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Video Summary
– It is not in stone that the BRICS are going to announce a new gold-backed currency. What they’re talking about right now is enabling member countries to use their own currency to purchase across borders. No one is suggesting right now that BRICS will form an alternative currency.
Video Transcript
My perspective when I see what the choices that we’re making were pardon me, pissing people off, we’re pissing countries off. I mean, sometimes when you just know you’re at the end, then what are you going to do? And you’re going to play into that so that you have some level of advantage? No, I don’t think that we want to just give it away because then we lose all of that advantage and those that live in the US are going to feel the pain of that more than anywhere else in the world because we’ve had this advantage for so long. Your financial shields are made of physical gold and silver.
Get that in place. That’s what’s going to save you, no matter what the BRICS or the US or the Federal Reserve, no matter what, anything does. So, for one thing, it is not in stone that the BRICS are going to announce a new gold-backed currency.
People make the assumption that it’s just so easy to back a currency with gold. But what the BRICS Bank has been talking about, what happened was it was a Russian embassy in Africa that tweeted out about backing the currency with gold, and then all the interviews with the BRICS Bank afterward said, we have no intention of attempting to do that. What they’re talking about right now is enabling member countries to use their own currency to purchase across borders.
So we’ll see. I mean, I could certainly be wrong about this, but they would have to get rid of the mean. I don’t see it and that’s not what they’re talking about doing.
It’s just a rumor that this one embassy, this Russian embassy in Africa put out and then some news stations ran with it, rather than digging a little bit deeper. But, hey, I could be wrong, I’m not going to be there at the meeting and I certainly can’t control it, but once you put gold into a currency, it creates limitations. Now, having said so, I don’t think that’s actually going to happen.
Having said that, how quickly do you see the dollar declining in strength against other world currencies? Well, all of them are fiat right now. But were there to actually be a currency that was truly backed by gold and convertible into that gold, which I think is a key component? Because if you can’t convert it into gold and take it out, it doesn’t really have a lot of teeth, and you can’t guarantee that the gold is even right. But all other currencies would actually decline against that good money.
So wherever it is in the world, I think an interesting experiment that’s going on at the moment, so I’ll have more information on that as things evolve, is in Zimbabwe because they did a gold-backed CBDC, but they’re still running tests to make sure that it’s viable and that people will adopt it. They only had the wealthy adopting the 1oz gold coins because only the wealthy could actually afford them. So we’ll see that test is underway, and Zimbabwe, certainly they’re confiscating.
They won’t call it confiscating, but they are confiscating gold from miners to build their store of gold so that people feel comfortable that, hey, this CBDC is actually backed by gold and it goes out six digits. So even poor people could buy CBDCs. But it’s just an experimental stage.
So it’s very interesting to watch this now, a lot of it is just watching all of these tests and seeing which one’s going to stick. What the officials at the BRICS Bank are actually saying is that this is a BRICS Bank vice president. It’s going to take a very long time for currency movements to take shape.
So any discussion of alternative currencies is indeed a much more medium and longer-term aspiration. But no one is suggesting right now that BRICS will form an alternative currency emphasizing all we are suggesting is that we need to deepen the use of local currencies of our member countries and over time that is going to strengthen our ability to immunize or insulate our economies from the devaluation of our currencies. If we borrow in dollars, which is a huge global another huge global debt issue that we’ve been talking about that is looming.
For example. But there is no suggestion right now to create a BRICS currency. In that sense, the remarks made by the BRICS Bank Chief Financial officer align with the statements made by India’s external Affairs Minister, who reportedly said earlier this week that there are no plans for a new BRICS currency.
Instead, the focus remains on enhancing the respective national currency within the BRICS framework. And by the way, I’ve shown you this over time that that’s what they’ve been doing to bypass the dollar. Because as the world reserve currency, that means that if you are going outside of your borders to buy anything, medicine, lumber, oil, whatever it is, you have no alternative but to use dollars.
Well, that’s been shifting really since the end of 2002 and there have been a lot of bilateral trade agreements that have made, well, we’ll accept your dollars or your currency for trade. If you accept our currency for trade, bypassing the dollar. That’s still what they’re talking about.
Now maybe there’s something else that I’m not seeing. That’s certainly a possibility. I’m just a human being.
But I think that this was a story that just kind of escaped because in order to do even what they talked about in that article, which is having an instrument that has some gold component in there but is still primarily a debt instrument, it pays interest, they’re going to have to get rid of that debt first. They’re just going to I know that we tried to give back that status in 1969, back in that period of time. That’s when the SDR was created because we tried to give it back sometimes when you just know you’re at the end, then what are you going to do? And you’re going to play into that so that you have some level of advantage? No, I don’t think that we want to just give it away because then we lose all of that advantage and those that live in the US are going to feel the pain of that more than anywhere else in the world because we’ve had this advantage for so long and we don’t realize it.
But it would be easier to do the de-dollarization using the IMF substitution fund rather than because a reserve currency isn’t necessarily the world’s reserve currency. It’s just an additional reserve currency. My perspective when I see what the choices that we’re making were pardon me pissing people off, we’re pissing countries off.
We’re not really trying to maintain that alliance as well as we should. I think we’re more bullying than we are cooperative it.
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