http://infobrics.org/post/37155/
That is the link to the R5 project. Comming 29 august 2023 stay tuned because the BRICS are going to announce something
The R is because the names of all the currencies of the existing 5 members of the BRICS, Brazil, Russia, India, China and South Arfrica starts with R. R5 could be a currency or it could be a bank. Just like the International Monetary Fund- the IMF. Or the Worldbank.
I would watch the developments of that link to see what the countries are doing? Why?
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Because currently all these countries are using the SWIFT system to trade dollars. Excluding Russia because it was banned due to the war in Ukraine. To buy services and goods internationally you need to have access to dollars. So there is a demand for dollars and demand means the value of the dollar compared to other currencies increases.
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The BRICS are thinking about creating their own R5 bank and international payment system. This means that they won’t demand more dollars to trade their services and goods. And that means that there will be less demand for dollars. If people know this they will be going away from dollars and buying anything precious and scarce. Gold, but also sats. So stack sats.
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Currently the trade between the R5 countries is not so big. But it is growing. Russia buys from India. China buys gas and oil from Russia. Because they are looking for an alternative to the dollar, the R5 currency, they will trade more and more in each other’s currencies. Brazil is one of the largest commodity exporters and meat. The world needs food and commodities. So there will be more and more demand for R5 instead of the dollar. So the value of the dollar will decrease against these currencies. And again people will be looking for something of value. Sats. Stack sats.
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In international trade when you trade and you export more than you import your international reserves will grow. Now most central banks have their international reserves in dollars. China got a huge pile of dollars sitting at its central bank. Why? Because China exports more to the USA than it imports. So in the end it recieves more dollars (because it ecports goods) than it spends (because of import of goods). This huge current account surplus of China to the USA has been going on for ages. USA has a huge current account DEFICIT with China.
This has weakened the USA economy. Normally this deficit would translate into dollars flowing out of the USA. And the USA currency decreasing. Just imagine the USA didn’t have the global printer of the dollar. Imagine USA just had a currency called U. Because the USA has such a huge current account deficit with China the value of the U would decrease.
And nobody eould want the U any more. You would see the people having the U comming to exchanges and saying I want to give you 200, 500, 1000, 5000 U for just 1 sat!!!
That happens all over the world. With the Venezuelan bolivar, the Zimbabwan dollar.
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Because the BRICS know this, that you have to look at what’s happening with the real economy, you have to watch things like current account deficits and the huge debt of the USA and that fiat money like the USA dollar is just based on trust, and because they want to be less dependent on Europe and the USA now they are creating a basket of their own currencies the R5.
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The BRICS’economies are now larger than the G7 countries. The 7 biggest countries in the Western world. These are developped countries. USA, Canada etc are part of this club. And now 5 emerging market economies of the BRICS are bigger than the top 7 developped countries.
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The BRICS are growing faster than the G7. Because they are less wealthier. They have more to grow. And the BRICS have commodities, precious metals.The stuff the world needs to function. When Russia decreased its gas to Germany the German industry of steel suffered. You need gas and oil to run a factory. To produce cars you need oil, energy and a lot of materials.
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This means the R5 countries will grow on the international stage. Other cluntries like Saudi Arabia - one of the large oil producers - also want to join. And a lot of African countries and Asian countries would join.
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The countries on the list to join R5 have a large size of the global population. They are in the mayority. And their populations are growing faster than the Western developped countries.
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Are their economies developped? Yes. China is advanced in AI, in manufacturing. China is the global factory of the world and it has developped its technology fast. Huge public companies like Alibaba, Tencent etc have their base in China.
What does this mean to you stacker of sats?
I’ll break it down for you.
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You should see if you could deliver value to the BRICS. Do you have any service, or product you can trade to the BRICS. Any technological, IT software? They will be needing it. And you probably will receive R5 for it. That’s their currency.
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Your children will grow up in a world where the power has partially moved to the BRICS. It is not an uni polar world - one pole the USA - but a multi polar world - BRICS dominating the East/South and USA dominating the North/West.
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There will be a pressure on the USA dollar. Remember the U. People will understand there is a difference between the US dollar and the U. And people will be searching for digital gold. The sat. Stack sats and teach your children to stack sats.
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The R5 will be just a bunch of fiat paper floating against each other in a basket. The BRICS can always print as many R5 as they want. It is just like the Bretton Woods in 1944 where the Western workd cane together and decided the dollar will be the center and all other currencies will be pegged to the dollar. And the base layer 1 is gold.
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Now the BRICS will probably add a base layer 1 of gold, maybe oil and other commodities. But they can always print R5 to infinity. History tells they will do this in another 80 years. Check Ray Dalio’s book if you want some history.
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So R5 will attract more people. There will be more demand for R5 and there will be less demand for the USA dollar. This will be gradually. When the dollar’s price drops a lot of islands and countries dependent on the dollar will suffer. Like many Caribbean islands.
Especially the ones importing everything from the USA as inflation in dollars will soar. And especially the Caribbean islands dependent on Cruise and Stayover tourism . And cruise tourism from the G7.
- In these panick decreases of the dollar, eg people realizing they are working hard and receiving the U which is just paper, people will look for something scarce. And there is where your sats will probably become more valuable.
I’m stacking sats. Now they are just digits. 800, 1000. Thank you for any sats you send to me.
If you have any comments or any knowledge about the BRICS I did not write people give me your views.
As I’m trying to learn more about the BRICS.
I would love to get into contact with more people, business people, from the BRICS.
Stack sats. Now you know more about R5.
PS:
In another episode I will talk about how this R5 could be created with smart contracts maybe on top of the bitcoin base layer and how it could be linkec to physical gold and commodities and oil by using bitcoin blockchain technology. Stay tuned.
Stack sats.