Dollar Demise: Shift From Dollar-Based Financial World to CBDC-Focused System is Imminent
The Bretton Woods Agreement of 1944, which involved representatives from 44 nations, established a system through which a fixed currency exchange rate could be created using gold as the universal standard. It made the dollar a superpower. Its two major accomplishments were the creation of the International Monetary Fund (IMF) and the International Bank for Reconstruction and Development (IBRD), commonly known as the World Bank.
However, capital immobility hindered trade among countries. Since encouraging free trade was one of the initial goals of the system, it was undermined by capital immobility, leading to the collapse of the Bretton Woods system.
The Burning Platform‘s economic and political writer Brandon Smith recently warned: “Think of world reserve status as a ‘deal with the devil.’ You get the fame, fortune, trophy dates and a sweet car for a while. Then one day the devil comes to collect and when he does, he’s going to take everything, including your soul. Unfortunately, I suspect collection time is coming soon for the United States.”
According to him, the Department of the Treasury understands that there is constant demand for dollars overseas as a means to more easily import and export goods. The petrodollar monopoly made the U.S. dollar essential for trading oil globally for decades. Of course, the central bank of the U.S. has been able to create fiat currency from thin air to a far higher degree than any other central bank on the planet while avoiding the immediate effects of hyperinflation, he added.
As a result, the cash ended up in the coffers of foreign central banks, international banks and investment firms. Sometimes it is held as a hedge or bought and sold to adjust the exchange rates of local currencies. As much as 60 percent of all U.S. currency and 25 percent of the national debt is owned outside America.
The current problem is that the Fed is overprinting dollars that it stows currency, but it has time constraints. Eventually the effects of overprinting “come home to roost.” And it may take a brand-new Bretton Woods-like system that removes the dollar as the global reserve currency and replaces it with a new digital basket system like the IMF’s Special Drawing Rights (SDR) currency.
Lately, international banks are already expressing a shift from a dollar-based financial world to using a central bank digital currency (CBDC)-focused system built on unified ledgers. This will place the IMF as the middleman controlling the flow of digital transactions.
(Related: IMF “working hard” on new global CBDC platform to replace dollar and other national currencies.)
“We could end up in a world where we have connected entities to some degree, but some entities and some countries that are excluded. And as a global and multilateral institution, we’re sort of aiming to provide a basic connectivity, a basic set of rules and governance that is truly multilateral and inclusive,” the IMF noted in a discussion on centralized ledgers in 2023.
Former White House economist says BRICS could swing an “economic wrecking ball” at dollar dominance
Thanks to BRICS, a bloc comprising Brazil, Russia, India, China, South Africa and, as of 2024, new members Egypt, Ethiopia, Iran and the United Arab Emirates, an economic wrecking ball could be swung to break dollar hegemony, especially since the bloc has been gaining more influence and growing its size.
This was according to former White House economist Joe Sullivan. In a recent op-ed for Foreign Policy, he pointed to mounting fears that BRICS nations could create a currency to rival the U.S. dollar in international trade. Though BRICS officials have said there is no such rival currency in the works, the group could pose a threat to the greenback based on its growing influence, Sullivan warned.
Now that Egypt, Ethiopia and Saudi Arabia already joined BRICS, they could influence over 12 percent of all global trade. That’s because those three countries surround the Suez Canal, a key passage for goods to flow into international markets.
The economist further said that BRICS has major sway in commodities markets. Saudi Arabia, Iran, and the United Arab Emirates are among the world’s top exporters of fossil fuels. Brazil, China, and Russia, meanwhile, are major exporters of precious metals.
Saudi Arabia’s joining could give BRICS a major advantage. The Middle Eastern nation owns over $100 billion in U.S. Treasury bonds, which has helped bring BRICS’ total holdings in the Treasury over $1 trillion, Sullivan further stated.
“The BRICS+ nations do not need to wait until a shared trade currency meets the technical conditions typical of global reserve currency before they swing their newly enlarged economic wrecking ball at the dollar,” he added.
DollarDemise.com has more stories on the death of the dollar.
Watch the video below where Andy Schectman talks about economic Armageddon, forced CBDC and BRICS.
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French Actress Refuses to File Charges For Home Burglary After Learning Suspects Were Illegal Immigrants
A French actress whose residence in the south of France was burgled while she was away filming opted not to file a police complaint against the perpetrators after learning the suspects were illegal immigrants.
Audrey Lamy, whose house was targeted in October 2022, was deprived of several pieces of expensive jewelry and designer handbags during the raid, in addition to footing an €18,200 bill to repair the damage to her house.
However, when three suspects of Italian-Bosnian origin were apprehended on suspicion of carrying out the burglary, as well as 15 others over three months back in 2022, the 43-year-old actress was said to have been “touched in the heart” and chose not to press charges.
According to PurePeople magazine, Lamy wanted to “let it slide” rather than add further charges to the indictment.
The migrant trio, all of whom had been living in France illegally, stood trial for the spate of burglaries on April 3 before the Montpellier judicial court. The indictment did not include the raid on Lamy’s home.
Of the three suspects, two were acquitted of all charges and were free to leave the courtroom. The third was sentenced to one year in prison and handed a 10-year ban from entering French territory following the conclusion of his custodial sentence.
It is unclear how much evidence the public prosecutor had gathered regarding the other burglaries and therefore how vital a complaint by Lamy could have been to securing a conviction.
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Israel Vows To ‘Unleash Hell on Iran’ Following Attack
Israel has vowed to ‘unleash hell on Iran’ following Iran’s drone and missile attack over the weekend. IDF Chief of Staff Lt. Gen. Herzi Halevi on Monday warned the Iranian attack, which was the first ever […]
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Ukraine Suddenly Walked Away From Black Sea Deal
Russia and Ukraine had almost reached a new Black Sea shipping deal in March after two months of negotiations, only for Kiev to abruptly walk away, Reuters reported on Monday, citing anonymous sources familiar with the matter.
The official agreement governing the freight route lapsed in July 2023, when Moscow declined to renew the original Türkiye- and UN-mediated Black Sea Grain Initiative. Russia said that the US and EU had not kept their part of the deal, blocking exports of Russian food and fertilizer.
The most recent talks were brokered by Türkiye at the prompting of the United Nations, and a tentative agreement to “to ensure the safety of merchant shipping in the Black Sea” was reached last month, according to Reuters’ sources.
They added that while Kiev did not formally sign, it agreed that President Recep Tayyip Erdogan could announce the deal a day before Turkiye’s March 31 local elections, with the pact to take effect immediately upon being made public.
“At the very last minute, Ukraine suddenly pulled out and the deal was scuttled.”
According to the draft seen by Reuters, Ankara had mediated agreements between Moscow and Kiev “on ensuring free and safe navigation of merchant vessels in the Black Sea,” in compliance with maritime conventions.
The guarantees would not apply to “warships, civilian vessels carrying military goods,” except when agreed upon by all parties, the copy of the document stated.
Both Russia and Ukraine were to offer security guarantees to commercial vessels in the Black Sea, undertaking not to strike, seize or search them, provided they were unladen or had declared a non-military cargo, according to the draft agreement.
The reasons for Kiev pulling out are unclear, but President Vladimir Zelensky accused Russia of targeting grain export infrastructure during the original deal, thereby putting vulnerable countries at risk.
Speaking to reporters earlier this year, Russian Foreign Minister Sergey Lavrov denied that Moscow ever attacked Ukrainian ships in the Black Sea during the grain deal. One of the reasons Moscow did not return to the Black Sea Grain Initiative was Kiev’s misuse of the shipping passage during the agreement, he said.
“The Ukrainians used these free secure passages to launch their weapons in the form of naval drones,” damaging Russian ships and ports, Lavrov stated. He added under the old agreement, only 3% of the shipped Ukrainian grain went to countries on the UN World Food Programme’s list of states in greatest need.
READ MORE: Egypt wants to host Russian wheat hub
Since then, Moscow has donated 200,000 tons of grain to six African nations, with the last shipments arriving in January of this year.
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Zelensky Pleads With The West To Treat Ukraine Like Israel
Ukrainian President Volodymyr Zelensky says that Ukraine, just like Israel, needs help with air defence from its allies. He has pleaded with the West to become involved in the conflict with Russia and protect Kiev […]
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Experts Warn U.S. Government Planning To Freeze ALL American Bank Withdrawals
Experts are warning that the U.S. government is secretly planning to freeze all American bank withdrawals in the coming months due to the imminent collapse of the U.S. dollar. The freezing of bank accounts already […]
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