PROJECT mBRIDGE: THE END OF THE DOLLAR AS RESERVE CURRENCY!

BRICS DOESN’T EXIST

To our western media, the BRICS don’t even exist.  Like it’s a rumour.  Not a word on the far reaching changes that will come about when BRICS in effect will decouple its trade from the dollar and from SWIFT.

This decoupling of SWIFT and the dollar as the exclusive trading currency, calls for a failsafe and impermeable alternative to the dollar.  That alternative is in the works as we speak.  The BRICS call it “Project mBridge”.  It is actually incomprehensible how little our old media report on this.  Especially since it is bound to be a “game changer”.

MBRIDGE IS TAKING OVER

mBridge will not only facilitate the payment of large commercial transactions, as a consequence, it serves as a test bed and proof of concept for the rest of the world.  It spells out how CBDCs will be introduced to us as well.  Not straight away, but surely later, when Western fiat currencies and countries with unsustainable sovereign debt levels shall be forced to come up with solutions for structural problems.

Project mBridge is a decentralised cross-border platform developed by China, Thailand, Hong Kong and the United Arab Emirates, for foreign currency payments in the form of Central Bank Digital Currency, backed by the Bank of International Settlements. In short it is a platform for transactions in CBDCs.

In the most simplistic wording, “mBridge is the digital accounting for barter between countries.”

Barter like the one conducted by the BRICS countries as they trade petroleum, coal, gold, lithium, rice, nickel or palm oil among themselves.  The platform also allows for billing huge construction projects, airliners, dry docks or battle tanks. Rolling out this very same system later on for buying every day products like a train ticket or a popcicle is merely a matter of time.

RE-MONETISATION AND COMMODITISATION

When trading physical goods with CBDCs, it paves the way for the integral ‘re-monetisation’ and ‘commoditisation’ of just about all physical goods and tangible services.  We saw this happen earlier with oil and gold.  How?

An example… a few years back, Iran had its national airport in Tehran renovated by Chinese construction companies.  A multi-billion dollar project. Tehran paid for this not in Yuan, not in Iranian Rial, not in dollars, but rather in… oil.

Another example : gold was recently reclassified as a ‘Tier1 reserve asset’, forcing all central banks to buy up large volumes of gold, which they continue to do to this day.

Another striking example.  It was Zoltan Poszar (US Macroeconomist) who detected a year ago how Russia indirectly instituted a gold standard for oil trading, and in doing so either halved the price of gold or doubled the price of oil by setting a price of 1gram of gold per barrel of crude oil.  Expressed in dollars, the ppb was set at $60 which was twice as high as the price cap ceiling the West had imposed on Russian oil as a result of economic sanctions against Russia.  Now imagine Russia offered not 1 barrel of oil but 2 barrels of oil for every physical gram of gold?  Yes?  Do you see the problem?

These three examples are telling us something.  They show how the most essential and valuable commodities like gold and petroleum were extracted out of existing structures.  Petroleum was lifted out of the petro dollar cycle, away from SWIFT, while gold was recalled from London and US vaults on an unprecedented scale, only to be implanted into a new host cell by assigning gold and oil a new monetary role.  That fertile ‘cell’ is that very new monetary ecosystem based on CBDCs with the ‘unit’ as the trading currency, backed by gold, administered by the IT platform called mBridge.

Central to building this new trading system is Saudi Arabia’s participation in Project mBridge.  The world’s largest exporter of oil, which very recently stepped out of the ‘petro dollar cylce’ and will henceforth negotiate very different means of payment, primarily with BRICS countries as India and China.

It should dawn on all of us by now.  Project mBridge is a pathway to trade CBDCs internationally, separate from the dollar, separate from the institutional Western major banks and separate from SWIFT.

The system was first tested in the most symbolic way in 2023, when China paid with digitised Yuans and digital gold for the supply of oil from the United Arab Emirates.

For the remainder of this year, more than 200 smaller BRICS conferences are being held.  Numerous countries and candidate members are meeting around the world and looking at how to reform and prepare themselves to join that new union, because the ‘Unit’ will be officially presented in September.

In 2017, the German Bundesbank was the first to call all its gold reserves from the Bank of England and the New York Fed.  Creating a copy-cat stampede. Immediately, Austria, the Netherlands, the Czech Republic, Poland, Hungary, Turkey followed the German example.

In 2018, the central banks of all these countries bought more gold than in all 60 previous years combined.  The next year, in 2019, those same central banks bought twice as much gold as in 2018.

How did this gold rush come about so suddenly?  Were they acting on inside information?  Did they know what was coming?  It cetrainly looks like it.  As if by a miracle, on 29 March 2019, the BIS (Bank of International Settlements) imposed its newly drafted ‘Basel III regulations’ which stateed that,

‘Gold is once again a ‘Tier 1 Asset’, is considered 100% ‘risk-free’ and on par with cash and government bonds.’

BACK TO THE FUTURE: THE END OF THE DOLLAR?

Which brings us to today.  Those who have claimed for years now that the BRICS will roll out a trade currency, backed by gold, commodities and their own currencies, were not raving or rambling.  No, it is exactly what NDB president Dilma Rousseff announced herself in Novgorod in June this year at the end of a meeting with Vladimir Putin and Sergey Glazyev.

And that trading currency, called ‘the Unit’, will be backed by physical gold (40%) and by the local currencies of the member countries (60%).  Anyone who reads Rousseff’s white paper on ‘the Unit’ understand why all of a sudden just about every country in the world  is calling back all its physical gold reserves from the Bank of England and the New York Fed.

The white paper prescibes that the physical gold stock (which covers 40% of the value of the ‘Unit’) is kept within the physical country borders at all times and placed in an Escrow Account.  These physical gold stocks in the Escrow accounts will be audited regularly and monitored to ensure the integrity of the Unit.

Ask yourself this question, ‘Anyone trading trading from such a Unit account… would that country, fund, agent, trader or bank still require US 10y bonds, securities or US Tresaury Bills to collaterise the back end of its trades?’

Do you see how this removes any need for holding dollars , US bonds or dollar denominated securities?

Xi Jinping, Vladimir Putin, Rousseff agree in principle on the format of this monetary trade agreement.  The BRICS are not issuing a reserve currency like the dollar nor a single currency like the euro, but a CBDC trading currency for international transactions, settled on the mBridge platform.

If Xi Jinping, Glazyez, Putin, Modi, Lula, Ramaphosa and Rousseff keep their word, this new monetary ecosystem will be ratified in September and launched in October.  At the BRICS meeting from 22 – 24 October in Kazan.

The BRICS conference in Kazan is bound to have far-reaching implications for America’s position, for the West and for Europe.  And indeed also for you and me, wherever we may reside.