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Re: BRICS will break the dollar and usher a return to gold - Mises Institute 

By: Zimbler0 in 6TH POPE | Recommend this post (1)
Thu, 31 Aug 23 3:04 AM | 26 view(s)
Boardmark this board | 6th Edition Pope Board 		Msg. 45424 of 58627
(This msg. is a reply to 45414 by Decomposed)
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Decomposed > An interesting article, so thanks. But I don't see how it bolsters your argument. China and India certainly hate and distrust one another - but not enough to stop either one from joining an organization that allies them on certain issues.

And:

If the new BRICS currency is backed by gold -
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Most of what you typed is True, De.

But Gold (or just about any other commodity) to back currency is just not going to fly.

1.) Poloticians do NOT want it as they could not inflate it.

2.) If the price of gold goes much above the 'BRICSY' peg certain enterprising entrepreneurs will redeem their BRICSY's for gold then sell it for a sweet profit - putting the 'BRICSY' backers into a situation similar to that Nixon had when he took the U.S. off the gold standard.

Zim.




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The above is a reply to the following message:
Re: BRICS will break the dollar and usher a return to gold - Mises Institute
By: Decomposed in 6TH POPE
Wed, 30 Aug 23 10:35 PM 		Msg. 45414 of 58627

Zimbler0:

Re: “Do not forget that India and China do not like or trust each other enough to allow the others currency (or a new currency controlled by the other) to become the 'world reserve currency'.”An interesting article, so thanks. But I don't see how it bolsters your argument. China and India certainly hate and distrust one another - but not enough to stop either one from joining an organization that allies them on certain issues.

Nobody is talking about BRICS forcing member nations into using the yuan or rupee. The talk is that it will issue a NEW currency, its own, that all member nations will honor for certain international transactions. I think it's akin to the U.N. issuing its own currency and expecting member nations to use it for certain types of transactions. The fact that two member nations hate one another would not mean that they couldn't use something controlled by the U.N.

In reality, it's BRICS, not the U.N., and the main country that will be harmed by the new currency's successful implementation is a nation most of the BRICS countries are not terribly fond of: The United States. The U.S. relies heavily on foreign demand for newly minted dollars. When that demand goes down, many of those already printed dollars could be repatriated - causing serious price increases here at home.

IMO, Russia would *love* to do that. China and Iran might too.

If the new BRICS currency is backed by gold - at, say, a 50-thousandth of an ounce per "BRICSY," gold will certainly rise in price and foreign demand for dollars will certainly fall. How much the demand falls and how much it affects us is grounds for speculation, but the general effect is obvious.

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