BRICS rejects a common currency, advocating instead for trade in local currencies to ensure economic sovereignty. Learn why dedollarization doesn’t require a new currency.
They're not going to announce anything that could scupper their plan by the West. They'll spring it on the West when the time is right. Gold standard checkmate is on its way...
We don't think you can create a common currency with a hidden long-term plan, it is something very unreal. It is more realistic and useful to keep our own local currencies to be more independent. A common currency will kill the concept of multipolarity.
I agree, however... some form of gold revaluation (by central banks) and currency backing to ensure commodities, manufacture, etc have stability of price and value.
Yes, but in the case of the BRICS, their economies are too different and also different political forms of government, so it would be too risky for the stability of the members to have a common currency. There are also some voices saying that one currency may be more exposed to attacks than several different currencies...a common payment system is very welcome, but not a single currency to be clear.
Hi, I'm the author of the article. As I have showed in the text, there's no need of any natural resource to enforce commercial stability among international actors (indeed it can only worsen it). Stability, mutual trust is always granted as long as states can provide reciprocal internal production useful for trading. For instance, if a nation have valid engineers, architects, doctors etc. but has no gold, than this nation can't create or operate anything? Life makes the value, not dead things like gold or money itself. These are only means that register the activities behind. Thanks for your comment. Regards.
Excellent article, it really debunks a lot of narratives about a topic that exists solely for clout. People should know that BRICS members have different macroeconomic orientations and creating a new currency from scratch isn’t that easy and it requires a lot of reserves in exchange and gold, not to mention public trust above all. I am currently writing an article on the BRICS Summit and will definitely use this as a source.
Thank you Petros, you hit the nail on the head. Sometimes “whishful thinking” is stronger than reality, but in this case reality is the best solution for everyone!
American financiers would have us believe that the holy dollar is the highest virtue of international trade relations. To totally rely on one international currency ensures that that currency will be dominated and thus corrupted by unipolar economic forces to the exclusion of all others. Thus America (via the IMF) presents itself as the knight in shining armour to unsuspecting small economies who, under threat of sanction, finally submit to the American way. BRICS is on the path to a truly competitive multi-polar order where competition , innovation and productivity will determine the relative value of all currencies - not just one.
But, in my opinions: 1) the supposed trilemma is questionable, one reason it actually about trade-offs, not absolute exclusions. While a full full blast of all three might create unsustainable tensions, in practice, in some ways or others, all three, or maybe even any, are probably not fully there anyways and partial measures or compromises allow for varying degrees of each. For example, countries can adopt managed exchange rate regimes (like crawling pegs or currency bands) that offer stability without being full fixed. Also, capital flow management, such as forms of capital controls, capital inhibitors, or macroprudential regulations, permit partial openness without sacrificing all monetary policy autonomy. Amongst other things.
And more importantly, 2) in my view the biggest threat to King Dollar is the same biggest threat to the highly globally extractive planetary financial-economic system in general: a wave of sudden -- not necessarily violent -- true and real political change in the so called developing nations
They're not going to announce anything that could scupper their plan by the West. They'll spring it on the West when the time is right. Gold standard checkmate is on its way...
We don't think you can create a common currency with a hidden long-term plan, it is something very unreal. It is more realistic and useful to keep our own local currencies to be more independent. A common currency will kill the concept of multipolarity.
I agree, however... some form of gold revaluation (by central banks) and currency backing to ensure commodities, manufacture, etc have stability of price and value.
Yes, but in the case of the BRICS, their economies are too different and also different political forms of government, so it would be too risky for the stability of the members to have a common currency. There are also some voices saying that one currency may be more exposed to attacks than several different currencies...a common payment system is very welcome, but not a single currency to be clear.
If you think of a single currency across nations, just look at how well the Euro has(not) worked out... Only a matter of time before it disappears...
😱😱😱😱😱
Hi, I'm the author of the article. As I have showed in the text, there's no need of any natural resource to enforce commercial stability among international actors (indeed it can only worsen it). Stability, mutual trust is always granted as long as states can provide reciprocal internal production useful for trading. For instance, if a nation have valid engineers, architects, doctors etc. but has no gold, than this nation can't create or operate anything? Life makes the value, not dead things like gold or money itself. These are only means that register the activities behind. Thanks for your comment. Regards.
Excellent article, it really debunks a lot of narratives about a topic that exists solely for clout. People should know that BRICS members have different macroeconomic orientations and creating a new currency from scratch isn’t that easy and it requires a lot of reserves in exchange and gold, not to mention public trust above all. I am currently writing an article on the BRICS Summit and will definitely use this as a source.
Thank you Petros, you hit the nail on the head. Sometimes “whishful thinking” is stronger than reality, but in this case reality is the best solution for everyone!
Una moneta comune è inutile! Nella migliore delle ipotesi è un ulteriore mezzo di pagamento inutile e nella peggiore il dramma dei cambi fissi
Thanks Petros. I'm here for any request.
American financiers would have us believe that the holy dollar is the highest virtue of international trade relations. To totally rely on one international currency ensures that that currency will be dominated and thus corrupted by unipolar economic forces to the exclusion of all others. Thus America (via the IMF) presents itself as the knight in shining armour to unsuspecting small economies who, under threat of sanction, finally submit to the American way. BRICS is on the path to a truly competitive multi-polar order where competition , innovation and productivity will determine the relative value of all currencies - not just one.
Well written and interesting!
But, in my opinions: 1) the supposed trilemma is questionable, one reason it actually about trade-offs, not absolute exclusions. While a full full blast of all three might create unsustainable tensions, in practice, in some ways or others, all three, or maybe even any, are probably not fully there anyways and partial measures or compromises allow for varying degrees of each. For example, countries can adopt managed exchange rate regimes (like crawling pegs or currency bands) that offer stability without being full fixed. Also, capital flow management, such as forms of capital controls, capital inhibitors, or macroprudential regulations, permit partial openness without sacrificing all monetary policy autonomy. Amongst other things.
And more importantly, 2) in my view the biggest threat to King Dollar is the same biggest threat to the highly globally extractive planetary financial-economic system in general: a wave of sudden -- not necessarily violent -- true and real political change in the so called developing nations