Currency and Further Escalation

First, let me begin today with currency. The BRICS conference is on, and they released a currency prototype to replace the US dollar as a reserve currency. First, the bills, then let’s examine the implications:

Prototype of a new currency that “should kill the dollar.”

While this is not the first time this has been done, it was the same last year. Notably, this seems to be absent from our news reports, or for that matter, official statements.

The US dollar is the reserve currency because of World War Two and the Bretton Woods agreement, which, among other things, established the World Bank and the International Monetary Fund, IMF for short. This was a critical stage for the post-World War economy, and many developing nations received loans from both institutions. I also include Europe.

Yes, the Marshall Plan played a more critical part in rebuilding Europe, but loans from both the World Bank and the IMF were also involved. The Soviets, for the most part, did not receive loans. Why? The Soviet Union did not join the IMF in 1946, but the countries that emerged in the post-Soviet space (a term slowly becoming obsolete) did in 1991 or soon after.