Putin Throws BRICS at U.S.

The Growing Anti-Dollar Alliance… Were you forwarded this email? [Sign-up to The Daily Reckoning here.]( [Unsubscribe]( [Daily Reckoning] Putin Throws BRICS at U.S. - Russia enlists gold in the war of sanctions… - Putin throws BRICS at the dollar… - The case for buying gold now… Recommended Link [Biden to Replace US Dollar?]( [Read more here...]( Thanks to President Biden’s Executive Order 14067, a former advisor to the CIA and Pentagon predicts the 3rd Great Dollar Quake has begun. The first was Roosevelt confiscating private gold in 1934. The second was Nixon abandoning the gold standard in 1971. Now, Biden’s plan could pave the way for “retiring” the US dollar. Your dollars could soon be confiscated – or made worthless. Save your investment and retirement accounts. [Click Here To Learn How]( Portsmouth, New Hampshire July 5, 2022 [Jim Rickards]Dear Reader, Russia may have started the war in Ukraine by invading back on Feb. 24, but the U.S. started the global financial war by imposing economic sanctions on Russia on Feb. 28, and adding to the sanctions almost daily since then. In effect, we have two wars going on at once. The first is a kinetic war on the battlefields of Ukraine, which is proceeding in a slow but steady direction in favor of Russia, which even the mainstream media are beginning to recognize. The second is a financial war that is global and involves almost every major economy in the world. Financial tools have all been weaponized in an effort to destroy Russia. Unfortunately for the U.S. and its allies, almost all of the sanctions have been poorly thought out and are doing more damage to the U.S. than they are to Russia. High energy prices have enriched Putin and hurt Western consumers who have to pay more at the pump and have less to spend on everything else. Food shortages due to the cutoff of Russian and Ukrainian grain exports have caused food prices to spike now and will cause mass starvation by this fall. Given the extent of financial warfare being aimed at Russia, it comes as no surprise that Russia is fighting back financially as well as on the battlefield. Russia has reduced the amount of natural gas flowing to Poland and Finland and may reduce gas supplies to Germany and others as the cold weather approaches in a few months. Russia Mobilizes for Financial War Russia has mobilized its sovereign wealth fund (the State Fund of Russia or “Gosfund”) to set up a special reserve of gold and other precious metals. This is more than just an economic move. Russia considers this fund a mobilization of state resources in the conduct of a war. Experts understand the term “mobilization” as referring to calling up troops, moving weapons and supplies into position and otherwise preparing for either offensive or defensive war. By issuing this mobilization order with respect to Gosfund and gold, Russia is saying that gold will be as much a part of its military strategy as artillery, drones, tanks and other key weapons systems. There’s nothing unusual about this move. At the outset of World War I, all of the major belligerents banned gold exports, stopped the convertibility of bank notes into gold and sold overseas assets in return for gold. The selling pressure was so great that the New York Stock Exchange was actually closed for almost five months from August to December 1914. Recommended Link [Trump’s Final Gift To America]( [Read more here...]( There’s a little-known way Trump could – one day – have his revenge. It involves a Federal Ruling he oversaw in the final year of his Presidency that could change America forever… unleash an estimated $15.1 trillion in new wealth… and create countless ways for everyday Americans to benefit. What is this little understood decision? And how will it impact you? [Get The Facts Here]( Gold Is Again on the Front Lines Gold shipments were also prohibited at the beginning of World War II and did not resume until the new Bretton Woods system was created in 1944 and launched after the Allied victory in 1945. The fact is gold has always been a crucial factor in fighting major wars. Today is no different, despite the fact that the gold standard is long gone. The war in Ukraine has morphed into a new world war once the global sanctions regimes are taken into account. And gold is once again on the front lines as a weapon of choice. As other countries decide to increase their gold reserves and restrict their gold exports, one can expect the price of gold to soar. Unlike 1914 and 1939, there is no gold standard to lock in the price of gold. There’s no limit on how high the price can go as the opposing nations stock up on guns, ammo … and gold. Meanwhile, here’s another potentially major tailwind for gold… Forget the G7, Look at the BRICS Many of the headlines last week involved the G7 meeting of national leaders in Germany. The G7 consists of the U.S., the U.K., Germany, Japan, France, Canada and Italy. (Other nations and the EU are invited as observers and allowed to participate to some extent). But there was another international meeting in June that may prove to be even more important than the G7. This was the meeting of the BRICS countries (Brazil, Russia, India, China and South Africa). Those economies are ranked second, sixth, 10th and 11th largest in the world. (South Africa is ranked 32nd largest and is an outlier in size; it was included so that a major economy in Africa would be represented alongside members from Asia, South America and Europe). While somewhat smaller in economic size than the G7, the BRICS still represent 30% of global GDP and 40% of the global population. Like the G7, the BRICS invite many other countries to participate in their meetings. Prominent attendees at this year’s meeting included Argentina and Iran. The BRICS cooperate on a long list of issues including technology standards, economic development, climate change and international trade. This year, a critical new topic was introduced. Recommended Link [“The Mainstream Media Is Lying To You!”]( The media would have you believe that the worst of the supply chain issues are over. But the opposite is true… Behind the scenes, things are getting much, much worse. Bob Biesterfeld, CEO of one of the biggest logistics firms in the world, warns “the pressures on global supply chains have not eased, and we don’t expect them to any time soon.” This is going to impact every American’s life in a potentially major way… And I’m urging everyone I can to prepare now. See the #1 move to make before this problem gets any worse. [Click Here To Learn More]( Putin Throws BRICS at the Dollar On the initiative of Russian President Putin, the BRICs began to consider the formation of a new international reserve currency. This was clearly in reaction to the West’s economic sanctions aimed at Russia as a result of its invasion of Ukraine. The sanctions take many forms and affect many different areas of commerce and trade, but what they all have in common is the use of the U.S. dollar as the principal weapon. Whether the West is banning exports, limiting imports, stopping investment or freezing assets it is using the dollar payment system and dollar accounts in correspondent banks to enforce the sanctions. The BRICS realize that as long as they are dependent on dollars for holding assets or purchasing global commodities, they will be under the thumb of those who control the dollar payments systems, which is basically the U.S. with some help from big European and Japanese banks. The BRICS also know that while Russia is the current target of sanctions, the other members could easily be next. If China turns up the pressure on Taiwan or India does not go along with the Russia sanctions, then they could soon be subject to dollar-based sanctions also. The only way to escape the sanctions is to escape the dollar. Challenges Now, this is easier said than done. None of the BRICS currencies are safe enough or have large liquid bond markets based on their currencies to step into the role of the dollar. But a new currency in digital form backed by a basket of commodities or gold could provide a satisfactory substitute. The new currency would probably start out as a payment currency for trade and investment among the BRICS and their associate members. Eventually, it could graduate to reserve currency status if a large bond market denominated in the new currency were created, possibly with bonds from a multilateral institution located in a jurisdiction with good rule of law (Switzerland?) and guaranteed by the combined resources of the member nations. Similar initiatives are underway in other forums such as the Shanghai Cooperation Organization, and the Eurasian Economic Union. These initiatives will take time, but participants are determined to break free of dollar domination. The best way for individuals to take advantage of this trend is to buy gold. When confidence in the dollar is finally lost, the dollar price of gold will soar. Regards, [Jim Rickards] Jim Rickards for The Daily Reckoning P.S. Thanks to Joe Biden’s [Executive Order 14067…]( I predict the [3rd Great Dollar Earthquake]( has started. These currency upheavals happen about every 40 years. The first was Roosevelt confiscating private gold in 1934. The second was Nixon abandoning the gold standard in 1971. Now, Biden’s plan could pave the way for “retiring” the U.S. dollar… And replacing it with [THIS.]( Amid the turmoil, there will be many losers. Will you be among them? [>>Click here to see how to win instead.]( --------------------------------------------------------------- Thank you for reading The Daily Reckoning! We greatly value your questions and comments. Please send all feedback to [feedback@dailyreckoning.com.](mailto:dr@dailyreckoning.com) [James Rickards][James G. Rickards]( is the editor of Strategic Intelligence. He is an American lawyer, economist, and investment banker with 35 years of experience working in capital markets on Wall Street. He is the author of The New York Times bestsellers Currency Wars and The Death of Money. Add feedback@dailyreckoning.com to your address book: [Whitelist us]( Additional Articles & Commentary: [Daily Reckoning Website]( Join the conversation! Follow us on social media: [Facebook]( [LinkedIn]( [Twitter]( [RSS Feed]( [YouTube]( The Daily Reckoning is committed to protecting and respecting your privacy. We do not rent or share your email address. By submitting your email address, you consent to Paradigm Press delivering daily email issues and advertisements. To end your Daily Reckoning e-mail subscription and associated external offers sent from The Daily Reckoning, feel free to [unsubscribe here.]( Please read our [Privacy Statement](. 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