Dollar strength?

If you watch the relative strength of the dollar these days, you see a "strong" dollar, with an upswing in the last few months. But is that dollar going to stay this strong in the future? Will the BRICS succeed in their attempt to create a new form of money backed by gold, and re-arrange the world order? It's a question that doesn't pop up on most mainstream media outlets, but behind the scenes the BRICS have been creating an infrastructure to eventually, at least create a currency that can stand next to the US Dollar.

Should we get rid of our greenbacks while it is still strong? Or are things not going to go that fast?

New Development Bank

We have all heard of the World Bank, and International Monetary Fund, which are lenders to especially developping countries, and these instances get deposits in mostly USD, and a minority in Euro. The BRICS, or better, the conglomerate of Brasil, Russia, India, China and South-Africa, wanted better terms and started their own bank of last resort, called the New Development Bank. Where the currencies are of course, the respective currencies of the attending nations. Renminbi, Rand, Roebel, Rupee and Real.

Now the BRICS wants to expand and especially China and South-Africa want to add six more countries to the conglomerate. Brasil and India are not so keen on doing that. They just want to keep the pressure on the dollar, and have an extra option. But if Saudi Arabia, Iran, Ethiopia, Egypt, Argentina and the United Arab Emirates come and join the BRICS group in 2024, they would represent 36 percent of the global GDP, which would give them a lot more power. And then, the creation of a new (gold backed) currency would be a real game changer.

It would first of all change the status of the "Petrodollar", as Saudi Arabia wouldn't need to exchange all oil in US Dollars anymore. But they could use any currency they want. This would weaken the dollar, and create more inflation in the US itself, as far less dollars would leave the country and endless money printing wouldn't be an option anymore.

Fact is, the world order is changing, and that is normal, that has been the case in all of history. And it will be the case in the future too. But there are a lot of "buts" in this equasion, and the USA won't let this all happen without a reaction.

Things will change, but I wouldn't sell my greenbacks yet, the change will more likely go very slowly. As the tentacles of Capitol Hill and Wall Street reach very far!

Sincerely,

Pele23

Posted Using LeoFinance Alpha