With BRICS becoming the trojan horse seemingly poised to dethrone the United States economic hegemony and petrodollar preeminence – due to them having the largest populations, out performing G7 in global GDP output, having a bastion of natural resources, namely concerning oil and natural gas, with its newest members; and an increasingly number of countries waiting to join – BRICS members have openly stated that they were working on a new currency to trade in.
Deputy Chairman of Russia’s State Duma, Alexander Babakov, stated in March:
The transition to settlements in national currencies is the first step. The next one is to provide the circulation of digital or any other form of a fundamentally new currency in the nearest future. I think that at the BRICS [leaders’ summit], the readiness to realize this project will be announced, such works are underway.
Babakov said on the sidelines of the Russian-Indian Strategic Partnership for Development and Growth Business Forum, The WinePress reported at the time
Before that announcement, in February BRICS nations had also indicated that they were rapidly working on and testing out individual central bank digital currency (CBDC) of their own.
In August of this year, when the BRICS held their highly touted summit meeting South Africa, and admitted six new member states, it was believed that they would also unveil their plans for their currency, namely tethered to gold. However, contrary to popular rumors, the talks of a new currency were not discussed not pricing it in gold.
But that does not mean that that concept has died down and still remains in the foray. For more on this possibility, Investing News Network via Info.Brics, provides details into this potential reality. The outlet wrote:
The BRICS nations didn’t end up announcing a new currency at their meeting this year. But Jim Rickards believes it’s still in the cards — and it could be backed by gold.
Gold market participants were watching the BRICS nations closely this past August on the back of rumors that the bloc might announce a new and potentially gold-backed currency at its annual meeting.
Ultimately that didn’t happen, but investors remain curious about whether the BRICS will take that step in the future.
At this year’s New Orleans Investment Conference, well-known author and commentator Jim Rickards shared his thoughts on how a gold-backed BRICS currency could work. Read on to learn about his thoughts.
What are the BRICS nations?
The notion of a bloc of nations helmed by Brazil, Russia, India and China was first posited in 2001 by Goldman Sachs (NYSE:GS) Chief Economist Jim O’Neill. He initially identified the countries for holding important investment opportunities and believed they would come to form a dominant economic power by the middle of the 21st century.
In September 2006, his theory became reality when bilateral meetings between the countries occurred on the sidelines of the UN General Assembly, leading to a series of high-level talks between the nations in the following years.
The first formal meeting of BRICS leaders was held in Russia in 2009 between Luiz Inacio Lula da Silva, president of Brazil; Dmitry Medvedev, former president of Russia; Manmohan Singh, former prime minister of India; and Hu Juntao, formerly both president of China and general secretary of the Communist Party of China. South Africa was a later addition; it was granted full membership at the BRICS’ annual meeting in 2011.
Even though China, India and Russia have long been key players in the global economy, the BRICS nations are largely on the outside of many intergovernmental groups made up of developed nations, including the Group of Seven. BRICS countries don’t have the same influence as their western counterparts, which hold positions at the World Bank and the International Monetary Fund, two key organizations for international trade and global economic policy.
The group formed as a way to encourage more economic growth and cooperation among member countries and developing nations, while requiring less input from western powers.
Follow the money
The BRICS established the New Development Bank (NDB) in 2014 and the Contingent Reserve Arrangement in 2015. These moves were seen largely as a response to the US-controlled and -funded World Bank and the UN’s International Monetary Fund, whose voting rights are determined by the size of members’ economies, not populations — a situation seen as inequitable for the BRICS nations, which together represent more than 3 billion people. Ten years on, both the NDB and Contingent Reserve Arrangement haven’t seen the success originally envisioned.
Talk of a BRICS currency has been ongoing since the establishment of the NDB. The members of the bloc wanted to distance themselves from the US dollar, but still required a currency regime to help ensure stable trade, reduce the need for currency conversions and lower the associated costs, all while hedging against geopolitical instability.
A stable currency would certainly seem to be a boon for a nation like Russia, which following war-related sanctions has been challenged in finding a common currency to do business. The country has been forced to rely on currencies that aren’t as easy to use both globally and with other members of BRICS nations.
When the BRICS countries held their annual meeting in South Africa this past August, the group admitted six new members. Two of these are the energy-rich nations of Saudi Arabia and the United Arab Emirates, which has found itself increasingly at odds with the US over human rights issues and isolationist policies toward Russia and China. Along with Iran, they also represent significant oil reserves, posing a challenge to US dominance over the production of oil. The other nations that joined the BRICS in August are Argentina, Egypt and Ethiopia.
Many economists, analysts and investors have debated how a BRICS currency could be introduced and what it might look like. Some believe it would be backed by a traditional fiat currency like the Chinese yuan, while others — like Rickards — think it could be tied to a commodity like gold.
How would a gold-backed BRICS currency work?
In his talk at the New Orleans’ Investment Conference, Rickards explained how that could happen, using the euro to show how a BRICS currency might operate. He noted that using a common currency doesn’t mean countries need to have a common fiscal policy or bond market; however, this is where the commonality with the euro ends for Rickards, as he doesn’t see a BRICS currency being backed by a central bank. Rather, its value would be tied to gold.
Importantly, he doesn’t believe this would mean a return to the gold standard. “(With) a real gold standard, you can take the currency and go to any one of the central banks and get some gold,” he said. Instead, he believes a BRICS currency would be tied to a certain weight in gold. For example, 1 BRICS currency unit could be tied to the value of 1 ounce of gold.
In Rickards’ view, this won’t mean the end of the US dollar; because gold is traded in the US dollar, a BRICS currency would still have a direct relation to the dollar. “So if gold went up to US$3,000 (per ounce) from US$1,900, what actually happens is a 28 percent gain against the US dollar,” he said on stage at the event.
With BRICS they don’t have to own any gold, they don’t have to buy any gold, they don’t have to prop up the price. They can just rise on the dollar gold market. What do you think is going to happen to the dollar over time?
Rickards’ implication was that, if a BRICS currency were to gain value against the US dollar, the US dollar would lose value against that currency, essentially destabilizing the US dollar.
Ultimately, Rickards expects the US dollar to collapse. He pointed out that the BRICS+ bloc of 11 nations represents 15 percent of global gold reserves, 30 percent of land, 40 percent of the world’s population and 54 percent of its GDP.
We’re trading closer to a point where the BRICS are in control of overland routes and choke points around the world. Don’t look for the dollar to go away anytime soon, but look for a much higher dollar price of gold, and a much weaker dollar and the BRICS coming into their own.
He said
Is a BRICS currency possible?
Even though Rickards is steadfast in believing a gold-backed BRICS currency is coming, it’s a sentiment that’s not shared widely in the investment community. O’Neill, who conceptualized the group in 2001, told the Financial Times in August that he thinks a BRICS currency is a non-starter, citing constant infighting between members of the bloc.
In an interview with the Investing News Network in July, Jeffrey Christian, managing partner at CPM Group, also said he doesn’t think a BRICS currency is possible, especially one backed by gold.
While member nations may be searching for ways to facilitate trade and to move away from the US dollar, there’s no guarantee that a BRICS currency is in the cards at all, let alone one linked to gold.
AUTHOR COMMENTARY
There is a certainly a lot of uncertainty here, and God only knows what will come of this; but we do know that the U.S. dollar will collapse and the world will no longer be transacting in dollars, that we can be certain about. Don’t listen to the mainstream monkeys and “positive thinkers” that want to paint you a rainbow picture: it’s not reality and not based on any facts whatsoever; it’s just a divination out of their own hearts.
That being said, will there be a BRICS currency? I don’t know. I tend to think that there will be, and maybe a consortium of other localized currencies, too. We’ll see.
However, how will these new currencies or singular currency be priced in? Many say it will be gold. I say that is a ruse. Sure, it might be backed by gold in name only; but, if the world is going the route of CBDC and digital ID as the end-all, be-all, then will the central banks allow convertibility into the precious metals and physical assets. I severely doubt that with the upmost prejudice.
The International Monetary Fund Thinks The World Is Near Ready For Central Bank Digital Currencies
The whole point of the CBDC is to get people away from physical money in all forms, where everything is tracked and traced in real time, and can be retroactively throttled and controlled at all times. “They,” the elitists making these moves, don’t want real control and money in our hands: they want more for themselves and less for us, to the point of nothing; i.e., “You’ll own nothing and be happy.”
So, bearing in mind the point of the CBDC, even if the central banks say that it is backed by gold – if the final transaction and point of sale is the digital currency, then why would they allow people to transact in gold and silver, and in the same vein lend it, if the system is to be truly digital like they say it will be? I personally have yet to hear a detailed explanation on this issue; and I suspect that’s because even the most well-informed and educated economist does not know.
Thus, this is why I have been skeptical about buying up lots of gold and silver for this cause. And before anyone falsely accuses and rails against me – NO, I am not against owning gold, silver, precious metals and precious stones: they have plenty of benefits and reasons why you might consider holding onto them; especially that of hedges against inflation, convertibility, more stable wealth management (versus fiat Monopoly money, stocks and bonds, IRAs, 401(K)s, etc.). Howbeit, some of my reservations stem from the fact that we are heading into a CBDC ecosphere, and that system would simply not allow for anything physical: just digital trash on a computer screen, hard drive, and blockchain.
Earlier this year, Lynnette Zang of ITM Trading (an accredited gold dealer) was interviewed by Daniela Cambone of Stansbury Research (who know is a consultant at ITM Trading), discussed this BRICS currency and gold-backed CBDCs. Zang, contrary to many, did not buy into the false hoopla surrounding the gold-backed BRICS currency, pointing out that there was lacking evidence for that. On top of that, she pointed out that Zimbabwe was in the process of trialing a gold-backed CBDC, but Zang noted that after reading through all their whitepapers, there was not one word about convertibility, which is really telling, that it’s just gold-backed in name only basically.
So, that’s just my thoughts on it. Again, I’m not against gold, but I just question just how much it will be worth it in the long haul. I suppose the gamble is on the timing of the CBDC launch in the West, BRICS, and elsewhere…
Feel free to share your thoughts on the matter.
[17] Charge them that are rich in this world, that they be not highminded, nor trust in uncertain riches, but in the living God, who giveth us richly all things to enjoy; [18] That they do good, that they be rich in good works, ready to distribute, willing to communicate; [19] Laying up in store for themselves a good foundation against the time to come, that they may lay hold on eternal life. 1 Timothy 6:17-19
[7] Who goeth a warfare any time at his own charges? who planteth a vineyard, and eateth not of the fruit thereof? or who feedeth a flock, and eateth not of the milk of the flock? [8] Say I these things as a man? or saith not the law the same also? [9] For it is written in the law of Moses, Thou shalt not muzzle the mouth of the ox that treadeth out the corn. Doth God take care for oxen? [10] Or saith he it altogether for our sakes? For our sakes, no doubt, this is written: that he that ploweth should plow in hope; and that he that thresheth in hope should be partaker of his hope. (1 Corinthians 9:7-10).
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There will be gold, silver, and precious metals confiscations when the antichrist arrives. It’s coming very soon. Thankfully, we are out of here when the great catching up happens.
I’m sure that I’m not the first to do a study on ‘gold’ through the King James Bible. Certain themes sort of leap out at you, though the particulars are hazy and the just shall walk by faith.
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I’ve wondered if the rust of the silver and gold eating the flesh as it were fire would be from the mark and radiation of digital. It also says of Lucifer-Satan in Ezekiel 28 that a fire would come out of him and devour….relating to the prince and king of Tyre, merchandising, and precious things.
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Passages on covetousness tend to center on three things: gold, silver and apparel which I’ve always sort of equated with worshipful security- or power-seeking idolatry, or seeking connection to it as something other than God & his blessing, and apparel to appearances, cleaning up and adorning the outside, whited sepulchers etc. Seeking favor and acceptance from and with the world and its spirit before God.
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Achan took the thing accursed: a wedge of gold, silver and apparel which were to be dedicated to God…and other passages speak of these things as gifts and blessings of God then offered to idols bringing judgment.
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Gold and silver tarnish & can be corrupted, but they don’t ‘rust’ per se. But it is interesting how they relate to cancer, remain as a telltale witness….and eat the flesh as fire in James 5. Reminds you of Joel and certain other Old Testament passages. 1 Timothy 6 which sin has corrupted & hindered so many.
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James 5:3 Your gold and silver is cankered; and the rust of them shall be a witness against you, and shall eat your flesh as it were fire. Ye have heaped treasure together for the last days.
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Probably links directly with this for those going into the time of Jacob’s trouble:
Revelation 16:2 And the first went, and poured out his vial upon the earth; and there fell a noisome and grievous sore upon the men which had the mark of the beast, and upon them which worshipped his image.
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Zephaniah 1:18 Neither their silver nor their gold shall be able to deliver them in the day of the LORD’S wrath; but the whole land shall be devoured by the fire of his jealousy: for he shall make even a speedy riddance of all them that dwell in the land.
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Compare this with Ezekiel 38 & 39 KJB.
Zec 14:12 And this shall be the plague wherewith the LORD will smite all the people that have fought against Jerusalem; Their flesh shall consume away while they stand upon their feet, and their eyes shall consume away in their holes, and their tongue shall consume away in their mouth.
Zec 14:13 And it shall come to pass in that day, that a great tumult from the LORD shall be among them; and they shall lay hold every one on the hand of his neighbour, and his hand shall rise up against the hand of his neighbour.
Zec 14:14 And Judah also shall fight at Jerusalem; and the wealth of all the heathen round about shall be gathered together, gold, and silver, and apparel, in great abundance.
Zec 14:15 And so shall be the plague of the horse, of the mule, of the camel, and of the ass, and of all the beasts that shall be in these tents, as this plague.
Zec 14:16 ¶ And it shall come to pass, that every one that is left of all the nations which came against Jerusalem shall even go up from year to year to worship the King, the LORD of hosts, and to keep the feast of tabernacles.
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This would look to be the western powers and pope who place their tent there….relating to Revelation 18….Anyways, for now & this topic: notice verse 43:
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Da 11:32 And such as do wickedly against the covenant shall he corrupt by flatteries: but the people that do know their God shall be strong, and do exploits.
Da 11:33 And they that understand among the people shall instruct many: yet they shall fall by the sword, and by flame, by captivity, and by spoil, many days.
Da 11:34 Now when they shall fall, they shall be holpen with a little help: but many shall cleave to them with flatteries.
Da 11:35 And some of them of understanding shall fall, to try them, and to purge, and to make them white, even to the time of the end: because it is yet for a time appointed.
Da 11:36 And the king shall do according to his will; and he shall exalt himself, and magnify himself above every god, and shall speak marvellous things against the God of gods, and shall prosper till the indignation be accomplished: for that that is determined shall be done.
Da 11:37 Neither shall he regard the God of his fathers, nor the desire of women, nor regard any god: for he shall magnify himself above all.
Da 11:38 But in his estate shall he honour the God of forces: and a god whom his fathers knew not shall he honour with gold, and silver, and with precious stones, and pleasant things.
Da 11:39 Thus shall he do in the most strong holds with a strange god, whom he shall acknowledge and increase with glory: and he shall cause them to rule over many, and shall divide the land for gain.
Da 11:40 And at the time of the end shall the king of the south push at him: and the king of the north shall come against him like a whirlwind, with chariots, and with horsemen, and with many ships; and he shall enter into the countries, and shall overflow and pass over.
Da 11:41 He shall enter also into the glorious land, and many countries shall be overthrown: but these shall escape out of his hand, even Edom, and Moab, and the chief of the children of Ammon.
Da 11:42 He shall stretch forth his hand also upon the countries: and the land of Egypt shall not escape.
Da 11:43 But he shall have power over the treasures of gold and of silver, and over all the precious things of Egypt: and the Libyans and the Ethiopians shall be at his steps.
Da 11:44 But tidings out of the east and out of the north shall trouble him: therefore he shall go forth with great fury to destroy, and utterly to make away many.
Da 11:45 And he shall plant the tabernacles of his palace between the seas in the glorious holy mountain; yet he shall come to his end, and none shall help him.
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Ezekiel 38:13 Sheba, and Dedan, and the merchants of Tarshish, with all the young lions thereof, shall say unto thee, Art thou come to take a spoil? hast thou gathered thy company to take a prey? to carry away silver and gold, to take away cattle and goods, to take a great spoil?
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Who indeed are these who fly as a cloud, as doves to the windows?!!
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Isa 60:1 ¶ Arise, shine; for thy light is come, and the glory of the LORD is risen upon thee.
Isa 60:2 For, behold, the darkness shall cover the earth, and gross darkness the people: but the LORD shall arise upon thee, and his glory shall be seen upon thee.
Isa 60:3 And the Gentiles shall come to thy light, and kings to the brightness of thy rising.
Isa 60:4 Lift up thine eyes round about, and see: all they gather themselves together, they come to thee: thy sons shall come from far, and thy daughters shall be nursed at thy side.
Isa 60:5 Then thou shalt see, and flow together, and thine heart shall fear, and be enlarged; because the abundance of the sea shall be converted unto thee, the forces of the Gentiles shall come unto thee.
Isa 60:6 The multitude of camels shall cover thee, the dromedaries of Midian and Ephah; all they from Sheba shall come: they shall bring gold and incense; and they shall shew forth the praises of the LORD.
Isa 60:7 All the flocks of Kedar shall be gathered together unto thee, the rams of Nebaioth shall minister unto thee: they shall come up with acceptance on mine altar, and I will glorify the house of my glory.
Isa 60:8 Who are these that fly as a cloud, and as the doves to their windows?
Isa 60:9 ¶ Surely the isles shall wait for me, and the ships of Tarshish first, to bring thy sons from far, their silver and their gold with them, unto the name of the LORD thy God, and to the Holy One of Israel, because he hath glorified thee.
Isa 60:10 And the sons of strangers shall build up thy walls, and their kings shall minister unto thee: for in my wrath I smote thee, but in my favour have I had mercy on thee.
Isa 60:11 Therefore thy gates shall be open continually; they shall not be shut day nor night; that men may bring unto thee the forces of the Gentiles, and that their kings may be brought.
Isa 60:12 For the nation and kingdom that will not serve thee shall perish; yea, those nations shall be utterly wasted.
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At any rate, I already have cancer and we haven’t the means to acquire gold and silver here. We’re hanging on & the Lord has opened my eyes to many things. Sought to separate wherever possible, to handle health outside the increasingly obviously corrupt system & by nutrition etc, to acquire the tools & real goods to survive in separation, & to warn whoever would listen….but sure wasn’t sinless or with perfect sight & understanding. Folks around me don’t value those things & I’ve not the strength to handle it all myself, but it’s looking like things are accelerating & we’re to endure and watch with hope & trust in the Lord and his word….even coming to that late.
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It’s all in the Lord’s hands, and pretty plain that it always has been, whether known & acknowledged or not. His word is true, his prophecy sure, becoming plain as it unfolds & his grace quickens and reveals to receptive hearts & faith.
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Better to come early, tending to the soil of the heart by the pure & preserved word, as well as seeding it with that good seed unto life…and true spiritual gold, treasure. Picking out the hard & rocky stones, weeding out the sins and things that come creeping in to crowd out the best. That other seed promises a lot, and springs up fast, but is corrupt, naught but lies unto death, and bears corrupt & bitter, bitter fruit. The dross will be addressed, and flesh and blood cannot inherit the kingdom of God; neither doth corruption inherit incorruption. Is it well with your soul?
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Working slower and with more breaks required these days, but there’s still work to do & I’d best get to it. Plain duty isn’t very glamorous & many despise it…like that plain& modest apparel, eh? But it bears the good fruit of peace & God’s just-enough and just-in-time provision….and doesn’t attract as many thieves as quickly, though maybe the ire of the offended & those who would better use us as ‘assets’ in their ponzi schemes the Lord’s currently busting down. Onwards and upward, and grateful for what remains….even more grateful that this isn’t all there is & to be a pilgrim, not a frustrated & proud ‘god’ or kingdom builder being stirred to either despair or bloodlust.
1 Timothy 6:8
And having food and raiment let us be therewith content
Just a guess. In a smaller scope and short-term, precious metals can be used for basic necessities, for those who won’t join in with the digital system or people living outside of the smart cities. Maybe like an under the table type of transacting with others who are like-minded.
The Lord may provide a few “renegades” here and there who are in the system but may buck it to accommodate Christians and trade with them for basic things like food, clothing or even modest dwellings in secluded places. Sort of similar to how some heathen people in biblical times helped the Lord’s servants. After all, God can turn anyone’s heart including a few of those joined in with the system to the benefit of faithful, diligently prepared Christians’ who are walking with perfect hearts. But benefits that are modest, just the bare necessities. Too much worldy possessions provide distractions, I don’t think God will want brethren to put too much time worrying about many possessions during the rough times, he’ll be requiring Christians to do work for him for some time before the catching up.