This news just out – MAJOR!
Russian President Vladimir Putin said on Wednesday that banks from BRICS nations can freely connect to the System for Transfer of Financial Messages (SPFS), Russia’s alternative to SWIFT.
While addressing a BRICS business forum, Putin said that together with its BRICS partners – Brazil, India, China and South Africa – Russia is developing reliable alternatives for international payments.
“The Russian system for transmitting financial messages is open to connecting banks from the five countries,” he said, adding: “The geography of the use of the Russian payment system Mir is expanding.”
The Russian president also noted that work is underway to create an international reserve currency based on a basket of BRICS currencies.
https://www.rt.com/business/557620-russian-financial-messenger-brics/
Great idea – time to bring down Switzerland and BIS in Basil.
The Bank for International Settlements, BIS, in Basel, has a special constitution, totally independent of Bern. And none of its members can ever be prosecuted for crimes. This was arranged by Bank of England chief Norman Montague for WWI Versailles reparations. Hjalmar Schacht was given the BIS chief job, and became Hitler’s finance minister. Schacht, in ermine jacket, grinned through the Nuremberg Trials.
Schachtian Austerity, labor camps and worse, are banker policies.
As liberal economist Abba Lerner blurted out in 1971 at NYC “If Germany had accepted austerity, Hitler would not have been necessary”.
If we Europeans and Americans refuse austerity, what will finance declare is necessary? FED interest rate hikes, inflation, Great Reset, controlled demolition? Right now Britain has a full rail strike, likely to spread, as inflation, austerity vaporize wages.
Hitler was created to march on Moscow and austerity got him elected. The point of marching on Moscow was to end Communism.
As Hitler said in Paris, incidentally not bombed, Napoleon was his forerunner (quote Vorgänger).
NATO marching to Russia’s borders, has 2 Vorgänger, to cancel Russia. Commun-ism today will not work, so the mask is off.
Austerity did not get Hitler into power, WallStreet (Prescott Bush) and London (Montague Norman) money did.
It took Hitler’s Reichstagsbrandt (a 9/11) to dump the constitution. Today called crisis-management in polite circles.
US banks were lending money at interest to Germany from 1919 to 1933, so that it could pay the draconian war reparations imposed at the Treaty of Versailles in 1919. This debt impoverished Germany and caused mass unemployment. Hitler came to be Chancellor in 1933 and stopped borrowing from the US banks, and on the advice of Schacht printed up new Deutsche Marks free of debt that were paid to the German workforce, who worked to build up Germany’s infrastructure – autobahns, railways and war materiel such as Volkswagens, Messerschmidts, Heinkels, Dorniers and panzers.
At this point the banks stopped funding Germany, but Henry Ford and IBM continued to do business with the Nazi regime.
It was Neville Chamberlain PM of Britain, who declared war on Germany in 1939, presumably on instructions from the international bankers, because Hitler ceased paying the financial reparations imposed at the Treaty of Versailles in 1919, that gave the de facto go ahead for Germany to invade Belgium and France.
The Luftwaffe did not start bombing England until September 1940, but England was producing fighter planes already in the 1930s and had also installed radar on the south coast. The Germans gave up on their invasion plans after losing too many Heinkel and Dornier bombers to British Spitfires, that were an equal match for their Messerschmidt 109s.
Communism was invented by the same shadow forces which built up Nazism. Hitler was created to bloodlet both Germans and Russians.. to destroy the Heartland so both sides could be controlled by Anglo-Zionists.. He was a freemason drug-addict tightly-controlled from Switzerland (remind you of Zhe?).
https://tfiglobalnews.com/2022/06/09/zelensky-is-probably-planning-to-flee-to-switzerland/
The austerity was immaterial to his election, but it did radicalize society and make a considerable segment receptive to his suicidal madness (Generalplan Ost). This is the current function of both extreme Russophobia (cancelling Russia) and the planned depression.
http://www.williamengdahl.com/englishNEO21June2022.php
– Right now Britain has a full rail strike, likely to spread, as inflation, austerity vaporize wages.
UK Income per capita $41,600 (2020 est.)
This number is private + public income
Net income is at level
$41,600 * 0.6 = $24,960
Private debt per capita in UK is $41,600 * 4 = $166,400
A 10% inflation vil cause
wage income to be $2,460 less,
but net value to be $16,540 larger (because debt has been reduced)
It’s like Putin said, Germany could go back to nuclear and get independence from Russian energy.
“I don’t get why Germans don’t like nuclear energy. I don’t want to comment on it, but… I don’t understand how you’re going to keep warm. You don’t want gas, and you don’t want to develop nuclear energy, so what are you going to do, burn firewood? Of course, though, you’d have to get the wood from Siberia…”
Vladimir Putin
https://www.rbth.com/politics_and_society/2016/10/21/the-spy-who-couldnt-surrender-7-of-putins-jokes_640907
Plus it would be carbon free and they could lead the way in decarbonizing world energy.
But the motives as to why that won’t be allowed by their masters is likely 2 world wars, and their masters own commitments to supplying and profiting from fossil fuel energy world wide, as the western hegemony remains in total climate change denial, complete with practiced and very slick hypocrisy around war and climate change.
Germany never had to accept energy austerity if they went for nuclear energy but remained militarily neutral. But the Greens and their antinuclear propaganda fouled that up, and keep fouling it up.
If Biden loses the Petro Dollar under his watch, he will stick a feather in his Yankee Doodle. The Whitehouse Press Secretary will just call it a “transition to a new payment system.”
The West’s vision of the future is BBB or an impoverished people living in low-income housing. At the same time, the West’s value to the rest of the world is Western Consumerism. The mere idea that “You will own nothing and be happy” does not speak much of continued consumerism.
On this path (transition), if consumerism fades, then so will the Western stick of access to our markets in trade. Without the trade stick, the West will soon find it has little power to wield on the rest of the world.
The West will be reduced to military threats. After Russia disbands NATO, even military threats may come into question.
The power of these western banking institutions over the world must be broken. They are gouging the rest of the world.
They are ending themselves – the outright thievery of Dollar and Gold reserves finished whatever credibility credit they had left.
Sou do Brasil. Me sinto honrado de ver o Brasil sendo partícipe desse novo cenário mundial que está se desenvolvendo.
machine translation:
I am from Brazil. I feel honored to see Brazil participating in this new world scenario that is developing.
Although I appreciate the RT link, it is of no value to me. I am not able to connect to that site in Spain.
Meanwhile in Poland’s Sejm (Lower House) MP Claudia Yahrira threw a banknote confetti on fellow MP’s in protest against inflation.
Got the point across (notes were fake to MP’s chagrin).
And Putin decreed Eurobond debt payments in Rubles, the Rublegas mechanism.
Cannot wait for Brussels response!
From Canada (French) :
India’s neutrality in the face of Russian invasion of Ukraine raises questions about international solidarity
https://theconversation.com/la-neutralite-de-linde-face-a-linvasion-russe-en-ukraine-pose-des-questions-sur-la-solidarite-internationale-184503
India, key BRICS partner, is key.
Putting aside the Conversation’s MSM slant, good points.
@Bonbon
The present Indian administration is made up by intelligent patriots who do see the vicious trap of IMF, and take Biden at his real value. In BRICS India can develop with “win win” situations, while with West India knows it will have to “obey”….
Anyone watching Digital Currencies (too bad for El Salvador adopting BitCoin) is probably wondering why they are being smashed.
Looks like the FED is wary of Davos’ Euro Set about to install CBDC’s to its disadvantage.
This is going on since the Aug 2019 FED Jackson Hole confab, where CBDC’s were praised, by BlackRock and UN finance czar Marc Carney.
BitCoin aficionados claim bank independence – Central Bank Digital Currencies are the answer – good luck with that!
@bonbon
If it were that the Central Banks were government owned, digital currencies created without incurring debt would be a substantial improvement on the current debt slavery system that is dragging down the western economies.
More on crypto :
Collapsing Crypto Bubble Was Larger Than Subprime Mortgage Bubble
Is that the new Lehman?
You could be right on there. I know Bitcoin enthusiastic morons who have never read a book, sinking every cent they have got or borrow, into it.
Bitcoin scam.
Advertised as a big, solid, shiny gold coin and a dollar sign on it.
If you have an IQ of a lizard it’s a investment of a life time. I buy lotto tickets. Don’t notice the cost of a coffee when the ticket does not win anything. But I get a little thrill and next weeks a jackpot, it’s a sign. If you do win millions the cash is in the bank within a fortnight.
My recommendations are invest in gold and Chechen home security.
In sorry, a paper derivative of paper currencies inherits the weaknesses of all. They need a solid gold bullet to kill the USD.
Glaezyev’s currency basket is like hunting an elephant with a shotgun loaded with paper wadding.
London’s Gold Standard is bunkum. Glazyev is fully aware of the goldbugs.
The gold coin standard worked for Byzantium for 1,000 years before it was taken over by London. If Moscow is the third Rome, then it needs to issue gold coins as money.
Dollar convertible to gold (19xx …1971) did not work. First we got the Great Depression 1929–, then by 1969 it was obvious there was not gold enough in the world to convert dollars to gold
I agree that Moscow doesn’t have to issue gold coins. Personally, I much prefer free floating exchange rates to arbitrary, centrally planned monetary buffer stocks (whether that be gold, silver, unemployment, or a job guarantee).
But dismissing goldbugs doesn’t address the more provocative part of David Sant’s contention, which is the uncomfortable question nobody seems to want to tackle head on. Aggregating national currencies into an international reserve basket doesn’t change anything fundamentally about the design of the system. The burden of proof is on analysts claiming otherwise to explain how a currency basket solves for the inherent weaknesses of the individual currencies populating said basket. People have been proclaiming the virtue of IMF SDRs or some similar arrangement for years.
Or perhaps said differently, it’s about understanding the problem. Is the problem definition that the USD is fundamentally flawed? Or is the problem definition that too much central planning is counterproductive, that fiat currencies issued by major world powers are fundamentally flawed? National currencies can be useful transactionally for accounting and exchange but have no meaningful ability to credibly act as a reserve – a savings – over longer periods of time.
Digging up gold, refining it and then burying it again in bank vaults has nothing to do with the money supply. It is a nice shiny, and rust proof durable commodity that acts as a hedge against inflation of all the digital currencies created by private banks ex nihilo using their computers.
People have a home, and a mortgage ($50,000…$300,000). This home has a market value (($100,000…$500,000).
Assets = market value of home – remaining mortgage ($50,000…$300,000)
Using the common definition of “inflation”
10% inflation
nominal market value of home = nominal market value of home + 10%
remaining mortgage = remaining mortgage
——————–
If remaning mortgage= nominal market value of home then
+10% as assets
If remaning mortgage= 50% of nominal market value of home then
+5% as assets
There’s plenty of gold in the world. It just needs to be revalued upwards in price to match worldwide money supply. I don’t understand why people are unable to grasp that concept.
Also, Peter is/was right. He is/was early on his prediction as we can all see today in the collapsing purchasing power of most western currencies, including the federal reserve note. The Japanese are buying Americans some time with the yen carry trade, but once that breaks, I would not want to be exposed to the USD without a hedge.
– the collapsing purchasing power of most western currencies
U.S. Dollar Index (DXY) is doing fine. https://www.marketwatch.com/investing/index/dxy
But you have this Peter Schiff perception a Brit will lose 10% if there is 10% inflation. Not at all, as I have proved already, he will make money with 10% inflation, roughly + $10-16,000 in one year.
Peter Schiff is fooling us.
Applied on Russians, they lose money when inflation is 3-5%. Russia needs to return to the days of 1999-2008, when inflation was 12+%. That was the happy days.
Brazil
Interests rates have mostly been above 10% (on Russian level), and growth has been 2% … in later years 1%. Inflation on level 5-10%
A copy of Russia?
As I understand, the proposed international trade currency is just a mechanism that facilitates trade without the involvement of international finance. It is the next step from bilateral currency swap. The gold bullet that you mention will have better uses later in the war, as a kind of trump card that takes the trick away from a strong adversary just when he expects to win. Day to day trade is too mundane and routine a matter to waste the golden bullet. I agree with your sentiment though
– They need a solid gold bullet to kill the USD.
You repeat the Peter Schiff camp.
They all would like to be the world reserve currency, Biden, Putin, Xi, EU and Johnson … if that imply $5 trillion extra on government budget
Peter Schiff
2007: – there will be hyperinflation, dollar is fiat money
2008: – there will be hyperinflation, dollar is fiat money
2009: – there will be hyperinflation (2009 was deflation)
2010: – there will be hyperinflation, dollar is fiat money
2011: – there will be hyperinflation, dollar is fiat money
2012: – there will be hyperinflation, dollar is fiat money
2013: – there will be hyperinflation, dollar is fiat money
2014: – there will be hyperinflation, dollar is fiat money
2015: – there will be hyperinflation, dollar is fiat money
a.s.o.
@kjell
The problem with the Euro and the US dollar is that they are not in fact fiat currencies created by edict or fiat by their governments. They are privatized currencies created by private banks ex nihilo as debt,
No debts = no money
In my dictionary, this is not fiat money at all, and is a deception foisted on the public to shield the parasitic usury bankers.
– They are privatized currencies created by private banks ex nihilo as debt,
I agree. Euro is created by credit secured by collaterals (the commercial banks). More collaterals -> more money in circulation. Now tested money creation.
History
US cheated with dollar. Dollar was created 100 times that of their gold reserves. They did not care about “gold pegging” post-war. When France wanted their gold back it became visible there was no gold.
I’ve considered the reserve problem for many years. I once was ‘all in’ on gold, but over time realized that it too was just an IOU. ‘Wealth’ is what people need to survive. Gold is a trading proxy, not wealth. Linking the currency to gold would certainly stabilize the currency, but the problem that a gold back currency entails is that it cannot scale with the population and with the population quality of life changes at any form of peg.
Without scaling the peg, gold, or gold claims\tokens will corner over time by people who have the largest different between living expenses and discretionary income. This strangles society as the money is not there to move the economy.
Intellectually you think, ok then, lets just let gold float and have the currency kill itself at the alter as it expands either by government wrote or by an interest based system, etc. At that point whats the real difference that we have today, sure, some people then get massively rich as gold evaluates, but again, the people who get rich form this are the ones who can afford to keep a big hunk of ‘money’ as gold to hedge against the currencies killing themselves.
Ultimately the solution should ‘look like’ something that emanates from people at a certain quality of life for a certain currency value. So, the goal of expanding currency value or units is to increase the QOL but not at the expense of reducing the population.
What does this look like? Really, I have found no perfect solution but I came across a small system that looked okayish referred to as ‘community credit’. So, basically to get big projects funded, individuals have to ‘lend into’ the project by self borrowing against their productive outputs. Essentially reserve credits are created by individuals, and controlled by individuals, and the ‘richer’ an individuals collectively become the more they can drive society to become richer.
I’m sure there are other solutions but the solution is NOT centralized systems like reserve currency, CBDC’s, bitcoin or gold, which are all centrally controlled and end up concentrating without scaling to the benefit of the individuals contributions to society.
Kjell108
Peter Schiff got it right.
Only thing he did not understand is the unthinkable trillions of bucks tapped out on a keyboard.
Ie Cloud,Fiat Fed Notes.
Even l know, make believe dollars are monopoly paper, or numbers on a computer.
Where l come from in 1971 a beer was 20 cents a standard glass. After $5 and you required police assistance to leave the bar.
Peter Schiff: – There will be hyperinflation
There was no hyperinflation in 2009. There was no hyperinflation in 1929.
Neither was there inflation. It was the opposite of what Peter Schiff is telling us.
No one of he Austrians has got it right.
Peter Schiff himself was investigated for tax evasion…
People are overloaded with debt today … and all the debt will come down
What is wrong with that?
Tudo de errado.
1 – o dinheiro correspondente à dívida foi criado do éter pelos banqueiros e emprestado para os pobres coitados;
2 – a inflação vem (cortejada e festejada pelos banqueiros) e:
a) lança os pobres coitados numa vida infeliz de privação;
b) transfere (via sistema judicial) os ativos reais (pequenas empresas, fazendas, casas, ouro, obras de arte, pedras e metais preciosos, direitos de lavra etc) para os banqueiros.
Portanto, o fato de ser a dívida monetizada pela inflação nada significa.
O importante a reter é: os banqueiros criam o dinheiro do éter (nada) e, após longos “ciclos econômicos”, extraem da população os ativos reais.
TRADUÇÃO DO YANDEX:
All wrong.
1-the money corresponding to the debt was created from the ether by the bankers and lent to the poor fellows;
2-inflation comes (courted and celebrated by bankers) and:
a) throws the poor into an unhappy life of deprivation;
B) transfers (via judicial system) the real assets (small businesses, farms, houses, gold, works of art, precious stones and metals, mining rights etc) to the bankers.
Therefore, the fact that it is debt monetized by inflation means nothing.
The important thing to keep in mind is: Bankers create money from ether (nothing) and, after long “economic cycles”, extract real assets from the population.
– 2-inflation comes (courted and celebrated by bankers) and: a) throws the poor into an unhappy life of deprivation;
During inflation the lender will get back his dollars – but remember, what was $1 is now only worth 10 cent according to Schiff. The borrower is sc**ing the bank with fiat money.
Peter Schiff wants us to believe after 30 years of hard work the Americans have $100,000+++ in the bank. After 30 years he has nothing in the bank. After 30 years he has a home, nothing more.
Those who don’t know math don’t understand what happens. They rely on jerks.
Myself: – People are overloaded with debt today … and all the debt will come down
What is wrong with that?
DESILUDID: … the fact that it is debt monetized by inflation means nothing.
Here we learn that people being debtfree means “nothing” (?)
During the 90-ies mortgages in Russia were nullified, and those who occupied the house became title-owner.
That means “nothing” ??
As told by today’s student.
Vamos lá:
Tenho uma fazenda que vale 1.000 unidades monetárias quaisquer.
Faço um empréstimo de 200 para construir uma boa e confortável casa, afinal trabalho bastante, além de um galpão para minhas máquinas novas (também financiadas?)
Isso, num ciclo de liquidez alta e bonança.
Então, chega um ciclo de liquidez baixa.
E inflação.
As pessoas, depauperadas, não mais têm condições de comprar o que eu vendia.
Pior: o meu custo de produção explodiu (adubos, pesticidas, petróleo etc) e tenho que escolher entre a) pegar empréstimos a altas taxas para produzir na expectativa de existir alguém lá fora que compre ou b) não produzir, seja em razão dos custos, seja em razão da ausência de demanda.
A depender do contrato, os juros aumentam…
E, então, entro em inadimplência.
O que garante o banco?
Ah! A fazenda!
Somando-se multas, juros (incluindo o anatocismo), correção monetária (sim, contratos incluem cláusulas de reajustes inflacionários) custas judiciais, honorários advocatícios etc., minha fazenda é vendida (a preços deprimidos por causa da crise…) e só me resta metade ou um quarto do do valor dela.
Ao final, não tenho mais dívida e tenho apenas 1/4 da fazenda que tinha antes.
A alternância de ciclos de alta e de baixa liquidez é uma bomba que suga riquezas reais.
Então, você precisa recordar o conceito de correção monetária.
Os custos de quaisquer contratos (ao menos no Brasil e creio que em significativa parte do mundo) incluem juros + correção monetária.
O problema é que o ciclo de baixa liquidez + inflação produz um descasamento entre os meus recebimentos e as minhas obrigações.
Nisso, lá se vão os ativos reais das massas…
YANDEX:
Come on:
I have a farm worth some 1,000 monetary units.
I make a loan of 200 to build a good and comfortable house, after all I work a lot, in addition to a shed for my new machines (also financed?)
This, in a cycle of high liquidity and Bonanza.
Then comes a cycle of low liquidity.
And inflation.
People, depleted, are no longer able to buy what I sold.
Worse: my cost of production has exploded (fertilizers, pesticides, oil etc) and I have to choose between a) taking loans at high rates to produce in the expectation that there is someone out there who buys or b) not producing, either because of costs or because of the absence of demand.
Depending on the contract, interest increases…
And then I go into default.
What does the bank guarantee?
Ah! The farm!
In addition to fines, interest (including anatocism), monetary correction (yes, contracts include clauses of inflationary readjustments) court costs, legal fees, etc., my farm is sold (at depressed prices because of the crisis…) and I only have half or a quarter of her value left.
In the end, I no longer have debt and have only 1/4 of the farm I had before.
The alternation of cycles of high and low liquidity is a pump that sucks real wealth.
So, you need to recall the concept of monetary correction.
The costs of any contracts (at least in Brazil and I believe in a significant part of the world) include interest + monetary correction.
The problem is that the low liquidity + inflation cycle produces a mismatch between my receipts and my obligations.
So much for the real assets of the masses…
DESILUDID: – my farm is sold (at depressed prices because of the crisis…)
Here you are telling us current real estate prices matter
DESILUDID: … the fact that it is debt monetized by inflation means nothing.
And here you asure us inflation does not matter (?)
Você está fugindo da questão principal: a alternância de ciclos de alta e baixa liquidez, salpicada com inflação em momentos convenientes, faz com que ao final eu perca patrimônio real.
Motivo: eu não consigo saldar as minhas dívidas, por mais que a minha prestação tenha seu valor real diminuído pela inflação.
Lembre-se, o banqueiro teve apenas o trabalho de digitar alguns números em seu teclado para criar o dinheiro que ele me emprestou e ao final levou a minha fazenda…
YANDEX
You are evading the main point: the alternation of cycles of high and low liquidity, peppered with inflation at convenient times, causes me to lose real equity in the end.
Reason: I cannot pay off my debts, even though my installment has its real value decreased by inflation.
Remember, the banker had only the trouble of typing a few numbers on his keyboard to create the money he lent me.
Yes, very interesting! ‘work underway’ without operational details from China seems a more accurate time frame than analysts who have been saying through the SMO that the world’s economic system has already changed.
The proof will be in the pudding, so to speak, when the CNY/USD actually changes materially*, western financiers and war criminals face arrest warrants in the BRICS+ nations, corporate IP is rejected, dealers like apmex charge a bunch more than 2K USD to ship a South African Kruggerand to your flat, etc.
*For those who don’t know the minutiae, the Chinese currency is loosely pegged to the US currency. So any international reserve system based on BRICS is still fundamentally tied to the USD unless/until China sends the USD the way of currencies like the Turkish Lira or Argentine Peso. Among the many unanswered questions include what would that do to China itself and what about the other imperial currencies (Euro, Yen, Pound, Won, Swiss Franc, Can dollar, Aus dollar, etc.)
This is great news. Indeed the US is becoming more and more segregated with each passing day. Now there’s a new Colombian President in the office, and it looks like the US has lost most of its footholds in South America. Another important piece of news today is that the Revlon company, maker of cosmetic products since almost 100 years from New-York, has officially filed for bankruptcy. There’s no doubt when the new SPFS gets going, a whole lot of countries will be joining the system. Also Russian FM Sergei Lavrov will be in Tehran today for further discussions with his Iranian counterpart.
I would be so happy if I could send some money to Faina Sevchenko to fund her higher education. Any concrete information whether the BRICS bank connection with MIR has been operationalized?
Now we are guarantied to have WW3.
Thanks to the Empire, WW3 began quite a while ago, I’m afraid… It is now accelerating and spreading throughout the world.
I am sure of that. But “World War” has now become a euphemism for Nuclear War. It’s inevitable to stick to conventional war as it stands till now if they escalate and clash with the Russian army. They don’t have the balls to handle the collapse as the Soviet Union handle it.
“What are nukes for, if we can’t use them?”
What has never been clear to me is why they make such a fuss about currency settlements between countries. The true backing of a currency is what it will purchase. A ruble is worth what can be purchased with a ruble.
The earlier method of settlements that was used when bullion coinage quit being used was correspondent bank balances. The big high status bank in the big city would accept money (or debt instruments) from small bank so long as small bank had an account in the big bank. The account was the “reserve” to insure payment by small bank. In the other direction, small bank was usually by circumstance locked into accepting payment on money that was drawn on big bank. And that was that. No more need be done.
I suspect what is going on is that these elaborate settlement methods tend to empower those who set them up, and that is why they are set up. Russia needs to set one up for reasons of competing with the other side, but otherwise I doubt it is inherently necessary or desirable. Let the people who are doing the buying and selling negotiate price and use correspondent bank balances to ensure payment.
The Bulgarian govenment lead by Kiril Petkov has fallen after a vote of no confidence was accepted by the Bulgarian parliament. Who knows, this is the first domino stone…
Maybe not the first domino, Eternally. BoJo only scraped through a vote of confidence and is doomed; Macron lost parliament, Morrison in Australia was kicked out, and numerous other governments have fallen. It doesn’t mean these crooks will be replaced by anyone better, but it’s still wonderful seeing the people responsible for the mess of the last two years getting their just desserts.
Loosing their job an retiring on a .gov pension is one hell.of a long way from ” just deserts” Steve. More appropriate fates would be a firing squad or a lamp post ornament
To the benefit of 85 % of humanity, a truly new world order is being developed in earnest: promising international institutions are indeed being created and put in place.
Shortly, advantageous alternatives to the Empire’s rules and institutions will flourish… at last.
A lesson for the West: sooner than later, that is what unacceptable, arrogant hegemony inevitably leads to.
Doing a sort of SDR within the anti dollar alliance might make sense. I don’t quite see how a new international trading currency would work, however.
I wonder about they handle trade imbalances. I would think it would have to use strict mercentalism. Although, maybe that strict balance is implied by its being for trade and not a reserve currency. And if so, what is the advantage of it vs currency swaps that exist already?
” I wonder about [how] they handle trade imbalances. ..”
Suggestion: don’t think MONEY as a trade imbalance anymore. Assume all money is now equal. Assume all people have a certain amount of it.
Think: of a universal cost common to all trade: LABOR
Think: “UNITS of LABOR” that covers the cost of production for any product. For any product produced by any country.
Think: Only UOL costs for these items are factored into EVERY TRADE transaction.
With all money being equal, a universal standard for labor costs per diem, per product, per person is needed. Expect costs then for similiar products, to be near same world wide, when labor unit is same. Or if not, then adjusted for level of skill.
Differences in trade could be adjusted by additional product to balance the next equation. Or a currency note (digital) presented as a YOU OWE ME to recover an imbalance in future trade. No ‘interest’ needed because no money was lost except LABOR time.
…. just some thoughts. Greatly oversimplified. When doing simple transactions with friends/people, time (labor) has always been the common denominator when returning time/labor owed. Level of skill adjusted per task.
Eight,
The SDR seems prone to false market signals. It’s likely a stepping stone to gold backed currencies. TBD
I don’t think there is any theoretical reason – “economics” – why it should not work well. There are theoretical reasons for why using a financial system for economic war against a rival that is not being defeated militarily, and even in times of peace, is bad.
Nothing like throwing the western banks under the bus, and then driving forward and backward over them.
U.S.A. has just achieved third world status.