Sunday, July 9, 2023
"BRICS: NEW GOLD CURRENCY AS ATTACK ON THE FIAT DOLLAR" BY AWAKE-IN-3D, 9 JULY
BRICS New Gold Currency: A Serious Attack on the Fiat Dollar World
On July 8, 2023
By Awake-In-3D
I firmly believe that a BRICS new currency initiative may be the initiation and direct path forward for the eventual implementation of our RV/GCR scenario. The rise of a new joint currency backed by gold, the growing frustration with the dominance of the US dollar, and the expanding influence of the BRICS countries are reshaping the global economic landscape.
In this article, I discuss the key insights I’ve learned from an in-depth, private-source discussion on the BRICS’ new currency, its potential convertibility into gold, as will as the possible geopolitical and geo-economic consequences.
What You Will Learn from This Article
- BRICS’ serious challenge to the dominance of the US dollar and the trend of de-dollarization
- The potential convertibility of the new BRICS currency into gold and its implications for the global economy
- The geopolitical consequences and tensions among BRICS member countries
- The deliberate and calculated approach of BRICS in building up secretariats and think tanks
- The expansion of BRICS membership and the role of Gulf countries
- The uncertainties surrounding the leadership and coordination within BRICS
- The past initiatives of BRICS and the lessons learned for the success of this new currency endeavor.
- Valuable insights into the transformative developments surrounding BRICS’ new currency and its potential impact on today’s global fiat currency financial system
BRICS Currency and Growing Frustration
The BRICS currency aims to challenge the dominance of the US dollar in the world. It signifies a frustration with the way the US has used the dollar for its own purposes. BRICS seeks to develop a multi-polar world, reducing the influence of a single country. This frustration has led to an increasing number of countries expressing interest in joining BRICS.
Details of the New Currency
The specifics of how the new currency will evolve are not yet public. However, a roadmap for its development has been planned. The currency is expected to be convertible into gold, possibly using the Shanghai Gold Exchange. Russia and China already treat their growing trade by holding dollars in a gold-convertible account in China’s Central Bank. This model may serve as a template for China and other Gulf countries. BRICS is also utilizing local currencies to settle trade balances through the New Trade Bank, creating a reserve of local currencies.
The Strength of BRICS
BRICS has developed a robust organization with separate secretariats for various sectors, including geopolitics, trade, finance, education, and sports. These secretariats are housed in the BRICS Tower in Shanghai, signifying the early development of a new block of countries that poses a threat to the G7 nations.
BRICS’ New Currency Convertibility into Gold and Potential Expansion
Convertibility into Gold
The new BRICS currency is expected to eventually be convertible into gold. This means that holders of the currency will have the ability to redeem it for physical gold. The exact process of convertibility will likely be implemented gradually, with full convertibility expected by the mid-2020s. China holds an impressive 50,000+ tons of gold, while Russia possesses over 12,000 tons, indicating their significant gold reserves. The Shanghai Gold Exchange has already facilitated the conversion of large amounts of gold, with approximately 25,000 tons passing through the exchange into Chinese households and institutions.
Return to the Gold StandardThe ultimate goal for the new currency is believed to be a full return to the gold standard. This implies that the currency will be fully backed by and redeemable for gold, possibly surpassing the level of the previous gold standard. Such a return is anticipated to occur before 2030, primarily among BRICS Plus members.
Implications for Currency Issuance and Debts
The introduction of a gold-backed BRICS currency would not necessarily curtail the ability of member countries to issue their own currencies. However, an interesting point is that any existing or new member defaulting on loans from Western banks and financial institutions would not hinder their acceptance into BRICS. Consequently, the debt owed to entities like the IMF and the World Bank would effectively be wiped out upon the launch of the new currency.
Involvement of Other Commodities
While the original idea was for the new currency to be backed by a basket of commodities, including oil and rare earths, it seems that the concept has evolved into a gold-backed currency. Gold is now considered the primary backing for the currency. The role of other commodities in the currency remains uncertain.
Expansion of the BRICS Group
The BRICS coalition is likely to expand its membership in the near future. Around 20 countries, including Ethiopia, have expressed interest in joining. However, any new member requires unanimous approval from existing BRICS members. The first round of expansion is expected to be completed within a couple of years, with Gulf countries likely to be included. President Xi of China has made it clear that Gulf countries will have surpluses with China, and invoicing will be done in RMB, suggesting a close relationship between China and these nations.
Domestic Adoption of the Currency
Initially, the BRICS currency will likely be used to facilitate trade between member countries. It may not be immediately adopted as the domestic currency of these countries. The focus is primarily on using the currency for trade financing among BRICS members. However, as more trade is conducted in currencies other than the US dollar, central banks may reconsider the percentage of their reserves held in dollars.
Reactions and American ResponseThe US response to the development of the BRICS currency remains uncertain. The growing prominence of the new currency and the shift away from the dollar in energy markets could impact the role of the dollar as a global reserve currency. The actions and reactions of the US in response to these changes will be significant to watch.
Geopolitical Consequences and Unity Among BRICS Countries
There are existing tensions and disputes among some BRICS members. For example, China and India have border disputes. When all these countries come together, there will inevitably be jostling for supremacy and leadership. It is unclear if the assumption is that China will take the lead or if it has been technically agreed upon. However, the goal of BRICS is to pursue the greater good and operate on unanimous voting. The focus is on creating a multinational world, which suggests that differences may be put aside for the benefit of the group.
Previous Initiatives and Materialization
Previous ambitious initiatives by BRICS, such as developing a BRICS credit rating agency and creating a BRICS undersea cable, have not materialized as expected. Even the new development bank launched in 2014 remains heavily dependent on the US dollar for its survival, with local currency financing representing a small portion of its portfolio. Despite these setbacks, it is believed that the involvement of BRICS has been a deliberate, slow movement, carefully building up secretariats and think tanks. The lessons learned from past failures may contribute to the success of this new initiative.
The Role of BRICS Secretariat and Mistakes
The establishment of secretariats and think tanks within BRICS indicates a more thorough and thoughtful approach. The current President of the New Development Bank is the ex-president of Brazil, suggesting a movement towards greater significance. The previous plans may not have been well thought out, but BRICS has likely learned from those mistakes.
Coordination and Leadership
It is unclear which country is taking the lead in this initiative. The coordination seems to be mutual among all the countries, with advice flowing from the Secretariat to the leaders. The leader of the Secretariat, who remains unidentified, may play a crucial role in guiding the decision-making process.
Conclusion
It is important to note that this information is based on available data and speculation, as the specifics and outcomes of the BRICS initiative are not officially confirmed. However, the emergence of BRICS’ new currency, potentially backed by gold, signals a significant challenge to the long-standing dominance of the US dollar and the trend of de-dollarization. The possibility of convertibility into gold and the substantial gold reserves of China and Russia add depth to this currency’s potential.
While tensions and disputes exist among BRICS member countries, the pursuit of the greater good and unanimous decision-making characterize the coalition. Past initiatives may not have materialized as planned, but the deliberate approach of building secretariats and think tanks suggests a more thoughtful strategy this time. The expansion of BRICS membership, particularly with the involvement of Gulf countries, further highlights the shifting geopolitical landscape. The true extent of coordination and leadership within BRICS remain a subject of speculation.
We will have to wait and see what actually transpires at the upcoming BRICS Summit in late August. I will certainly be watching closely.
IRAQ NEWS BY DINAR IRAQ & DONG VIETNAM , 9 JULY
Iran seeks to get rid of the dominance of the US dollar through the Iraqi dinar
"WORTH THE WAIT" BY GOLDILOCKS, 9 JULY
Goldilocks and Seeds of Wisdom
Tier-1 Banks are receiving an upgrade. This upgrade is compatible with Sepa and Swift payments.
It’s purpose is to facilitate Cross-Border International Settlements efficiently.
This upgrade supports multiple currencies, and it enables seamless transactions in multiple units.
Multiple units refers to having a multi-currency account. This allows you to hold, receive, and spend multiple foreign currencies as you wish.
https://comtex.com/?p=436463578
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“SEC Adopts Rules to Prevent Fraud in Connection with Security-Based Swaps Transactions and Prevent Undue Influence over CCOs”
The adoption of this new rule allows people to exchange foreign currencies in the new digital system with a confidence your money will be secured.
The Final Rules become effective 60 days after the publication date of the adopting release in the Federal Register.
This puts us close to the end of August for this new Federal Regulation to take effect.
https://www.sec.gov/news/press-release/2023-104
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The US Dollar will be made available to trade under the new guidelines of SOFR rates in conjunction with the Commodities Exchange Act (30 days) after the CFTC approval on August 5th, 2023.
This puts us from August into early September for international trading to become available to us in our new International Payment System backed by gold.
https://www.cftc.gov/PressRoom/PressReleases/8745-23
https://www.cftc.gov/LawRegulation/CommodityExchangeAct/index.htm
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“Problems remain around T+1 implementation, Xceptor panellists say”
The pressure is on for technicians to move settlement times into same-day settlements or T+1.
Once this is accomplished, T+0 settlements will become possible.
T+0 settlements are instant settlement transactions between two parties.
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A lot of work is going on behind the scenes in the banking system to make our new monetary system safe, fast, and efficient.
It truly is worth the wait. Our new monetary system will be far more advanced than anything we have ever seen, and the open banking concept will allow for upgrades to be made on an ongoing basis.
DINARLAND UPDATE, 9 JULY
Nader From The Mid East
Be patient until next year okay. It’s not long 2024…between March and July next year…
MarkZ
[via PDK]
…the chatter out of Iraq is…all eyes are between now and the 12th when they release the funds in their budget…is there a lot of hope that’s when it will go…absolutely… They certainly have everything in place to pull the trigger.
Frank26 (KTFA)
Question:
"How long would an external float take – A day, week, month?“
They’re all different…this one is based…on how long it’s taken, good grief it was only supposed to take 10 years, it’s taken twice that amount…First of all we want it to at least be 1 to 1…How long will it take to get to $1.50 to 1? IMO because it’s take so bloody long, probably within 1 month. How long would it take to get to $2 to 1? At that same speed. Probably within two to three month. How long would it take it to get to what it was – $3.22 and to maybe $3.86?Probably within less than 6 months.
Question:
“Do you think the new small category notes will be announced soon?”
Yes, I sincerely do. When the CBI was having all of its meeting I suggested…that they should come up with a date when those small category notes would be released.
MilitiaMan (KTFA)
They want their citizens to use the dinar because the dinar is going to great demand by using it and create a stable environment. The whole purpose of this is to get these folks to be a one currency country. No multi-currency practices. It’s to maintain the strength of the Iraqi dinar in financial and commercial transactions… They’re ceasing the multi-currency practices…everyone buys and sells in Iraqi dinars… whoever is not doing it is .