Will The USD Get Replaced as The Global Reserve?

The big news as of late has been other countries teaming up and creating their own world reserve currency. This all stems from the USA trying to control everything while communist countries yet again try to expand their domains.

Make not mistake about it Russia has been expanding it's boarders for years now and branching out into other areas and countries. Yet for the most part these expanses have gone unchecked. There was Moldova in 1992, Georgia in 2008, Ukraine Crimea in 2014 and now the full outright war in Ukraine in 2022 to today.

When you think about it's it's a total repeat of WW2 where one country takes back as much land as they can through military and political force until someone says enough is enough and starts a war. That war in now Ukraine and from it we now see countries like China and South Korea and maybe even India here soon start to flex and expand.

Since Russia was kicked off of the swift network it primarily trades with China who needs the natural resources of Russia and honestly is getting a huge freakin deal from Russia at the moment which also leads me to believe that China has a stronger possibility for GDP growth because of the raw resource prices it's getting compared to the rest of the world. Since most trade happens between these two countries they are now creating their own reserve currency to be able to better trade with each other and it's pretty much splitting the world in half.

However take note of something special here. Less people are going to use the new system over the USD system still as the only one not using the USD system in this case is pretty much Russia while China still will trade in it.

This new "currency" is seeing gold and silver return but I'm wondering if Gold and Silver still holds the store of value it once did. Honestly I don't think it does and I believe store of value is instead now in many new assets instead such as real-estate, raw resources primarily used for power, tech and yes even crypto currency.

Let's dive into this a little deeper...

The G7

1. United States
2. Canada
3. France
4. Germany
5. Italy
6. Japan
7. UK

It was created for a these countries to get together and pretty much map out how the world would be. In terms of finances, global stability, prices and so on.

However emerging markets became a huge factor in the last 20 years. Places such as India and China would be the primary focus here and I honestly wouldn't put Russia into this emerging market place. Thus the G20 was created and well that didn't go so hot.

So BRICS was created in 2001 which is Brazil, Russia, India, China and South Africa. These are some of the biggest countries in terms of resources and population which almost splits the world in half.

Moving into today BRICS GDP has actully overtaken G7 GDP and is likely to only increase and expand now. Call it the classic think you're on top of the world and look at everyone else badly and see how long that works for you G7 those are our dumb leaders at work like always...

One of the biggest key aspects of this is that the countries that make up the G7 pretty much have zero natural resources while the countries in BRICS are LOADED and really that's what it all comes down to.

Honestly this might sound crazy but the only way for the G7 to really counter this is going to be to mine in space lol it sounds wild but I could very well see that being a push over the next 10 years.

BRICS is also looking to expand itself and it's doing so in all the areas which the G7 has pretty much treated like trash. Iran, Afghanistan, Mexico and Argentina being the primary ones.

With this expansion BRICS will be looking at an even larger GDP than that of the G7 by 30% and a population that a little over half of the world.

You can kind of start seeing how Ukraine is going to quickly become a hot bed of battle and it's in both sides interest to take it over because it's filled with massive amounts of natural resources while all of EU is dead in terms of resources.

In August we will see how this new BRICS system is backed but in terms of investors it sounds a hell of a lot better than the USD so far. This BRICs system is suppose to be supported by Gold, Silver and more importantly Rare Earth Elements.

However there's a silver lining here. We know corruption and power is abused even more in countries in BRICS and yes there is still that in EU and USA G7 I would rather be a citizen in G7 over BRICS.

It's clear that BRICS will be a thing and it gives countries options. But what's not so clear is I personally believe Cryptocurrency will be a 3rd global and more dominate currency used. You pretty much have 3 powerhouses now slugging it out and the USA in my opinion is making a massive mistake by attacking crypto. However I also agree that Crypto needs more safeguards so scammers and shadowy figures don't keep making off with millions of peoples money with no way to get it back. Sure I understand bitcoin is a make a transaction and it's done but there still should be some type of safety measure from hacks, scams and so forth and the cryptocurrency decentralized world needs to get that figured out above all else if it wants to be taken seriously. We can't have DeFi platforms getting hacked for millions and billions constantly. It's just not going to work my friends.

What really sparked all of this? Was the dumb foundedness of removing Russia from SWIFT which meant they had no other option but to create their own finance system. Sure it hurts for a little but overall you pretty much just screwed yourself by doing this as you turned a free trade system into a weapon.

Overall however BRICS won't replace the USD as the world currency. It will simply just open the world up more and create competition. You know what's great about that? Competition creates innovation and progressiveness' and that's what we are seeing now. Instead of a few fat lazy a holes controlling everything things are shaking up and with it new advancements and crypto I believe will be part of that new mix in a strong way and because of that crypto platforms need to find better and more secure ways of self governance and not go running off to the SEC etc. It really needs to be self governing in a smart way and decentralized to the point governments can't step in and destroy it but not fully decentralized.

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