The notion of a BRICS currency replacing the US dollar has been dismissed as “ridiculous” by the economist who coined the term “BRICs” (Brazil, Russia, India, China, South Africa) in 2001. Lord Jim O’Neill, the former Goldman Sachs economist, stated that a common currency for the five divergent economies would be unfeasible.
While some BRICS nations like Russia and China have suggested challenging the dollar’s status as the world’s reserve currency, South Africa, which is hosting the BRICS summit, has indicated that a BRICS currency is not on the agenda.
O’Neill explained that the creation of a BRICS central bank and trading currency would be complex and unworkable. He emphasized that the bloc has not achieved significant progress since its inception and that the idea of a common currency is embarrassing.
While BRICS members want to increase the use of local currencies in trade, Leslie Maasdorp, the CFO of the New Development Bank (NDB), the lender established by BRICS countries as an alternative to the World Bank, stated that creating a common currency is not feasible for the bloc.
O’Neill suggested that the global dominance of the US dollar is not ideal for emerging economies. He noted that the dollar’s role is linked to the cyclical decisions of the US Federal Reserve and does not suit the evolving global landscape.
Despite discussions of expanding the BRICS Club to include more countries, there are differences among the existing members. While China and South Africa advocate for expansion, reports suggest that India opposes the idea. O’Neill proposed that China and India should collaborate more on global issues to enhance their influence and challenge the dominance of the dollar.
**Challenging the Illusion: The Fallacy of a Chinese-Russian Currency**
For those of you who advocated for a Chinese-Russian currency replacement, I’m sorry to inform you that you’ve lost all your money. The idea that a Chinese/Russian currency could replace the US dollar is entirely mistaken. Here are the reasons why:
1. This currency is dependent on a cooperative relationship between China and Russia, which might not continue after the current leaders leave office. There’s a chance you’ll end up with a currency that no longer exists, resulting in your financial loss.
2. The currency’s value depends on global trust and transparency, which is unlikely to come from Russia or China. Therefore, you’ll suffer financial loss.
3. Most of Russia’s and China’s debts to the world are in US dollars. It’s unlikely that these countries would risk what they owe or what they owe to others. Hence, financial loss.
4. Russia is in a state of embargo and can bypass it. China is on the path to occupying Taiwan and might also end up under an embargo like Russia, as imposed by the world. What stability and credibility can a currency have when most of the world treats it with mistrust and sanctions?
So, you’ll suffer financial loss.
**Dollar Dominance: A Force to Reckon With**
Now, pay close attention to what I’m saying. The US dollar is the strongest and most stable currency in the world. It’s backed by the most important and valuable technology in the world, American innovation. It’s defended by the world’s most powerful military.
It’s recognized, accepted, and trusted by every country, every arms dealer, and every drug dealer in the world. And if you want to know which currency is the safest in the world, ask an international drug dealer or a terrorist, or someone close to your home, because they know what’s best for them. No dealer would refuse the US dollar in the world.
And what about the Chinese currency? Even the Chinese are trying not to hold it.
And one more point: the CIA is the biggest and most important marketer of the dollar in the world. Its role is to ensure that every entity in the world receives and trades in the US dollar. They’re doing an extraordinary job. And anyone who thinks the Americans will give this up for China or Bitcoin is not someone I would trust with my money.
The discussion surrounding a BRICS currency and the potential challenge to the US dollar’s dominance highlights complex economic and geopolitical factors. While proposals for a new currency might arise, the practicality and viability of such ideas require careful consideration. The global financial landscape is intertwined with intricate relationships between economies, policies, and currencies, emphasizing the need for a nuanced understanding of these dynamics.
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