Something big has happened in the past few weeks, but the American news media doesn’t seem too concerned.
But they should be. We all should be.
What I am talking about is not President Trump’s arraignment, but the news coming out of Saudi Arabia, Russia, and China and how there is a clear shift in US power.
And what’s happening is likely to cause the fall of the United States as a global superpower. And it may all come down to the fall of the United States dollar.
While the US dollar has been the king of currency for several decades and used as the primary currency for global trade and investments, there has been a major push in recent weeks from other nations (including US allies) for de-dollarization.
BRICS Gaining More Influence
BRICS is an acronym for Brazil, Russia, India, China, and South Africa.
It was originally launched as BRIC by Jim O’Neill, a former Goldman Sachs economist.
It focused on the four countries that Goldman Sachs’ Global Investment Research Division believed would reshape the world economy.
South Africa joined the collective in 2010.
Saudi Arabia, Iran, and Algeria applied to join BRICS in 2022. Afghanatian, Turkey, Egypt, Indonesia, and Argentina are expected to become additional members soon.
Other likely contenders for membership include Kazakhstan, Nicaragua, Nigeria, Senegal, Thailand, and the United Arab Emirates.
“If accepted, the new proposed BRICS members would create an entity with a GDP 30% larger than the United States, over 50% of the global population and in control of 60% of global gas reserves,” according to Silk Road Briefing.
This amount of clout on the global stage should be worrisome to the US…and the fate of our dollar.
Especially since this collective of different nations aims to create a new currency that can be used for trading, which would mean not being forced to trade using the US dollar.
First Post explains, “BRICS nations are intending to change the dollar-dominated system, which would eventually lead to de-dollarization across the globe.”
In recent weeks, China and Russia have agreed to trade in their own currencies, as well as China and Brazil.
Kenya is now buying oil from the Persian Gulf using its own currency and has been very vocal about ending dollar dominance.
And the UAE has begun accepting the Chinese yuan for gas.
And just this week, Brazil’s president called for an end to the US dollar’s international trade dominance and suggested other countries replace the dollar with currency of their own.
These moves have serious repercussions for the US.
The Push to a Multipolar World Order
If you don’t know much about how the US dollar works regarding the world order, the main thing you need to understand is that the power of the US dollar is what gives the US its global power.
The US dollar became the world’s official reserve currency in 1944. The decision, called the Bretton Woods Agreement, was made by a delegation from 44 Allied countries.
Since then, the dollar has enjoyed a powerful status in the world.
And it has given the US a disproportionate amount of influence over other economies as we use it as a tool to achieve our foreign policy goals.
Other nations are tired of the amount of status given to the US dollar (and the US, as a result).
With the BRICS standing up to the US, smaller countries are following suit.
Günther Maihold, deputy director of the German Institute for International and Security Affairs explains, “The founding myth of the emerging economies has faded. […] The BRICS countries are experiencing their geopolitical moment."
They want to be an alternative to the G7, which is composed of the world’s most advanced economies.
Why the Dollar and US Influence Is in Decline
The US dollar is the world’s longest fiat currency, but it may not be for much longer.
For decades, the US has been able to use the US dollar for trading to hold power over other nations.
The recent surge of nations looking for de-dollarization is due to a combination of events.
Global Times claims, “The US irresponsible monetary policies have time and again caused negative spillovers to developing countries. The 2008 US sub-prime loans caused a global financial crisis, the US Federal Reserve's ultra-loose monetary policy after the outbreak of the pandemic in 2020, and currently, the radical pace of its financial tightening, have all hurt other economies, severely. […] In addition, US-led international financial sanctions on Russia since the start of the Russia-Ukraine conflict have triggered a crisis of confidence in the dollar system.”
Essentially, many nations have lost trust in the US dollar.
Now factor in how money equates to power, and there is a real crisis of faith in the currency and the currency’s creator.
Political scientist Matthew Bishop from the University of Sheffield believes, “Diplomatically, the war in Ukraine appears to have drawn a stark dividing line between an eastern-backed Russia and the West. […] Consequently, some European and US policymakers worry that the BRICS may become less an economic club of rising powers seeking to influence global growth and development, and more a political one defined by their authoritarian nationalism."
The Meeting between China and Russia
One of the biggest pieces of news to come out in recent weeks is that Chinese President Xi Jinping visited Moscow in March to meet with Vladimir Putin with the goal of deepening economic integration and challenging the hegemony of the US dollar.
Financial Times reports, “During a visit by Xi Jinping to Moscow last week, Vladimir Putin pledged to adopt the renminbi for ‘payments between Russia and countries of Asia, Africa, and Latin America’, in a bid to displace the dollar.”
It didn’t stop there.
As a result of the meeting, China used yuan for the first time ever to buy liquified natural gas from the UAE.
Since then, several other countries have reached agreements to trade using currencies other than the US dollar.
Saudi Arabia’s Changing Relationship with the US
The growing push for de-dollarization is also changing the relationship the US has with Saudi Arabia.
Saudi Arabia announced major cuts to oil production beginning in 2023.
President Biden responded with threats.
But (and this is a big but), Saudi Arabia’s Prince Mohammed “told associates late last year that he was no longer interested in pleasing the [United States].”
Why isn’t he interested? Because Saudi Arabia has already found other nations willing to trade different currencies for oil.
Bitcoin.com Magazine explains, “This year, after a 48-year relationship solely with the U.S. dollar, Mohammed Al-Jadaan, Saudi Arabia’s finance minister, said the kingdom is open to trading in currencies other than the U.S. dollar.”
How to Prepare for De-Dollarization
It’s just a matter of time before everyone is talking about de-dollarization.
Get ahead of the rest of the population by preparing now.
- Buy food staples and cooking tools now. Keep emergency food and staples on hand as well as the tools needed to grow your own food. Invest in heirloom seeds.
- Buy gold, silver, and tangible assets. If the banks go bust, you want tangible assets to protect your wealth, including real estate.
- Spread your money across different financial institutions. You shouldn’t have too much in one bank, and you should invest in things beyond US currency, such as cryptocurrency.
- Prepare to barter. Buy things you know you can barter later, such as ammo and alcohol. Check out the top 10 barter items and skills every prepper needs.
- Don’t be dependent on the government. Practice self-reliance. Buy land, start gardening, and learn valuable skills now that will help you later.
- Stay aware. Know what is happening globally with finances. Take the time to learn and understand so you can be on the right side of history.
Be ready for what is coming, friends.
Preparedness Advisor, My Patriot Supply