BRICs countries released their white paper on The Unit -- the new currency unit they hope to birth into existence.

I haven't read the white paper, but I've heard it described by several sources who have. Imagine a Bitcoin blockchain backed by gold instead of . . . nothing. That appears to be the concept.

Unlike a CBDC, the blockchain ledger backing The Unit would be decentralized. I doubt the intention is to have The Unit fully backed (1:1) by gold. I suspect it will only be partial. Still, if it's going to be backed by gold at all, the BRICs countries will need . . . gold. Lots of gold. To me, that's the most logical explanation for this.

And, if you're going to say it's at least partially backed by gold reserves, you're going to need inspectors. In the blockchain world, this is called "proof of reserves." Its the audit of centralized exchanges (or even dollar-backed stablecoins) that is supposed to prove what assets they say they had at a given point in time.

Could they pull this off? Yeah, I think so. They'll probably set up their own purpose-built internet to do it, if only to prevent sneaky tricks by DNS providers with ties to the West. If they were really smart, they could use something like Filecoin to do this right now in a censorship-proof way.

Anybody hear of Tornado Cash, the App that was declared illegal by an arm of the US Treasury? Unlike DNS-beholden centralized gambling sites, Tornado Cash is still up running? Why? It's because there's no way to knock it down. BRICS countries could build a similar platform.

Anyway, good article. I suspect the gold buys are tied to the effort to launch The Unit.

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I've read a few articles recently of African countries and Asian countries repatriating their gold being held for them by the US and UK. Could this be an indication of them anticipating a world war and the seizure of their reserves like in the book Tower of Basel?


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In you second paragraph today you say

You have China accelerating its de-dollarization efforts by loading up on gold (and dumping U.S. debt).

referring to the May 23 letter

The country offloaded $53.3 billion worth of U.S. Treasuries and U.S. agency bonds. This is the largest single sale of U.S. debt in its history.

My question is, given there are always two sides to a sale, who has bought this "load" of U.S. Treasuries and U.S. agency bonds and at what unit price?

Who did the Chinese convince it would be a good idea to increase their exposure to the US debt mountain

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The Federal Reserve (which is neither Federal, nor has any reserves) had to buy it. It's good in the Fed's eyes, as they aspire to become "the buyer and seller of last resort."

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Could it be that China needs dollars? Its economy is in a bit of a rough patch. Perhaps China didn't "sell" some of these treasuries but, taking a page from the Fed's quantitative tightening playbook, let them mature, taking delivery of the needed dollars.

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The Chinese wanted to get the worthless printed USD fiat currency to buy real money--GOLD.

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