Greg Hunter – Analyst and financial writer John Rubino has a new warning about the fate of the U.S. dollar with the announcement next week (Aug 22–24) of the new BRICS (Brazil, Russia, India, China and South Africa) currency. There has been lots of speculation about it. Will it work? Is it gold backed? Will it immediately replace the U.S. dollar? 30 countries in all have signed onto the BRICS currency experiment.
Rubino contends, “No matter what shape it takes, the new BRICS currency is bad for the dollar. . . . You don’t want to be an enemy of the U.S., but neither do you want to be a target just because you are doing what you think is right in the world. . . then the U.S. comes in and destroys your banking system. That is now a real possibility for a lot of countries.
If you take the BRICS countries . . . and you add in all the other countries who want to join the BRICS coalition, and that includes Saudi Arabia and Mexico, you take all those countries together and, basically, you have half the world’s population and half the world’s GDP. So, this is not trivial.
This is a major potential currency block, or trading block that is a real threat to U.S. dominance in the world. The sad fact is it’s our fault. The U.S. made this bed, and now we have to lie in it.
We blundered around the world starting wars, overthrowing governments and bombing anybody that gets in our way. The world is just about at the point where it’s done. Regardless of what is going to happen at the BRICS meeting next week, it’s part of a trend of countries looking for ways to avoid dependence on the dollar and the dollar centric financial system.
We could be seeing the end of U.S. dominance . . . dollars will still be used for trade, but the peak of the dollar could be happening before our eyes right this minute.”
The other thing you cannot shrug off is the inflation the Fed has been trying to snuff out with interest rate increases without pushing it back down.
According to Rubino, this is also bad news for the dollar, and he goes on to say, “Even if they don’t do anything (next week) and they just planted this seed, it still started a conversation where people have to learn the difference between a fiat currency and a gold-backed currency.
The more people that know that, the better it is for gold because you always come down on the side of a gold-backed currency once you understand it. So, none of this is good for the dollar. Also, when people realize the reason why the BRICS are considering a gold-backed currency, and it is because we weaponized the dollar.
So, we are inflating the dollar away, and we are using it as a weapon at the same time against the rest of the world. . . . We pushed Russia into this war, and then we froze foreign exchange assets in western banks. The rest of the world is looking at this and thinking, wow, am I next? Is the U.S. going to do this to me? Maybe we should have this other currency?”
Rubino was one of the first to sound the alarm on the extreme problems in the commercial real estate market. Fitch is threatening to downgrade the credit ratings of some very big U.S. banks. Rubino says, “This, too, is negative for the dollar.”
Rubino also talks about the possibility of a world war, a civil war and a financial crash that is coming sooner than later.
There is much more in the 37-minute interview.
Join Greg Hunter as he goes One-on-One with financial writer John Rubino and his new enterprise called Rubino.Substack.com for 8.15.23.
SF Source USA Watchdog Aug 2023