BRICS plot death of the dollar
Economic blog ZeroHedge reports on the difficult situation facing fast-growing nations today. On one hand, they like selling things to Americans. But on the other hand, they don’t like being paid in dollars that can be printed ad infinitum.
But according to ZeroHedge, they are working on a solution:
It must be difficult for the brics countries [Brazil, Russia, India and China] today. On one hand, they continue to jockey for respect among the Western powers, insisting on participating in quasi-European bailout funds like the imf. On the other hand, they are also clearly aware of the Western nations’ continuing efforts to surreptitiously devalue their domestic currencies, and the pernicious effect that has had on them as exporters and as lenders of capital. In that vein, it was interesting to note that during the latest brics summit held this past March in New Delhi, the main topic of discussion centered on the creation of the group’s first official institution, a so-called “brics Bank” that would fund development projects and infrastructure in developing nations. Although not openly discussed, reports suggest what they were really talking about was creating a type of brics central bank—an institution that could facilitate their ability to “do more business with each other in their local currencies, to help insulate from U.S. dollar fluctuations ….” Given the incredible scale of Western central bank intervention over the past six months, the brics’ increasing frustration with their printing efforts should be a given by now. The real question is what they’re doing about it, and what assets they’re accumulating to protect themselves from the inevitable, which brings us to gold.
The Trumpet has been warning that dollar printing would eventually drive America’s trade partners into abandoning the dollar. The loss of reserve currency status will have a huge impact on America’s standard of living. Prepare for that day … it is coming sooner than you may think.