Rickards Says BRICS Cracked Currency Code

In Strategic Intelligence, Jim writes that BRICS will remake the world economy this August. [The Rude Awakening] June 02, 2023 [WEBSITE]( | [UNSUBSCRIBE]( Rickards Says BRICS Cracked Currency Code - Jim Rickards says August 2023 will be as big as August 1971. - BRICS started as a Goldman Sachs marketing gimmick… - …and is now a geopolitical inevitability. [America’s #1 Gold Expert Makes Shocking Prediction]( [Click here to learn more]( Is This The Start Of The Biggest Gold Bull Market In History? [Click Here Now For The Details](. [Click Here To Learn More]( [Sean Ring] SEAN RING Happy Friday from sunny Northern Italy! It’s the Festa della Repubblica (Republic Day) here in Italy, so Micah is off from school. The day commemorates the referendum held in 1946. The Italians were called to the polls to decide on the form of government they wanted after the Second World War and the fall of Fascism. The Italians chose a republic over a monarchy. Italy has had nearly 70 governments since the end of World War II - a new one every 1.11 years - so maybe we’ll try monarchy next time. It couldn’t be worse, right? Speaking of new systems, let’s get straight to BRICS. [If you haven’t watched the Whisky Bar]( - and no, I won’t spell it “Whiskey” - make some time to do so. While we were in Jekyll Island, Jim Rickards, Matt Insley, Doug Hill, Byron King, Dan Amoss, Zach Scheidt, and I sat around talking about current events and trends in politics, economics, finance, and investing. It was a great time for us… and I hope it was fun and informative for you. Jim and I had a pleasant exchange over the BRICS near the beginning of the telecast. And then, Jim promised to write about a seismic event concerning BRICS in his next issue of [Strategic Intelligence](. One of the perks of being a Paradigm Press editor is getting access to all my most excellent colleagues’ writings. And I must tell you: this edition of [Strategic Intelligence]( may be the best I’ve ever read. You’re probably an SI subscriber already, but you can [sign up here]( if you're not. I can’t give it all away. But I’ll summarize some things I’ve written in the Rude, the background of the BRICS, and why I think Jim is right about the coming BRICS currency. Let’s get to it. The Unipolar World and the Capitalist Manifesto Ah, 1991. When America, and America only, ruled the world. And had she been a benevolent dictator, she’d never have lost her place. But as of this coming August, it’s a new world. Let’s face it, the “Capitalist Manifesto,” better known as the Washington Consensus, written in 1989, looks pretty great. Washington Consensus - Fiscal policy discipline. - Moving public spending toward education, health care, and infrastructure. - Tax reform by broadening the tax base and lowering rates. - Market-determined interest rates, moderately positive in real terms. - Market-determined exchange rates. - Trade liberalization. - Liberalization in inbound direct foreign investment. - Privatization of state enterprises. - Deregulation. - Legal security for property rights. Alas, that time is over. Because the US has been such a poor steward of world security, countries have prayed for an alternative. Now, they have one. And it just started as a marketing gimmick. [[CHART] Could Inflation Hit 20%+ In 2023?]( [Click here to learn more]( Take a close look at this scary chart pictured here… What you see is the money supply in America… And as you can see, the number of dollars in circulation has exploded in the last few years. In fact, more than 80% of all dollars to ever exist have been printed since just 2020 alone! Which is why some say inflation could soon explode even higher than it is now, to 20% or more. And if you’re at or near retirement age you must take action now to protect yourself… otherwise you risk losing everything. [Simply click here now to see how to survive America’s deadly inflation crisis](. [Click Here To Learn More]( Goldman Sachs Outdoes Madison Avenue Jim writes: In 2001, Goldman Sachs Asset Management published a report titled “Building Better Global Economic BRICs” by Goldman Sachs Asset Management (GSAM) Chairman Jim O’Neill. The acronym BRIC was created by a Goldman research assistant named Roopa Purushothaman. It stood for Brazil, Russia, India, and China. Goldman picked the four largest economies in the world (measured by purchasing power parity), excluding the G7. The G7 comprises Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States. Those countries were China, India, Brazil, and Russia. CIBR wouldn’t stick, so the letters were arranged to make BRICs. Jim continues: From 2001 to 2006, the term BRICs remained a marketing ploy by Goldman, but the idea of BRICs as a powerful block of developing economies was gaining popularity and was routinely used as a kind of shorthand for the nations included in the name. Then in 2006, the marketing gimmick became a geopolitical reality. At the meeting of the UN General Assembly in New York in September 2006, the foreign ministers of Brazil, Russia, India, and China met in a private discussion. Such multilateral groupings in sideline sessions of larger conferences are not unusual. This one was historic and soon morphed into a more substantial platform. I wonder if Jim O’Neill regrets coining the term. Build It, and They Will Run From Washington Long before the Russia-Ukraine War, BRICS (with South Africa now added permanently, capitalizing the “S” in “BRICS”), the member countries decided to build a new financial architecture. This effort was coordinated from the shiny new BRICS Tower in Shanghai, China. The New Development Bank, a World Bank clone, was founded in 2014. The Contingent Reserve Arrangement, an IMF clone, was founded in 2015. Heck, the BRICS are even building a new undersea cable that the NSA won’t be able to spy on. So successful have the BRICS been in selling the idea of being free from American interference, there are eight formal applicants to join the organization. Seventeen additional countries want in, as well. And why not? Check out some of the stats Jim provides: There’s more to this list than just increasing the headcount at future BRICS meetings. If Saudi Arabia [an applicant sure to get in soon] and Russia are both members, you have two of the three largest energy producers in the world under one tent (the U.S. is the other member of the energy Big Three). If Russia, China, Brazil, and India are all members, you have four of the seven largest countries in the world measured by landmass possessing 30% of the earth’s dry surface, and related natural resources. Almost 50% of the world’s wheat and rice production, as well as 15% of the world’s gold reserves, are in the BRICS. China, India, Brazil, and Russia are four of the nine highest population countries on the planet with a combined population of 3.2 billion people or 40% of the earth’s population. China, India, Brazil, Russia, and Saudi Arabia have a combined GDP of $29 trillion or 28% of nominal global GDP. If one uses purchasing power parity to measure GDP, then the BRICS share is over 54%. Russia and China have two of the three largest nuclear arsenals in the world (the other leader is the United States). And yet, the smartest people in Washington’s room thought it’d be a good idea to sanction Russia, despite all this. Why Sanctions Didn’t Work and Sped Up the BRICS Schedule I’ve written over 50 articles explaining why sanctioning Russia was idiotic. But Jim succinctly writes the three conditions that must be satisfied to sanction a country: - The target country must have a small- or medium-sized economy with little robustness or resiliency to sanctions. - The target country must have limited access to alternative payment channels and few allies in any effort to obtain hard currency. - The target country must have limited hard currency reserves or gold with which to evade or wait out sanctions. I wrote [why Russia would stand up to these sanctions here](. I wrote about [Russia’s alternative payment systems here](. And [here]( where I wrote about how Russia was loaded with gold. In short, sanctions were never going to work, haven’t been working, and will not work in the future. Jim called the sanctions “an across-the-board failure.” Yes. Yes, they are. All they’ve done is make any country with USD reserves realize it’s a target! The Ghost of Wilson: What Will Make the New Currency Work Still think the BRICS can’t create a new currency? I offer you a Hayek quote I mentioned at the Whisky Bar: The curious task of economics is to demonstrate to men how little they know about what they imagine they can design. Maybe. But there’s enormous will here. And I think they’ve found a way. Most people don’t think the BRICS can pull this off because they don’t have a BRICS bond market to rival the US Treasury market. Funnily enough, the ghost of the [worst US President ever]( may have shown them the way. But have they done this? And how? Wrap Up I can’t tell you how much I enjoyed reading Jim’s latest Strategic Intelligence issue. I know most of you are subscribers of Jim’s, and that’s great! Get on this issue if you haven’t already. But if by some chance you don’t already subscribe to Strategic Intelligence, I encourage you to do so. The economics, history, and economic history you learn are worth the price of admission alone. [You can sign up here.]( In the meantime, have a wonderful and restful weekend! All the best, [Sean Ring] Sean Ring Editor, Rude Awakening Twitter: [@seaniechaos]( In Case You Missed It… Breaking the DC Swamp’s Laws [Sean Ring] SEAN RING Good morning Reader, Gather around, So you may hear, Of the midnight tides, Bringing black gold here. Paraphrasing Henry Wadsworth Longfellow is a challenging task. In Paul Revere’s Ride, Longfellow waxed lyrical about the greatest alarm bell ever rung. Writing in 1860, on the eve of the Civil War, hoping to dissolve the tension, Longfellow noted that “hardly a man is now alive who remembers that famous day and year.” That year was 1775. Revere rode through Charlestown, Medford and then on through Lexington and Concord to warn the Americans that the British were coming! One if by land, and two if by sea; And I on the opposite shore will be, Ready to ride and spread the alarm Through every Middlesex village and farm, For the country-folk to be up and to arm. The poem is historically inaccurate. But with Longfellow’s poetic license, Revere became the ultimate messenger-warrior. What about this poetic rendition of events that puffs out your chest, straightens your back, raises your chin and clenches your fists? You may disagree. But I think it’s because Revere was a bad boy, shaking his fist at Mad King George III. Summer Movie Season, 1988 I couldn’t wait to see Die Hard. Moonlighting’s Bruce Willis, one of my favorite sitcom stars, finally hit the big time. He was excellent with Cybill Shepherd. Funny, sarcastic, and whip-smart, Willis’ David Addison was a hoot in every episode. But what would he be like on the big screen? So many TV stars had tried to make the jump but failed. Would Willis be any different? Sitting in my comfy seat with salty popcorn, Twizzlers, and a Coke, I remember being disappointed at what a dick John McClane was. Grouchy, unhappy to be in California and downright ornery to his successful wife, I was surprised Willis even took the role. But then… he appeared. Hans Gruber. The greatest villain ever committed to film. As I watched the movie, I questioned myself. Why was I having these feelings? Was I actually rooting for the bad guy? Suave, debonair and urbane, Gruber didn’t move through scenes so much as glide through them. He was the epitome of cosmopolitan, wore tailored suits, a trimmed beard and could speak multiple accents. (At the time, I had never heard of Alan Rickman… and didn’t know he was an Englishman playing a German!) His wit, sarcasm and dialogue were as rich as a French gateau, compared to the Reese’s Pieces Hollywood had previously fed me. Something had changed in me that day. Or, more precisely, activated a dormant gene. I’d say it was lucky because I’d later find out girls preferred bad boys to good ones… [Over 62 And Collect Social Security? Take Action Immediately!]( [Click here to learn more]( [If you’re over the age of 62 and currently collect Social Security, you need to prepare now](. Because Biden has given our country the worst inflation in decades – and many warn things will only get worse from here. Worse yet, the Social Security check you receive now may not keep pace with inflation… [Which is why, if you don’t act now, you could fall behind in the months ahead](. Is your retirement at immediate risk? [Click here now to get the simple, step-by-step actions to survive inflation](. [Click Here To Learn More]( Why Do Girls Always Go for the Bad Boys? In our late summer, autumn, or winter years, we rue the days when we didn’t know any better. “If I knew then what I know now…” we often say as we lament our past indiscretions. But Mark Twain had it right. We regret what we haven’t done far more than what we did. And that leads me to the ladies. So many women I’ve met in my life wanted a man who was just a bit naughty. Not an evil man. Or an unjust man. And certainly not a bully. But one who would break the rules when the rules didn’t — or shouldn’t — apply. So, fine… I’d be a bit naughty. Heck, [@seaniechaos]( my Twitter handle, is the nickname my old Kiwi girlfriend gave me in honor of our wild nights in London. I wear that badge with honor nearly twenty years later. As to my confusion, Jordan Peterson, a Canadian psychologist, professor and public intellectual, cleared it up for me. Peterson called Beauty and the Beast a real female hero myth and used it to make his point. (And his point is, essentially, biology.) Peterson says Beauty — Belle — is intelligent, resourceful and truthful… everything a man wants in a woman. But she doesn’t go for the psychopathic Gaston. She’s too smart for that. Belle wants The Beast. The Beast is a terrible man… but he’s got potential. He can guard the walls and make a safe haven for the children. The Beast is productive enough to be valuable and generous enough to share the proceeds of his endeavors with his family. In short, women want their men to be dangerous, but dangerous on their behalf. Paradoxically, this “bad boy” behavior is the way to preserve the family line. And that’s what the female wants. The Beast Who Controls Himself Again, women aren’t looking for evil men. Just naughty men. Ones who’ll break the rules when necessary to protect their family. In an interview with Jocko Willink of Extreme Ownership fame, Peterson said this: A good man is not a harmless man. A good man is a very, very dangerous man who has that under voluntary control. Peterson’s point is that men incapable of cruelty aren’t fully formed. “Nice guys” who can’t contemplate cruelty are at the mercy of those who can. And that’s the most vulnerable someone can be. The definition of Peterson’s “good man” describes many of our fictional heroes. James Bond. Indiana Jones. Jack Aubrey. Jack Ryan. Rick Blaine. And it probably describes your grandfather and your uncles. Maybe even your father. I know it describes mine. That’s why we love and trust these men. That’s why we aspire to be like them. What Does This Have to Do With Anything? We had our editorial meeting yesterday and it went off on the most extraordinary tangent. Paradigm Press VP Doug Hill asked the group about oil. Our good friend Byron King jumped in immediately to talk about it. But it took a turn towards that black gold, from the country by the Black Sea, using a “shadow fleet,” as Byron called it, to keep the world economy afloat. Like my 14-year-old self, I know I shouldn’t be rooting for the “bad guys” or the people “breaking the law” as set by the DC Swamp. But I’m with Cicero, who once said, “The more laws, the less justice.” There’s a difference between natural law (thou shalt not kill) and legislation (thou owe the military-industrial complex 39.6% of your income). Cicero knew many laws do not necessarily guarantee true justice or a well-functioning legal system. Instead, he suggested too many laws can lead to confusion, loopholes and a lack of clarity in applying justice. Simplicity, clarity, and fairness in legal systems are far better than an excessive and convoluted legal framework. And when too many laws exist, black markets tend to form. Black Markets A black market is an illegal or unregulated market where goods or services are traded without government oversight or authorization. The wild west of commerce is where the forbidden fruit becomes the hot commodity. Certain goods and services may be prohibited by law or heavily regulated, either due to safety concerns, ethical reasons, or simply the whims of a rogue government. But there's always someone willing to supply where there's a demand, even if it means operating outside the boundaries of legality. So, the black market steps in to fill the gaps. It's where you can find all sorts of illicit goodies, like illegal drugs, counterfeit products, smuggled weapons, endangered wildlife, pirated media, or even black gold. In short, if there's a law against it, you'll likely find it thriving in the black market. Why do black markets form? Here are a few possibilities: - Prohibition or Illegalization: When certain goods or services are prohibited or heavily regulated by the government, it creates a gap between the demand and the legal supply. Black markets thrive by providing access to prohibited or restricted items, such as illegal drugs, banned weapons, or counterfeit goods. - Economic Factors: Economic disparities, high taxes, or excessive regulations can create an environment where legal markets become inaccessible or unaffordable for some individuals. - Limited Supply or Scarce Resources: When essential commodities become scarce, black markets can arise to distribute goods in high demand but in short supply. This includes food shortages, fuel crises, or medical supplies during emergencies. - Evading Taxes or Regulations: Some individuals or businesses evade taxes, regulations, or bureaucratic red tape. By operating outside the legal framework, they can avoid paying taxes, circumvent licensing requirements, or bypass costly compliance measures. - Cultural or Social Factors: Cultural or social norms may clash with legal restrictions. This can be observed in gambling, sex work, or the trade of cultural artifacts, which are heavily regulated or considered illegal but still in demand. - Failed Government Policies: In cases where government policies fail to address social or economic needs adequately, black markets can arise as a form of self-regulation or survival strategy. Wrap Up If you’ve been reading the Rude or the Reckoning for a while now, you know we are entirely against the USG and EU sanctions imposed on Russia. Not because we think Vlad Putin is a nice guy, but because we knew and called very early that the sanctions would hurt the US and EU citizenry and not Russia’s. And we were right from Day One. These sanctions are what’s creating this incredible black market for black gold. To be completely upfront, the people running these markets are probably “good men,” as we defined above. It takes a lot to oppose the allegedly most powerful military and economy globally. As someone in Europe paying top euro for gas, I’m grateful these black marketeers keep the prices lower than they would have been. But over the next few weeks, Brian Maher, Byron King and I will look into the questions about the illicit oil trade here in the Old World. So keep watching out for the Rude and the Reckoning as we explore the topic more in-depth. And if you have any of your own questions, be sure to email me [here](mailto:feedback@dailyreckoning.com). Have a lovely rest of your week! All the best, [Sean Ring] Sean Ring Contributing Editor, The Morning Reckoning feedback@dailyreckoning.com Twitter: [@seaniechaos]( [Paradigm]( ☰ ⊗ [ARCHIVE]( [ABOUT]( [Contact Us]( © 2023 Paradigm Press, LLC. 808 Saint Paul Street, Baltimore MD 21202. By submitting your email address, you consent to Paradigm Press, LLC. delivering daily email issues and advertisements. To end your Rude Awakening e-mail subscription and associated external offers sent from Rude Awakening, feel free to [click here.]( Please note: the mailbox associated with this email address is not monitored, so do not reply to this message. We welcome comments or suggestions at feedback@rudeawakening.info. This address is for feedback only. For questions about your account or to speak with customer service, [contact us here]( or call (844)-731-0984. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. 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