50 sats \ 4 replies \ @siggy47 9 Jul 2023 \ on: BRICS Gold-Backed Common Currency To Be Introduced In August bitcoin
If this happens, watch the price of gold plummet. Everyone who loves the idea of a BlackRock bitcoin ETF can sit back and watch the power of "paper" commodity price control.
What's the case for this tanking the gold price? That's quite a contrarian take.
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Yes it is. A gold backed currency challenging the US dollar could destroy the value of the dollar, the US bond market, and a big chunk of the western world economy. That cannot be allowed to happen. US banks have all the incentive to prevent that from happening. Therefore, the price of gold will be manipulated through the "paper" options and futures markets. US and British banks have been manipulating the gold price for years. In other words, gold will be shorted. If gold had been permitted to appreciate naturally through all the printing of the past 50 years, it sure as hell wouldn't be 2k/ounce.
Maybe I'm just a conspiracy theorist. I will be happy to be proven wrong
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I wouldn't be surprised to see something like that attempted. I know it's been done before, although it's not clear to me how successful those efforts have been. I think you're right about America seeing this as an existential threat to dollar hegemony, but I doubt these kinds of manipulations would do much to affect the somewhat closed system of BRICS settlement payments.
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Oh, I agree. It won't affect BRICS settlements. It will just limit the currencies forex rate versus USD.
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