MikeCristo8
@MikeCristo8
How BRICS countries de-dollarize.
A foreign country that holds dollar reserves simply turns in those dollar to the U.S. Treasury.
The U.S. Treasury then gives back the foreign country (BRICS) their currency back, this is writing down your bonds against the dollar (which you just turned in).
The BRICS countries then issue new bonds to buy the unit which will be managed by the New Development Bank.
It’s not complicated.
Here’s what no one understands about the dollar and oil.
The world needed dollars in 1973 because of the petrodollar.
The dollar no longer has an exchange rate with OPEC currencies.
Because oil is sold in the unit.
What the billionaires (Warren Buffett) don’t realize this time.
There is no mechanism without a foreign exchange to price the dollar against financial assets (stocks-bonds).
Because the BRICS currency is backed by gold and oil, there is a mechanism to price that currency against hard assets.
Because gold and oil is real money, not based on a credit system.
Why would investors hold dollars not backed by gold or oil?
Because of the petrodollar system, there was a way to measure U.S. financial assets (stocks) based on the treasury bond market because the world needed dollars.
What investors like Warren Buffett don’t understand is, without gold or oil, there is no mechanism to price the value of his dollars he holds against his stock portfolio.
The dollar no longer has value against oil because oil is no sold in dollars.
Do billionaires realize they hold dollars they can no longer sell?
If Saudi Arabia was still in the back pocket of the United States
They would have made huge security demands (of the U.S.) in exchange for the renewal of the petrodollar agreement.
The ONLY reason the dollar had any value in the world.
Is because it was able to control the exchange rate of foreign currencies against the oil trade.
That’s over now.
The dollar no longer controls global oil flows.
