Would appreciate your thoughts on the BRICS countries possibly announcing going to a gold standard in August. Seems bearish for USD. Bullish for Brics currencies?
That's not really my cup of tea but I doubt they will go to a gold standard because it would be monetary suicide. Trade volumes among the BRICS are insignificant to the volumes they trade in US dollar, so it wouldn't have much of an impact. They are also not friendly with each other (India and China as the two biggest "members" are even fighting over borders and if the Himalayas wasn't between them, they'd have fought a couple of wars already), they don't share something like a common culture or even close proximity. Even if they plan to issue a BRICS currency to trade amongst themselves... what will they do with it? None of the BRICS have deep, liquid and free capital markets where they could invest it, China has capital controls in place, Russia is a joke and India is pretty very closed.
To cut it short, in my opinion it's not going to happen and even if it happens it's going to be largely irrelevant. But again, I'm not well-versed in geopolitics, so take my opinion with a huge grain of salt.
Would appreciate your thoughts on the BRICS countries possibly announcing going to a gold standard in August. Seems bearish for USD. Bullish for Brics currencies?
That's not really my cup of tea but I doubt they will go to a gold standard because it would be monetary suicide. Trade volumes among the BRICS are insignificant to the volumes they trade in US dollar, so it wouldn't have much of an impact. They are also not friendly with each other (India and China as the two biggest "members" are even fighting over borders and if the Himalayas wasn't between them, they'd have fought a couple of wars already), they don't share something like a common culture or even close proximity. Even if they plan to issue a BRICS currency to trade amongst themselves... what will they do with it? None of the BRICS have deep, liquid and free capital markets where they could invest it, China has capital controls in place, Russia is a joke and India is pretty very closed.
To cut it short, in my opinion it's not going to happen and even if it happens it's going to be largely irrelevant. But again, I'm not well-versed in geopolitics, so take my opinion with a huge grain of salt.
thank you, great coverage!
Thanks 🙏
Great work 🙏🏻😍
Thank you! 🙏
Awesome as always. Thank you!
🙏 Thanks for the kind words!