What if China and Russia will release their currencyPhoto byAlexander GreyonUnsplash
Information is circulating that Russia and China are secretly working together to undermine the dominance of the US dollar in the global economy. This is believed to be achieved through the creation of a new currency that is backed by gold. The idea is that Russia and China have been hoarding gold for years, and they plan to use this to back a new currency that will rival the US dollar.
This theory is based on some interesting facts about the history of money and the current state of the global economy. It is true that in the past, many currencies were backed by gold or some other precious metal. This meant that people could exchange their paper money for actual gold, which gave the currency value and made it more stable.
However, in 1971, US President Nixon took the US dollar off the gold standard. This meant that the dollar was no longer backed by gold, and other currencies soon followed suit. Since then, no currency in the world has been backed by anything tangible, which has made the value of money much more volatile.
The fact that 92% of money is now digital is also significant. It means that money is no longer a physical object that can be exchanged for something else. Instead, money is just a number in a computer system, which can be created or destroyed at the whim of governments and central banks
This theory (or maybe a future) also suggests that China has been hoarding gold in order to reduce its dependence on the US dollar.
China is the world’s second-largest economy and holds a massive amount of US dollars in its reserves. This makes China vulnerable to fluctuations in the value of the US dollar, which can have a significant impact on its economy.
By hoarding gold, China would be able to create a currency that is less reliant on the US dollar. This would give it more control over its own economy and reduce its vulnerability to external economic forces.
Russia is also believed to be part of this plan, with reports suggesting that it has been buying gold in large quantities. This would give it more control over its own currency and reduce its dependence on the US dollar.
However, there is no concrete evidence to suggest that Russia and China are working together to create a new currency. While it is true that both countries have been hoarding gold, there are many reasons why they might be doing this that have nothing to do with a secret plan to undermine the US dollar.
Furthermore, even if a new currency were created, it is not clear that it would necessarily destroy the US dollar. The global economy is complex, and there are many factors that determine the value of a currency. While a currency backed by gold might be more stable, it is not clear that this would necessarily make it more attractive to investors than the US dollar.
In conclusion, the theory that Russia and China are working together to undermine the US dollar with a new currency backed by gold is interesting but highly speculative.
While it is true that the current system of fiat currency is not without its problems, there is no clear evidence to suggest that a new currency would necessarily be a better alternative. The global economy is complex, and the future of the US dollar is far from certain.
However, it is clear that the world is becoming more digital, and this is likely to have significant implications for the future of money and the global economy.
What are your thoughts on this?
