BRICs Countries No Longer Trading in US Dollar…Prefer a Basket of Currencies Including Their Own

Prediction #1: Dawn of the Petro-Yuan – Will It Doom the Dollar? Pontification Blog
“‘We are engaged in a new era of competition,’ said President Donald Trump in his December 18, 2017 speech about America’s national security strategy. We face ‘rival powers, Russia and China, that seek to challenge American influence, values, and wealth.’ A week earlier, White House National Security Adviser H.R. McMaster foreshadowed President Trump’s meaning. China, said McMaster, was committing ‘economic aggression’ and China and Russia ‘are undermining international order and stability.’….Much of America’s prosperity since World War II came from the Western economic system of the Bretton Woods Agreement, which made the U.S. Dollar the World Reserve Currency, the global money used to trade key commodities such as oil. The U.S. Dollar was to be pegged to the value of gold, and the currencies of favored nations were to be pegged to the dollar….When President Richard Nixon in 1971 suddenly severed the dollar’s anchor to gold…we switched from the precious metal-backed dollars of our Constitution to ‘Petro-Dollars.’ China now threatens this fundamental part of the ‘international order’ by being on the verge of creating the ‘Petro-Yuan’ through contracts backed by gold to sell oil in exchange not for dollars but for China’s currency. This will send the value of gold soaring, ZeroHedge predicts, as ‘China Kneecaps The Dollar.'” Full story

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