China and Russia Advancing Their New Global Reserve Currency Agenda
China and Russia have recently announced that they are going to be introducing a new global reserve currency. They have joined hands to create a new currency which will replace the US dollar.
The US dollar! Unfortunately, this MASSIVE news is not being covered across the globe; hence we are here to tell you everything you need to know about this humongous conflict between the United States and Europe! Keep watching to find out more!
This could be one of the biggest turning points in the US dollar losing its global power. Both the countries have been talking about it for some time and have also been preparing for it.
Russia and China are looking for a currency that could replace the dollar for internet trade. Putin, the president of Russia said a few words on this topic at the BRICS meeting. He said, “The issue of creating an international reserve currency based on a basket of currencies of our countries is being worked out”.
Typically you would think this would specifically be for the bricks nations which include India, China, South Africa and Brazil. However, other countries such as Turkey, Egypt and Saudi Arabia are also planning on joining BRICS.
What is the BRICS nation?
The BRICS nation got together about 14 years ago. BRICS is an acronym for all the countries I just mentioned. Its main aim is to dominate the global economy by 2050 and let me tell you, they are getting there.
2 years after BRICS was made China and Russia started working together to get out of the swift system so they don’t get sanctioned by the United States. This eventually led them to create their global reserve currency.
Furthermore, 10 years ago, all these nations started to start hoarding gold like crazy. The reason for that is why you clicked on this video. It was the beginning of this new currency being created.
This initiative would be enough to overthrow the very popular US dollar. It could be one of the biggest revolutions in history. This might come as a shock to you since this still has not become worldwide news but it is very true.
You might wonder why so many nations are in favor of a completely new currency. Here are the reasons why other nations would prefer this new reserve currency instead of the US dollar.
Well, the very obvious reason is that many nations would want to use a currency that is more neutral and not controlled by one nation. Not only this but Putin also blamed the US for fostering crises around the world regarding food security inflation and trade. He said, “Americans think of themselves as exceptional” which means according to them every one else is second class.
Russia has been taking several measures in the last decade to reduce its use of the dollar. Perhaps, we now know the reason for this. They have been increasing their trade with other countries, specifically the ones that are part of the BRICS. This year Russia has increased trade with other countries by 38 per cent!
To put it in simple words, both China and Russia are trying to create an economical community that sidelines the west and their money aka, the dollar.
This brings us to another very important fact. The dollar is failing. Some people think that the significance of the dollar will decrease within 10 years.
The Russia and China collaboration is a big threat to the dollar. Even though it may be doing better as compared to other currencies, such as the euro or yen, you can agree that these currencies are even worse.
It’s not like the dollar would go extinct or people would completely stop using it, it would decrease significantly because now out of 100 maybe only 50 per cent of the world might need it. It is a historical fact that every fiat currency has failed and the dollar is soon going to have the same fate.
A fiat currency means money taken by violence. Many economic factors play a role in the dollar failing. These include rising inflation, demand for currency, export prices and demand for growth.
According to many reports, the downfall of the dollar has just begun as of 2022 and will soon fail. This will benefit China and Russia’s new global reserve currency even more.
However, some people believe this is going to take another 50 years. Well, we are sorry to break it to you but facts prove otherwise. Like we told you before, this new currency is being worked on for 14 years already and now that this is being talked about, makes us realize how real it is and how great it is going to impact the dollar and the world!
Now many people would think that China and Russia’s lunch is the future. Where there is no doubt in the fact that they are going to make a big revolution, some other people will disagree with this because the currency uses commodities like gold and silver.
Critics would say that the world is likely to move to a bitcoin standard or other cryptocurrencies. So what can you exactly expect?
Well, you can expect everything! Yes, that’s right. All these systems will pop up. New competitors will rise. Such as pure fiat currencies will come like the one Russia and China are working on, and some central bank digital currencies will also pop up.
You can also expect to see commodity-backed currencies. Furthermore, bitcoin-based monetary systems will also pop up which is already being seen in many countries.
So will we all have a choice of which form of money we want to use?
The simple answer to that is no. As I mentioned earlier all these pop-ups are each other’s competitors, hence one form of money will be the winner and everyone will start using that form. This is because it will have proved to be the most beneficial for all.
However, this is not going to be an overnight thing. It is a long process. Additionally, other countries would also want to join the hype of creating their global reserve currencies like Russia and China if it is going to be advantageous to them. Hence, the rat race is going to continue for a long time.
What will happen to the euro?
Another major question that arises is what will happen to the euro after the dollar. Well, like many other currencies the trade of the euro wills nothing but worsen.
What should an investor do in this case?
Well, we would suggest you buy some of each form of money. This way you have less to lose. If not all, you can choose to buy some forms of money that you think are going to do the best in the market. This seems like a mystery for all of us. While we cannot wait to see the outcome of this and what the future holds, let us know what you think in the comments.
Should you be scared or worried?
Well, this is a worrisome situation, especially for the United States. If the dollars go down and lose this rat race, their economy is going to suffer badly. We can also expect the US to beef with China and Russia. As a result of this, a possible war or danger could occur. While this is what many people assume, we cannot say for sure. All we can do is hope and pray for the best.
We can expect China and Russia’s new currency to take over the world within the next few years and as a result, their economy will be thriving. China is making headway in a global reserve currency with 85 per cent of central banks already owning the Yuan.
This should give you an idea of how massive this is going to be. What are your views about Russia and China introducing their new reserve currency? Do you think this reform can beat the prestigious dollar? What do you think the future holds? Comment below your thoughts.
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