John Rubino – What Are The Economic Implications Of The BRICS Countries Launching A Gold-Backed Currency?

John Rubino, publisher of his newsletter over at Substack, joins us for wide-ranging discussion on the macroeconomic implications for markets, currencies, countries, central banks, global trading, and the precious metals sector with regards to the recently announced gold-backed currency that is being proposed by the BRICS (Brazil, Russian, India, China, South Africa) countries.  More will be unveiled at their upcoming August 22-24th meeting.


We delve into some of the main themes that surface around de-dollarization, the mismanagement of the United States with regards to how it often weaponizes the dollar as the world reserve currency, what it means for central banks role in buying gold, what is means for central banks that have little gold reserves, and what it could mean for a larger global discussion on fiat currencies versus gold-back currencies.   As we wrap up, we also bring up the added layer of complexity with regards to how central bank digital currencies could still be a going concern even in a gold standard type of currency.




    Jul 10, 2023 10:04 PM

    Russia Confirms BRICS Will Create A Gold-Backed Currency

    Neils Christensen – Kitco – Friday July 07, 2023

    “Friday, according to state-run RT, the Russian government has confirmed that Brazil, Russia, India, China and South Africa, also known as BRICS nations, will introduce a new trading currency backed by gold. The official announcement is expected to be made during the BRICS summit in August in South Africa.”

        Jul 10, 2023 10:08 PM

        BRICS Countries Planning New Gold-Backed Currency

        Stefan Gleason – Money Metals Exchange – 07/10/2023

        “As tensions with Russia and China escalate, the so-called BRICS countries (Brazil, Russia, India, China, and South Africa) are preparing to strike a blow against U.S. dollar hegemony.”

        Last week, the Russian Embassy in Kenya declared, “The BRICS countries are planning to introduce a new trading currency, which will be backed by gold.”

        “Although any claims coming from Russian sources invite skepticism, independent analysts expect BRICS to continue to pursue de-dollarization and for gold to play a role in that process.”

          Jul 10, 2023 10:13 PM

          None of this should really come as a surprise for anyone following along with the BRICS nations have been working on and announcing to the market about coming up with an alternative system to the petrodollar as the world reserve currency. Just look at all the recent robust central bank buying of gold the last few quarters… (Note: Those central banks weren’t loading up on Dogecoin or Shiba Inu coins…. they were loading up on gold. The question is why? I guess gold isn’t just a pet rock…)


          BRICS Undermine Dollar Hegemony With Gold Purchases

          Philip Pilkington – Tuesday, January 10, 2023

          “Central banks have been accumulating the precious metal at a record rate. Just before the New Year, the Financial Times ran a piece noting that central banks were accumulating gold at a rate not seen in 55 years. In the third quarter of 2022, analysts estimate that almost 400 tonnes of gold were bought by central banks. That much gold would take around 16 semi-trailer trucks to transport.”

          “In November, traders in the gold market noted that there was a huge buyer entering the market and purchasing very large volumes of gold — a so-called ‘whale’. In December it was revealed that this whale was the Chinese central bank. But it wasn’t just the Chinese buying gold. Other buyers include Turkey, India, Uzbekistan, Egypt, Qatar, and Iraq. It is worth noting that many of these countries have expressed an interest in joining the BRICS+ alliance.”

            Jul 11, 2023 11:48 AM

            CNBS and other financial reporting sources are inundated with news about the BRICS. Also there are a lot of Gumbo Recipes Probably more Gumbo Recipes.

            Jul 11, 2023 11:19 PM

            Hi Lakedweller2.

            That’s good info on the plethora of gumbo recipes making the rounds in the media.

            I enjoy cooking (and eating) and may do some deeper due diligence. 🙂

      Jul 11, 2023 11:26 PM

      The Gold Standard Is Back: BRICS To Intro Gold-Backed Reserve Currency
      “…it could be, first and foremost, a major challenge to the US dollar’s hegemony…”

      Quoth The Raven – JUL 10, 2023

      “Remember back when the Russia/Ukraine war had just started, and I predicted that Russia and China would launch their own gold backed currency?”

      “At the time, this idea sounded completely foreign, and I was ridiculed for bringing it up. Today, it just become reality. 41+ countries look like they could be returning to a gold standard.”

      “The images plastered all over RT this weekend had headlines like “New Money, New World” and “Gold Standard Will Be Of Great Benefit To Strengthening New Single Currency”.

    Jul 10, 2023 10:21 PM

    No matter what happens in life if you are a bully, and bullies are called that because they use force without reason, you will get your comeuppance. DT

    Jul 11, 2023 11:46 AM

    Central Bank Digital Currency Roll-outs May Require Changing The Constitution

    Mark E. Jeftovic – July 8, 2023

    What are retail CBDCs, exactly?
    The paper wonders: Are they cash? Deposits? Or something else entirely?

    This is quite the question, because if CBDCs aren’t cash, there has to be a reason why they wouldn’t be. When you start to see where CBDCs are going: expiry dates, programability, social credit scores – what we’re talking about is almost a kind of anti-cash (my observation, not the paper’s).

    Further, the paper wonders, would there need to be changes to banking charters, legislation or even the constitutions of the countries issuing them:

    “Legislation may need to be enacted or adjusted to specifically authorise the issuance and distribution of a retail CBDC (eg changes to central bank charters/statutes, legislation in other areas related to payments or to the constitution itself)”

    Who had “new Constitutional convention” on their bingo card for the roll-out of CBDCs? We do now…

      Jul 11, 2023 11:11 AM

      Hi Ex, until the financial institutions start following their mandate, they won’t treat Central Bank Digital Currencies any other way than they have followed the rules in the past. You will see some sort of a statement from The Fed saying, ” The Federal Reserve now wishes to rely on its new policy. The Federal Reserve Board contemplates the use of the resources of The Federal Reserve Banks for the creation of a Central Bank Digital Currency which will be called Fed Now.” End of Story! DT

        Jul 11, 2023 11:18 PM

        Yep, sad but true. Central Bank Digital Currencies are very spooky, and any thinking person, that cares about individual liberties and autonomy, should be deeply concerned about their introduction into the financial system.

    Jul 11, 2023 11:52 AM

    Guanajuato Silver could be anticipating a Private Placement, 10 million shares showed up on the ask at 40 cents CDN. They came out with a news release today; these juniors like to keep you guessing! DT

      Jul 11, 2023 11:23 PM

      DT – Interesting observation on Guanajuato Silver. Yeah, I know in talking with the CEO James that those mines they picked up on the cheap from Great Panther were greatly neglected an in need of some T.L.C. and some capital infusion to get them more optimized. Great Panther was cash-starved and not well run for so long, it wasn’t a surprise to hear that, but if they can do as good of job optimizing those, as they have been doing with El Cubo that they picked off from Endeavour Silver on the cheap, then that could be capital raised that is well-invested.

    Jul 11, 2023 11:48 AM

    This is not good news for Santacruz, they now have blood on their hands.

      Jul 11, 2023 11:09 PM

      That comment makes it sound like murder or something…. (“they’ve got blood on their hands”).

      Look, it was an unfortunate death due to and underground rock fall as they were working to replace the wooden supports.

      Everyone know that mining is a dangerous occupation. It is, of course, sad that it happened, but we’ve seen news like this many times in the resource sector.


      Arturo Préstamo commented, “The health and safety of our workforce is our number one priority, and we are deeply saddened by this tragic accident and have extended our deepest condolences to the employee’s family. We are providing all necessary assistance to the family and our employees during this difficult time. Our leadership, employees and contractors are committed to creating a work environment that promotes safety and zero-harm.”

      “The underground rockfall occurred while timber supports were being replaced and no other personnel were injured. Safety personnel immediately followed mine rescue protocols to close the mine, rescue the injured employee, and informed the family and authorities.”

        Jul 11, 2023 11:11 PM

        No matter what my perception is on it, these companies have to watch out for their people they send into a hole in the ground. I have sold out of SCZ for now as I doubt they will be rewarded with this accident in their news feed. Lots of other stocks out there without this hanging over their heads.

        HED, Oil stocks down beta.

      Jul 11, 2023 11:23 PM

      Dan just wants some Santacruz shares that are cheaper than the ones he now owns! LOL! DT

        Jul 11, 2023 11:27 PM

        That thought had crossed my mind… 😉

    Jul 11, 2023 11:15 AM

    Schwab went down when my account went Green. Must be a tough moment for them …

    Jul 11, 2023 11:31 PM

    I pick up some GASX today, we should see the price of Nat Gas start to appreciate. I hope the timing is right we shall see. DT

      Jul 11, 2023 11:22 PM

      Yeah, I’ve been considering adding back my NG Energy position as well.

      As for the “gassers” accumulation phase, I started with getting a stake in both EQT Corp and Comstock. Also considering Antero and Range Resources.