Whoever tries to destroy something in our country will face destruction many times larger in their own country and will regret its attempts to do that in our country.”
–Vladimir Putin
December 25, 2024— Merry Christmas, and Happy Hannukah! Today marks just the 5th time in 114 years that the two holidays have overlapped. The last time? 2005.
That’s the kind of low-probability event that, in financial markets, tends to get ignored and under-priced by traders. Consequently, when it inevitably does occur, well, markets are in for a rude awakening.
One of 2024’s top stories globally is the rise of the BRICS nations. We even created an in-depth research video covering it, which we call BRICS Bucks.
While there’s often talk about the “death” of the dollar, few have noted any viable alternatives. After all, the Euro failed to overtake the dollar.
But a BRICS Buck, backed by fast-growing, rapidly-developing countries with far lower debt loads and rich in commodity resources? That’s a Grey Swan event in the making.
And it’s even more likely when someone like Vladimir Putin can be seen smiling and holding a mockup of just such a currency in his hand.
Trump, of course, has promised to defend the dollar as the world reserve currency. Developments on the alternative side will bear watching in 2025.
Grey Swan #5: The Global Plot to Dethrone America’s Imperial Money
Let’s flip the thought and look at it another way. The dollar, the so-called world’s reserve currency, is on thin ice.
$36 trillion in unpayable, unsustainable debt…
Crumbling purchasing power…
Rising prices…
Quite frankly, if things don’t change, our own actions — or lack thereof – could knock the dollar from its position as the world’s reserve currency.
That’s why America’s enemies are no longer content to wait. Instead, they’re taking direct action to dethrone king dollar.
The BRICS nations—Brazil, Russia, India, China, and South Africa—have targeted America’s dominance on the world stage by directly targeting the U.S. dollar.
The leaders of these countries represent nearly half of the world’s population, as well as a third of its GDP.
And they have a goal to replace the dollar on the world stage.
According to a worldwide survey from the Bank for International Settlements, the U.S. dollar was bought or sold in about 88 percent of global transactions.
That means banks around the world have to purchase and hold dollars to facilitate transactions.
This is what gives us the power to place sanctions on foreign countries. Because the whole world uses the dollar, not having access to those dollars limits who a country can trade or work with.
If that should change, it could decimate America.
Which is why the BRICS alliance is so dangerous. And it doesn’t help that the alliance has expanded at an alarming rate.
It’s not just five nations anymore.
Earlier this year, they welcomed Egypt, Ethiopia, and the United Arab Emirates into their fold.
Even more concerning, Iran — a longtime adversary of the United States — has joined their ranks.
And Saudi Arabia, our supposed ally and largest oil trading partner, is also considering throwing in its lot with this anti-dollar coalition.
The numbers are staggering. The expanded BRICS bloc now encompasses about 30% of the world’s land surface and 45% of the global population.
Economically, they already control nearly 32% of the world’s GDP, surpassing the combined economic might of the United States, Canada, Japan, the UK, Germany, France, and Italy.
And according to a bombshell report from Russian media, the BRICS nations are discussing the creation of a new, independent financial payment platform called “BRICS Bridge.”
This standalone mutual payment system would effectively circumvent the U.S. dollar, creating a parallel financial system where America’s economic influence is null and void.
Russia’s Federation Council Speaker, Valentina Matviyenko, didn’t mince words when she said, “If it works, it will be a bombshell globally, in the best sense.”
They’re not just talking about bypassing the dollar — they’re actively building the tools to make it happen.
The implications are dire.
If, like most of our readers, your assets are dominated in dollars, you’ll want to protect yourself.
For now, that means owning gold, which is no nation’s official currency, but it is the one asset many of the world’s central banks, including BRICS and affiliated countries, are buying.
And it’s a sign that your dollar may be worth less than you expect, sooner than you expect.
Without the dollar as the world’s reserve currency, there are 330+ million Americans to absorb any money printing, not 8 billion global citizens who would be willing to take cash. That points to higher inflation, and likely an accelerated timeline to a U.S. debt crisis.
Diversifying out of the dollar is easy, thanks to gold. And with a potential crisis brewing against the dollar that could explode in 2025, the metal is still a bargain today.
Regards,
Addison Wiggin,
Grey Swan
P.S. While a BRICS Buck could mean the dollar’s decline accelerates, if the dollar’s decline in gradual, it could be good for U.S. stocks.
After all, the U.S. dollar has lost over 98% of its value since the inception of the Federal Reserve in 1913, but owning industry-leading companies has proven a strong wealth-creation tool.
And while there’s no perfect solution to inflation, we have found a few “almost-perfect” inflation-beating stocks. Sign up here to read our special report on the subject.
So, amid a dollar crisis, don’t count out the stock market quite yet. The best way to preserve your wealth in the face of ongoing and perpetual inflation is by investing in companies that can raise their prices faster than inflation. And pay dividends from profits.
Your thoughts on the top Grey Swan events of 2025 are welcome here: addison@greyswanfraternity.com
