Keep It Simple Stupid (KISS)
I started reading this yesterday(may have been at ZH or somewhere else) and couldn’t get thru it. I don’t understand why the BRIC’s are making this more complicated then it needs to be.
Since they aren’t trying to replace the dollar as the reserve currency with something new(at least as far as for everday purchases of goods and services) why do they need this “UNIT”, or anything else? Yes, they want to not have to settle their trade remittances in dollars and not keep their reserves in dollars. That is what GOLD is for.
You don’t buy US dollars, nor US Treasuries. You do buy gold and settle your trade differentials using gold. Why are they trying to fix something that isn’t broken? I don’t believe they have a goal of all replacing their individual currencies with this Unit at some time in the future, so what is it’s purpose or need?
This Unit is likely to fail, at least as far as catching on to the point of garnering much in the way of market share or usefullnes. The BRIC’s, as a bloc that dethrones the dollar at least as far as share of global trade volumes, will succeed over time. Just use real money, Gold, and stop screwing around with solutions to non existent problems. Sheesh! https://www.zerohedge.com/geopolitical/escobar-de-dollarization-bombshell-coming-brics-decentralized-monetary-ecosystem
It seems that they want a platform that isn’t dependent on the West(SWIFT) and I can understand that. However, they talk about merging and or integrating it with the West. So on the one hand they don’t want the dependency but are looking to partner? Seems like they would just be making a deal with the same devil they are looking to get away from?