GoldFix
GoldFix
BRICS Dedollarization Trade Plumbing
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-9:34

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BRICS Dedollarization Trade Plumbing

Selling some Dollars, buying some Gold
2

Follow along transcript attached

“There are two mechanisms that will draw money away from dollars”

Mechanism 1. Dollars get replaced by Gold as Settlement Medium (MOE)

Dollars get replaced by Gold as Settlement Medium (MOE) for imbalances. Brics decide to settle some trades without dollars, they likely choose local currencies and gold (mercantilism and current account style)- no credit. Settle up with gold.

Mechanism 2. Store of Wealth (SOV) reason

Store of Wealth (SOV) reason: UST get replaced with some Gold. Replace UST with gold, or do nothing and buy gold at maturity. The CB chooses how to divest of UST/USD

“The Dollar Gets orphaned as Treasuries Expire”

  • Payment Chains are Supply Chains in Reverse

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