POG, page-19

Hi mate, I don't want derail the wgx forum but seeing as this in the POG thread it's perhaps pertinent. The USD collateral system is hotel California, there is no mechanism which exists to convert brics USD denominated liabilities into something else (a feature not bug). Simply put this cannot be done without the agreement from the counter-party (or without direct confrontation). There's also this common misunderstanding with charts circulating social media showing China selling down treasuries to back the brics gold backed currency thesis but the charts predominately depict net asset value, not outflows. Further, China's fiscal problems are so large that it's current private sector credit is existential to the one party survival that make China's predicament something similar to that of 1990's Japan. The only logical way this occurs to my mind is with a Bretton Wood 2.0 type agreement where China's largest trade partners are in a state of diminished negotiating leverage which, in my humble opinion, only occurs after a significant cataclysm like last time post wwll and under those circumstances gold backing of currency is the least of all our problems.