BRICS Now Dominates Global Oil, Gold and Energy Supplies

BRICS Alliance is overtaking the global Oil, Gold, Energy and Financial System landscape and their Gold/Asset-backed Trade Currency will decimate the Fiat Currency Financial System

In the rapidly evolving geopolitical landscape of global trade and finance, 2024 is proving to be a pivotal year marked by significant shifts in energy, currency usage, and financial alliances.

At the center of these transformations lies the rapidly growing and influential consortium known as BRICS, comprising Brazil, Russia, India, China, and South Africa.

However, when we zoom out and take a closer look at how global oil, energy, and gold producing countries are also folding into the BRICS Alliance, it becomes clear that the Western Alliance, led by the United States and Europe is facing an existential threat that will likely replace the dominance of the US Dollar and the global fiat currency system once and for all.

If successful, this new gold/asset based trade currency would likely decimate the global fiat currency system and initiate a substantial revaluation of currencies (RV) in the Forex market. The USD and Euro would become essentially useless against the vast BRICS+ Alliance.

As BRICS continues to expand, the impact of its control over global energy, gold, and GDP will reshape the geopolitical and financial world order this year.

Furthermore, if BRICS+, combined with OPEC and the SCO (Shanghai Cooperation Organization) all agree to utilize an asset-backed, common trade currency, an RV (revaluation) of global currencies will occur unlike anything seen in financial and economic history.

Breaking Down New 2024 Geopolitical Alliances – Iraq is in the Neutral Camp

BRICS is the heart of what I call the East-South Alliance. Six new countries will join today (January 1st, 2024) and fourteen additional countries (marked with an * in the table below) have formally applied to join this year.

By looking at a combination of the existing BRICS, their new members and applicants, the OPEC Oil Alliance, and members of the SCO (Shanghai Cooperation Organization), the amount of Oil, other Energy resources (Natural Gas, Coal, etc.), Gold mining production, and combined GDP, the big picture comes fully into focus.

The West Alliance is relative to Oil, Other Energy and Gold production consisting the the USA, some European nations, Canada, Australia, etc.

The Neutral Nations (non-allied with West or South-East) are Oil/Energy/Gold producing nations sitting on the fence. Yet all of the Neutral countries are affiliated with OPEC at one level of participation or another.

Most notably, this includes Iraq and Mexico.

Global Oil/Energy Trade and US Dollar Currency Shifts

The traditional dominance of the US dollar in global trade is being challenged as Russia and China forge an ever-closer energy trade relationship, notably bypassing the use of the dollar.

In tandem, there is a growing trend towards local currency usage in trade transactions, a move that is gaining traction among countries worldwide.

China, in particular, is spearheading this shift by encouraging Gulf nations, including Saudi Arabia, the United Arab Emirates, Qatar, Kuwait, Bahrain, and Oman, to utilize the Shanghai Petroleum and Natural Gas Exchange for yuan-based oil and gas trade settlement.

Moreover, as BRICS expands with the inclusion of Saudi Arabia and the United Arab Emirates, the use of local currencies in trade is expected to surge.

This aligns with China’s call for greater emphasis on local currency cooperation payment tools and platforms, signaling a pivotal moment in the diversification of global trade settlement mechanisms.

The Role of Precious Metals and a New BRICS’ Trade Currency

The potential development of a new trading currency, likely backed by precious metals and base metals, is gaining traction.

If successful, this new gold/asset based trade currency would likely decimate the global fiat currency system creating a revaluation of currencies (RV) in the Forex markets. The USD and Euro would be essentially useless.

This shift is supported by Saudi Arabia’s strategic investment in global mining assets, particularly in minerals like copper, as part of its Vision 2030 to diversify the economy.

With an estimated mineral endowment worth $1.3 trillion, Saudi Arabia’s potential establishment of gold refineries and its strong ties with China, the largest producer of gold, position the nation as a key player in this evolving landscape.

The recent agreement between China and Saudi Arabia to set up a currency swap line worth around $7 billion further underscores the growing financial ties between these influential nations.

As central bank digital currencies rise in prominence and the development of domestic mining resources by BRICS member countries advances, 2024 is poised to be a transformative year, marking a shift in the global monetary system.

Financial Realignment and the Petrodollar’s Decline

The long-standing connection between the dollar and global energy markets, rooted in historical agreements dating back to the mid-20th century, is facing unprecedented challenges.

The reinvestment of petrodollars into US assets, particularly Treasury bonds, is undergoing a transformation as nations increasingly divest from their US treasuries in favor of alternative assets like gold.

The freezing of around $300 billion of sovereign Russian assets by the United States and its allies in 2022 has further accelerated this trend.

Notably, there has been a significant increase in oil transactions settled in currencies other than the dollar, marking a departure from the traditional petrodollar system.

With Saudi Arabia’s and the UAE’s entry into BRICS and with strategic initiatives to diversify their economy beyond oil, there is a clear signal that the influence of the petrodollar will certainly diminish in the coming years.

Bottom Line

While we wait for IRAQ to jump off the fence and official pick a side in the new global alliance landscape, global currencies are undergoing increasing strain, and the traditional petrodollar system faces serious challenges.

The rise of BRICS is reshaping the global energy, gold, and financial landscape in 2024.

The consortium’s influence, combined with strategic initiatives by key players like China and Saudi Arabia, is signaling a fundamental realignment in global trade and finance.

The year 2024 is positioned to be a turning point, ushering in new dynamics that will have far-reaching implications for the future of international trade, currencies and finance.