BRICS Working on New Form of Currency

[bigheadfred]

Been trying to read up on this. I don't know much about it. I see that Brazil and China have agreed to start trading with the yuan and the real. Don't know if other countries will follow suit. Could it mean heading down the road of mutual mass destruction?

[catfish1957]

I never once took the positions you accuse me of.  I have never stated that the U.S. current position is solid or defensible.  I am simply taking issue with the concept that some new currency is going to be "secure" in the sense that it will have something other than the issuing government's say-so behind it.

Which simply means that economic actors will be stuck with having to choose between various levels of "evil" - loose money and unicorn economic thinking - and even on that basis, the U.S. economy is still the lesser of two evils, at least when it comes to the BRICS.

How long will that state of affairs continue?  I don't know, and it is that uncertainty, coupled with the fact that the U.S. economy could, in fact, collapse, that presents the real risk.  But the genesis of that risk is our own continued profligacy, not the threat of some new currency coming from countries that are worse off economically than the U.S. is.

Fair enough, but I hope you also notice that when you stack the two together, and based on economic fundementals, this potential new reference currency poses a risk to our western system of finance, and economic health.   And I do agree, that this new consortium will contain some bad actors who will game the system, and exploit it as a weapon.   And to that point as much as I despise the IMF, they at least function as a quasi-referee in the world of currency.  Without that watchdog, we might be looking at the old west in this respect. 

[catfish1957]

Been trying to read up on this. I don't know much about it. I see that Brazil and China have agreed to start trading with the yuan and the real. Don't know if other countries will follow suit. Could it mean heading down the road of mutual mass destruction?

JMO, but this interim trading in Yuan as petrodollars is just an early harbringer of Brazil's acceptance to convert to the future BRICS currency.

As far as mass destruction Kamaji and I have had a good ol' time the past dozen or so posts debating that point.

[Kamaji]

Fair enough, but I hope you also notice that when you stack the two together, and based on economic fundementals, this potential new reference currency poses a risk to our western system of finance, and economic health.   And I do agree, that this new consortium will contain some bad actors who will game the system, and exploit it as a weapon.   And to that point as much as I despise the IMF, they at least function as a quasi-referee in the world of currency.  Without that watchdog, we might be looking at the old west in this respect. 

Fair dinkum. 

[catfish1957]

Kind of side note, but here is another example of collateral damage from Pedo Joe's disatrous energy and international policies with a future BRICS member....

Venezuela's stock market is up 422% since a year ago.  These sons of bitches were almost given last rites, and now they are roaring back, and have given the Chicoms a reason to give them a QE like infusion. 

You can not overestimate the damage that Joe Biden has done to this country.

[catfish1957]

Ohh so quietly, and stealthly the likes of Bloomberg and CNBC are quietly not reporting that Gold again has hit an ALL TIME HIGH!!!!!

At this exact moment.....  $2056.50/ ounce.  Considering all the tea leaves are pointing toward a Bidenstagflation shitshow, just more proof that the $USD is slipping and circling the drain.

[Bigun]

Ohh so quietly, and stealthly the likes of Bloomberg and CNBC are quietly not reporting that Gold again has hit an ALL TIME HIGH!!!!!

At this exact moment.....  $2056.50/ ounce.  Considering all the tea leaves are pointing toward a Bidenstagflation shitshow, just more proof that the $USD is slipping and circling the drain.

The entire country is circling the drain if you ask me.