We won't be seeing a BRICS currency any time soon
(www.nakedcapitalism.com)
Comments (41)
sorted by:
She's a Banker...Putin has awesome track record vs. Bankers...hence her future demise is very real possibility...there is nothing she can do but say...yes Boss...when the time comes kissing Rothchilde ass will be the least of her concerns.
Panic stations. The Bank of Japan carried out an 'unscheduled' buy of JP 10Y bonds overnight. They have been buying their own debt so the fact they have to continue doing so is telling. I guess they don't want anyone thinking there is life without them.
Some more discussions about this:
https://old.reddit.com/r/Superstonk/comments/15enr29/boj_starting_bond_buying_shifting_gears_from/
Excellent discussion, thanks.
And what does SBI love? XRP.
Interesting article. It makes good points about the difficulty in setting up laws and specialty banks that are required to maintain a currency. But what if all that were already set up and just not instituted yet? It's possible, and would've been the smart approach. I don't think the BRICS officials who've been talking up this currency are in the habit of blowing smoke. We'll see.
She's probably blowing smoke.
She’s blowing something
Who got the idea of this "BRICS currency". It has always been a red herring. In a multi polar world order, every country will have their own resource backed currency and each country will settle trade in each others' currencies.
Unified currency is for the Banskters to take control of other countries. Think about it - having a unified BRICS currency is the same as the Euro. I am sure the Cabal was salivating at the idea of taking control of the emerging world order with their usual money magic tricks.
I think you are right. My opinion is that each BRICS country will back their own currency with gold. You know, like the USA used to do in the good old days. Then "one ring to bind them all" just won't be needed - they will be happy to trade in each others' currencies since it is all a proxy for gold anyway.
⬆⬆⬆
The BRICS currency was never the interesting part of this, it was the part about it being a gold backed currency that was interesting. Depending upon how you do that can prevent the easy expansion of the monetary supply and thus the massive credit expansion. In other words you can prevent the monetization of debt.
That said you do have to be careful because if you give your BRICS central bank the ability to set the peg, they can still deliberately devalue it.
Agree. And there is nothing topping each country from issuing their own currencies, pegged not just to gold but to resources. Infact, each country has different reources and hence the pegs will be different.
That completely is on us. Hence the need for Great Awakening. If people do not understand the extreme and utter evilness of allowing some private entity to control your currency, there is no hope for humanity no matter how many criminals are prosecuted.
And it is such a abstract concept for most people to understand. How do you convert an abstract concept into something relatable? Hit them on the head with it again and again and again under they wake up.
I came here to say something similar. Why would anyone want a BRICS currency? That would just put us on the path to where we are now. The closest we’ll likely get to that is if those countries decided to peg their currencies to the same denomination of the same resource… for example if 1000 Russian rubles = 1 oz gold and 1000 Chinese yuan = 1 oz of gold. This would greatly simplify trade while strengthening each of their individual currencies.
Exactly. It had always bothered me when I kept hearing about BRICS currency, making me question what the heck was brewing. This news makes me feel better.
As you know, novice here. Isn’t the general idea of a BRICS currency an idea of gold backed in an attempt at free exchange? If you pay no mind to the climate freaks, the one thing that makes the world go round is oil and gas. Eliminate the petrodollar, wouldn’t every country be on a more even playing field?
In general the idea is that its resource backed. Not all countries have enough gold because of all the Bankster shenanigans, but they all are resource rich. hence it makes sense for each country to back their currency with resources.
Petrodollar was the symptom.The real problem was the fiat currency illusion (that required petrodollar to force everyone into buying that illusion).
Remove the fiat currency and you dont need to worry about petrodollars or the wars that came with it. Wars, in general, are too expensive unless they are backed by fiat currencies.
But every country, doesn’t necessarily need other countries resources bc many can produce their own. Every country needs oil and gas. The US has more than enough resources to sustain our country for tens of thousands of years. No reason to import. It’s similar to even how the north vs the south in the US historically worked. My son learned two very different sides of the civil war, one in the north, the other in the south. The north needed the resources produced by the south vs slavery. So how do you create a level playing field? I’ve always felt BRICS was trying to implement it by being gold backed. Trade resources for gold, vice versa. Gold for oil.
The article suggests some countries don't want to be stuck with weak currencies (Putin and rupee).
You mean to say these countires are smarter than France and Germany when they signed up for Euro?
France and Germany were backed up by the other members, Putin's on his own with too many rupees.
France and Germany were stuck with Liras and Drachmas
I remember when I was stationed in Turkey the Lira rate was around 7000TL - $1. When I left 15 months later it was close to 20,000TL - $1. Five or six years later I saw in the news it was over 1 million TL to the dollar.
When I would buy stuff downtown everyone wanted dollars - they would give good discounts because they knew they would end up with more TL when (if) they exchanged it. Their currency was crap. At some point they did devalue it though.
And backed by ECB, not quite the same thing. It looks chaotic on the face of it, with Putin left holding too many rupees and no back-up and it may be that as Mister_Winston mentions on this page "what if all that were already set up and just not instituted yet? It's possible, and would've been the smart approach"
Backed by ECB ????? You joking mate? vapour only backs illusion, as we are seeing the results.
I honestly fail to see what the fuss is. Do you really believe that if there is no "brics currency" its some kind of a negative?
You're putting words in my mouth. At this point a BRICS currency is not an option but not necessarily for the reasons this banker is giving. It is entirely possible that an alternative to the current banking system has already been set up, just not implemented yet.
You think the Rupee will be a weak currency in the future?
I think it will be one of the strongest currencies on the planet and anyone who wants to make a buck can do so in Russia
I work in IT for a bank and agree that account reconciliation is complex. However once you have it set up and all the connected financial institutions pretty much share the same ways to do it then in the absence of "impacting events" (network outages etc.) then everything rolls on in an automated way. With hundreds of millions of transactions per month per acquiring bank there is no other option.
I'm on a team which investigates "why something went wrong" at an individual level. For example you buy something but get charged twice, whatever. There is not that much volume of these and we're not a large team.
I do agree with her that the infrastructure is difficult to implement, plus those countries who want to be free of the dollar are subject to infighting and corruption, but as you say, Bitcoin managed, XRP still going strong, so does sound a bit like 'nothing to see here'.
Bitcoin and XRP only work because thus far large governments have mostly left them alone. If the Country you live in decided Bitcoin was being used to avoid sanctions or finance terrorists and intervened it would stop working so well for you.
She’s right until variables change like the dollar’s controlled collapse.
Because they'll just peg XRP to the price of gold.
Very interesting take, thanks for posting it.
Isn't there an announcement or meeting Aug. 22?
Economics ... a new combo-currency is not necessary. A system of free exchange and transfers both inflow and outflow of the currencies of the aligned countries is the only vehicle that is necessary.
That still has the same underlying problem that Russia gets too many Rupees because it's trading more oil value to India than it's buying spice or rice or carpets or whatever India actually produces. And since India can Shazaam as many Rupees into existence as it wants it can easily devalue the purchasing power of your holdings of their currency. This isn't an issue if you both trade in the same gold backed currency.
This is why they are NOT going to agree on a BRICS currency. You need good partners to have a good system.