From our Founder...

From the desk of our Founder SUNNY THIARA, AUGUST 21. 2023

It has been some time now that I have opened the conversation to our economic climate. Many Americans will awaken not knowing the significance of August 22, 2023. For this will be the day that BRICS (Brazil, Russia, India, China, and South Africa) will challenge the U.S. Dollar for global dominance. The BRICS is a

currency that is backed by assets rich in gold, silver, oil, and other precious metals. As this information reaches the public domain what we can count on is the underlying message that will have catastrophic consequences that are inevitable.

It is important to understand my message is not to say the dollar will simply go away, it has too much at stake, but it does speak to the tune of de-dollarization. This is the second punch. The shock waves of making an announcement can spook the market and everything tied to the U.S. Dollar. We have already understood that the Fitch Credit Rating has downgraded the United States on August 01, 2023 from AAA to an AA borrower, which can be considered the first punch. If countries begin trading outside of U.S. dollars it begins to show the level of confidence that is eroding.

The petrodollar was born in the mid 1970’s when Saudi Arabia made an agreement to trade their oil in U.S. dollars in exchange for military protection and soon following many other countries also began trading oil in dollars. The blow that the United States would feel with Saudi Arabia signing with the BRICS could send

billions of dollars back to the United States. The faith of the U.S. Government can be at stake. If investors are concerned with the United States defaulting on their debt because of a currency war we might see a sell-off panic in U.S. Treasuries. This can cause many more banks that hold investment grade government bonds to reconsider their liquidity ratios and eventually more banks could implode.

We have already seen a reduction of U.S. debt being purchased by countries like Japan, China, and several others in the past 3 years. These countries were the larges buyers of our debt at one point. The supply and demand chains of our bond markets can be grossly uncontested with a strong alliance behind the BRICS.

Once the bond markets are exposed, it won’t be long before this sentiment bleeds into equities. The stock market which has been doing fairly well despite the amount of bad reporting and unaudited claims, would soon find itself in a tail spin.

I want to remain optimistic that we have measures in place in the event that there is a run on banks and I can only imagine that the Treasury will be there with instruction on the unveiling of the Central Banking Digital Currency (CBDC).

I can only hope that I have misspoken and this is one of those times that I have been wrong.