The Shift Away from the U.S. Dollar by BRICS

 

The Shift Away from the U.S. Dollar by BRICS

Most Americans are not even aware that BRICS nations have signed an accord and are moving away from the U.S. dollar by agreement, and that is a huge game changer for trade. It could have significant ramifications for global demand for U.S. treasuries and the dollar itself. If major economies like China, Russia, and Saudi Arabia stop using the dollar for oil and commodities trading, the global demand for the dollar could decrease significantly, putting downward pressure on its value.

However, this transition is complex. BRICS nations face challenges in developing a system that rivals the dollar in liquidity, trust, and acceptance. While steps like swapping bonds or using alternative currencies for trade weaken the dollar’s position, it doesn’t collapse overnight.

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Manufacturing a Bitcoin and Ethereum Bubble to Create Dollar Demand

Trump has brought in Elon Musk, Vivek Ramaswamy, and Krishna to make a play in cryptos. They are probably planning to inflate the value of Bitcoin and Ethereum as a means to manufacture demand for dollars because they have no other possible play. Here’s the rationale:

• The demand for US securities without the BRIC nations cannot sustain the US economy. To be able to create an illusion that there will be no contraption they need to create a massive bubble of demand for the US. Dollars. So cryptos are the only way.
• If Bitcoin and Ethereum skyrocket in price, investors globally may rush to acquire them. Since these cryptocurrencies are primarily traded in USD, this would create temporary demand for dollars.
• Speculative bubbles always burst, and eventually that bubble will burst, it could wipe out investor confidence, and of course, the Federal Reserve will sell the idea that such strategy will help draw capital back into “safe havens” like treasuries or USD holdings, stabilizing the dollar. However, the US dollar cannot stabilize because their debt will increase. After all, every single penny of the 3.29 trillion crypto markets is in US-denominated dollars. If that amount grows to 6.6 trillion, people sooner than later would realize that all of that is in money printed out of thin air and the truth will come out that the bitcoin and cryptos are as much a Ponzi scheme as the US dollar.

It’s not implausible that speculative asset bubbles can be created and burst strategically. Historically, markets have been influenced by policy changes, media narratives, and even coordinated actions. However, such a move would require immense coordination and buy-in from institutional players and financial elites. That is why Donald Trump is kneeling and kissing ass of Elon Musk.

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Market Data and Trends

Looking at the data:

• Bitcoin and Ethereum Price Trends: While crypto markets are highly volatile, they tend to follow cycles influenced by macroeconomic factors (e.g., interest rates, regulatory news). If the Federal Reserve loosens monetary policy or if liquidity increases, it could fuel speculative growth in these assets.
• Global Liquidity Trends: With rising interest rates and economic uncertainty, global liquidity is constrained. If central banks shift to more accommodative policies, the inflow of cheap money could drive speculative investments like Bitcoin and Ethereum.
• Institutional Involvement: Large institutional players have been accumulating crypto assets. If they anticipate regulatory clarity or greater adoption, this could drive significant price increases in the short term.

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Counterarguments

While the theory is compelling, there are some challenges:

• Lack of Control Over Crypto: Bitcoin and Ethereum are decentralized, and their market movements are driven by a mix of retail and institutional traders globally. Manufacturing a bubble at this scale would require a level of control that’s difficult to achieve.
• Dollar Alternatives: Creating demand for dollars via crypto bubbles may not solve the larger structural issues if BRICS nations succeed in creating viable trade systems outside the dollar.
• Speculative Bubbles Have Limits: Even if demand is created, the speculative nature of crypto means a crash could erode trust in all markets tied to it, including fiat currencies like the dollar.

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What Might Happen?

Here’s another possible scenario based on current trends:

• Bitcoin and Ethereum Surge: If global uncertainty continues, Bitcoin and Ethereum could rise as speculative assets and potential hedges against inflation or currency instability. If the Federal Reserve signals a pivot to looser monetary policy, this would further fuel growth in risk assets like crypto.
• Global Dollar Demand Declines Gradually: While BRICS nations reduce reliance on the dollar, this process will take time. In the interim, the dollar could remain strong due to its role as the global reserve currency, (remember that while people say cryptos, all of that money is in US dollars) but cracks in the system would emerge.
• Cryptocurrency as a Hedge: As traditional financial systems face challenges, some investors may turn to crypto as a hedge against instability, leading to organic demand increases.

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Conclusion

My prediction is that Trump is going to create a speculative crypto bubble driven by manufactured demand to support the dollar. The crypto market could indeed experience significant growth in 2025, and smart Latin nations should learn how to ride that bull, but whether this is part of a coordinated effort between the WEF operatives and the cuckold Trump remains to be seen or simply the result of macroeconomic factors remains uncertain.