The status of vthe USDollar as global reserve currency has beeen under threat for some years now, initially because of the way the US government abused its position as issuer of the reserve currency to force unequal terms and conditions on its trading partners, and latterly also because of US militarism, meddling in the political affairs of sovereign nations.
Recently, as we have been reporting regularly in our Cunnency Wars feature page, China has set up the Petroyuan, an alternative to the Petrodollar which since an agreement between the USA and Saudi Arabia has been the only vehicle for settling international oil trades, and Russia has set up a rival to US owned SWIFT, the electronic, inter - currency system for settling cross - border transactions.
China and Russia have also been increasing their geopolitical influence in South East Asia, Africa and South America and having established the BRICS trading bloc in partnership with Brazil, India and South Africa. Since the election victory of the imperialistic Democrat Party in the US 2020 electionmany other nations have submitted applications to join BRICS.
With the massive populations of China, India and Brazil , and the vast reserves of natural resources in Russia, Brazil and South Africa BRICS is already a formidable bloc economically and should the bloc launch a coordinated bid to oust the US dollar as reserve currency it will be difficult for an already weakened US / NATO blog to hold the line.
If BRICS were to agreed on how to centralize financial clearing, then they’ve already agreed on their universal settlement medium. That is Gold
Last Friday (2 June) ZeroHedge, responding to latest moves in the far east in a story titled Massive: Gold Closer to Centralized Clearing in BRICS Solution to SWIFT commented
This is huge on many levels. We will gleefully break it down best we can in our Weekly post Sunday. It lies directly on the path of “things to do” when building an alternative to SWIFT.
As promised. This podcast unpacks why the BRICS nations are agreeing on Centralized Clearing as a solution to counterparty risk necessitates Gold as the medium of exchange in *all* future international trade.
With the USA always teetering on the brink of insolvency while American society disintegrates around the bewildered geriatric in The White House while Biden's loonytoons administration continues to focus on transgender and gay pride issues, and the EU suffocating under a blanket of bureucracy, the timing for setting up a rival reserve currency could not be better.
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