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Jeff K's avatar

Gold is real money. Everything else is a promise to pay.

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Andy Fately's avatar

Count me a skeptic. consider the euro, a currency created for a group of pretty similar, and geographically contiguous countries, and how it has been just another currency with no real shot at dethroning the dollar, although that was one of the key themes behind its creation. Now ask yourself, how will these 60 nations (or even the 5 original BRICS) create a monetary area that is better able to be synchronous than Europe. they can't and never will. plus you have the fact that India and China hate each other. do you think they want to share a currency? and as mentioned below, exactly what do they mean by gold-backed? is that at the central bank level? and if so, will the Chinese be willing to use their gold to pay Saudi Arabia when the Saudis decide to convert their BRICS currency into gold after a few years of surpluses with everyone?

This is a fantasy that has existed for a long time and will continue to exist. As if now, and for the foreseeable future, there is no alternative to the dollar as the major reserve and transaction currency.

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