October 4, 2023

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Rapid Developments: The End of the Dollar – This is the new super currency

Rapid Developments: The End of the Dollar – This is the new super currency

dollar: The global economic map is changing With the dollar running out!

Ahead of the BRICS summit in August, the dollar is said to be nearing its “end” as the BRICS prepare to launch a new currency based on… gold.

According to investor and economist Robert Kiyosaki, the dollar is in the red. While the BRICS countries (Brazil, Russia, India, China and South Africa) put forward the idea of ​​launching a new currency on the table.

According to Robert Kiyosaki, this move by the BRICS group could be “fatal”, because it would lead to the US losing its status as the world’s reserve currency.

He emphasized: “One of the biggest changes in world history will happen on August 22, 2023, the BRICS countries have a summit in Johannesburg to issue their gold-pegged currency.”

The US dollar in 1944 became the main reserve currency in the world, and this means that central banks around the world have trillions, not billions, and trillions of dollars in their banks. That will probably change now.” The US dollar will die. Trillions of dollars are coming home. Inflation on the roof. Buying gold and silver.

Robert Kiyosaki, an ardent proponent of Bitcoin, said that Bitcoin would benefit more than anything else from a changing world order and the loss of US reserve currency privileges. Confirmation that the average person will start to appreciate and use Bitcoin.

China is leading the campaign against the dollar by promoting the use of its currency in trade, and the world’s central banks now use a record amount of the yuan through currency swaps.

Earlier this year, Russia and Iran revealed that they were working on a gold-backed cryptocurrency to take over the dollar, but said the plans could only move forward once Moscow regulated the use of the digital asset. Recently, India has encouraged the use of rupees in trade.

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But even as these efforts gain momentum, the dollar remains the world’s leading reserve currency, accounting for nearly 60% of global currency reserves, Markets Insider reports.

However, while Kiyosaki has a negative view of the dollar, Nobel Prize-winning economist Paul Krugman has suggested that fears about the imminent deregulation of the dollar are unfounded.

After the end of World War II, at Bretton Woods, the dollar was “appointed” as the world’s main reserve currency.

The dollar was pegged to gold at an exchange rate of $35 an ounce.

However, in 1971 the dollar was de-pegged due to insufficient US gold reserves.

A few years later, US Secretary of State Henry Kissinger visited King Faisal of Saudi Arabia to broker the petrodollar regime.

The United States agreed to provide military support, and in return the Organization of the Petroleum Exporting Countries (OPEC) would buy oil globally in US dollars.

This created compound demand because the countries that bought oil would need dollars, which in turn allowed dollars.

However, the dollar’s dominance may be coming to an end.

In 2021, Saudi Arabia and Russia signed a military cooperation agreement. The United States is no longer the only “protector” of Saudi Arabia.

In addition, at this year’s World Economic Forum in Davos, Saudi Finance Minister Mohammed Al-Jadaan announced that the kingdom is open to trading in currencies other than the US dollar – something it has not done in nearly 50 years. Signs of de-dollarization are emerging.

The dollar: the end of the euro!

The end of the euro is a reality Indeed, the new currency He will announce from Athens.

In Athens, the European Central Bank’s Governing Council will meet on October 26 to announce its crucial decisions, not only regarding euro interest rates, but also a landmark project in the history of the eurozone – digital. euro.

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It has been known for months that the ECB will give a “signal” to issuing a central bank digital currency (Central Bank Digital Currency – CBDC) – most likely – from 2025 next October.

Two years ago, in October 2021, the central bank began exploring the advantages and challenges of such a decision, ostensibly leaning in favor of creating a European digital currency.

Sources familiar with the proceedings explain to Capital.gr that the digital euro will take the form of a wallet that citizens will “carry” in euros from their bank accounts.

This means that the role of commercial banks has not been eliminated with the launch of the unified digital currency, but they will remain an important part of the ecosystem.

For this reason, consideration is being given to setting a cap on the liquidity that citizens will be able to keep in digital euros, in the range of 2,000 or 3,000 euros per user.

The goal is to use the digital euro as a medium of exchange only and not as a means of accumulating wealth.

According to competent sources, the goal is to prevent the digital euro from operating in competition with the banking system, as well as to preserve pluralism in payment methods, including cash, which will not be abolished.

The advantages of the digital euro include the speed and security of transactions – something similar to instant payments that are already made in a few seconds through the pan-European TIPS system and have the “seal” of the central bank.

Also a very important advantage of the digital euro is the zero cost of using it, which puts an end to the commissions – harsh in some cases – that banks currently charge for direct payments.

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Finally, the transactions will be completely safe as they will be guaranteed by the central bank.

In terms of the decisions the ECB will announce from Athens regarding the next steps for monetary policy, it is now clear that they are “following” the data – especially inflation – with the aim of maintaining price stability.

However, the supervisory sources of Capital.gr appreciate that it will be difficult to decide on a new interest rate increase at the September or October meeting, after the recent increase of 25 basis points to 3.75%.

In order for the Eurozone central bankers’ visit to Athens for the historic meeting to go smoothly, the Bank of Greece has been in frantic preparations for months.

In this context, the second floor of the main building of the Council of Ministers at Panepistimio and Omero Streets is completely renovated in order to create the appropriate rooms and spaces needed for the meeting to take place.

For example, ECB protocol requires that each central banker – and member of the board of directors – have his own personal office, while a suitable press conference room is also set up.

As for security, the visitation standards are very high, as it relates to guarding personalities.

For this reason, the security personnel of the Central Bank have been intensively trained since the beginning of the summer by the Greek police in order to deal with the particularly increased demands for the visit of European Central Bank officials to Athens.