BRICS Summit Puts Focus On Dethroning US Dollar As Putin Unveils 'BRICS Banknote'

It's an outcome that alternative economists have long predicted as inevitable - The dumping of the US dollar as the world reserve currency and the petro currency by the BRICS nations in favor of a new multi-currency system or "basket system."  For decades the dollar has reigned supreme as the most favored currency for international trade, replacing the British Pound Sterling (officially) after the Bretton Woods Agreement in 1944. 

This status (along with the end of the gold standard) gave the Federal Reserve Bank the power to print cash with wild abandon without facing immediate inflationary consequences.  As long as dollars are held overseas by foreign governments, banks and corporations, inflation in the US can be mitigated despite quantitative easing.  If the dollar loses reserve status and the trillions of dollars stored in foreign markets flood back into the US economy, an inflationary disaster would result well beyond what America is already dealing with today.

Given this fact, it's not surprising that Vladimir Putin avidly discussed the potential of a new BRICS currency system during the trade coalition's summit this week in Kazan, Russia.  He knows that the dollar's reserve status is America's strength, but also America's greatest weakness. 

Putin unveiled a "symbolic" BRICS bank note at the summit, suggesting that the plan to dump the dollar may be much closer to fruition than many economists expect. 

JUST IN: Russian President Putin has been gifted a mock-up of a "BRICS bill" at BRICS summit in Kazan. pic.twitter.com/gP08KKkRUy

— BRICS News (@BRICSinfo) October 23, 2024