BRICS Currency…….To Be Or Not To Be

Readers are asking me as to why I have not discussed the BRICS Currency in my previous article. Since the article was on peace, I limited my views in the article only to peace. As it happens, a peace summit has been called to be held in Jedda, Saudi Arabia on 4th and 5th of August. 30 countries have been invited to participate in it. Who is the sponsor of this summit? Surprise! Surprise! It is America. Let us wait and see what comes out of it. Unfortunately, for a summit on peace between Russia and Ukraine, Russia is not invited. Already invitees like Mexio and China have turned down the invitation. Will wait till 4th to know who all attend.

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Coming to BRICS Currency, readers may remember that wrote about the BASEL3 regulations to be complied with by the banks of the world had come into force on 31st December 2022, Only country which is yet to comply with it is America. America sought extension of deadline for compliance. But Bank of International settlement has rejected the request. So, America is pushed to comply. The rigging of the price of the Dollar and that of Gold must come to an end soon.

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According to Andrew Maguire, the FED and COMEX, the New York Metals exchange are forced to come clean on the true amount of gold held by FED. He also indicated that his sources from Moscow told him that BRICS Currency is very much the central point of discussion in the upcoming BRICS Summit in Johannesburg, South Africa. India did try to stall the discussion on BRICS Currency in order not to push America to emmbarrasement. But, the other members, particularly South Africa as the voice of the African Union, seem to be keen on a gold backed BRICS Currency.

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While BRICS Currency is the topic of focus, there are several other events concerning the currencies of trade and trade settlements are taking place parallelly. There are rumours that China and Russia are working secretly on a new payment system to replace SWIFT before the BRICS Summit on 22nd, 23rd and 24th of August. India and UAE announced their plan to use the payment system developed by India for their bi-lateral trade, replacing SWIFT. There are similar developments among Latin American Countries and among ASEAN countries. As a matter of fact, with digital technology in vogue, it is possible to have all of them and also have them seamlessly interlinked. Much as America may try to save its Dollar’s hegemony, it is time up for it.

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India is in an awkward position. In my opinion, India’s effort to avoid embarrassment to America is a good strategy. It doesn’t pay in annoying any country, particularly a military power. Having said that, I am disappointed with India management of Indian Rupee in the Forex market. India is supposed to be the fastest growing economy. Forex inflow to India is high. Forex reserve is increasing. Interest rate on bank deposits in India are high. Recently, India demonetised the 2000 Rupee notes and pulled out nearly 3.4 trillion rupees from the market. Any which way you look at it, Indian Rupee can not depreciate. But it is rigged to depreciate consistently. About a year ago, when the Commerce Minister Piyush Goel said that appreciating Rupee is a good idea, I thought the policy reversal of depreciating Rupee has probably arrived. It doesn’t seem to happen. FED and American Government are rigging the price of Dollar to stay powerful. India is rigging the Indian Rupee to stay in servitude. Prime Minister Modi as well as Reserve Bank of India had advised the Indian banks to promote the use of Rupee as international trading currency. How can that happen if the currency keeps losing about 10% consistently every year? India’s desire and its practice are incongruent. Sharp fall of the value of the Dollar is imminent. It is no more the question of `IF’ it the question of `WHEN’. When that happens, has the government of India and RBI thought of the chaos it would cause to Indian economy? If by any chance that think it won’t happen, they are delusional. Instead of operating from the position of strength, we would be running hither and thither to cover ourselves. Instead of being obsessed with the so-called growth oriented economy, if the present government concentrated on real and sustainable economy for a time the ensuing trauma could have been avoided.

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People think that De-Dollarisation is a recent phenomenon, post Ukraine war and the ill-advised sanctions against Russia. As early as 2017, I had written that dollar’s days are over. The article is reproduced in my book “IT Killed Capitalism. Thank You Mr. Gates”. ?For the past 50 years, Americans have been enjoying free lunch at the cost of the rest of the world. They were and are living beyond their eligibility. They lived a lavish life without working and producing anything. Investment banking, hedge funds management, stock manipulation through fraudulent methods of stock valuations are not productive economic activities. These activities are means of wealth transfer from poor and vulnerable citizens to the wealthy. They could get away with it all this while by pointing the gun. For everything there is an end. The luxurious lifestyle made Americans complacent and lazy. This got exposed in the Ukraine war. The Russian arms proved that they are decades ahead of anything that the west possess. Ukraine war is a self-inflicted injury for the west. The rest of the world have understood that Russia is the military Super-Power now. They are pouring all their pent-up anger against the west. Particularly the African countries are spewing fire at the west. They all are nursing deep in their hearts the injuries of colonial exploitation by the west. The coup in Niger is a manifestation of this anger. The military has replaced the President planted by France. When France threatened action against the military, people have taken to the streets demonstrating against France and Macron.

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In my book I had given my prognosis that, ultimately, all countries’ currency would loose value to near zero. The world is in an eternal deflation. The world is moving, moving fast, towards cultural inversion. While every country would reverse from the current growth oriented economic state to what prevailed several centuries ago. While every country will transition with minimal friction, America, as suspected and warned by me in the book has placed itself in for a crash because of its headstrong war mongering leaders. Trump as a President did so much for that country that if he had continued, he would have ensured frictionless transition. He had a wonderful relationship with every global leader. Biden in destroyed all the goodwill in no time. People talk of the un-couthed way of speaking by Trump. Biden uses the most un-cultured crass language against world leaders, unbecoming of a president. Biden has successfully destroyed the economy, credibility of America in the comity of countries and any goodwill that America had among global leaders.

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Finally, a round-up on the situation at Ukraine war. Two days ago, Ukraine launched, what it called as the biggest counter offensive. It got pulverised much faster than during the first counter offensive. Ukraine conducted terrorist attack on Crimea and Moscow using drones. All the drones were brought down by Russian air defense systems. Few drones were aimed at unprotected commercial buildings in civilian areas in Moscow. Since it happened during night, there were no casualties. Larry Johnson, asked if Ukraine was that capable, why don’t they conduct these drone attacks on Russian military targets. Why target civilians?

Angered by these drone attacks Russia conducted a missile attack on the intelligent and command center in Ukraine on 24th of July . Russia claimed that along with Ukraine soldiers, a Senior American General was killed. Coincidentally, one day after this incident, America claimed that Brig. Gen. Anthony Potts died in an air crash in Maryland while he was on a solo flight. Similarly on another attack on the command center, Russia claimed that 4 Senior Australian officials were killed. The next day Australia announced that 4 Senior officers died in a helicopter crash in the North Western Australia. In fact, every time Russia conducted an attack on any command center in Ukraine, the west will announce the death of some of their senior officials in some kind of crash. Surely all must be just coincidental.

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J Prakash

Author: IT Killed Capitalism. Thank You Mr. Gates

+919840459595

[email protected]

www.jprakashconsulting.com

Linkedin: Prakash Jagannathan

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