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Brazil & China to Start Trading in Renminbi, Japan Buys Russian Oil Above Price Caps

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The dollar is quickly losing ground in the global south as BRICS countries initiate trade deals in local currencies.

China and Brazil announced this week a new trade deal that will be settled in their own currencies. The news comes amid reports that the Chinese RMB has surpassed the Euro to become the currency with the second largest reserves held by Brazil.

Yet, the dollar still represents more than 80% of the countries foreign reserves.

The central bank report also shows that the value of Brazil’s international reserves lost over $37.5 billion in 2021 and 2022, due in large part to lower returns amid the US Federal Reserve’s rate hikes and dollar manipulation.

China has been Brazil’s largest trading partner, overtaking the United States in 2009. China has pledged to continue making significant investments in the largest economy in South America, with major spending across energy, mining, agriculture and information-and-communication technology.

As of February 2023, the Central Bank of Brazil reported gold holdings worth $7.602 billion, down slightly from $8.103 billion in March of 2022. It’s probable that some of the gold that China has been stockpiling was exchanged for yuan.

China continues pushing trade in the southern hemisphere moving bilateral trade agreements away from the dollar as part of the overall “One Belt One Road” initiative.

The Bank of International Settlements (BIS), the driving force pushing for global CBDC adoption and the organization that controls the SWIFT banking network lists gold bullion as a Tier 1 asset alongside United States Treasury Bills.

Rio-based Banco BOCOM BBM, a subsidiary of China’s fifth largest bank will be connected to the Cross-border Interbank Payment System (CIPS), bypassing the SWIFT network to support trade settlements directly in renminbi.

BRICS countries have been buying gold and stocking up their reserves in anticipation for more than a decade establishing stronger trade ties among the emerging economies. Over the last decade, Russia alone has quintupled their central bank gold holdings affirming its strong leadership role with the emerging Moscow World Standard for clearing commodities outside of Western manipulated markets.

Central Banks will continue to buy gold in large amounts to provide scaffolding for larger bilateral trade deals in local currency in preparation for the announcement of a BRICS basket currency that is expected to come during the BRICS Summit in South Africa in August of this year.

The price of gold has been trending higher this year as mainstream and retail investors continue to hedge riskier portfolio holdings due to tremendous uncertainty in the dollar’s global dominance.

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Saudi Arabia Taking Active Steps to End Petrodollar Dominance

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Saudi Arabia is showing the world that it is taking active steps to end the dollar’s hegemony across the global economy through a multitude of political and diplomatic moves and financial investments.

Saudi Aramco, officially the Saudi Arabian Oil Group or simply referred to as Aramco, has announced the investment of more than $10 billion dollars to finance the construction of a new refinery and petrochemical complex. The construction is expected to take three years and when finished it will have the capacity to produce 300,000 barrels of oil per day.

The world’s largest oil exporting country has also opened dialog about joining the Shanghai Cooperation Organization (SCO), a regional trade and security organization dominated by Russia and China.

In recent months, many more countries have expressed interest in joining the BRICS trade organization, which largely represents the global south in an effort to provide open trade and financial empowerment to developing nations.

CNBC reports that much of the rush to dump the dollar is largely seen as repercussions of the weaponization of the dollar to suit the foreign policy whims of the Biden administration, citing the financial sanctions imposed by the G7 following the Russian invasion of Ukraine and the decades of financial hardship placed on the people of Venezuela.

Central Banks continue to diversifying assets and dumping Treasury bonds and other dollar based assets in favor of commodities and growing currencies like the yuan. Globally, goods and services sold in dollars are going to get more expensive as the yuan and BRICS agreement picks up steam.

As the impact of the ongoing banking crisis begins to be felt at home, many Americans are shifting their priorities to protect their financial assets. This means we will continue to see a rapid shift of excess dollars into hard assets like gold, silver, land, ammunition and firearms and food in the coming months as more people prepare for further economic hardship.

COMEX silver and gold inventories are dropping as insiders ramp up the draining of physical precious metals from the vaults.

Some market analysts are predicting inflationary conditions to get worse as devaluing of fiat dollars accelerates following the Saudi decision to begin selling oil in other currencies. This is likely to lead to a ripple effect that will cascade to many other countries that rely on the dollar for settlement of global trade.

Last October, CEO of JP Morgan Chase Jamie Dimon, the nation’s largest bank, warned investors that the country is heading into a recession this year that will be far worse than any in recent memory.

In December, he reiterated his warning, adding that the main risks to the economy may come from abroad, citing threats to the fracturing supply chain, high inflation, rising prices of commodities and the ongoing proxy war with Russia.

Last year, numerous executives and precious metals traders were convicted from JP Morgan Chase, Deutsche Bank and other large institutions in a long-term, ongoing price manipulation scheme that was intended to trick the markets and investors into wrongly believing that price movements in the metals markets were organic.

JP Morgan Chase, often cited as to be too big to fail, is reportedly holding massive gold derivative short positions that are potentially greater than the bank’s total assets. If the price of gold continues to rise, JPM may be forced into a situation in which they will need additional leverage to cover the shorts.

Price manipulation, corruption and unfair representation in the LBMA and other G7 controlled commodities market were just some of the many grievances voiced by Russia last year during the announcement of the Moscow World Standard.

Casual investors are beginning to see that one of the best ways to protect their long-term financial assets from the Federal Reserve imposing a consumer CBDC is to diversify their cash holdings and other liquid assets into silver and gold bullion.

Mainstream media has been reporting on the rapid dollarization occurring with varying attempts to denounce genuine fears as a conspiracy theory.

The Chinese Renminbi or yuan is the currency that would benefit most from removing the dollar as the reserve currency.

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Texas Bill Proposes Gold-Backed Digital Currency

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Elected officials from both the Texas Senate and House have proposed complementary bills to create a state issued digital currency option that would be backed with gold.

The State of Texas would hold gold in a trust require the state comptroller establish a digital currency that is fully backed by gold bullion for everyday transactions. The state issued digital currency would be fully redeemable for either fiat cash or gold.

The proposed digital fiat would be a legal alternative to Federal Reserve notes or any CBDC and shows strong leadership amongst the states in developing sound money principals.

There is growing interest across a variety of states to return to a gold standard.

The Goldback currency is a good example of a grass-roots level gold-backed specie. that is accepted for goods and services in Wyoming, Utah, New Hampshire and Nevada. Each foil note contains a fractional amount of gold based on the face value shown.

Goldbacks notes are available in a variety of denominations that are smaller than those typically found in fractional gold coins.

The Texas Bullion Depository

After the end of the Great Recession in 2012, elected officials sought to reassure Texans of the financial soundness of the state. The result is a state-of-the-art secure bullion depository that has been in operation just outside of Austin in Leander, TX.

The Texas Bullion Depository opened on June 1, 2018.

End the Fed

There has been a growing movement afoot amongst states to return to the notion of sound money as it’s described in the constitution.

Last year, the Fed announced a twelve week long trial of an interbank CBDC program amongst a variety of private banks and government agencies.

Last week, under the guise of the current banking crisis, policymakers at the Fed launched the FedNow service and will be requiring banks begin using it later this year.

There are many controversies surrounding the adoption of CBDC by the Federal Reserve. The long term goal of central bank digital currencies is to eventually remove all cash, coinage and paper money from the economy.

Removing cash from the economy and replacing it with a digital software token allows a central authority to control how you spend your money.

The Federal Reserve is the Central Bank of the United States. Many believe that the bank is owned by the US government. However, the Federal Reserve is a private bank that pays itself the profit of the interest payments on government debt.

In 1910, a group of elite bankers and politicians met in secret at a resort on a private island off the coast of Georgia and came up with the Aldrich plan which evolved into the Federal Reserve Act of 1913.

Today, the Federal Reserve system is a series of twelve regional central banks that are overseen by a board of governors.

Each Reserve Bank is organized like a corporation. The member banks in each region own the capital stock of each regional reserve bank.

In simplest terms, the regional reserve banks are private companies that are given authority by the government to operate banking and economic activity on its behalf.

The reserve banks are instruments of the government and are neither wholly nor partially owned by the government. Employees are not civil service employees and the Fed continues to operate when the government shuts down.

There are currently several bills circulating in both the House and the Senate to block the Fed Reserve from issuing a central bank digital currency in the United States.

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Preparing for the Impending CBDC Crisis

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Throughout the pandemic, the federal government’s ongoing dictation of seemingly bad policies was an intentional effort to upend the normal everyday lives of millions of people.

As has been pointed out, it is not a conspiracy theory to believe that the central bank intends to control the spending behavior of people using central bank programmable software tokens instead of currency.

The general manager of the banking cartel explicitly announced it to an audience of other central bank leaders during their annual meeting in 2020.

The Bank of International Settlements is an organization owned by its members, the Central Banks of 63 member countries, and acts as a self regulator.

The BIS is creator and establisher of the rules for banks to operate in the global ecosystem of international trade. They also have control over the SWIFT banking network, foreign currency exchange and other major parts of the global economy.

During the group’s annual meeting in 2020, the General Manager of the organization explained to the audience how CBDC will give the central bank absolute control over the rules, regulations and policies that will dictate how money is used down to the transaction level.

During the recorded videoconference he discusses how CDBC technology will be used to force changes in spending behavior amongst consumers and enforce consumer spending policies on behalf of the government.

Last year, Biden signed Executive Order 14067 in order to advance development of CBDCs to skirt push forward without Congressional approval. As usually, there has been a total lack of accountability or transparency.

So far, Federal Reserve and US Treasury have been working in relative secrecy, publishing only a small amount of vague and high-level papers and studies with several quietly announced project trials in conjunction with notable large global banks. Most of the press releases have come during times when other stories were the major focus of the mainstream media, such as the collapse of FTX.

At least one bill has been drafted by Congress in an attempt to prevent the Federal Reserve from weaponizing CBDC against US citizens. However, the rollout of central bank digital currencies is likely to happen soon if and when the Biden administration can attach it to a banking crisis like the failure of Silicon Valley Bank (SVB).

More recent announcements show that the Fed and Biden Admin intend to roll out a CBDC even without the authority of Congress.

In a speech to the Atlantic Council, Treasury undersecretary for domestic finance told the attendees that a CBDC Working Group consisting of policy makers from a variety of agencies is developing an initial set of findings and recommendations to support the Biden administrations agenda.

Make no mistake, the central banks have made it crystal clear that they are coming for your money and will tell you how you can spend it. The move into CBDC in lieu of traditional currency is a political power grab with the goal of having further control of your life.

Nigeria’s Failed Experiment

Initially, the Nigerian government tried several soft approaches to encourage the adoption of CBDC. These included financial incentives such as offering discounts to taxi drivers and passengers to encourage use and adoption. All of which failed.

The government quickly turned to coercive measures once it became clear that the people weren’t interested.

The largest measures include the introduction of a new currency and devaluing the old currency along with adding restriction on cash withdrawals throughout the country. The plan included the issuance of new currency notes, but only enough to cover 85% of the current naira while promoting cashless transactions by limiting the use of cash for businesses.

Beyond banknote swap, the banking regulators placed policy restrictions limiting cash withdrawals from banks and ATMs to reduce the amount of cash in circulation. With limits of $225 on individuals and $1,110 on businesses to force CBDC adoption.

Central Bank of Nigeria Governor Godwin Emefiele said, “The destination, as far as I am concerned, is to achieve a 100% cashless economy in Nigeria.”

The central bank began devaluing in the months before the switch while removing old notes from circulation leaving millions of Nigerians with no money or food.

Nigerians have violently rejected the new digital currency and cash restrictions as protests and riots have broken out outside of banks and spread throughout the country.

The war on cash and some form of crisis will bring on the introduction of CBDCs.

Precious Metals Stacking for CBDC Insurance

Gold and silver are the oldest and most trusted form of money. With all of the uncertainty in the economy, gold is safe haven from fiat and digital currency tokens.

Investing some of your cash in buying physical gold and silver bullion can help keep you in control of your financial future.