Hit the BRICS

These are authoritarian regimes with no private property rights, capital controls, and inflexible money and bond markets. Money can enter...but it can't leave.

BRICs is an acronym from a Goldman Sachs strategist dating back to about 2010. All commodity plays leveraged to China.

These countries can't do anything about the dollar or gold, unless they want to shoot themselves in the foot.

I guess since they're largely NOT democracies they can do that....if they want to risk it.

 

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Show me where they are short this silver ? Which banks ?

U.S. banks do not speculate in metals. They will NOT tie up capital in a non-interest bearing asset PLUS the regulators will not allow it.

Do NOT confuse being a custodian with being a trader.

 

But their shareholders have rights. Would you like it if YOUR assets were exporpriated ?

The 5 largest banks will earn about $100 BB this year.

 

These people have never worked for a bank or monetary authority.

The dollar is the global reserve currency. Nothing can replace it. We are in on 90% of all foreign currency transactions.

In 1980 the currency market (7 years old) and the gold market (8 years old) each traded about $1 billion daily.

Today....the gold market trades about $70 billion a day....and the currency market trades about $7 TRILLION a day.

People want U.S. Treasuries when things get dicey, not gold.

 

A possible 100% tariff coming on BRICS countries who try to undermine the US dollar. Can’t make this stuff up
Film at 11

 

Should be zero tariffs then because no BRIC country is going to be able to undermine the dollar.

 

The Eurozone and FX transactions are the big ones. Nobody cares if the ruble is exchanged for the Zimbabwe dollar several thousand times a day for $10 each.

Warren Buffet is.

They want U.S. Treasuries -- and U.S. Agency MBS -- when they want liquidity and transparency. These are the ONLY fixed income (bond) markets that can handle the size of Central Banks, SWFs, the super-rich, and institutions. Each trades hundreds of billions daily......the next closest bond markets with higher duration, credit, and sovereign risk don't cut it in terms of size and liquidity.

 

Lots of talk, but nobody wants to put their money where their mouths are.

Nobody is willing to impose or remove capital controls...have a liquid open bond or money market....allow private property rights to rule backed by the rule of law (CCP ? Putin ? Brazil ? India ? ).

This entire "dollar is being devalued" and the "dollar is doomed" and "BRICs is the next big thing" reminds me of Clara from 1984: Where's The Beef ?

Check out the 5-year charts:

Brazil Real:

https://www.google.com/search?q=dol...CDQyNjhqMGoxqAIAsAIB&sourceid=chrome&ie=UTF-8

Russian Ruble:

https://www.google.com/search?q=dol...uM7gHowvCBwY0LjEzLjHIBxs&sclient=gws-wiz-serp

Indian Rupee:

https://www.google.com/search?q=dol...HAzYuM7gH1gbCBwMxLjnIBxE&sclient=gws-wiz-serp

Chinese Yuan:

https://www.google.com/search?q=dol...40uAfmC8IHBjQuMTUuMcgHJw&sclient=gws-wiz-serp

 

There's too many countries now in BRICS to form a acronym that doesn't look like the freak show that it is. So they should just call it "B" for basket case. And don't come sniveling to us for a bail out.

 

My point is that our country has the ONLY deep liquid financial markets and people will need dollars to access them.

Our economy is also the largest and most dynamic. We reinvent on the fly. The talk about China surpassing us in total GDP has gone by the wayside (same thing happened in 1980 with Japan; I still have my college textbook warning me about that).

 

I hope it doesn't approach $100k in my lifetime, but not enough to jump off a bridge if it does.

If I follow in Dad's footsteps, I've got maybe another 25 good years ahead of me, followed by another 5 or 10 increasingly crummy ones. That gives a lot of time for surprises, both good and bad..