BRICS gold backed currency

[maithil]

India has already rejected this proposal. Good luck with creating a BRICS currency without I.

 

[Skull and Bones]

Depends on China and other countries will. If some countries join in BRICS for pure personal interest and has no intention caring other's interest. It will not have good end. Especially India, who always acts as an organizations destoryer.

Why would a sovereign country adopt currency of a foreign country which doesn't share mutual interest? How is it any better than USD?

 

[kankan326]

Why would a sovereign country adopt currency of a foreign country which doesn't share mutual interest? How is it any better than USD?

It will not be necessay for India as long as it stays poor.

 

[Skull and Bones]

It will not be necessay for India as long as it stays poor.

Thanks for your concern.

 

[jhungary]

I guess they will float Digital gold on blockchain.

Lol you might as well back it by bitcoin...

Would love to see them actually do it, bear in mind the 46% of gold that public own are freely teachable and not all 54% of the other gold were in some ones central bank, and they are distributed with different countries. So there exist a scenario that some one own more gold than each central bank is holding. That would be fun

 

[jhungary]

Sounds bad tbqh.

Thats actually extremely stupid thing to say.

You can either back said currency and link it to a tangible thing ie gold silver or salt (yes back in Roman time people use salt as currency) or back it by trust of your own currency, ie fiat or USD

What he said is they want to back BRICS currency but the Chinese don't want to pay for it and use gold as a compromise.

First, thats still YOURS gold, so China will still be paying for it with the gold in bank vault. You are just bleeding gold not bleeding money.

Second, I suspect what his compromise was they should define RMB with gold in BRICS currency separately because gold is extremely limited. Which mean he is literally saying China should back BRICS currency with air. So China don't bleed both RMB nor Gold....

 

[Song Hong]

Gold price is suppressed deliberately by US while US is giving reasons that not enough gold to back up monies. Once the true price level is reveal, gold will see big upward adjustment.

This is a win win for all except that China will pay a higher price.

India has hoard large amount of gold. While China is a big gold producer, her mines are poor in grade. China will sacrifice.

S Africa and Russia has gold mines. So SA and Russia will do the minting instead of US FED. This is far better.

 

[REhorror]

Thats actually extremely stupid thing to say.

You can either back said currency and link it to a tangible thing ie gold silver or salt (yes back in Roman time people use salt as currency) or back it by trust of your own currency, ie fiat or USD

What he said is they want to back BRICS currency but the Chinese don't want to pay for it and use gold as a compromise.

First, thats still YOURS gold, so China will still be paying for it with the gold in bank vault. You are just bleeding gold not bleeding money.

Second, I suspect what his compromise was they should define RMB with gold in BRICS currency separately because gold is extremely limited. Which mean he is literally saying China should back BRICS currency with air. So China don't bleed both RMB nor Gold....

Honestly it's better to have some fiat e-currency like Euro instead of gold-backed anything.

 

[Song Hong]

Initially fiat was floated. After careful consideration, you cannot align monetary policy of China, which is a running surplus and India, which is running deficit. BRICS is not as if Europe where most people would listen to Germany on monetary policy.

India hate China and always go 180 degree on China position.

India would want a big printing press while China will want to have monetary discipline.

Meanwhile Russia and SA has large numbers of gold. The day when gold true value is reveal, SA and Russia will be very rich.

Some sort of gold standard is a compromise.

 

[jhungary]

Honestly it's better to have some fiat e-currency like Euro instead of gold-backed anything.

It's a non starter when there are more gold owned by private individual than government.

95,000 tons of gold in jewellery, 2600 tons in Chinese Central Bank, 8500 tons in US Federal Reserve. And gold is trading at around $60,000 a kilogram, you do the maths.

No this is a very bad thing to do

 

[Song Hong]

Anything is better than the hyperinflative FED. You want to sell you land, iphone to US in exchange for papers.

US will see hyperinflation once very soon.

Now China is bailing US out.

I see PBOC Yi Gang as big traitor.

 

[hirobo2]

China will lose a lot of profit to support that currency. And other BRICS members will make profit from it. But if China loses 1 dollar, as long as USA loses 3 dollars, it still meets China's national interest.

It's NOT a good idea to support multiple currencies. Just go to Cuba for a short vacation to have a look. They have 3 local currencies. It's a hassle and nightmare for their government to have had created them and deal with the consequences afterwards.

 

[JSCh]

Not sure how is that gonna work.

The US dollar is back by the promise of the US gov't.

But looking at recent history of how the US keep expanding its debt and balance sheet, and what happen to the Russian Foreign reserve in US dollar, it seem expedientially prudent to have some other alternative that has better security.

 

[MH.Yang]

I can do you one better

46% Of all gold mined is now in private procession, its in your jewellery, your phone, your computer and even ur sushi or in you (if you ate that sushi)

How did government regulate gold price when almost half of them are in private citizen hand?

Just do it like the Hong Kong dollar. Use gold and foreign exchange reserves to back the currency.

 

[jhungary]

Just do it like the Hong Kong dollar. Use gold and foreign exchange reserves to back the currency.

So you are saying let's go back to 1873 when HKD was last pegged to gold?

Modern day HKD was never backed by gold....