The Lunatic Fringe - Market and Trade Chat

Welcome to the Precious Metals Bug Forums

Welcome to the PMBug forums - a watering hole for folks interested in gold, silver, precious metals, sound money, investing, market and economic news, central bank monetary policies, politics and more.

Why not register an account and join the discussions? When you register an account and log in, you may enjoy additional benefits including no Google ads, market data/charts, access to trade/barter with the community and much more. Registering an account is free - you have nothing to lose!

Status
Not open for further replies.
The fact is that the USA's moves of late have pushed more countries towards the BRIC's club. At some point they will hit a critical mass and become a very viable proposition globally.
 
Sounds like they still have quite a bit of technical issues to overcome, like building a competitor to the SWIFT infrastructure.
 
pmbug said:
Sounds like they still have quite a bit of technical issues to overcome, like building a competitor to the SWIFT infrastructure.
Click to expand...

SWIFT is pretty antiquated these days, also setting up a system to process cross border payments is probably the lowest and easiest hurdle in this process. They have a suite of options and new thinking served up on a platter by the Defi world.

The main issues would be around how the backing is managed in the real world, convertibility, custodians etc, etc. When you are talking physical then there has to be a trusted system.

In this sense purely gold backed would be easier, imagine oil backed!

Hey, but who really knows the details...

+ I'm pretty sure they already do process cross boarder payments outside of SWIFT in national currencies. The missing piece is a universally agreed upon store of value, i.e. the role the USD plays currently.
 
Last edited:
Here...
If international settlement agreements could be reached among BRICS countries, the BRICS currencies would only be useful in trade with the originating nation. In other words, while South Africa and India may agree to settle trade in rupees, it is unlikely that other nations would accept rupees in trade with South Africa. Furthermore, several of the BRICS countries carry a large amount of foreign debt, which must be serviced in U.S. dollars, not rupees.


Consequently, South Africa would sit on a pile of rupees that would be useless for any purpose other than trade with India. To make matters worse, while holding the rupees in reserve, South Africa would be exposing itself to currency valuation risk.


International traders use the U.S. SWIFT system to process cross-border payments because it is safe, fast, and accurate. Most importantly, it is convenient as it connects with major banks in over 100 nations. China and Russia have attempted to build SWIFT alternatives, but neither system connects with banks in Western nations.
Click to expand...

gsiexchange.com

BRICs Currencies Are Challenging The U.S. Dollar For Cross-Border Payments

BRICS (Brazil, Russia, India, China, South Africa) call for cross-border payment in BRICS currencies to challenge the U.S. dollar. Read now!
gsiexchange.com

If they create the currency and they get critical mass then they can say if you want to trade you trade through this system.
 
Last edited:
Oil and Gold that's it. And gas I'll have to ask a few of my European friends.
 
This NK --> Japan thing is a real drive by shooting. Japan to fire back? Under consideration... no love lost there!
 
This only further fuels the desire to get away from the USD...

www.armstrongeconomics.com

The World Is Pointing Fingers At The US For Attacking Nord Stream | Armstrong Economics

Even Jeffrey David Sachs, an American economist, has come out and said on TV, as the journalists go nuts, that the US destroyed Nord Stream. Everyone I have
www.armstrongeconomics.com www.armstrongeconomics.com

... from the disastrous Afghanistan withdrawal to the pipelines and everything in between it is like the current administration has loaded the shotgun, put the ear muffs on (tone deaf!) and is intent on merrily blasting away at its own feet!

fug me guys... you need a regime change!
 
Marty A...

QUESTION: Mr. Armstrong; Nobody knows history better than you. Will QE continue if we end up in war? It seems there would be no choice.

Thank you for your very enlightening blog.

PG

ANSWER: Yes. The Fed was “directed” by the White House to carry out QE during World War II. They were to prevent interest rates from rising and the debt rose. That finally led to the Federal Reserve breaking with the White House after the war when they expected it to continue for the Korean War. That is when the Fed asserted its independence.

This time, we may have a different problem. As the war unfolds in Europe, the capital will flee as usual to the States. But the money supply will have to increase because the dollar will become the only viable currency still standing. That is why you are witnessing the pound and the euro collapse. Things will unfold differently this time. The Fed has been raising rates to fight inflation that will fail because this has to do with shortages – not speculation.
Click to expand...

I saw the stress coming in Europe, admittedly not the war, but the idea was a good % would go to gold as well as the USA.

#Strong Dollar
#Strong Gold

Phase 2 launching now/soon?
 
I have to admit yesterdays action in Ag took me by surprise. Overnight looking good too. See if we can hold that tomorrow. AU not looking bad either. 1745 is the number I want to see broken in that though.
 
Status
Not open for further replies.
Back
Top Bottom