What Else Is There?

There are the twice a year IMF Meetings that will last from Monday through Saturday in Washington, DC. Leaders from the IMF and the World Bank will be there.

I wouldn't get too concerned about this, though, as these groups have a long history of providing very little in the way of value, while often making inaccurate projections. It's what they're good at, unfortunately.

What is of interest though, is the BRICS Summit. The group is meeting for three days this week in Kazan, Russia so that Russian President Vladimir Putin can attend without having to travel across borders.

Also expected to appear are Chinese President Xi Jinping, and Indian Prime Minister Narendra Modi. Representatives will attend from South Africa, and Brazil, and perhaps other several other nations as well. Brazilian President Luiz Lula da Silva will not be attending due to an injury sustained after falling at his residence. He will attend however, via videoconference.

Why does this summit concern me? At the recent business forum in Moscow, the group unveiled its BRICS Pay system, which is obviously intended as a first and perhaps major step toward ending the dominance of the US Dollar as the planet's leading reserve currency.

Maybe the BRICS and financially allied nations don't take anything any further than that at this time, but maybe they do. We know that their central banks have been trying to load up on gold for years. What if one of these summits actually produces a monetary union, similar in organization to the Euro-Zone, but with a common currency backed by a hard asset such as gold? Barbarous relic? I think not.

Just what do you think all of this fiat currency around the planet will be worth if there were to be a major competitor backed by something other than the promise of a sovereign that some might say has already proven itself fiscally irresponsible?

Food for thought.