this post was submitted on 06 Jul 2025
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Does US executive branch thinks the absence of a BRICS currency will halt or slow the decline of the USD, or that the establishment of a common currency speedrun it? I'm guessing the horrific deficit is doing that on its own, and am looking for missed interest payments in the immediate future. Probably hyperinflation as well?
The US government fear the loss of a sanction weapon more than anything USD price related. If a BRICS currency happens, they can't freeze out their enemies from international trade.
BRICS is already establishing one or more various currencies/currency related programs through various methods and different extents, with different purposes and goals, namely gold or trading essential commodities.
I think the real fear for the U.S., would be the fall of the petrodollar system or an enormous economic crash of the U.S. empire.
The reason the US moved away from the gold standard was due to the limits of gold supply back in the 70s. It's interesting that BRICS is trying to go back to using gold.
For the petrodollar, I think the US is seeing the Triffin Dilemma in effect:
If the US has to provide a certain amount of USD so the rest of the world can trade oil with each other, it has to print more currency leading to domestic inflation.
If alternative currencies become more dominant, it actually could help the US reduce inflation. For the rich US capitalists, it's going to be worse because their assets won't be flying upwards in price any more. But for normies, it might provide some relief.
Ah, that makes a lot of sense, thank you. It also makes sense that the UK is eager to continue supporting bad US policy. The EU could only stand to gain from a BRICS currency, but the money masters must be fed their allotment of bodies ("We'll coup anyone we want, deal with it!”). From what I understand, Iraq trying to change food-for-oil account from petrodollar to Petroeuro, is that correct?
Can we please confiscate dystopian sci-fi novels from the ultrawealthy and send them somewhere for guided Ayahuasca trips for a few .. centuries?
Yes. The PetroEuro was Iraq trying to move away from USD and take advantage of interest rates and the rising Euro. The US invaded and overthrew Hussein, forcing Iraq to switch back to USD.
I think the point of the BRICS currency is to give stability for global trading. Something that currently Trump is threatening with all the dumbass financial and trade moves to MAGA. BRICS isn't trying to collapse the USD. There's just less demand for USD when BRICS trade with each other using currency swaps as they do now.
I don't have a good understanding of how gold is going to back this BRICS currency so I am interested in what the next moves are.
As for Europe and UK, fuck em I reckon austerity nuts are going to cut all sorts of government spending. I don't see any big moves to save themselves economically.
Well Western Europe better wake up PDQ. I wonder if Britain are kicking themselves yet, for Brexit?
US debt is in US dollars and the US can print as many as they like. Not making an interest payment would be a political decision, not an economic decision, and has nothing to do with the level of debt or rate of interest. All historic cases of hyperinflation involved countries whose debt was denominated in a foreign currency. The US will have inflation but it will not have hyperinflation.
Also, there will be no "BRICs currency" as they have nothing in common aside from a vague sense of alienation from the US-built world economic system. Infighting will break apart anything they try before it gets off the ground. These countries are more suspicious of each other than they are of the United States. As such, they have brief periods of limited cooperation followed by nothing or something worse than nothing.