Written by Tyler Durden
Written by Brandon Smith via Alt-Market.us,
In October 2024 Russia hosted the yearly BRICS summit in Kazan with the intention of showing unity between developing countries and the general interests of the East. The Kremlin, which has been the mark of severe NATO sanctions since the beginning of the war in Ukraine, effectively strengthens the economical guarantees of BRICS partners and bypasses western economical control.
Despite having SWIFT removed from the banking network and cut off from much of planet trade, Russia continues to scope solid export revenue.Surely we are not witnessing a complete collapse of the Russian economy, as so many media "experts" predicted. Reason? Russia is simply a country rich in natural materials, and in an inflationary environment countries that are rich in goods sold at lower prices are always wanted. This year's BRICS event was a reminder that Western financial influences were decreasing.
At the same meeting, Putin called for an alternate global payment strategy and handed over the mock-up What he called "banknote" BRICS. The note on the paper was purely symbolic, but her presence at the top provoked outrage in the establishment media. Experts rapidly "checked the facts" and declared that this was not a real announcement regarding a unified currency. As far as I know, no 1 said it was. However, we said that the real multilateral monetary system, which is cut off from the dollar, is much closer than most people realize.
Putin showed this note due to the fact that it's something BRICS has been working on for over a decade. Those cynics who think it's impossible, live in denial, or have any plan they want to sell.
Especially Donald Trump seems to realize rather well that the BRICS currency concept is not a bluff or a joke. In a fresh post on social media Trump threatened to rise customs duties for any country that tries to reduce or replace dollar position as a planet reserve (dollar is the main currency utilized in the vast majority of global transactions). Putin responded with a informing that Trump's efforts to strengthen the dollar would have the other effect.
In general, Putin is right. Any decision to impose a reserve currency on developing countries will only origin them to dispose of it more quickly. Customs duties act as a lever for short-term adjustments to trade imbalances, but will not be effective in preventing another countries from utilizing alternate currencies.
The problem with the dollar reserve strategy is its basis. Officially established by the Bretton Woods agreement in 1944, as we approached the end of planet War II, an unwritten agreement based on the dollar assumed that the United States would get economical benefits from reserve status, but in return America would gotta take on most of its military defence obligations for allies around the world.
Five years later, in 1949, NATO was founded, the dollar became a common currency denominator for all members, and the United States was to pay 60% or more of the Alliance's funds for the following decades. The economical compromise has been established – the US dollar gains the benefits of reserve position and the remainder of the Western planet receives military protection from the US.
However, as far as the east states and BRICS countries are concerned, NATO is not their ally. There is no consensus or unspoken doctrine that would convince developing countries to keep the dollar position as a reserve; only uncertain import/export arrangements that could rapidly break apart in the event of a conflict.
And let's be honest, the sparks of a wider conflict are everywhere. According to my current calculations, at the same time there are at least 3 regional substitute wars that can start planet War III – Ukraine, Israel and Syria. There is besides Taiwan, North Korea and Georgia (Eastern Europe); regions that are constantly on the verge of heat.
This imposes a gradual collapse of Western Europe, where Germany and France are presently in a government suspension, not to mention that Britain is turning into an Orwellian police state. The Americans are so isolated from the global crisis that is developing that I fear millions will be completely amazed erstwhile it yet reaches our door.
There is no uncertainty that the United States is active in instability. The stagflation crisis has already been taking place for the 3rd year (officially) and it does not appear that the prices of most first-hand articles should fall soon. The crisis related to illegal immigration will shortly scope the apogee and we are all waiting to see if the Trump administration will meet his promise of mass deportation. There is besides an incredible debt crisis – only in the last 2 years our government has increased public debt by $6 trillion. all 3-4 months we make over $1 trillion of fresh debt, and our debt-to-GDP ratio is 124%. It's untenable.
Having said that, we have not yet experienced any catastrophic economical disruption. Losing the dollar as a reserve would have historically devastating consequences, at least in the short term, and only if our country developed a plan to last the storm.
Conflicts between East and West will only increase, given existing conditions, and calls for an alternate to the dollar will continue. Trump can't aid it. We besides request to remember that there are globalist institutions, specified as the IMF and the BIS, which are preparing to introduce CBDCs and non-cash systems by default to limit the global impact of the dollar.
When globalists were constantly talking about the "Great Resote" in the pandemic era, they were primarily talking about the economical reset and currency reset. Klaus Schwab of WEF stated, "Now is the time for a large reset of capitalism", and this event was to advance the global transition to the cashless system.
There can be a global currency reset without a dollar degradation. There can't be a reset without reversing the old strategy from Bretton Woods. They know that, and they're not going to inform the remainder of society of the consequences.
At the minute everything works against the dollar, and there are quite a few people who wonder if it's worth saving at all. The national Reserve was the origin of crucial corruption in our government and I frequently referred to central bankers as economical suicide bombers. But a dollar is all we have until a tangible safety net is established.
Instead of focusing on trying to intimidate the BRICS countries to stay on the dollar, Trump should draw up a plan to safe our currency strategy with hard natural materials to prevent more inflation and guarantee that the United States has the capacity to produce all our first-needle articles in the country.
There's a chance we can do this for Trump's presidency; There was no way this could have worked under Kamala Harris. So at least there's hope.
In fact, it is impossible to keep a dollar in the position of global dominance erstwhile all component of geopolitics works against it, and the same globalist organizations that helped make the Bretton Woods strategy are now trying to dismantle it. It is time to find ourselves, build exemptions and prepare for a larger crisis because, 1 way or another, hard changes are coming.
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Translated by Google Translator
source:https://www.zerohedge.com/
