BRICS Works to Undermine Dollar Hegemony
Central banks are buying gold at a rate not seen in half a century.
- In the third quarter of 2022, central banks bought nearly 440 tons of gold (so much that it would take roughly 16 semitrailers to transport in one trip).
- The People’s Bank of China bought 32 tons in November, raising its total holdings to 1,980 tons.
- Meanwhile, Turkey, Uzbekistan, India, Qatar and Mozambique also made large purchases. These purchases are especially significant in that many of these countries have expressed interest in joining the brics alliance. This alliance’s five core members—Brazil, Russia, India, China and South Africa—control roughly a quarter of the world’s gross domestic product.
Anti-dollar: The United States dollar has been the dominant reserve currency since 1944, when world leaders met in Bretton Woods, New Hampshire, to tie major currencies to the dollar at a fixed exchange rate, while the dollar, in turn, was backed by gold held in vaults. But U.S. President Richard Nixon abolished the gold standard in 1971 so he could print money to continue fighting the Vietnam War—and the value of the dollar has been in a free fall ever since.
Nations continue to use the dollar as a reserve because the world’s other currencies are even worse. But if the brics nations established a gold-based exchange system, the dollar’s days would truly be numbered.
Prophecy says: Only time will tell exactly how this situation will play out, but dozens of Bible prophecies foretell the collapse of the United States (request a free copy of The United States and Britain in Prophecy for proof). In Deuteronomy 28, God specifically warns that debt problems are one of the many curses that come from disobedience. And in Isaiah 23, God warns that a “mart of nations” will besiege America. So the fact that foreign nations are shoring up their gold reserves at a time when America’s national debt is destroying the dollar’s purchasing power could end up being tremendously significant to the future of the world economy.