BRICS Nations Preparing with Gold-Backed Currency (True or False)
Lynette Zang delves into the trending topic of the BRICS nations and their alleged plan to back their currency with gold. In this video, she uncovers the hidden details behind the headlines and provides valuable insight. Watch now and gain a deeper understanding of the complexities surrounding currency backing, debt elimination, and the true nature of gold as a safe-haven asset.
CHAPTERS:
0:00 Trading Currency
1:41 Gold-Backed BRICS Currency
6:19 BRICS Bank’s Vice President
SLIDES FROM VIDEO:
TRANSCRIPT FROM VIDEO:
I’m Lynette Zang, Chief Market Analyst here at ITM Trading. And there have been a lot of talk about the BRICS nations and they’ve got a, they’ve got a symposium coming up and they’re gonna back the currency with gold. And I’ve talked a lot about this because this is certainly not the first time that this issue has come up. But let me show you what’s really happening under here because there is no way that any currency can back their currency with gold until they get rid of all the debt. So let me show you what’s been happening. So number one, this whole new issue came up again because of a tweet from a state owned from a Russian state owned media outlet. BRICS is set to introduce a new currency backed by gold in contrast to the credit backed US dollar, with the decision coming a month ahead of the block summit in Johannesburg with a growing initiative. More and more countries are lining up to join the group. But it’s going to be a trading currency, which actually I thought was, was pretty interesting. So on the surface, now everybody’s talking about this because that meeting is coming next month and wow, they can just do this.
Well, let’s look at this a little bit deeper cause you know my nickname is Data Gal and I’m like a little ferret and I dig and dig and dig. So here we go. I’m gonna take you through here because it’s actually a BRICS bank official, right? That discusses the common currency as reports of the gold-backed BRICS currency gains attention. So this is the headline, I’m gonna come back to it in a second because they’re talking about introducing a trading currency or at least that’s what we were told by RT. However, the BRICS countries, this is where it started from. This is a tweet from the Russian Embassy in Kenya. The BRICS countries are planning to introduce a new trading currency, which will be backed by gold. More and more countries recently expressed the desire to join and what they did was they put this article in here from foreignpolicy.com. So that is not any kind of government agency, but to support this claim. That’s what they put in there. They did that on July 2nd. However, what this article says, it’s a BRICS currency could shake the dollar’s. Dominance de-dollarization’s moment might finally be here. So that’s where they got the idea that they’re going to announce it next month. But when you go in, and by the way, remember you got all these links, but when you go in to that article, so the Russian Embassy and they’re going to shake the dollar dominance when you go into that article, this article is dated April 24th, 2023. So this is not a new thing. What did they say in that article? Well, I pulled it up and again, this is a news story. This is not coming from any official agency at all. And I just put control+f in that article to see where they were talking about gold. You got the link, you can read, you can read the whole article for yourself. And what it says is, but assets, so this is a suggestion of this article. Assets denominated in the BRIC, the new currency, would actually have characteristics likely to make them unusually attractive to foreign investors. Among the major drawbacks of gold as an asset class for global investors is that in spite of its risk, reducing value as a diversifier, it does not pay interest. It doesn’t have to pay interest cause it’s the safest thing that you can do. That’s why all the global central banks are buying it. So since the BRICS reportedly plan to back their new currency with gold and other metals with intrinsic value like rare earth and China certainly dominates in that. And Russia, by the way, has a lot of precious metals, interest paying assets denominated in the BRIC would resemble interest paying gold. Isn’t that interesting? Interest paying gold, that’s an unusual characteristic. How can they do that? It is one that can make the assets denominated in the BRIC attractive to investors who want both the interest bearing property of bonds and the diversifying property of gold. So what they might do, and this is just a suggestion from an article, is have a combination of debt and gold. But unless you can convert, and I want you to hear me so clearly on this, whether you’re hearing it today or you’re remembering it tomorrow, unless you can convert any currency or any instrument into the physical metal, then how do you know that it’s there and how do you know that it’s at the level that they’re saying? You don’t. So they will try and do this to get you to buy into their, the system. And I’m not talking about the BRICS necessarily right now, I’m talking about all countries. Zimbabwe is up to a level where they are testing the market for their gold backed digital currency. But again, it’s not convertible. So until it’s convertible, it ain’t done, it’s just deployed to sucker you in.
So let’s see what the, what the officials at the BRICS bank are actually saying. Okay? What they are saying is so this is a BRICS Bank vice president. It’s going to take a very long time for currency movements to take shape. So any discussion of alternative currencies is indeed a much more medium and longer term aspiration. So I, we’ll see, I put it in my calendar and we’ll see what happens next month because again, that’s not something that I can control. But no one is suggesting right now that BRICS will form an alternative currency emphasizing all we are suggesting is that we need to deepen the use of local currencies of our member countries. And over time that is going to strengthen our ability to immunize or insulate our economies from the devaluation of our currencies. If we borrow in dollars, which is a huge global, another huge global debt issue that we’ve been talking about, that is looming, for example. But there is no suggestion right now to create a BRICS currency in that sense. The remarks made by the BRICS bank chief financial officer aligned with the statements made by India’s external affairs minister, who reportedly said earlier this week that there are no plans for a new BRICS currency. Instead, the focus remains on enhancing the respect of national currency within the BRICS framework. And by the way, I’ve shown you this over time, that that’s what they’ve been doing to bypass the dollar. Because as the world reserve currency, that means that if you are going outside of your borders to buy anything, medicine, lumber, oil, whatever it is, you have no alternative but to use dollars.
Well, that’s been shifting really since the end of 2002. And there have been a lot of bilateral trade agreements that have made, well, we’ll accept your dollars or your currency for trade if you accept our currency for trade, bypassing the dollar. That’s still what they’re talking about. Now, maybe there’s something else that I’m not seeing that’s certainly a possibility. I’m just a human being. But I think that this was a story that just kind of escaped because in order to do even what they talked about in that article, which is having an instrument that has, that has some gold component in there, but is still primarily a debt instrument. So it pays interest. You know, they’re gonna have to get rid of that debt first. They’re just gonna, so that’s it. I wanted to update you quickly and you know, don’t forget your financial shields are made of physical, gold and silver. Get that in place. That’s what’s gonna save you no matter what the BRICS or the US or the Federal Reserve, no matter what anything does. And until next we meet. Please be safe out there. Bye-Bye.
SOURCES:
https://twitter.com/RT_com/status/1676720110353137664
https://twitter.com/russembkenya?ref_src=twsrc%5Egoogle%7Ctwcamp%5Eserp%7Ctwgr%5Eauthor
https://foreignpolicy.com/2023/04/24/brics-currency-end-dollar-dominance-united-states-russia-china/
