New Reserve Currencies, Crumbling Empires, BRICS and more: Parts 1 and 2
London Paul: Part 1 - War, New Reserve Currencies & Crumbling Empires
Palisades Gold Radio: Dec 1, 2022
In this two-part presentation, Tom welcomes back Paul from The Sirius Report to begin a discussion on the rapidly evolving multipolar world.
In part two, we dive further into the BRICS Currency System and why gold and silver can protect you from all possible outcomes of an uncertain future.
Paul is concerned with the unintended consequences of the war in Ukraine and the economic sanctions. They misunderstand how the Russian economy works and their alternative systems to SWIFT.
Since 2014, Russia has been constructing new domestic markets to diversify themselves away from the West.
He explains the idea of the 'Global South' which includes 87 percent of the world's population that exists outside Europe and North America. The rest of the world took notice when Russian assets we're seized, and most countries are concerned they could be next.
Dedollarization is working because other nations are finding ways to use their own currencies to circumvent the dollar system. They are starting to avoid the expensive dollar by dealing directly with each other.
Europe and particularly Germany has been reliant on cheap energy from Russia. These nations could have signed long-term contracts last year for energy, but now the prices are much higher.
The United States has been pressing the narrative that Russia is not trustworthy, even though they have been an extremely reliable trade partner. Countries can't simply change energy suppliers overnight, and "It's almost like a comedy of errors with potential catastrophic consequences."
The West can't change course on Russia due to the amount of political capital that has been invested. Cooperation is happening between the global south and trade is already growing.
The West doesn't understand how China and Russia's economies actually function. Soon, the global south will not need the west. Western politics is a constant conflict and a total waste of time. It's just an illusion of choice, and practically nothing gets achieved.
Time Stamp References:
0:00 - Introduction
1:24 - Sanctions & Consequences
6:50 - The Global South
17:48 - Japan & Treasuries
19:07 - European Energy & Germany
28:18 - Blame Russia & Politics
32:47 - SWIFT Flight & Trade
35:34 - Economic Planning
42:29 - Ukraine in Collapse
50:17 - Russian Fixation
52:58 - Complexities
54:52 - Red Lines & Escalation
Talking Point From Part One - The lack of understanding and consequences of Western nations regarding Russia and China. - Why the era of cheap energy for Europe is now over. - The lack of West to have long-term economic plans and the consequences. - Europe's fixation on Russia and why politically they can't change course.
London Paul: Part 2 - Gold & Silver Protects Against All Possible Outcomes
Palisades Gold Radio: Dec 2-2022-
Paul discusses what a BRICS Currency system will look like and why it's likely to be backed by commodities and likely gold.
The ideas behind BRICS are continuing to evolve as more nations join across the world. Soon we could have upwards of thirty countries involved, and they will have to figure out how to weight the system.
This is a reality and no longer some sort of fictional idea. It's now maturing into a proper system with good organization. They are also being cautious and considering the risks of moving too fast.
The West is going to have to radically re-assess every part of the economy, governance and adapt to a much better system.
The U.S. believes it can bring it's industrial base back, but they can't afford the salaries. Then they will be unable to compete and can only serve the market internally.
They will need commodities from the rest of the world. The U.S. is dependent on the rest of the world for energy, and diesel in particular. There are many concerns about the sustainability of shale gas.
Paper markets for metals are massively manipulated. Markets are driven by algos and high-frequency trading. Markets today often react completely opposite to news.
There is a fundamental different mindset between western and eastern metals markets. You hold gold because it's a bet against everything. Your other choice is to wait for the collapse, but then you won't be able to get it.
The East continues to drain the West of metals, but eventually supply will no longer be available. That will mark the end of the paper markets and the beginning of true price discovery.
Time Stamp References:
0:00 – Introduction
0:46 - BRICS+ Currency System
18:58 - The Naked Emperor
26:50 - West Needs Cooperation
32:35 - Silver is Interesting
38:15 - Equally Great Nations?
41:16 - Metals & Manipulations
44:45 - Metals as Insurance
50:55 - True Price Discovery
1:01:40 - Distortions & Bubbles
1:11:30 - Credit Bubbles & Gold
1:14:13 - Wrap Up
Talking Point From Part Two - How a BRICS+ Currency System is likely to evolve. - Why the West needs cooperation among nations. - Metals manipulation and the importance of having physical metals. - The distortions in Western markets and system credit market problems.