by Thomas Reiner, ©2024
(Jan. 17, 2024) — Americans are masters at falling into apathy sleep until we find ourselves on the verge of dropping into a precipice which wakes us up to fix the nightmare. So what is this new crisis stuff anyway that we are snoozing about and need to wake up from? It is the loss of the Dollar as the World Reserve currency which would cause a severe economic disruption in America. The value of your savings account, IRAs, 401(k) would likely plummet to not- laughable lows. There will be less access to capital, higher borrowing costs and falling stock market prices. Not to mention more government welfare checks until they too lose all value.
How many Americans are aware of the growing international organization called BRICS consisting of emerging market economies whose unsaid charter is to unseat the Dollar from the world stage as the World Reserve currency? Its founding members are Brazil, Russia, India, China and South Africa. BRICS has been expanding with new members Egypt, Ethiopia, Iran, Saudi Arabia and the United Arab Emirates. BRICS is also involved in “Dedollarization” which is a term meaning other countries reducing their use of the Dollar. For example, last November China and Saudi Arabia reached a currency swap agreement worth $7 billion.
The proposed BRICS currency is the Renminbi, aka the Chinese Yuan. This BRICS currency will be backed by gold while all BRICS members are currently amassing pieces of eight. The Dollar had been backed by gold since the 1944 Bretton Wood Conference in New Hampshire established the Dollar as the World Reserve currency as well as the creation of the IMF. Unfortunately, the Dollar was removed from the gold standard in 1971 and became a fiat currency. Basically a fiat currency can be defined as backed by “trust” and “confidence” and is not connected with a tangible asset. Luckily, those two words hold a lot of sway today and one doesn’t necessarily need to urgently convert everything to Bitcoins yet.
Similar events have occurred before. Don’t think like the Zappa song, “It Can’t Happen Here.” It can. The British Pound Sterling was hammered several times until it eventually lost its World Reserve Currency status. One such incident in 1992, Black Wednesday, caused the Pound Sterling to lose 25% of its value relative to the Dollar in a matter of days. Although the cause was different than the current BRICS agenda, people like our friend George Soros and his Quantum Fund, amongst others, made $1 billion by shorting the Pound. Soros has earned the reputation of being “the man who broke the Bank of England.” It is too offensive to put in print what America thinks of Soros, although Ernst Stavro Blofeld comes to mind.
The future can never be adequately predicted because it is mostly what we don’t know is what we probably will become. That could be BRICS, BRACS, BLAHS…or MEGA? America is still fundamentally strong and we have the power to project our destiny towards a better future. While listening to your Device, just realize that what you are hearing could be Opposite Day speech. We will solve this and become economically stronger when we get better leadership, which is coming soon.
Still, BRICS is kinda scary.
Thank you for your research into this. It is scary what the destroyers of our economy are doing! We must get rid of the corrupt leaders in D.C if we are to have a chance.