BRICS Summit - 8-22 - 8-24

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The block of nations known as the BRICS (Brazil, Russia, India, China, S.Africa) are having their summit in Johannesburg Aug 22nd - Aug 24th.

A lot of rumors about them introducing a gold-backed currency. I think it will be PEGGED to the price of 1 ounce (or another weight) of gold, denominated in US Dollars.

If they do this, the West is done. As the West continues to print $, it will increase the price of gold and therefore, the price of this new currency - for lack of a better word, lets call in a BRICK. The BRICK will be used to settle international trade payments - not as a world reserve currency. Russia and China would love to keep the US dollar as the world reserve currency because it will just strengthen their BRICK.

Another key part of this summit will be to see if Saudi Arabia joins the BRICS as well as up to 40 other countries and if so, does Saudi Arabia allow the sale of oil in currencies other than the USD.

Interesting times that we live in.

 

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About a week following this summit, the FDIC will release its report on the banking system for the 2nd quarter. I expect this report to be poor - with many troubled banks listed. It looks like this fall will be interesting in the financial world. Buckle up

 

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Saudia Arabia, the UAE, Ethiopia, Argentina, Egypt and Iran invited to join BRICS in Jan 2024.

With those additions, BRICS will control 80% of the global oil supply.

PM of India talked about restructuring the organizations that were founded at Bretton Woods. That would be the World Bank and the IMF.