44 days left to be exact. On October 22, the BRIC nations are meeting for a Summit in Kazan, located in Russia in the Republic of Tatarstan. They are designing their own payment system outside US controlled SWIFT system. The unit of account will be backed 40% by gold and 60% by BRIC member currencies.
https://tass.com/economy/1839865
Original BRICS were Brazil, Russia, India and China and South Africa. Now, Saudi Arabia, Egypt, Iran, and the UAE will be joining. Combined the group has a combined population of 3.5 bil, 45% of the world’s inhabitants, and comprise $28.5 trillion, 28% of the world’s GDP. By contrast the US only holds 345 mil citizens, 4% of the world’s population, but drives $25.4 trillion, 26% of the world’s GDP.
The US Dollar has enjoyed its status as the world’s reserve currency for nearly 103 years since the end of World War I in 1921. Since 1450 there have been 6 world reserve currencies: Portugal from 145-1530, Spain 1430-1640, Netherlands 1640-1720, France 1720-18115, Great Britain 1815-1920, and the US from 1921. The average world reserve currency life span is 94 years.
Every one of these eras ended when the government’s abused their privilege marked by rampant spending, excessive debt, and overreaching government control.
US debt now stand at astronomical $35 trillion. The government is spending $6.5 trillion/year. The budget deficit is expected to be $1.9 trillion in 2024. No matter which party wins in November, the spending will continue, and debt will increase.
The US hasn’t made many friends around the world over the past 50 years. Russia, Iran, and China are labeled as threats. The BRIC’s are tired of the US overreaching their power, so they are uniting. The BRIC’s know that the US Dollar is the United State’s weak point. As long as the US Dollar is the world’s currency the US can continue overspending with their debt supported by foreign dollar holders around the world.
If there is a payment currency shift to a gold backed BRIC Unit, there will be less excess dollars held by foreign holders. This will remove the backstop to US Treasury debt. There will be less demand for US debt. The Fed will be forced to step in and fill the gap to manage rapidly rising Treasury yields. The Fed’s balance sheet will spike higher from current level of $7 trillion.
US will then hold a dollar backed by nothing, and spending and debt supported by nobody. Get ready the inflation we have seen over the past few years is only a precursor to the following few years.
The world has never seen a reserve currency meltdown of this magnitude.
The signs of decay are already evident across the United States. Our once great cities are a shell of their former selves. Crime, poverty, and societal anxiety are increasing rapidly driven by a collapsing currency. This trend is only going to intensify. Prepare yourself.
We’ve never seen a better opportunity to invest in gold. The gold price is at all time highs at $2,500/oz and is ready to rise even higher. Many gold mine developers are trading for pennies on the dollar. We are setting up for a massive generational run in gold miners, developers and explorers.
The Golden Portfolio (GP) is the best way to protect yourself. The GP is up 23% YTD ahead of every gold benchmark. The GP10X is up 30%, nearly 3X the return of the popular GDXJ gold miner ETF.
Prepare for the seismic shift away from the USD. Protect your assets and get on board!
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