GP:
A BRICS currency swap agreement is the new solution for BRICS countries to de-dollarize, but it is too small and too complex to have any meaningful impact on the dollar or to be expanded to future BRICS members.
The China-led BRICS grouping has been trying to end their dependence on the US dollar for some time now.
The main issues standing in their way, however, is that the BRICS, which now includes Saudi Arabia, Egypt, Ethiopia, Iran and the United Arab Emirates all have relatively weak, non-convertible currencies ( not accepted for most international trade) and most of which have steadily lost value against the dollar over the past five years.
This makes it difficult to price international trade in these currencies because of currency value fluctuation. more
“because of currency value fluctuation.”
There’s your problem. Stop using currency and use actual money. You know, gold. Don’t set a value to gold outside of the weight of gold. Gold doesn’t fluctuate in value, one ounce is always one ounce and can be converted to any currency you want.
But I suppose in the global scheme of things, every single country in the entire world can’t use gold because they all are in a race to the bottom to devalue currency and put every single one of us, who are not in Club Elite, in the poor house. Inflation didn’t exist until we went off the gold standard, which is pretty telling, they all WANT inflation. 2% is the target, Jack. It’s how we (more specifically big government and big corporations) live the good life now and turn the debt into peanuts in the future. It’s gonna be one hell of a catastrophe when it all lets loose.
@ecp — Good points, but I should point out one correction. Gold, as a commodity, does fluctuate in value. There will always be the normal changing conditions of supply/demand, plus these days there’s an awful lot of other crap attached to gold especially by central banks, sovereign funds, and major international bankers in order to control its price for political and control reasons. That said, gold and silver are still the best ways to preserve value in a world of monetary and subsequent price inflation as measured in fiat currencies.
Side note: I’ve seen a number of “promoted posts” (ads) over the last month or so for a company making credit-card sized thin pieces of gold and silver, perforated to make them easy to break into little pieces of known weight. The idea is apparently to make it easier to use gold and silver for everyday transactions needing smaller value weights.
It is an interesting idea, and so I wondered what kind of premium over spot price you’d have pay for the convenience. When I went to look for pricing, the gold was “sold out” but silver was available, at $139.99 for 62.2 grams of metal. At the time, spot silver price was $0.94/gram. Do the arithmetic: you’d be paying well over TWICE the spot price. I think I’ll look elsewhere for any improved convenience precious metal items.
The sanctioneers and banksters sound like they’re coping pretty hard. But BRICS Is growing, and then there’s SCO (Shanghai Cooperative Organization) EAEU (Eurasian Economic Union) and other serious movements to break the dollar’s dominance. Dismissing them as weak and trifling, while doing nothing to regain trust and respect for our own financial institutions and government, and while ruling by fear and debt slavery, is not going to work in the long run.
This never had a chance. Why? Because the Chinese economy is based off of American credit card expenditures on Amazon. That’s an over simplification but none the less true. If it wasn’t for Nixon they’d still be trying to figure out how to make round wheels.
Have you ever heard of Chicom next gen fighters in a Dog Fight? I’m not talking about just now. How about for the last twenty years? Come to think of it, they sell the aircraft to other countries. Ever hear of their crap in a dog fight? I wonder why?
“Improved convenience”, only applies to times of chaos. World War times.
The rest of us buy low and sell high, with all of the bid and ask, and premiums, factored in. They have to assay everything. As we all should know how to do.
We aren’t at the point of buying cans of soup or ammunition with gold or silver. Thank God. Or at least we are two steps away when we liquidate metals into dollars.
The process of liquidation is always the sticking point. It is easy to buy, but not easy to sell.
We protect dollars with precious metals in the long view.
The short view of grams is spurious, at best.
@ Uncle Al Check out Bullion vault dot com
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easiest way to but and accumulate gold and silver a little at a time.
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As for backing currency with gold My feeling that time is long gone no longer practical give technology and modern economies if we were to back the dollar with anything it should be energy, gas, oil, coal etc. that would do a lot to steady and dependable energy price would do enormous good at controlling inflation and speculation.
@seaoh — Thanks! How does Bullion Vault rate for those interested in selling rather than buying?
Regardless, you’d be well advised to be aware, and prepare for issues related to the dollar losing its reserve currency status. Will it happen overnight? No. But it’s happening right in front of us, and what are we doing about it? Nothing! What do you see happening to our purchasing power? The biggest problem is that those that we are electing to office are benefitting from the general population being taken to the cleaners over policies that they enact that enrich themselves while robbing us blind! In 1776 we revolted over a 2% tax on tea.
If Trump gets elected and IF he appoints a VP that will be percieved as someone tough enough to carry on his legacy, the dollar will become very, very strong. PDJT: just don’t pick someone like Ben Carson (I love the guy, but he’s no warrior). Ron DeSantis should have been the pick, but he fucked it up by sucking GOPe cocks.
I’m thinking that Ben Carson might be a much greater warrior than many give him credit for. Remember, “speak softly, but carry a big stick”! I like Mr. Carson!
‘Tis but a flesh wound.”