“The De-Dollarization Revolution”

“The De-Dollarization Revolution” The Slow Burn Of The Dollar Is Heating Up!!!

The addition of Saudi Arabia, Argentina, Egypt, Ethiopia, Iran and the United Arab Emirates will become full members of BRICS on Jan. 1, 2024 and the implications for physical gold and silver markets and the process of de-dollarization cannot be underestimated. De-dollarization is the process of reducing the dominance of the United States dollar (USD) in international trade and finance by diversifying into other currencies or payment systems. Protecting and preserving your wealth in retirement accounts, IRAs, and bank accounts is crucial in these uncertain times. Swiss America, with its reputation built over 40 years of experience, offers comprehensive solutions to safeguard and privatize your assets. By leveraging the benefits of physical gold and silver, you can ensure privacy, preservation, and protection. Trust in Swiss America's expertise to help navigate the changing financial landscape and secure a prosperous future for your wealth.

BRICS Summit 2023 A significant event took place on 8/24/23 with the addition of Saudi Arabia, Argentina, Egypt, Ethiopia, Iran and the United Arab Emirates becoming full members of BRICS on Jan. 1, 2024.

This has the potential to reshape the global geopolitical landscape and impact the status of the US dollar and gold prices. Saudi Arabia, a key player in the world economy, will join the BRICS nations, consisting of Brazil, Russia, India, China, and South Africa, at the BRICS Summit, marking a momentous step towards a de-dollarization revolution. This decision to align with the BRICS nations – is lighting a fire under the previously simmering downfall of the petrodollar. Set up in 2009, the BRICS nations represent some 40% of the world’s population and significantly over a quarter of the world’s GDP. And now with Saudi Arabia, the UAE and Iran set to enter the fold, it will have three of the world's biggest oil producers . This critical geopolitical move has the potential to fundamentally reshape the world's financial landscape. Historically, Saudi Arabia has been a firm supporter of the petrodollar system, where global oil transactions are conducted in U.S. dollars. So, its pivot towards the BRICS nations signifies a powerful shift away from the U.S. dollar-dominated global economy. This development carries implications not only for the existing global financial order but also for the possibility of introducing a possible new gold-backed digital currency. The BRICS economic bloc invited 69 leaders to this summit, including all African heads of state and the political heads of major Global South bodies. More than 40 countries expressed interest to join the BRICS group, with 22 nations already having submitted official applications. “We’ve never had such a large outreach,” said South Africa’s diplomat in charge of BRICS relations. The BRICS nations have been actively working towards reducing their reliance on the US dollar in international transactions. This started when Fed Chairman Jerome Powell started hiking rates from near zero to over 5% causing major currency devaluations for the BRICS nations and the world. The U.S. and the G7 imposed over 10K sanctions on Russia and froze over $100 billion in assets. The world understands the U.S. did this to Russia, what is preventing the U.S. from doing the same to any country and by joining forces with these influential emerging economies, Saudi Arabia's participation adds

considerable weight to the de-dollarization movement. This move signifies a significant shift in the global balance of power and has the potential to challenge the long-standing dominance of the US dollar as the world's reserve currency. Approximately 85% of the world's population could potentially abandon the greenback. Just like a slow burn that suddenly reaches a tipping point and transforms into a blazing fire, the devaluation of the dollar and the trend of de-dollarization can experience a sudden and notable acceleration. This acceleration may occur due to a combination of economic, political, or systemic factors that amplify the movement away from the dollar, causing a decisive shift in global financial dynamics. The ongoing de-dollarization trend is not only gaining momentum but has also reached a point of irreversibility. The increasing number of transactions conducted outside the realm of the U.S. dollar holds great significance. It reduces the demand for the dollar and creates an environment where the value of the dollar must decline, leading to a need for higher interest rates as compensation. Saudi Arabia is a crucial player in the movement towards de-dollarization. The agreement made between the Nixon administration and Saudi Arabia in the 1970s, as mentioned by a source, involved the exclusive trading of oil in dollars by the Saudis in exchange for security assurances from the United States. As a result of this agreement, there was also a shift within OPEC to conduct oil transactions in dollars.This arrangement, which has been in place for nearly five decades, has contributed to the synthetic demand for the U.S. dollar. Consequently, the dollar has gained its petrodollar status. However, the recent actions taken by Saudi Arabia in relation to its currency should raise concerns about the position of the world's reserve currency.When Saudi Arabia begins accepting currencies other than the dollar for oil transactions, it will have significant repercussions, according to an unidentified source. To ensure the success of this movement, the source suggests the need for a commodity-backed currency, possibly tied to gold, and implemented through distributed ledger technology or blockchain. A recent development also worth noting is Saudi Arabia's decision to become a dialogue partner within the China-led Shanghai Cooperation Organization (SCO). Established in 2001, the SCO is a political, security, and trade alliance aimed at countering Western influence. Its membership comprises China, Russia, India, Pakistan, and four central Asian countries. They also are in talks to join BRICS BANK. It provides funding for infrastructure and sustainable funding projects in BRICS and other emerging economies, aiming to promote economic cooperation and sustainable growth.

The significance of this decision should not be underestimated. The Shanghai Cooperation Organization holds a prominent position as the largest regional military and financial organization globally, covering approximately 60% of the Eurasian landmass and representing 40% of the global GDP. This move indicates a clear shift away from Western influence and closer alignment with influential entities, as observed by an unnamed source. The shift away from the dollar extends beyond the BRICS bloc. If all the emerging alliances, such as the Belt Road Initiative, BRICS, Shanghai Cooperation Organization (SCO), and Eurasian Economic Union, join forces, it would encompass a substantial portion, approximately 85%, of the global population. The source emphasized the magnitude of this development, highlighting the significance of the SCO, which is a political, security, and trade alliance established in 2001. The consortium of BRICS nations is positioning themselves to present substantial competition to the U.S. dollar, with potential ramifications for the American economy. According to an exclusive statement to Watcher Guru by Anil Sooklal, BRICS Ambassador, the group will focus on exploring uses of their domestic currencies and deliberate on alternatives to challenge the dollar during their forthcoming summit. Should the BRICS countries adapt to the usage of their domestic currencies for international transactions, it could lead to a lowered demand for the U.S. dollar. Given that the economies of supply and demand control the dollar, increasing competitiveness from these domestic currencies could trigger shifts in its demand. Such alterations might lead to repercussions on both imports and exports, thus allowing developing countries' currencies to provide competition to the U.S. dollar. If domestic currencies enable cost-effective trading and cheaper imports and exports, the US dollar might be under threat. Such a shift could put American export competitiveness at a disadvantage, potentially pushing businesses to seek more affordable avenues for disseminating goods and services. Additionally, these developing nations might choose to diversify their foreign exchange reserves away from the dollar, which could have implications on the cost of borrowing for the United States. The successful establishment of durable trade partnerships based on domestic currencies by BRICS could curtail the global trade flow of the U.S. dollar.

In summary, the efforts by the BRICS nations to utilize their domestic currencies for global trade could pose long-term effects on the United States' economy. BRICS now controls 42% of the oil supply while consuming only 30%. This allows them not to be dependent on the Petro Dollar and bilateral trades can now occur outside the dollar, which will lead to the immense depreciation of the value of the dollar. On 8/16/23, India purchased a million barrels of crude from UAE payment for this purchase was made in Indian rupees. Bilateral trades outside the dollar are happening. Countries will now diversify their currency reserves away from the dollar which will also weaken the dollar. This will cause gold to serve as a hedge and store of value driving up the gold price, possibly dramatically. Central Banks have been buying gold at the fastest pace in 55 years . They have been front running this ongoing move of de-dollarization from the BRICS nations and the world. “BRICS Currency is coming. Whether or not it is a gold-backed currency that is introduced in a few weeks or a few months, or next year,” According to the IMF, the bloc will collectively account for 32.1 percent of global GDP this year. That’s up from just 16.9 percent in 1995 and more than the G7’s share of 29.9 percent.

The BRICS SUMMIT encompassed several key objectives and have profound implications. Let's delve into each point in detail:

1. An alternative to U.S. global financial dominance: The BRICS SUMMIT aims to establish an alternative framework to challenge the longstanding global financial dominance of the United States. This signifies a significant shift in the balance of power, as it seeks to offer countries an alternative avenue for

economic cooperation and financial transactions beyond the traditional U.S.-dominated systems.

2. A method of avoiding the weaponized U.S. dollar: One critical aspect of the BRICS SUMMIT is to create a mechanism that mitigates the potential weaponization of the U.S. dollar. Historically, the United States has utilized its currency's global reserve status to exert influence over geopolitical matters. By fostering an alternative system, the Accords seek to reduce the vulnerability of nations to such tactics and promote a more balanced and equitable global financial landscape. 3. A way of avoiding inflation caused by excessive dollar-printing: The BRICS SUMMIT concerns related to inflationary pressures resulting from excessive printing of U.S. dollars. When the United States increases the money supply significantly, it can lead to inflation not only domestically but also impact other countries due to the dollar's global influence. The BRICS SUMMIT proposes strategies to minimize the potential adverse effects of excessive dollar printing and stabilize global economic conditions. 4. A means of simplifying and streamlining bilateral trade agreements: Another crucial objective of the BRICS SUMMIT is to simplify and streamline existing bilateral trade agreements. By establishing a standardized framework for trade, the Accords seek to enhance efficiency, reduce administrative burdens, and promote a more seamless flow of goods and services between participating nations. This can lead to increased economic cooperation, expansion of markets, and improved trade relations.

5. The first viable, useful alternative to the U.S. dollar: The common BRICS currency is sometime away but it has apparently already been ‘coined’ – the R5. This is a reference to the five currencies used by the current BRICS members – the Renminbi, Ruble, Rupee, Real and Rand. This could be backed by gold. The need to establish an alternative to the US Dollar in trade due to its use by the United States in imposing or threatening sanctions. The initial stage, which is already occurring, is to increase the trade use of their respective currencies.The second step in liberalizing BRICS trade from US dollar and euro use is the introduction of sovereign digital currencies. This is en route: China, India and Russia are all currently holding usage trials of their respective national currencies, which will be backed by, and managed by their respective Central Banks, just as ordinary sovereign currency is.The introduction of digital sovereign currencies will mean that the BRICS nations will be able to exchange financial data and transactions without the need to go through the global SWIFT transactional system.Therefore, the concept of a common BRICS currency is not really a requirement at this stage. In any event, it will likely manifest itself only after a global digital financial transformation has been completed, while there are other issues about who would run and be responsible for acting as the Central Bank.The BRICS SUMMIT represents a significant milestone as they potentially introduce the first credible and practical alternative to the U.S. dollar. This alternative system could provide countries with greater flexibility and autonomy in conducting international financial transactions, reducing their dependence on the U.S. dollar as the primary reserve currency. Such diversification can bolster economic stability and resilience while fostering a more multipolar global financial order. By challenging U.S. financial dominance, mitigating the risks associated with the U.S. dollar, addressing inflation concerns, simplifying trade agreements, and presenting a viable alternative currency system, the Accords have the potential to reshape the global economic landscape and usher in a new era of financial cooperation and stability. Here Are The Top Eight Reasons Why De-dollarization Could Potentially Cause Your Bank and Retirement Accounts In the U.S. To Lose Value: 1. Drop in Dollar Demand: If countries reduce their reliance on the U.S. dollar for international trade, the lower demand can negatively impact its value — hence, reducing the value of your dollar-denominated assets. 2. Depreciation of the Dollar: The diminished role of the U.S. dollar in global markets may lead to depreciation in its exchange rates against other currencies. This affects the global purchasing power of your dollar-denominated assets.

3. Inflation: The reduced demand for the U.S. dollar may prompt the Federal Reserve to increase interest rates to attract investors, which, in turn, may lead to higher inflation. This gradually erodes the purchasing power of the money in your accounts. 4. Currency Exchange Rates: Dedollarization can lead to changes in currency exchange rates, which can affect the value of your bank and retirement accounts. If the US dollar loses its status as the dominant global reserve currency, its value may decline relative to other currencies. This can result in a decrease in the purchasing power of your US dollar-denominated assets, including your bank and retirement accounts. 5. Capital Flight: Dedollarization may cause capital flight from the United States as investors seek to diversify their holdings away from the US dollar. This could lead to a decrease in foreign investment in US financial markets, including stocks and bonds. Reduced demand for US assets could result in lower prices and potentially decrease the value of your investment portfolio, including your retirement accounts. 6. Interest Rates: De-dollarization occurs and there is a significant decrease in demand for US Treasury bonds, the US government may need to increase interest rates to attract buyers. Higher interest rates can negatively impact the value of fixed-income investments, such as bonds, which are often included in retirement portfolios. 7. Trade Deficits: The US dollar's role as the world's reserve currency has allowed the United States to run persistent trade deficits. Other countries accumulate US dollars as part of their trade surpluses and invest them back into US assets. Dedollarization reduces the demand for US dollars, it could become more challenging for the United States to finance its trade deficits. This could lead to a depreciation of the US dollar and potentially impact the value of your bank and retirement accounts. 8. Economic Impact: Dedollarization can have broader economic implications. If the US dollar loses its status as the dominant global reserve currency, it may weaken the United States' ability to influence global economic policies and international trade. Economic uncertainty and instability resulting from de-dollarization can negatively affect financial markets, leading to a decline in the value of your bank and retirement accounts.

The Benefits of Owning Physical Gold and Silver During Dedollarization

1. Preserving Privacy: The use of physical gold and silver can offer individuals and entities a certain level of privacy in their financial transactions. While digital transactions can be tracked and monitored, physical precious metals provide a degree of anonymity, making it harder for governments or other entities to trace or control transactions. In a world where financial systems are undergoing significant changes, individuals seeking to maintain their financial privacy may turn to physical gold and silver as an alternative store of value. 2. Protection Against Currency Devaluation: The BRICS SUMMIT, by challenging the dominance of the U.S. dollar and addressing inflation concerns, create an environment where traditional fiat currencies may face higher levels of risk. Physical gold and silver have long been considered as a hedge against currency devaluation and inflation. As confidence in fiat currencies wavers, individuals and investors may turn to precious metals as a means of preserving their wealth and protecting themselves against the potential erosion of purchasing power. 3. Diversification of Assets: The BRICS SUMMIT potentially introduces a new financial landscape with a greater emphasis on diversification. In this context, physical gold and silver can serve as a valuable component of a diversified portfolio. Precious metals will reduce overall exposure to systemic risks associated with fiat currencies and financial markets. The stability and intrinsic value of gold and silver make them attractive options for investors seeking to diversify their holdings and manage risk effectively. 4. Tangible and Independent Store of Value: Physical gold and silver possess inherent value and are not directly tied to any specific financial system or government. They are tangible assets that have been recognized as valuable throughout history. This characteristic provides individuals with a sense of security and independence, as the value of physical precious metals is not solely dependent on the policies or actions of any particular government or central bank. Consequently, during times of economic uncertainty or geopolitical instability, the enduring value of gold and silver can provide a reliable store of wealth.

Buying The Saint-Gaudens Double Eagle The centerpiece of America's 20th century "gold standard" was The Saint-Gaudens Double Eagle, or $20 gold piece, which stands above the rest as the single most magnificent coin of this or any era in U.S. history. In 1904, President Theodore Roosevelt hired personal friend and sculptor Augustus Saint-Gaudens to design the new $20 and $10 coins. The Saint-Gaudens $20 design was so acclaimed that the Mint chose to use this design for the creation of the modern Gold American Eagle coins. These coins are highly sought after by investors and collectors alike for their historical significance and rarity. With the passing of the Gold Recall Act in 1933, all gold coins were taken out of circulation, making pre-1933 gold coins a true treasure. In addition, like all Pre-1933 US gold coins, $20 Saint-Gaudens gold double eagles allow for the purchase and sale without the 1099-B reporting required by the IRS for their bullion counterpart. Numismatic coins are excluded from FDR's Presidential Executive Order 6102, Section 2B of 1933.

Buying $20 Liberty Double Eagle Gold Coins America's largest circulating gold coin was the Double Eagle or $20 gold piece, born in the exciting years of the great California Gold Rush of 1849. The new mines yielded the greatest mass of gold in recorded history. Vast quantities of the yellow metal helped to speed the developments of the American West and had far-reaching effects on the world's coinage. Designed by James B. Longacre, the obverse (front) of the $20 Liberty gold coin features Miss Liberty wearing a crown inscribed with the word "Liberty". Thirteen stars representing the original thirteen colonies and the date encircle her. These coins are highly sought after by investors and collectors alike for their historical significance and rarity. With the passing of the Gold Recall Act in 1933, all gold coins were taken out of circulation, making pre-1933 gold coins a true treasure. Their status as a collectible allows for the purchase and sale without the 1099-B reporting required by the IRS for their bullion counterpart. Numismatic coins are excluded from FDR's Presidential Executive Order 6102, Section 2B of 1933.

Buying Silver Peace Dollars The "war to end all wars" fell far short of that noble aspiration. What history now refers to as World War I, which ravaged Europe from 1914 to 1918, did stir worldwide yearning, however, for peace. Following the war, there was widespread sentiment for issuance of a coin that would celebrate and commemorate the restoration of peace. First struck in 1921 the Peace silver dollar instantly became one of the most popular silver coins in American history. Many consider this silver coin to be the last "true" American silver dollar minted for circulation. The Peace Dollars are avidly sought by coin collectors and silver investors looking for extra leverage to the silver price. Because of their true scarcity and strong collector demand they can appreciate in a rising silver market much faster than silver bullion.

Buying Silver Morgan Dollars Political pressure, not public demand, brought the Morgan Dollar into being. There was no real need for a new silver dollar in the late 1870s; the last previous "cartwheel," the Liberty Seated dollar, had been legislated out of existence in 1873. The beautiful Morgan Silver Dollar was sculpted by George T. Morgan is considered by experts to be the peak of the engraver's art. Morgan Silver Dollars were minted between 1878 and 1904. Then in 1921, Morgan Dollars were again minted as an encore and the last year of the series. Gem quality uncirculated Morgan Dollars are sought after by coin collectors and investors alike. The Morgan Dollars are avidly sought by coin collectors and silver investors looking for extra leverage to the silver price. Because of their true scarcity and strong collector demand they can appreciate in a rising silver market much faster than silver bullion.

Contact us today to learn more about our investment options and how we can help you achieve your financial goals through gold and silver investments. With Swiss America, you can feel confident in your investment decisions and rest easy knowing that your wealth is protected for the long term