Say goodbye to the dollar

Trevor Loudon
New Zeal

Commentator J.R. Nyquist on the recent BRIC Summit and a probable Russian/Chinese attack on the US dollar.

The BRIC Summit, held on 14 April in Sanya (People’s Republic of China), brought together the leaders of Brazil, Russia, India, China and South Africa. The key to understanding the summit may be found in the joint statement, which refers to “the inadequacies and deficiencies of the existing international monetary and financial system….” Without question, this statement is about eliminating the U.S. dollar as the global reserve currency. Therefore, the BRIC countries are asking for “the reform and improvement of the international monetary system, with a broad-based international reserve currency system providing stability and certainty.”

The United States appears to be a well-ordered and stable society. How could anyone seriously hope to challenge the economic might of America? Yet, there is reason to worry that America’s strength has long rested on a false foundation. Slackness, intellectual laziness, obesity and cultural degradation – are causes for serious concern. Under a regime of false expectations and artificial stimulants, the United States has been weakened financially, and is ill-prepared for further trouble. Yet trouble may be on the horizon.

It appears, with the addition of South Africa to the BRIC alliance, that gold is being contemplated as a means for backing a new reserve currency. China and South Africa are the two leading gold-producing countries. Russia is the sixth leading gold producer, and Brazil is 15th. But this is not an easy game to win, because the dollar’s position is almost unbeatable. Furthermore, the United States, Canada and Australia have steady gold production. But here, at the BRIC Summit, a serious challenge is being mounted. If the dollar is to be overthrown, a humble beginning must be attempted. And who knows what countries will join the BRIC Summit next year?…

…By now it should be apparent that Russia and China intend to launch an attack against the U.S. dollar.

Do we yet realize that such an attack is possible? And have we reckoned the political consequences? As these words are written, a small minority of persons inside the United States are trying to stir up a revolution. If the economy continues to function, these people have no chance of success. But if the U.S. economy collapsed, the extremists of Right and Left would gain millions of followers. The greatest potential for harm would then come from inside the country, through internal conflict. Political revolutions occur from time to time in all states; and they are to be dreaded…

Read the entire article at New Zeal.

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