Brazil’s Lula Wants to End Dollar Dominance
In a speech on April 13, Brazilian President Luiz Inácio Lula da Silva called on the brics nations (Brazil, Russia, India, China and South Africa) to work toward replacing the United States dollar with their own currency in international trade. Lula spoke at the inauguration of former Brazilian President Dilma Rousseff as the head of the New Development Bank in Shanghai (also known as the brics bank).
Every night I ask myself why all countries have to base their trade on the dollar. … Why can’t we do trade based on our own currencies? Who was it that decided that the dollar was the currency after the disappearance of the gold standard?
—Luiz Inácio Lula da Silva
Ties with China: Lula is set to meet with Chinese General Secretary Xi Jinping in a bid to strengthen ties with China, whose trade with Brazil surged to a record high this past year. “Lula and Xi both envision a far more prominent role for the Global South, not just in global economic governance, but in shaping geopolitical outcomes,” a scholar told the China Project.
On February 7, China’s central bank signed a memorandum of cooperation with the Central Bank of Brazil to clear arrangements of cross-border transactions using the Chinese yuan rather than the U.S. dollar.
United against the dollar: The desire to move away from the U.S. dollar in global trade is becoming increasingly common. Earlier this month, the brics alliance announced it was working toward creating its own currency in an effort to ditch the dollar. America’s waning financial dominance and the collective move away from the dollar by other countries will eventually lead to the economic collapse of the United States.
Prophecy says: In Deuteronomy 28:52, God warns America it will be besieged in “all thy gates” because of disobedience. In his article “America Is Being Besieged Economically,” Trumpet editor in chief Gerald Flurry explained this prophecy, saying that foreign competition with countries in Latin America is one major factor that will lead to an economic siege on the U.S.:
This is a prophecy that America is going to be besieged in all our gates! The national economy will be battered by foreign competition.
Look at these prophecies in light of Latin America’s strategic position. America cannot truly be besieged unless Latin America is part of it.
To learn more, read “America Is Being Besieged Economically” and “Uniting Against the Dollar.”