Johnny Twoguns
Senior Member
China, Russia, all other members of the BRIICS and many of the 39 other countries that want to join are already trading in yuan AND GOLD. I don't think you are keeping up with current events. They already have an internet exchange system to bypass the SWIFT system that has allowed the USA to lord it over the global financial world. China, Russia, and other countries have already set up a gold backed blockchain exchange system and tested it successfully. Those countries, and some of our "allies' like Japan are selling off their RESERVES of US treasuries and buying massive amounts of gold, and silver. Many countries are no longer using the US dollar as a System of Exchange.The problem is that was a long time ago. The kind of worldwide situation that would move enough governments out of the way to allow PMs to become viable the way many people believe that should be also brings with it other realities.
Put it ghis way, I’m sure the Chinese never thought that pressed blocks of tea leaves would stop being currency. Heck, tea was even a factor in the American Revolution. Taxing and controlling tea is still a factor today, just not in the US. But pressed blocks of tea leaves are no longer currency, but can be used as barter.
I am not saying that PMs don’t hold some innate value. What i am saying is that my opinion is that it won’t ever act as currency again. I don’t even see a PM backed currency happen because as we all know is if you don’t hold physical, you don’t own it.
We also know that a digital currency is coming. How quickly they will phase it in is the question. The fact that so many people use debit cards and online banking tells me how much easier that phase in will be than most people anticipate.
Once those controls go into place forget PMs as a currency. It may remain a barter item, but only so long as it can’t be excluded from use in fulfilling people’s needs of obtaining what may be required to purchse food, shelter, food, and the payment of taxes.
I am fine with people holding a different opinion. People have the right to choose how they spend the money they generate. So long as my taxes don’t go to pay their upkeep IF they find their life preps are insufficient.
Russia has stated publicly that THEIR GLOBAL SYSTEM will be run with a basket of THEIR CURRENCIES and another basket based on commodities with GOLD freely traded as backing. Good old fashioned supply and demand. Capitalism in a more pure sense and not crony capitalism like we have.
The majority of the world (largest groupings of population, holders of most of the commodities) have and are creating their own system and are excluding the USA and Europe.
China has cancelled many wheat, rice, soybean contracts with the USA and Canada (and I think Australia) and are buying those elsewhere, and not using American dollars to do it. WHAT do we import compared to what we export? What will be the ratio in a year or two when the rest of the world are banding together, right now, to cut us off?
It's happening right now. It is no longer "when China dumps our treasuries, they can really hurt us". They are doing it, now. And they have been working on it for several years and BUYING GOLD and SILVER.
We can't defeat Russia and China, Iran and India, militarily. We can destroy them, and get destroyed in return. They have better weapon systems than we do. One hypersonic weapon with an EMP can disable an entire fleet. The world is no longer LETTING US BULLY THEM AROUND AND FORCE THEM TO USE US DOLLARS.
You just don't get how big this is. This isn't tomorrow, this is right now. It's happening. Countries ARE selling their oil or corn, or iron ore to China and then going to Shanghai and getting payment in GOLD. It has been happening for two years now.
Will the world go back to using ONLY gold and silver as "money"? Probably not. But the new system IS using gold and silver, and other REAL things as "money"; with nary a single US dollar in sight. Could the world use gold/silver coinage as money again? Yes they could, with a revaluation of the metals; use them AND blockchain. You just don't get it, other countries DO use the metals as money.
Imagine two years from now when no country other than maybe Europe, or maybe Canada will take US dollars for anything at all; and we export very little because the world has moved on and can get corn and wheat elsewhere, and you need a car part and some one in China, or Indonesia, or South Korea says "sure, we can do that. got any gold?" That is ALREADY happening, it just isn't universal, yet.
The US and European press is not telling you or me any of this. They are paid not to, and most of them have no idea either.
The world going digital? Sure. Until the currency collapses and more if not most of our banks fail. Then your "credit" card won't work because no one will be extending, or have, the "credit" to extend.