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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: TobagoJack who wrote (201212)	9/3/2023 11:41:20 PM
From: Pogeu Mahone	Read Replies (1) \| Respond to of 217542

Saying using gold is simple. Actually using it is very complicated unless settled in fiat currency. Are they going to ship gold around the world? Please explain to me HOW will gold back a BRIC currency With these measly sums? Brazil possesses $270,000,000 worth of gold today for instance Russia possesses 2330 tons of gold How much gold does China possess? 20,000 tons What about all of the brokeass countries that do not have gold? Are all of these countries going to take IOUs? Gold-backed BRICS currency will be ‘very hard’ to deliver: Lyn Alden A common currency would be challenging for Brazil, Russia, India, China and South Africa to initiate and maintain, but it could have an impact on Bitcoin, investment strategist Lyn Alden says. 3:43 INTERVIEW Macroeconomist Lyn Alden has cast doubt on a proposal that would see five countries work together to develop a common BRICS currency — arguing it will likely struggle to get off the ground and fail to dethrone the United States dollar. In an interview with Cointelegraph just days before the BRICS annual summit in South Africa, Alden explained that it would be “very hard” for BRICS members — Brazil, Russia, India, China and South Africa — to form a gold-backed currency for widespread use. Russian President Vladimir Putin first announced that BRICS proposal to create an international reserve currency at the BRICS summit in 2022 to rival the U.S. dollar as the global reserve standard. This proposal was later confirmed to come in the form of a gold-backed currency. However, Alden argued the model is flawed. “Backing a fractional-reserve banking system with gold only works temporarily, because the currency units multiply more quickly than the gold does,” she said. Instead, Alden sees a more likely outcome would be that BRICS nations lessen its reliance on the USD for cross-border payments by increasingly using their own currencies for trade — particularly the Chinese yuan. Alden’s comments follow a similar sentiment by former Goldman Sachs economist Jim O’Neil, who dismissed the common currency notion as “ridiculous” in a Aug. 15 interview with the Australian Financial Review. “They’re going to create a BRICS central bank? How would you do that? It’s embarrassing almost,” O’Neil said, explaining that it simply wouldn’t be feasible. On Aug. 21, India’s foreign secretary, Vinay Mohan Kwatra, also downplayed the possibility of BRICS forming a common currency, stating that the member states have become increasingly focused on boosting trade using their own national currencies. {A Bad Joke} Emissaries from the nations are due to appear at the 15th BRICS annual summit held in South Africa on Aug. 22-24, which will cover issues relating to the formation of a common currency, BRICS Development Bank, international trade and the Russia-Ukraine conflict.{ Not even mentioned at summit in August how gold could back BRIC currency} How do you get BRICS currency? Building a BRICS currency would be a "political project", South African central bank governor Lesetja Kganyago told a radio station in July. "If you want it, you'll have to get a banking union, you'll have to get a fiscal union, you've got to get macroeconomic convergence," Kganyago said.Aug 23, 2023 “This attempt at de-dollarization is likely to contribute to structurally less foreign demand for U.S. Treasuries, higher Treasury yields, and the requirement for the U.S. Federal Reserve to eventually finance a larger share of U.S. government deficits as a result.”If U.S. Treasury yields increase — due to a mass de-dollarization event or not — this could cause Bitcoin’s price to face headwinds as risk assets tend to underperform under those conditions, she explained. Related: Zimbabwe central bank close to introducing gold-backed digital tokens into retail On the other hand, Alden also believes that the price of Bitcoin BTC $26,052 may increase if the Federal Reserve needs to bail out more banks to keep them afloat: “In the longer-term, when the Fed has to provide a liquidity backstop for the Treasury market, that would likely be very good for bitcoin, similar to how bitcoin shot up when the Fed had to intervene in the U.S. banking system back in March 2023.”A liquidity backstop typically occurs when a bank’s own liquid assets are no longer sufficient to meet its financial obligations, so the central bank provides them with emergency liquidity.