They’ve known they’ve been getting pillaged for decades though. That’s why France originally started returning their dollars and repatriating their gold back in the 60s… which in part led to the Nixon Shock.
So decades they’ve known how the system operates, and yet, despite their strong commodity positioning, they’re still operating with the treasury security being their dominant FX reserve.
My question to you is why?
When you properly answer that question, it will help you understand why it’s unlikely that this “BRICS+” flavor of the month stuff is unlikely to materialize into anything substantial.
Bitcoin will find it’s way into central bank reserves. As will an ever increasing amount of gold. But other sovereign debt will not disrupt the dollar.
When gold went from $30 to $800 you….
Nothing. You keep buying gold because gold is money and the thing you’re trading for the gold is paper.
Same thing with bitcoin, but it has even better monetary properties than gold.
Have you ever wondered how countries with such vast natural resources can be so relatively poor? The reason BRICS ain’t shit isn’t because they don’t have resources. It’s because their governance structures are dysfunctional garbage.
Nobody in their right mind invests in Brazilian debt, Indian Debt, Chinese debt, etc.
Despite the trend going downward, there’s a reason that United States debt is the collateral for the global banking system. It’s going to take more than what these countries are capable of, and when push comes to shove, their currencies will break down before the US’ because ultimately the United States has enough farmland and enough fossil fuel deposits to be fully self reliant. The same can’t be said for any of the BRICS countries outside of Russia.
BRICS+ has been saying they’re gonna make a currency since the GFC man. I’ll believe it when I see it. You have to run open capital accounts to have a reserve currency and China has repeatedly shown they’re unwilling to do this.
The BRICS currency may be useful in terms of settlement but foreigners will never save in it. Gold will provide the net settlement layer to the BRICS currency as opposed to a swift-like system, so people would rather just hold gold reserves.
BRICS at this point is nothing more than a buzzword
Again, I’m not necessarily disagreeing with you. But realize that all countries issue mafioso money. The money is just so shitty that nobody wants it.
Regardless of what you think about it, the market demand for dollars remains intact. There are trillions in dollar denominated debts that weren’t even issued by the United States.
USD will be the last fiat currency to hit 0 🤷♂️
I think the USD system is in better shape than literally any other system, and so it’s certainly plausible that there is a global sovereign debt crises that make the dollar stronger relative to every other fiat as global institutions rush into the dollar safe haven.
I agree the USD system will eventually collapse as all government currencies do, likely to be reborn into something “new” but functionally just a devalued reiteration in a new wrapper. But this won’t happen until it happens to every other sovereign currency first.
It’s already risk off. Lol
Seems like they’re trying to time the ETFs with the onset of the crisis so they can print money and use it to naked short the paper products and then scoop up cheap bitcoin and ride it back up to cover the downside of the money printing.
Turns out bitcoin is the escape hatch for central banks too.
Nothing changes. It’s still a digital non-sovereign bearer asset. Everyone wants that whether they realize it or not. Price just reflects how many intelligent market actors are currently present.
“The most effective money laundering operation ever” Romney said.
“Normally, when we launder money through proxy wars it’s against an adversary with minimal economic relevance. Ukraine presents a unique opportunity to profit from death in a way that also drains a major geopolitical opponent of their resources”
Wait till he finds out that literally all prices of everything are propped up by printing ☠️
Why have FU money when you can have FU collateral
Ah okay that makes sense
Interesting. I appreciate your take my man, keep it up
Whatever it takes to keep people from talking about the fact that either aliens are real and have made meaningful contact or governments have kept secret major breakthroughs in physics. 🤷♂️
Circus and bread
It’s going up forever, Laura.
Until it reaches #1 anyway.
Sometimes you just gotta let people fuck around and find out. And even some people that “find out” end up in denial.
The chances of you convincing someone that their previously held beliefs are false, at this point in society, are minuscule. There’s too much bias reinforcement in the algorithms. People are increasingly less willing to change their mind and adopt new points of view.
It’s a waste of effort. Lead by example is the best strategy.
Mute ftw. Pura vida, #bitcoin.
Love y’all