This seems potentially monumental. They could potentially destroy the fiat dollar which may forever ruin the ability the US had to hit countries with sanctions. Saudi Arabia, Argentina, Indonesia and Egypt are considering joining in the alliance.
https://twitter.com/Ultrafrog17/status/1664406143748194304?s=20
Maybe the white hats will back the dollar with gold too at some point. Otherwise it's TP.
Doesn't the fact that BRICS is pushing for gold-backed currency imply that BRICS has the gold and not us? Obviously there is a ton of gold out there, but it seems like if BRICS wants gold-backed currency then BRICS must have a lot of access to gold. Which is a bit worrisome given that multiple BRICS leaders have connections to the WEF.
I'm not disagreeing about needing to end the fiat system, I just wonder how BRICS doesn't create other problems in the future.
We could just forego a pure gold standard in exchange for a pure silver or a silver/gold standard. After all, up until the end of the civil war when Ulysses Grant passed the Coinage act of 1873, silver was the actual money of this country, gold being a ratioed equivalent of silver. There was huge movements during the Gilded age to remonitize silver too, just look at the Cross of Gold speech by William Jennings Bryan.
You could back it by essentially anything, even river rocks if need be (slight hyperbole).
The problem is that our money isn't really backed by anything except our stranglehold on the world, and that is steadily slipping as we've given all of our manufacturing (and with it IPs and technological advancements) to foreign countries and now rely on places like China, hostile foreign nations, even to produce our medicine for us.
Backing it with something tangible is an automatic improvement.
Well for gold who is determining the value and in what currency? Is it each country looks at how much gold they have and set their own value for their currency? If I have 100 lbs of gold and million whatever currency in circulation then I divide and come up with the value of my gold backed currency? How will the price of gold really be determined cause if Russia sets it based on their currency then I could set the value of my currency to gold however. It confuses me
In reality, there will be some exchange ratio of X dollars for 1 oz of gold, and each nation will have their own ratio of units currency to 1 oz gold.
Assume 100 dollars = 1 oz gold, and 500 rubles = 1 oz gold, therefore 100 dollars = 500 rubles, b/c 100 = 1 = 500.
The actual value of a dollar depends on the value of gold, but exchanging currencies is just a simple ratio to gold and back.
Good, we don't want an asymmetric economic world in the long term.