by Dennis Miller, Miller On The Money:
Chuck Butler and I recently discussed how government deficit spending, and monetizing the debt has caused a worldwide awakening. Inflation is killing the value of the dollar, and our creditors understand that.
But wait, there’s more! The interview continues….
DENNIS: BRICS used to stand for Brazil, Russia, India, China and South Africa. Global Research reports, Doomsday for the Buck? A Reserve Currency Is No Longer Needed.
Quoting Paul Craig Roberts:
TRUTH LIVES on at https://sgtreport.tv/
“It was Washington’s economic sanctions against Russia, the theft of Russia’s central bank reserves, and the theft of Venezuela’s gold, not the conflict in Ukraine, that weaponized the US dollar and resulted in global realignment.
…. The US dollar is used as world money to settle imbalances in international trade, but the sanctions woke the world up to the risks of using the dollar.
Consequently, the BRICS suddenly expanded, (adding) Argentina, Egypt, Iran, Saudi Arabia, and the United Arab Emirates. The organization now contains essentially the entirety of world oil production and 40-45% of World GDP.
…. Saudi Arabia announced the end of the petrodollar when it began accepting payment for oil in other currencies. The BRICS are working out how to carry on trade among themselves without use of the US dollar, which in effect brings to an end the role of the dollar as world reserve currency.
…. What this means…is that the US will begin having financing problems for its large budget and trade deficits. As long as the dollar was the world money, foreign central banks kept their reserves in US Treasury debt.
…. The situation is changing. If…about half of the world’s population and 40-45% of world GDP cease using the dollar, the foreign central bank market for US debt shrinks considerably. Having offshored its manufacturing, the US is import-dependent.
Declining use of the dollar means a declining supply of customers for US debt, which means pressure on the dollar’s exchange value and the prospect of rising inflation from rising prices of imports.”
RT adds fuel to the fire:
“In terms of oil reserves, BRICS will also control nearly half of the world’s total, 719.5 billion barrels out of 1.6 trillion. If Venezuela, which has recently applied for membership, is accepted into its ranks, the group’s control will be even greater – around 65.4%. In comparison, the G7 group …. (The US, UK, Germany, Italy, Canada, France, and Japan) controls only 3.9% of known crude reserves.”
This is overwhelming; let’s break it down.
Chuck, Nixon cut a deal with the Saudis creating the petrodollar, solidifying the USD as the world currency. Because the US weaponized the dollar, aren’t the BRICS really uniting to reverse the process?
If so, why does the world need dollars?
CHUCK: Well, that’s the point, isn’t it Dennis? Even Gomer Pyle shouldn’t be surprised. It should have been expected.
When the Saudis removed the USD requirement for oil contracts, the game was over. No longer THE PETROL DOLLAR, is the death knell.
Weaponizing the U.S. dollar doesn’t’ mean adding guns to it; shutting Russia out of SWIFT, and freezing their dollar assets in the U.S., was considered to be weaponizing the dollar.
The world saw this and said, “if the U.S. can do this to a country like Russia, they sure as hell can do it to us”. “Weaponizing” the dollar through exclusion of the SWIFT payment system forces other nations to seek other alternatives to trade freely in the world market. They must protect their citizens and be able to sell their exports in order to survive. Our government’s actions really accelerated the demise of the dollar as the world currency.
They began reducing their dollar reserves and buying Gold. Central Banks around the world bought 1,136 Tons of Gold in 2022; a record for a year’s worth of buying! Can’t say I blame them either…
Once countries realize they have no need for dollars in reserve; there goes the neighborhood!
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