THE AUGUST BRICS SUMMIT: A GOLD-BACKED CURRENCY? OR JUST A FANCY ...
Just this last Monday, you'll recall, I blogged about Brazil's Central Bank's Digital Currency code, which apparently had a few key "features", features that I and others have been trying to warn about for some time(see Monday's blog, "Brazil's Central Bank Digital Currency Code has some Intriguing "Features").
But that code is being rolled out in the context of the upcoming BRICS summit just next month, for which Russia made an announcement which, if you were watching only the American or the West's propatainment "media", you'd learn absolutely nothing, because they simply somehow "forgot" to mention it. It's an announcement with huge financial and geopolitical significance (our thanks to E.G. for spotting and sharing this version of that story):
Note these important statements from the beginning of the article:
The importance of Russia’s announcement that a new gold-backed trade currency is on the BRICS meeting agenda for August 22—24 in Johannesburg seems to have gone completely over everyone’s heads, with mainstream media not even reporting it.
This is a mistake. China and Russia know that if they are to succeed in removing the dollar from their sphere of influence, they have to come up with a better alternative. They also know they have to consolidate their trade partners into a formidable bloc, so plans are afoot to consolidate BRICS, the Shanghai Cooperation Organisation, and the Eurasian Economic Union along with those nations who wish to join in. It will be a super-group embracing most of Asia (including the Middle East), Africa, and Latin America.
The groundwork for the new currency has been laid by Sergei Glazyev and is considerably more advanced than generally realised.
This article explains why Russia and China are now prepared to fully back Glazyev’s expanded project. For Russia, it is also now imperative to destabilise the dollar as a deliberate escalation of the financial war against America and NATO. China’s priority is no longer to protect her export trade, but to ensure that her African and Latin American suppliers are not destabilised by higher dollar interest rates.
Additionally, the article contains a very helpful detailed historical review of how we came to this point. For our purposes here, I want to focus on these statements:
Since the western alliance’s sanctions, the signals coming out of Moscow have been clear: Sergei Glazyev, who is Putin’s point-man for macroeconomic policy has been waving the gold flag since then in plain sight. As a board member of the Eurasian Economic Union Commission (EAEU) since 2019, he was tasked by Putin to design a trade settlement currency for the EAEU. The initial statement through a news agency in Bishkek in early March 2022 reported that it was to be based on the currencies of the member states and a basket of undefined commodities. According to Glazyev, his brief was to create a Eurasian monetary and financial system to the exclusion of foreign currencies, particularly the dollar and euro.
The intention was also to remove exchange controls for cross- border settlements within the Eurasian membership, replacing the dollar as the commonly used settlement medium between them. A week later, in an article for Goldmoney[ii] I concluded that as stated the new currency would not work, and the only logical solution was to do away with the currency basket proposal and use gold backing solely to represent commodities. That way, it would be easy for other nations in the Shanghai Cooperation Organisation (SCO) to join in, which was the ultimate objective from the outset.
In July 2022, Glazyev was behind a move to beef up the Moscow gold exchange, the official line being that having been sanctioned from the London market Russian miners needed a more effective local market. But working in conjunction with the Shanghai Gold Exchange this was an important signal about the way Galzyev’s monetary thinking was developing. Confirmation came on 27 December last year, when he wrote an article for Vedomosti, a Moscow business paper, describing why the rouble needed to return to a gold standard. That article was co-written by his deputy on the EAEU committee designing the new trade currency and was a thinly veiled indication of the committee’s view.
Therefore, you did not have to be particularly astute to discern the trail of clues presented to us. We could assume with justification that gold was intended to be the sheet-anchor for this new currency probably from the outset, but some political hoops had to be jumped through to convince the EAEU member states that it was the solution.
The impracticality of basing a new trade currency on anything else other than gold had been established. It now turns out that this project is almost certainly a Trojan horse for something far larger. It was obvious that other members of the Shanghai Cooperation Organisation should be able to join in, and now it turns out that the invitation is being extended to members of the BRICS club as well. But that’s not all. The entire membership of the SCO, its dialog partners, and associate members will be attending the BRICS conference in Johannesburg on 22—24 August. I am assuming that the original list of 36 nations, which according to most recent reports has expanded to 41, includes the members of the EAEU who were not on the original list — at the time of writing this is yet to be confirmed.
That being the case, the BRICS currency project is not a cold start and not something to be planned for a distant future. The groundwork has already been prepared by Glazyev and the structure can be rapidly assembled once the necessary resolution is adopted. It is even possible that the necessary institution(s) exist waiting to be deployed. (Emphasis added)
You can bet your bottom dollar (if anyone will accept it) that the institutional infrastructure has already been planned out, for the very simple reason that neither Mr. Putin nor Mr. Glazyev are anyone's fools. The United States weaponized the dollar and the entire western financial system, and Russia and the rest of the BRICS nations have replied by creating an entirely new financial structure.
So how does all of this fit in with Monday's story about Brazil's central bank digital currency?
Very simply, it means that the BRICS nations are at a crossroads, and how they choose and what safeguards they build into that gold-backed system will determine whether or not their proposed currency is a real alternative to the weaponized dollar, or merely another version of financial servitude. If they erect a system where there is a real physical medium of exchange that consists of bearer-on-demand certificates of deposit that are genuinely convertible by anyone, nation-state or individual, into real physical gold upon demand, and if gold itself can be used directly to make purchases and clear transactions, then the system will be robust and, over some time will with either gradual or sudden swiftness replace the dollar. But if it is just another scheme to get everyone on board with a "digital 'currency'" that purports to be gold-backed without such convertibility and physical medium of exchange, it's just another Potemkin village with the yellow luster of gold as the lure. The latter may indeed be the ultimate goal, but even in that case, there will have to be a transition period where such convertibility is used to generate the trust in the final, cashless - and ultimately goldless - system. Indeed, a "gold-backed" central bank digital "currency" is just another way for central banks to put their fingers on the assaying scales. In short, my warning here is exactly the same as my warning about those American states that are also talking about the idea of "gold-backed" crypto-"currencies": without a real bearer-on-demand physical medium of exchange, and without real convertibility or the ability to use physical bullion in transactions, it's all talk. Fancy talk, to be sure, but still just talk.
We'll see what Mssrs. Glazyev, Lavrov, and Putin have in mind. I for one think it would be hazardous in the extreme to underestimate him. If I can see the problems with gold-backed crypto, he can too, and he may have some surprises in store to be revealed at that summit. At this juncture, my caveats notwithstanding, it would be foolhardy hubris and incompetence on the order of a Bai Den Dzho to bet against him.
See you on the flip side...
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The most telling thing is just how deeply many of the power players in the West are so mired in their own hubris, and their own schemes, it makes this quote from Alasdair Macleod’s article so true: “Russian news sources are censored in many countries in Europe including the UK, and any news out of Russia is disbelieved anyway.”
All the comments re, the currency as a unit of account for international clearing, as a means of taking the price of gold and silver out of t he hands of market manipulators, and so on, are true and I’ve mentioned these possibilities many of times with Catherine Fitts. But my BASIC point seems to be being missed by everyone comenting: without explicitly stated arrangements concerning convertibility, and individual use of the currency, it remains all talk and just another banksters’ ploy.
Not missed, simply bypassed (by hacking the argument). Because, it is of no concern to Russia and China, what local seashells are used, as means of exchange, locally. The tendency is towards a gold exchange facility on state level, where local currencies are exchanged for gold units, at market price.
Individual states’ ability to produce will automatically be reflected in the exchange rate, between local currency and a standardized gold unit. The wealth of individual states will be reflected in the ability to procure gold units, by honest labour, producing necessities in market’s demand.
The BRICS suggestion is a practical implementation of such a system, which effectively keeps the traditional bankster cartels out of the loop. The traditional coin clippers live in a criminal hope, that such a system can be hacked digitally, which is the technical challenge, of course.
As a historical justice, the Russian Tzar is putting the Rothschilds out of business, in retaliation for the Bolshevik Revolution.
Here are the Russian pranksters Vovan and Lexus, pretending to be Zelensky, while talking to Rothschild:
https://dl.dropboxusercontent.com/scl/fi/12n3kx7gtkeduutwl42hk/rothschild-1.mp4?rlkey=uvrmjd7sgxkkkdumkhlvqmyse
https://dl.dropboxusercontent.com/scl/fi/va2ckdo0ns6hjgpo94bqn/rothschild-2.mp4?rlkey=8p7c8basgp4v8maehm5nqbtsw
Oh, I am totally in your ‘camp’ on that issue Dr Farrell, and fully support that position. The discussion of ‘blockchains’ and ‘cryptos’ is being discussed by some BRICS members, but unfortunately, it boils down to how to move forward. An article about ‘The End of Crypto in India’ appears to be heated. Where it leads is up ‘in the air’, but there are opponents to crypto, blockchain systems.
What about the End of Crypto in India?
https://www.financemagnates.com/cryptocurrency/news/the-end-of-crypto-in-india-proposed-crypto-ban-has-big-implications/
The article states:
And given that its role is limited to cross-border trade settlement and dealing in physical commodities it has to be institutionally acceptable and does not have to appeal to public confidence. Much of the credit will be self-extinguishing. It is additional to national currencies, leaving individual nations to manage their own currency policies, which is why such a currency can enjoy widespread support.
This new currency is for cross-border trade settlements only. It’s not for use at the local MacDonalds or Shell gas station. The new gold-based currency is in addition to a participating country’s own national currency, not in place of.
Most of the trades will be self-extinguishing. Countries A and B will exchange commodities priced by the same gold-based currency. For example, Egypt trades 500T of cotton priced at 200 units of gold-based currency with Brazil for 850T of soybeans priced at 200 units of gold-based currency. No gold is exchanged, only cotton and soybeans. This is how a poor country like Sri Lanka with little gold can still trade with a rich country like India with plenty of gold. Gold will not be required for trade; its purpose is to determine the relative value/price of the items to be traded.
This also means when two participating countries conduct trades, the items exchanged will be priced in a currency defined by a unit of gold, not by a fiat US dollar. Those US dollars held overseas for trading purposes will no longer be required and will return home to the US’s fragile financial system.
In 1792, the United States defined in law the dollar as 23.5 grains of gold. In 2022, Russia defined the ruble as 0.002 grams of gold for trading purposes. Next month the BRICS conference is expected to define its new currency as a measure of gold for trading purposes.
Gold is money. Everything else is credit.
Yes, I’m pretty sure the new BRICS currency under discussion is a new unit of account for international trade and clearing. The new unit of account would be backed by, and/or valued in terms of, one or more commodities, notably gold.
This makes sense, at least as a first step, since the main problem the BRICS have is that so much international trade and lending has been denominated in U.S. dollars. If the current BRICS and enough other countries get together and agree to use a unit of account other than the U.S. dollar for trade among themselves, then that puts another big dent in the dollar’s dominance of international trade.
That doesn’t solve the problem of so many countries still borrowing, and holding debt that has to be repaid in, dollars. However, I’m sure the BRICS are working on that. China has tons of dollars; it could offer to pay off a country’s U.S. dollar debt in exchange for a loan in yuan, trade concessions, or whatever else. Or it could do the kind of deal it did with Argentina not long ago, to help the latter increase its foreign-exchange reserves.
To my knowledge, nobody is yet talking about creating a BRICS currency for domestic use in any country, or about creating a domestic currency backed by or convertible into gold. Though it isn’t inconceivable that something along those lines could be coming down the pike.
Whatever happens, I don’t think the U.S. dollar is going to disappear from international trade, or lose all its value for foreign trade or domestic use. But a major trading block that excluded the U.S. dollar would not be good news for the future of the dollar’s value (at home or abroad) or its issuing country’s political hegemony.
That is, I don’t think the U.S. dollar is going to disappear from international trade, or lose all its value for foreign trade or domestic use, overnight. I think it will continue to noticeably decline in purchasing power from now till a new U.S. currency (or currencies, or bullion, or central-bank digital coupons) replaces it.
Agreed. The BRICS currency will not replace the US dollar in international trade overnight. The process will begin slowly, then proceed quickly, then taper off to slowly again. The replacement of the dollar by the BRICS currency will resemble the Edward R. Dewey S-graphs as described in Chapter 2 of BABYLON’S BANKSTERS. The BRICS conference next month is expected to announce the new currency procedures, pricing, and implementation dates. By spring of 2024 we should have an idea of how fast the BRICS-dollar replacement process is proceeding along the S-graph trajectory.
Nothing can stop what is coming for the US dollar. The only thing that propped up the dollar these past three decades was the threat of the US military’s prowess. That threat (Patriot, HIMAR, M777, Bradleys, Javelins, etc.) now lie in piles of smoking debris on the plains of Ukraine. The Emperor’s clothes have been exposed as junk, and because of that, Saudi Arabia is now accepting payments for energy in yuan and Japan is buying energy from Russia in rubles. The US fiat dollar’s decline in international trade will resemble an inverted Dewey S-graph.
I wonder if this is a move to also fix the value of gold and silver to keep the price of these two strategic metals down in the future. It might slow down the purchase of these two metals by investors if the prices become fixed and thus create a near term gold and silver sell off and crash as investors try to cash out and get into investments with the chance of a future price gain and profit.
Hoarding precious metal isn’t currency, whereas Russian railways are. The Silk Road is currency, because is flows. True value of currency is Tao.
In the English language, “Ea” had once a prominent position, before river spirits were ousted, by Vatican agents seeking dominance.
Originally, an island was known as “Ea’s land”, which is a shape emerging from primordial water. That is something being born.
An idea manifested, is not the idea itself, only its tangible representation. A memo.
The Silk Road 1980:
https://youtu.be/8qer5yTyYvI?list=PLILRQ_uVCaoOtZ6Q6egVvUyEMhbN7OG9y
BTW, biblical revisionism is foreboded in the idea of a “second coming”, which is made necessary, by the fact, that the Greek gospels do not reflect the original Hebrew terms, accurately.
Unfortunately, logic and reason wasn’t a viable road, towards a new Jerusalem in Britain, because a dumbed down population isn’t capable of grasping the necessity of a strategic exodus.
The “currency”, that brought a bonny boat to Britain, had abandoned the imperial hegemony, and was heading for logic and reason, in the druidic circles of proto-Scythian law assembly. So it is still today.
Elohim+Yahweh=Logic+Reason.
If the USA is to save itself it must dissolve the ‘Federal Reserve and go back to the gold standard then the dollar will be worth something.
Now the question goes into the details.
Knowing that the West will be trying to exploit any weaknesses in said system – to bring it down.
No doubt, “they’ll” be “buying” – only to “cash-in” for gold.
But, just the idea of a gold-backed currency will achieve some economic damage to the West.
This has been playing in the background for sometime.
When the rubber hits the road – expect to smell burning rubber as it takes off like a rocket.
BlackRock sounds a lot like Black Eagle from Gold Warriors by the Seagraves.
There are lots of issues involved, such as the difference between “backing” (with gold or other commodities) and “convertibility”.
Other questions – this might be a good vidchat question – are:
– How much gold actually exists? Who knows this and will they continue to keep secret stashes secret for their own nefarious purposes? Who has the moral and/or physical force available to eliminate this secrecy?
– The other monetary metal, silver, will be even more valuable, since 60% of it goes into industrial uses, including some innovative breakthroughs; should gold and silver be put back into ordinary circulation, as it was throughout much of past history? Even when this was the case, countries like Great Britain used their military and financial force to drain silver first from China, and then from India.
– Whatever new currencies or instruments of exchange come into being, how will they secure the trust of enough users to gain traction?
– Will central banks go away quietly, like the Teutonic Order, or will they hang on kicking and screaming?
– In an interim period, which might be quite long, how to face the issue of “bad money driving out good money”? A company in India might use a commodities-backed/convertible currency/instrument for international trade, but local costs are in rupees; an excessive gap between the perceived intrinsic value of the “settlement currency” and a non-backed/convertible domestic currency would inevitably lead to attempts at profit-taking, How would this be resolved?
Undoubtedly there are people pondering these issues, and sooner or later they will have to come into the public domain, as must the fact that CBDCs are a scam.
Anyway, here is an essay by Glazyev in English, the financial aspects are mentioned towards the end.
Glazyev’s 2016 book: https://resistir.info/livros/s_glazyev_the_last_world_war.pdf
BlackRock sounds a lot like Black Eagle from Gold Warriors by the Seagraves.
Russian position, towards the so-called West, is a sleeping giant, because Russia slept, through the Reformation and the European wars of religion.
The Bolshevik Revolution was a Catholic attempt, to consecrate Russia. It failed, and a second attempt is being made today, in a literal crusade by the Vatican.
Eurasian thinkers avoid addressing the fundamental conflict, between Scythian vs. Praetorian Guard, because it would upset the orthodox halfway position.
Scandio-Scythian Odin, as heathen snot from Abram’s nose, is the real McCoy, and he shoots from the hip, and he is at liberty to speak.
“There are lots of issues involved, such as the difference between “backing” (with gold or other commodities) and “convertibility”.” – Dana Thomas
So true, Dana. BTW, thanks for the book link! I try to read as much as possible to what is our reality. I really want to read Martin Armstrong’s new book about the rape of Russia, but even the Kindle version is 40 smackers! Beyond my current budget.
Dana, I did get his book on the Neocons. A wealth of information.
If you can’t force your way in through the front door due to too much scrutiny try the back door. Unfortunately the BRICS gold backed currency looks like it will be a digital control slave token. The Chinese are already under this new system and Brazil just started it. And I’ve heard it is being tried in African countries. So yeah, the left hand of the globalist consolidate their dream currency within the tightly controlled BRICS populations while they collapse the US dollar of the rebellious right hand western government populations and get them begging to be let into the Beast system of the Golden Dragon.
If there is anything to the Book of Revelations then it looks like the Beast is finally being revealed as the BRICS. I’ve always been skeptical of the Book of Revelations but if it happens then it happens. I’m agnostic to a lot of scriptures but not to God. After reading everything in red that Jesus said when I was an atheist argueing about it with my grandmother I came to admire Jesus. I saw him battling the same corrupt influences I was rebelling against and felt he was a real historic figure. For several days afterwards I wrestled with the idea of if there could be a God and how creation did spring from nothing. I really contemplated this question with all my heart, knowledge, and intellect until in an instant I felt a feeling of euphoria and I believe God revealed it all to me. Skeptical of many scriptures still but not of God.
Local backwater is always looking for a new scare, and a scapegoat. There can’t be a greater spirit, because it threatens the worldview. Basically, man has doubts about God.
Sergei Glazyev’s subtle prominence is more profound than meets the eye—he was involved with Lyndon LaRouche since at least 2001:
https://larouchepub.com/pr/2022/20220916_glazyev_praises_larouche_on_centenary.html
Russia’s current economic strength (and China’s too) can be inferred to derive from adopting a modernized interpretation of the American system of political economy/Hamiltonian economics. We should also infer that Glazyev and senior Russian figures were familiar with LaRouche’s “Executive Intelligence Review” (EIR), which, unless I am mistaken, had a somewhat ‘Quigleyan’ perspective on deep state shenanigans.
If there was an element within the US power apparatus that was in the EIR school of thought, could it exist as a coherent block and have a back channel to Russia?
Very interesting Sophia. Did not know about Glazyev’s link with Lyndon LaRouche, but on the other hand it does not surprise me. At least the Schiller Institute music is good.
https://www.youtube.com/@SchillerInstituteNYCChorus/videos
Logic and reason is the first principle, and debt cancellation is the second. It is known as Elohim-Yahweh and 7th year’s jubilee.
Instead of biblical debt cancellation, devilish central banks use quantitative easing (QE) and quantitative tightening (QT), which is carrot and whip.
Today, the “Scythian Express”, from Saint Petersburg to India, becomes the “grain train” that feeds the world, and the Black Sea port is a closed bakery.
Russian railways are Lyndon LaRouche’s vision, which is Elijah’s embodiment of the Tzar, as transcontinental and intercontinental expansion of sphere.
Jim Henson called the angel: Uncle Traveling Matt.
https://dl.dropboxusercontent.com/s/s7tnc0ze5af0u3k/uncle-traveling-matt.jpg