Replying to Avatar techfeudalist

The BRICS gold backed currency is doomed to failure. Europe showed us that you can’t have a truly common currency without integrated finances. Eventually you have countries like Greece and Italy who don’t play by the rules, thereby unbalancing the system.

In a BRICS system, if countries are allowed to issue currency, they will have an incentive to cheat, to issue more currency than they can back with deliverable gold.

If most countries are not allowed to issue currency, then the benefits will accrue to those that can, creating rifts in the bloc.

They don’t really want a gold backed currency… they just want to exit the dollar and have hard money. Eventually they’ll figure it out. #bitcoin
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Aida 2y ago

There are at leas two more issues with the concept.

1) Trust, will they actually give you (give each other) the gold if asked for it? Can't imagine that level of trust between them. Especially Russia.

2) The old concept of "good money and bad money". Gold backed money will disappear from the market because people will be constantly wanting to have those over lats say Dollars or other bad money.

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techfeudalist 2y ago

Yep, sounds right. I could actually envision one of the members using the system to print currency and then steal the others’ gold. I guess we’ll see. 🍿