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Q: Where do you see this is heading?
https://www.zerohedge.com/news/2022-07-22/its-official-russia-and-china-...
It's Official: Russia And China Announce "New Global Reserve Currency"
If you’ve blinked over the last month, you may have missed it…
China and Russia are taking their shot at the U.S. dollar. And as often happens with consequential news in the United States and the West, no one seems to notice or even care.
https://substackcdn.com/image/fetch/w_848,c_limit,f_auto,q_auto:good,fl_... 848w, https://substackcdn.com/image/fetch/w_1272,c_limit,f_auto,q_auto:good,fl... 1272w, https://substackcdn.com/image/fetch/w_1456,c_limit,f_auto,q_auto:good,fl... 1456w" width="486" />
It shouldn’t be any surprise to those paying attention that Russia and China are strengthening their economic ties amidst continued Western sanctions on Russia as a result of the country’s war in Ukraine.
What may surprise some people, however, is that Russia and the BRICS countries, including Brazil, Russia, India, China, and South Africa, are officially working on their own “new global reserve currency,” RT reported in late June. Nobody even seemed to notice.
“The issue of creating an international reserve currency based on a basket of currencies of our countries is being worked out,” Vladimir Putin said at the BRICS business forum last month.
And of course, as Russia has been cut off from the SWIFT system, it is also pairing with China and the BRIC nations to develop “reliable alternative mechanisms for international payments” in order to “cut reliance on the Western financial system.”
In the meantime, Russia is also taking other steps to strengthen the alliance between BRIC nations, including re-routing trade to China and India, according to CNN:
President Vladimir Putin said Wednesday that Russia is rerouting trade to "reliable international partners" such as Brazil, India, China and South Africa as the West attempts to sever economic ties.
"We are actively engaged in reorienting our trade flows and foreign economic contacts towards reliable international partners, primarily the BRICS countries," Putin said in his opening video address to the participants of the virtual BRICS Summit.
In fact, “trade between Russia and the BRICS countries increased by 38% and reached $45 billion in the first three months of the year” this year, the report says. Meanwhile, Russian crude sales to China have hit record numbers during Spring of this year, edging out Saudi Arabia as China’s primary oil supplier.
"Together with BRICS partners, we are developing reliable alternative mechanisms for international settlements," Putin said.
... more ...
1 year 19 weeks ago in Health & Safety - China
I haven't been paying any attention to it and don't have any opinions regarding it but I did see an article a while ago, don't remember where but the gist of it was that nobody was really taking it seriously and if they did somebody could probably expect to have some 'democracy (military action) taken to them'. Who knows.
What I do think though is that any bitching and squabbling that does go on will be nothing compared to the bigger problems that are just now becoming obvious and will most likely get worse.
Drought, heatwaves, regular fires and/or flooding, melting permafrost - to name just a few - is already affecting Asia, Europe, Russia, the Americas, Australia / NZ, Africa. Throw in economic dramas caused by covid and the Ukraine thing and I think most countries will soon be too preoccupied with their own internal problems to give much of a shit about reserve currencies.
icnif77:
I always remember when Iraqi's Hussein said the same, i.e. not accepting US$ for his oil anymore around 2002 or so ... and US troops were landing in Iraq shortly after.
The thingy at Reserve currency is how many nations are using it, i.e. populous count, as I stated the same as West was imposing sanctions and what not on Ruskis few months ago.
Western sanctions against Ruskis were/are worthless once China, India, some -stans with most African countries declared themselves as Vlad's friendlies. My conclusion on negligible sanctions impact were based only on populous count and you can see today, I was right.
There was/is a graph on length of each Reserve currency ... and US$ Reserve currency status is nearing the end ... as I remember. I can't find that graph anymore ..., but ... it's posted at "When will RMB replace US$ as a Reserve Currency" thread.
Whatever war in Uki is concerned, I read reports WW3 is already in progress ...
Stiggs:
I have no idea what factors dictate which currency is the reserve currency is but I'd assume the stability of the country, and economic dominance are two of them.
When a powerful faction within the country seems hellbent on disregarding a democratic election to put their own guy in there, overturning legal precedents regarding constitutional rights (Roe V Wade), start picking on the gays and minorities and you have religious fundamentalists calling the shots that's when a country starts to look like like a banana republic, and not at all stable. I'd also assume that would put economic dominace at risk.
It might be a good time to buy RMB.
icnif77:
Reserve currencies length graph is posted here:
https://www.corbettreport.com/wp-content/uploads/2019/04/reservecurrency-768x650.png
Good time to buy&hold Rmb was since 2010, but at currencies thingy is a bit tricky. Currencies are mostly tradable assets, i.e. FOREX, not really buy&hold.
You'll do the same or even better by holding precious metals (PM) bullion, i.e. physical Gold and/or Silver (coins & bars).
The thingy at holding of PMs is storage. You'll spend a tonne to securely hold larger stash of PMs and you can't move it easily across the borders ...
My thoughts are heading toward BTC for which state borders or different continents, custom officials and all crossing the borders and paying customs manure are useless, i.e. you can change BTC into cash anywhere around the globe just by carrying hard-crypto-wallet, which looks like an ordinary USB drive ...
Stiggs:
Gold bars and forex are all good as long as you have a system where they can be traded and numbers on a spreadsheet mean something.
I have a feeling that if there's a situation where the reserve currency is suddenly replaced and the financial world order is overturned a LOT of people will find that suddenly they're deep in the shit, they can't eat their gold bars and their investment portfolio is essentially worthless too.When your kids are hungry would you rather have a gold bar you can't sell, or a box of rice and beans?
icnif77:
FOREX stands for "foreign exchange" and it's a currencies market and online platform for trading.
That's an old Not-Gold-Bugs adage ... "you can't eat Gold ...", he he
Let me open yer screen: you can barter Gold coin for many things today.
1 gram of Gold = US$ 55.5, so yer 5 or 10 g Gold coin isn't worth much more than groceries for a month time.
Safe storage is the main problem at holding PMs. Crossing borders, too ...
I purchased 50g Gold bar in 2012 in HK and I carry it home to EU. However, if I would ( ... and I should!) buy more Gold at that time, I had to declare it at exit of China and declare it again at entering the EU.
'Declare' translates to "pay custom taxes" ...
Exit China with more than 50g of Gold bullion is impossible. 50g is the limit allowed for Gold bullion export from China, anything more than 50g will get confiscated.
Most countries around the world have the same limits at Gold bullion export.
Stiggs:
Yep, I know gold is a pretty safe investment now, but we're talking (hopefully hypothetically) about the financial world order being turned upside down. That's something that will have massive repercussions.
Fuel and imported goods are already expensive and/or hard to get in a lot of places and it's a big problem. Imagine the chaos that could result if the global financial system gets kicked in the balls tomorrow. I think that old saying about being careful what you wish for applies here.
icnif77:
See this title ... considering your 'hypothetically':
"People Are Not Prepared For What Is Coming"- Alfonso Peccatiello ... 4-days ago.
https://www.youtube.com/watch?v=7XWwaIDLCr0
He is an Italian native financial analyst and his take at this report (... in English) is maybe difficult to understand to non-economists, but only the tittle is very revealing ..
I'd say, doesn't matter what kind of economical reset is on our way. Person with cash on the sidelines, i.e. in hand, not invested will have an opportunity of ultimate bargain shopping ... in the next 20-years or so in economic terms.
Peccatiello is also running a weekly stream over u-Tube named "The Macro Trading Floor". It's my never miss thingy ...
https://www.youtube.com/results?search_query=the+macro+trading+floor&sp=CAI%253D
Stiggs:
I don't know much about anything, but I reckon that Italian dude might be on to something when he says we're not prepared for what's coming.
icnif77:
https://substack.com › profile › 39086638-alfonso-peccatiello-alf
Alfonso Peccatiello (Alf) Former Head of a $20 bn Investment Portfolio and now author of The Macro Compass, a free newsletter providing financial education, macro insights & investment ideas. The Macro Compass By Alfonso Peccatiello (Alf) Financial education, macro insights & actionable investment ideas.
Indeed, Pecciatello is onto something ...
... and-o re ..., i.e. can of worms ... 
https://www.zerohedge.com/political/pelosi-white-house-designate-russia-...
Pelosi To White House: Designate Russia 'State Sponsor Of Terror' Or Else Congress Will
... The designation is meant to expand sanctions on the targeted nation. Currently, only Cuba, Iran, North Korea, and Syria are designated by the US as state sponsors of terror. Cuba’s designation was lifted by the Obama administration but was reimposed during the final days of the Trump administration.
Since the US has already hit Russia with so many sanctions, the designation would have little impact on Moscow.
But designating a state as a sponsor of terrorism opens up sanctions on other countries that do business with them. 
The move would also signal that US-Russia relations won’t be repaired for years to come as such designations are usually difficult to reverse.
... more ...
I haven't been paying any attention to it and don't have any opinions regarding it but I did see an article a while ago, don't remember where but the gist of it was that nobody was really taking it seriously and if they did somebody could probably expect to have some 'democracy (military action) taken to them'. Who knows.
What I do think though is that any bitching and squabbling that does go on will be nothing compared to the bigger problems that are just now becoming obvious and will most likely get worse.
Drought, heatwaves, regular fires and/or flooding, melting permafrost - to name just a few - is already affecting Asia, Europe, Russia, the Americas, Australia / NZ, Africa. Throw in economic dramas caused by covid and the Ukraine thing and I think most countries will soon be too preoccupied with their own internal problems to give much of a shit about reserve currencies.
icnif77:
I always remember when Iraqi's Hussein said the same, i.e. not accepting US$ for his oil anymore around 2002 or so ... and US troops were landing in Iraq shortly after.
The thingy at Reserve currency is how many nations are using it, i.e. populous count, as I stated the same as West was imposing sanctions and what not on Ruskis few months ago.
Western sanctions against Ruskis were/are worthless once China, India, some -stans with most African countries declared themselves as Vlad's friendlies. My conclusion on negligible sanctions impact were based only on populous count and you can see today, I was right.
There was/is a graph on length of each Reserve currency ... and US$ Reserve currency status is nearing the end ... as I remember. I can't find that graph anymore ..., but ... it's posted at "When will RMB replace US$ as a Reserve Currency" thread.
Whatever war in Uki is concerned, I read reports WW3 is already in progress ...
Stiggs:
I have no idea what factors dictate which currency is the reserve currency is but I'd assume the stability of the country, and economic dominance are two of them.
When a powerful faction within the country seems hellbent on disregarding a democratic election to put their own guy in there, overturning legal precedents regarding constitutional rights (Roe V Wade), start picking on the gays and minorities and you have religious fundamentalists calling the shots that's when a country starts to look like like a banana republic, and not at all stable. I'd also assume that would put economic dominace at risk.
It might be a good time to buy RMB.
icnif77:
Reserve currencies length graph is posted here:
https://www.corbettreport.com/wp-content/uploads/2019/04/reservecurrency-768x650.png
Good time to buy&hold Rmb was since 2010, but at currencies thingy is a bit tricky. Currencies are mostly tradable assets, i.e. FOREX, not really buy&hold.
You'll do the same or even better by holding precious metals (PM) bullion, i.e. physical Gold and/or Silver (coins & bars).
The thingy at holding of PMs is storage. You'll spend a tonne to securely hold larger stash of PMs and you can't move it easily across the borders ...
My thoughts are heading toward BTC for which state borders or different continents, custom officials and all crossing the borders and paying customs manure are useless, i.e. you can change BTC into cash anywhere around the globe just by carrying hard-crypto-wallet, which looks like an ordinary USB drive ...
Stiggs:
Gold bars and forex are all good as long as you have a system where they can be traded and numbers on a spreadsheet mean something.
I have a feeling that if there's a situation where the reserve currency is suddenly replaced and the financial world order is overturned a LOT of people will find that suddenly they're deep in the shit, they can't eat their gold bars and their investment portfolio is essentially worthless too.When your kids are hungry would you rather have a gold bar you can't sell, or a box of rice and beans?
icnif77:
FOREX stands for "foreign exchange" and it's a currencies market and online platform for trading.
That's an old Not-Gold-Bugs adage ... "you can't eat Gold ...", he he
Let me open yer screen: you can barter Gold coin for many things today.
1 gram of Gold = US$ 55.5, so yer 5 or 10 g Gold coin isn't worth much more than groceries for a month time.
Safe storage is the main problem at holding PMs. Crossing borders, too ...
I purchased 50g Gold bar in 2012 in HK and I carry it home to EU. However, if I would ( ... and I should!) buy more Gold at that time, I had to declare it at exit of China and declare it again at entering the EU.
'Declare' translates to "pay custom taxes" ...
Exit China with more than 50g of Gold bullion is impossible. 50g is the limit allowed for Gold bullion export from China, anything more than 50g will get confiscated.
Most countries around the world have the same limits at Gold bullion export.
Stiggs:
Yep, I know gold is a pretty safe investment now, but we're talking (hopefully hypothetically) about the financial world order being turned upside down. That's something that will have massive repercussions.
Fuel and imported goods are already expensive and/or hard to get in a lot of places and it's a big problem. Imagine the chaos that could result if the global financial system gets kicked in the balls tomorrow. I think that old saying about being careful what you wish for applies here.
icnif77:
See this title ... considering your 'hypothetically':
"People Are Not Prepared For What Is Coming"- Alfonso Peccatiello ... 4-days ago.
https://www.youtube.com/watch?v=7XWwaIDLCr0
He is an Italian native financial analyst and his take at this report (... in English) is maybe difficult to understand to non-economists, but only the tittle is very revealing ..
I'd say, doesn't matter what kind of economical reset is on our way. Person with cash on the sidelines, i.e. in hand, not invested will have an opportunity of ultimate bargain shopping ... in the next 20-years or so in economic terms.
Peccatiello is also running a weekly stream over u-Tube named "The Macro Trading Floor". It's my never miss thingy ...
https://www.youtube.com/results?search_query=the+macro+trading+floor&sp=CAI%253D
Stiggs:
I don't know much about anything, but I reckon that Italian dude might be on to something when he says we're not prepared for what's coming.
icnif77:
https://substack.com › profile › 39086638-alfonso-peccatiello-alf
Alfonso Peccatiello (Alf) Former Head of a $20 bn Investment Portfolio and now author of The Macro Compass, a free newsletter providing financial education, macro insights & investment ideas. The Macro Compass By Alfonso Peccatiello (Alf) Financial education, macro insights & actionable investment ideas.
Indeed, Pecciatello is onto something ...
