Russia and China are working on a joint financial system that will result in a weakening of dollar and euro.

in Account Booster 👍3 months ago

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The fear our world is heading for a global monetary order is becoming more and more true every day, and it is being advanced with the familiar piecemeal strategy. The predominance of the U.S. dollar as world leading currency crumbles massively! We will now look at 4 scenarios that explain why the U.S. dollar or the euro are discontinued models and how our money will look in future.

1: The first model is a private currency that displaces national currencies, for example, a Bitcoin could displace a US dollar. Of course, it must be clearly stated this model is the least likely, because the states do not want to lose their control over money, because that would mean they would also lose their control over the individual populations. Bitcoin has already been banned in China for this reason, and the EU is currently considering a ban on this cryptocurrency as well as other cryptocurrencies.

2: The second model is a currency that would be backed by commodities, such as gold. This scenario is also rather unlikely, because the western but also the eastern world uses inflation to expropriate the people.

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Since gold cannot be multiplied at will, this possibility would be taken away with a gold cover, i.e. a gold standard.

3: The third model would be a global world currency. In the current time this model is more and more improbable, because one sees by the division of east and west the unity of these two blocks crumbles. Looking at it from this angle, it is less likely the Americans, for example, would agree with the Russians or even with the Chinese on a global world currency.

4: The most likely fourth scenario is that multiple national currencies will dominate. However, this scenario will be paired with a move to a digital currency, and in a high likelihood to central bank digital currencies, because an e-dollar, an e-yuan, or an e-euro is exactly what central banks are currently striving for and what individual nations are currently going along with. This change would result in people becoming transparent and at the same time easily inflationary, because every transaction, every savings, and every asset would be transparent.

The fact this last scenario with the highest probability now already unfolds before our eyes, I would like to explain to you now, because what the western media quite deliberately conceal from us at the moment is Russia and China work at the moment on a common currency, on a common reference currency, which will cause a considerable damage to western currencies in future!

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It was precisely this development a Russian high-ranking economist named Sergei Glazyev spoke about in March of this year, when he stated that Russians and Chinese are likely to make common cause in future. This economist is not to be underestimated because he has high-profile relationships around the world, including serving as Minister of Foreign Economic Relations of Russia under Boris Yeltsin from 1991 to 1993. Also in 2014, when the conflict in Ukraine began, Putin made him one of his closest advisors.

Glazyev is considered a hardliner in the Ukraine conflict and massively criticizes the economically liberal central bank chief Christine Lagarde. He also opposes Russia's interest rate hikes because, in his opinion, they would massively slow down the Russian economy. Since 2019, however, he is no longer so close to Putin, but cultivates other areas of responsibility, namely he is now secretary of the Eurasian Economic Union, or EEU, which is an economic and customs union of former Soviet Union states, of which Armenia, for example, is also a member. Glazyev reported in detail that Russia and China are preparing a common currency and said the following:

EXCERPT: "We are currently working on a draft international agreement on the introduction of a new world currency, which will be linked to the national currencies of the participating countries and commodities traded on exchanges that determine real values. We will not need American and European banks! In a world where banks are losing importance, a new payment system based on modern digital technologies with a blockchain is developing."

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For those who are now curiously startled, I recommend sitting down, because on March 11, 2022, China and the Eurasian Economic Union, or EEU, agreed to create a mechanism for an independent monetary and financial system. Glazyev further explained:

EXCERPT: "The EEU, for example, was such an experience in the European Union, it was built as a currency basket. All countries participating in the creation of a new settlement currency must be granted the right to have their national currency in this basket. The common currency is formed as an index, as a weighted average component of these national currencies, plus, in my view, exchange-traded commodities, that is, not only gold, but also oil, metal, grain, and water, a kind of commodity bundle that we estimate should include about twenty products.

They actually form global price shares, and therefore must participate in the basket to form a new settlement currency. We need an international treaty that defines the rules for the circulation of these currencies and creates an organization like the International Monetary Fund."

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You see, one does not want to abolish the national currencies, but one wants to form a kind of index from the national currencies, such as the ruble and the yuan. There should also be commodity securities of 20 different commodities in this basket besides gold, so also copper and other non-precious metals. The currency will then be similar to the ECU, the European Currency Union, which was a precursor to the euro.

If we take another look at the ECU, we see that it was a unit of account for international transactions. Banknotes and coins did not exist at that time, but bank accounts in ECU and again bonds in EWE. So what would be the point of this new currency, you will surely ask yourself now. Currently, Russia has agreed to sell its oil to India in rupees, to China in yuan and to Turkey in lira. Russia is doing this so that it can continue to buy back products from these countries in these units in future.

What if Russia does not need products from these countries? In this case, a new currency would be useful as a medium of exchange, so that it could buy from export proceeds in other countries as well. So what does this all mean in summary? The U.S. dollar will most likely not be the world's reserve currency for much longer!

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While this would mean the West continue to pay in U.S. dollars, it is highly likely the East will pay in yuan or a new common currency. Many countries will also have to look for U.S. dollar alternatives, because when it was discovered that Russia's currency reserves in euros, yen, yuan and dollars were frozen during the Russian invasion, some countries have lost confidence in western currencies.

If you should now ask yourself how you can protect yourself from these machinations, you should ask yourself how the central banks do it. The answer has 4 letters, namely "gold" (!), because the central banks all have gold as a currency reserve, which they accept internationally as a single currency.

It is precisely this development that will further strengthen gold as a safe haven in the long term, no matter how much the media will continue to try to bash against this wonderful precious metal!

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