How Would a New BRICS Currency Affect the US Dollar?Sep. 12, 2024
The BRICS nations, originally composed of Brazil, Russia, India, China and South Africa, are looking to establish a new reserve currency backed by a basket of their respective currencies.
The potential BRICS currency would allow these nations to assert their economic independence while competing with the existing international financial system. The current system is dominated by the US dollar, which accounts for about 90 percent of all currency trading. Until recently, nearly 100 percent of oil trading was conducted in US dollars; however, in 2023 one-fifth of oil trades were reportedly made using non-US dollar currencies.
Central to this ongoing situation is the US trade war with China, as well as US sanctions on China and Russia. Should the BRICS nations establish a new reserve currency, it would likely significantly impact the US dollar, potentially leading to a decline in demand, or what's known as de-dollarization. In turn, this would have implications for the United States and global economies.
When will a BRICS currency be released? There's no definitive launch date as of yet, but the countries' leaders have discussed the possibility at length. During the 14th BRICS Summit, held in mid-2022, Russian President Vladimir Putin said the BRICS countries plan to issue a "new global reserve currency," and are ready to work openly with all fair trade partners.
In April 2023, Brazilian President Luiz Inacio Lula da Silva showed support for a BRICS currency, commenting, “Why can’t an institution like the BRICS bank have a currency to finance trade relations between Brazil and China, between Brazil and all the other BRICS countries? Who decided that the dollar was the (trade) currency after the end of gold parity?”
...South Africa's BRICS ambassador, Anil Sooklal, has said as many as 40 countries have expressed interest in joining BRICS. At the 2023 BRICS Summit , six countries were invited to become BRICS members: Argentina, Egypt, Ethiopia, Iran, Saudi Arabia and the United Arab Emirates. All but Argentina officially joined the alliance in January 2024.
...How would a new BRICS currency affect the US dollar?
For decades, the US dollar has enjoyed unparalleled dominance as the world's leading reserve currency. According to the US Federal Reserve, between 1999 and 2019, the dollar was used in 96 percent of international trade invoicing in the Americas, 74 percent in the Asia-Pacific region and...
https://investingnews.com/brics-currency/It's in the future, of course, but then we are catching up with the future every day. I suspect the Western banking system, the head of the snake if you like, is fully aware of this threat and that is why we are being pushed towards National digital currencies, a system which can be quickly stripped of it's "national" and morphed into a Western block currency unit just as the BRICS are proposing. Trade will then be conducted in this new unit rather than the currently used $US unit of account.
Whereas the BRICS can simply agree and move over to this new system, leaving behind things like their IMF debts if they choose, the West must balance it's books, I can't see it going into into such a system the with Mountainous debts which it currently sells to other western nations in return for buying the debts of those nations. The debts are one thing, the interest repayments are the real issue to my mind. How do nations clear these debts? Default, it's always the chosen method. Just refuse to pay things like social security, refuse to honor debts elsewhere, and steal all you can from things like bank accounts and private pensions.
The US did this in the Great Reset 01 when it stole all the Gold from citizens and gave them paper money in it's stead. Then the Gold was revalued upward 50% and the Federal government was flush. It wasn't just the Gold stolen either. After the brief bank holiday imposed by the President certain banks were allowed to reopen (those in tight with the Federal Reserve System) and all others were eliminated along with the savings in them. The debts however were transferred to the "Good" banks which then foreclosed on untold farms, homes, and industrial enterprises. It was the "Great Taking 01" we are now on the cusp of the Great Taking 02.
This never happens on a sunny day though. It will happen in the midst of a total market crash, the new currency will be offered as the "Solution" to the crash. First you create the problem, then you step in with the pre-formulated solution. We had out 1929 moment in 2008. Now we are on the cusp of 1933.
The 'peak oil' story is not over by any means. Fracking was a desperate and ruinous sort of pause, which has been used to crank up demand.