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Bryan's avatar

Seizing Russia’s reserve was the biggest mistake made by the US , next to overthrowing the government in Ukraine. It marked the beginning of the end of dollar hegemony which marks the end of US hegemony. The big question is whether the US will join a multi polar world or start a war to try to keep a unipolar one.

Joan Rupram's avatar

I think latter

Mark S.'s avatar

So Nixon took us off the gold standard in 1973 and we went to a fiat currency backed by nothing. The Petrodollar somewhat softened the blow. So now the BRICS nations want an alternative to the dollar backed by gold, how convenient. As J.C. Collins wrote about in his most excellent 10 part essay titled "SDR's and the New Bretton Woods" China hording gold was an expected move. The plan as described by Collins was to abolish the Federal Reserve and move the G8 into a basket of currencies at the IMF which would be backed by Gold and other precious metals and each country would get a piece of the pie determined by several factors and several metrics. What you are describing has been talked about before.

Julien Brault's avatar

So national currencies are turning into gold backed digital currencies?

Andrew Ridewood's avatar

No, gold convertability is backstopping trade surplus currency.