Intro:
Last week Tom Luongo and Vince discussed the BRICS event in context of world geopolitics and financial markets.
Bonus: We also hit record during our warm up chat, which was almost entirely about music. That part is 40 minutes long and available to Premium subscribers if you are musically inclined as we both are.
Tom Luongo’s Work
Topics Discussed
BRICS Pay Initiative
Explanation of how BRICS Pay allows cross-border transactions in local currencies.
Banks and the Foreign Exchange (FX) Market
The protective nature of banks over the FX market.
mbridge Platform
The role of commodities and gold in settling international trade.
BIS and the Agora Platform
The geopolitical implications of these financial technologies.
Commodity-Backed Trade and Currency Baskets
Challenges in creating a commodity basket for international trade.
Cartel Dynamics and OPEC
Comparison of BRICS to cartels like OPEC.
The role of Western policies in inadvertently solidifying these groups.
U.S. Federal Reserve and Currency Regionalization
Introduction of the Secured Overnight Financing Rate (SOFR).
The idea of re-regionalizing currency to adapt to a multipolar world.
Central Bank Digital Currencies (CBDCs)
Skepticism about the feasibility of CBDCs in the United States.
Sociological Aspects of Control and Power
Cultural observations, including humor about national stereotypes.
Closing Remarks: Alex Jones
Personal light stuff
Premium Subscribers.. Prog rock versus Hard Rock
Includes a shout-out to Chris Marcus at Arcadia Economics.
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