rates . . . look at mortgage rates, they are well over 7% for a 30-year mortgage. So, that’s going to hurt housing. Commercial real estate has already been destroyed. . . . I think we are in the weeds because interest rates are at a point that nothing can be refinanced and rolled over.”
In closing, Holter says, “This is not my opinion, it’s a mathematical equation. The debt cannot be paid back. It’s not possible. We will default one way or another. We will print the crap out of the dollar and devalue it, or outright nonpayment.”
Holter predicted years ago we would end up in a “Mad Max” scenario when credit dries up and store shelves empty. Holter contends that credit is drying up with the money supply shrinking for eight straight months. The “Mad Max” world Holter is still predicting is now looking like it’s going to come true sooner than later.
There is much more in the 42-minute interview.
Join Greg Hunter as he goes One-on-One with financial writer and precious metals expert Bill Holter for 8.12.23.
https://rumble.com/v36qdyz-full-faith-and-credit-of-a-bankrupt-nation-bill-holter.html
