BRICS vs The Dollar
This is The BRICS Alliance part 4 of 4, the finally, BRICS vs the Dollar. Did you know that many countries use our Dollar for their country’s currency? Unlike the countries that joined the BRICS cabal, these countries decided to use the Dollar on their own with no affiliation with any group including the USA. They adopted the buck because of their country’s inherent instability and our history of financial stability. Even when there is great upheaval in the marketplace, and things look bleak in America, they are bleaker elsewhere. We traditionally weather the storms better. No reason to think the BRICS Alliance will fare any better.
A Way To Attract Foreign Investors
Some countries figured using the dollar as currency would help them to better attract foreign investors. Even if the government crashed, all the invested assets would still be in greenbacks. Ecuador, El Salvador, and Panama are some in Central and South America who use Dollars. The Caribbean countries of Turks and Caicos Islands, the British Virgin Islands, and the Caribbean Netherlands are included here. Hummm…British Virgin Islands huh? Even the African nation of Zimbabwe (which used to be Rhodesia) uses our greenbacks as their coin of the realm. There are others too, but I won’t bore you with a list of third world hellholes, but there are more.
Have you heard of Petro Dollars?
Petro Dollars
The world’s oil trade is carried out in Dollars. Even the BRICS countries trade in Petro Dollars, much to their chagrin. Throughout the Middle East, the Dollar is the backup currency for many countries. Heard of Baghdad Dollars? The government of Iraq made trading in Dollars illegal in an attempt to raise the value of their Dinar. People there believe in the value of the buck.
The BRICS countries are starting to trade with each other in their own currency. That may work with countries like China and India where there is a market rate on value, but what about their partners whose currency is pretty much worthless? I can see now where somebody’s going to get offended arguing values. It’s going to be like home appraisals, it’s only an opinion of value.
Counterfeit Gold Coins??
Did you know in the Middle East they counterfeit vintage American gold coins? They use real gold too. The coin value is worth much more than the gold in the coin. That makes them pretty much undetectable. They do the same with our bills, only the quality is not nearly as good. They are apparently good enough to pass for real in bazaars and marketplaces in the back desert towns and cities of third world countries. There is no telling how many zillions of greenbacks are out there. So what, you say? What if everybody wanted to redeem them at once and we said no! Your money is fake! Speculate on the worldwide disruption that would cause, why, it would bankrupt many countries, including ours. World trade would halt. Everybody would lose trust in money. The only thing that keeps it going now is the belief that it represents value. It’s all fiat money anyway. If we collectively believe it has value, life goes on.
The China Element
If the BRICS faction succeeds, well, I’ll leave that to your imagination, but it won’t be good. I can almost picture China salivating, hoping something will finally go right for them. So far their hundred year plan keeps going off the rails. If it weren’t for slave labor and money manipulation, they would be in dire straits. Now their real estate juggernaut is imploding, compounding their economic problems. Mark my words, when their Belt and Road scheme starts to default and they call the many third world countries that are in their debt to pony up or else, they are in for a surprise. It’s apparent they don’t understand it’s the debtors who are in the position of strength. They will find soon enough that they are at their mercy, something that is in short supply in countries like Nigeria and Ethiopia. It could easily become their Viet Nam, only in dozens of little jungle countries all at once. Gonna be a lot of dead Chinese soldiers all over the globe. We do live in interesting times.
