QUESTION: Marty,
Will the Brics launching a gold backed currency be the catalist for bankrupting 3rd world economies? Or is it rising interest rates on their debt?
Tks for all the light u share in a confusing economic landscape.
Cbeers
.baldy
ANSWER: It is unlikely that we are looking at a BRICS single currency like the euro, for that would require a central monetary authority, surrender of sovereignty as in Brussels, end any possibility of QE, etc. We would need to completely collapse the idea of Keynesian Economics insofar as it has evolved, allowing deficit spending.
There is no special magic to gold. It was first restricted to only kings, for it was considered to be the tears from the sun god. As more gold was discovered, it began to be used for the jewelry of wealthy aristocrats. Then it became used as money in its natural form, known as electrum, a natural alloy of gold mixed with silver.
Then they refined the gold electrum and created the first bimetallic coinage around 560 BC. This required a sufficient supply of gold to create a money supply. As the quantity increased, the value of gold declined relative to both silver as well as commodities in general – inflation.
The real argument behind gold as a backing is that its quantity is limited. However, over the centuries, the silver/gold ratio has fluctuated anywhere from 8:1 to 120:1. From this perspective, the real objective here is to prevent the government from creating money at will. Thanks to Keynesian Economics, governments have the power to create money at will, allowing them to retain power and exert it in their endless wars thanks to the Neocons.
The real objective here with the issue of BRICS is that both Russia and China object to the dollar being the reserve currency in the middle of geopolitical tension. Yet the Biden Administration has undermined everything by removing Russia from SWIFT. That set in motion the collapse of globalization, and it has shown to the world that the US now controls the SWIFT system, which renders it no longer politically neutral.
This is where the IMF is trying to desperately move in for the kill to replace the dollar with their electronic digital currency. This is really no better because the IMF will also play political games. Strauss-Kahn was appointed managing director of the IMF on September 28, 2007, with the backing of then–President of France Nicolas Sarkozy. He was set up, and in New York, they came up with a maid in a hotel who claimed he tried to rape her. They wanted to remove him because he was independent. He served in that capacity until he was forced to resign on May 18, 2011. All the charges were later dismissed for the lack of any credibility. Yet, his replacement was Obama’s friend Christine Legard, a board member of the economic terrorist organization, the World Economic Forum. She was installed in the IMF and immediately threatened all the tax havens to turn over all their secret client accounts or they would be removed from SWIFT. She also threatened the Vatican.
We are clearly staring into the eyes of a major global sovereign debt default. This is also why they are pushing for war. They plan on holding another Bretton Woods II, and the IMF will make its pitch to rule the world. This is all part of the scheme for this one-world government. The likely hood of a BRICS gold-backed single currency is not very high. As I said, it would require the surrender of sovereignty to whom? Russia can back its currency with gold. That would not really help China. there will be conflicts of interests all around.
