The Road to $10,000: BRICS Expansion, Gold-Backed Currency, and the Global Financial Landscape – Insights from Willem Middelkoop
In a landscape marked by geopolitical shifts, the entrance of Argentina, Egypt, Ethiopia, Iran, the United Arab Emirates, and Saudi Arabia into the BRICS fold has triggered profound implications, according to Willem Middelkoop, the visionary Founder and CIO of the Commodity Discovery Fund. The expansion of the BRICS alliance is not merely a diplomatic maneuver; it signals a trajectory that could propel the world into a precarious and transformative phase, resonating with far-reaching implications for the United States and global dynamics. Middelkoop’s analysis forewarns of an impending paradigm shift, where financial and geopolitical strategies interlace, laying the foundation for what could be a “very dangerous phase.”
Shifting Dynamics: BRICS Expansion and Global Implications
Middelkoop elucidates that the ongoing evolution of the BRICS alliance is not one that can be trivialized. Rather, it presents a confluence of financial and economic maneuvers that have profound geopolitical repercussions. In conversation with Michelle Makori, the accomplished Lead Anchor and Editor-in-Chief at Kitco News, Middelkoop unveils the intricacies of this transformation.
“The BRICS conference is the next step in a financial economic war. And I’m afraid it’s all connected, and I’m not the only one who has warned of a possible World War III scenario,” cautions Middelkoop. While refraining from categorizing this phase as the dawn of World War III, he notes that the BRICS expansion sets the stage for a delicate equilibrium that could evolve into something more menacing.
The timetable for the BRICS expansion is set, with January 1, 2024, marking the effective commencement of the new memberships. However, Saudi Arabia’s position within this narrative remains a question mark, with Saudi Foreign Minister Prince Faisal bin Farhan adopting a wait-and-see stance. This perspective is informed by Saudi Arabia’s historical engagement with the United States, wherein the petrodollar deal forged in the 1970s entailed exclusive oil trading in dollars in exchange for U.S. security guarantees.
An Unraveling Conflict: U.S. and China on the Precipice
At the heart of these intricate dynamics lies the escalating tension between the United States and China. Middelkoop draws attention to the potential for this simmering rivalry to evolve into a kinetic conflict. “The biggest risk for all of us nowadays is that this fight between the U.S. and China might become kinetic one day,” Middelkoop observes. Against the backdrop of this escalating rivalry, global stability is gradually eroding, creating an environment fraught with uncertainty.
China’s Perception of the BRICS Expansion
China, perceiving the BRICS alliance as a potent force capable of challenging the status quo, has anticipated the potential threat it poses to the United States. The video above unveils China’s strategic considerations as it maneuvers through this intricate landscape.
Quantifying the BRICS Expansion
Delving into the statistics that underscore the significance of the BRICS expansion, Middelkoop highlights the profound impact this development could exert on global dynamics. As of now, the BRICS alliance—comprising Brazil, Russia, India, China, and South Africa—encompasses 42% of the world’s population, 30% of the planet’s land territory, 26% of global GDP, and 18% of global trade, according to data from the World Bank.
With the inclusion of six new members, these figures are poised to escalate further. Specifically, the BRICS’ share of global population would swell to 46%, while their share of global GDP and global exports would reach 29% and 25%, respectively. One of the most pivotal shifts would manifest in the realm of global oil production, where the BRICS’ control would elevate from approximately 20% to a staggering 42%, bolstered by the participation of Saudi Arabia, the United Arab Emirates, and Iran.
The Emergence of an Anti-Western Alliance
Middelkoop traces the collective sentiment that unites the BRICS nations, highlighting their growing aversion to Western double standards and hypocrisy. This sentiment has culminated in their collective pushback against the Western system, a pivotal factor that shapes their convergence within the BRICS alliance. Drawing parallels to historical shifts that occur every 80 years, Middelkoop offers insights into the driving forces behind these monumental changes.
Prospects of a BRICS Common Currency
The forthcoming BRICS summit bears the promise of exploring avenues toward a common currency. While conjecture swirled around this notion prior to the summit, the outcome has prompted the finance ministers and central banks of the BRICS members to prioritize deliberations on this matter. The discussions are poised to unfold at the summit scheduled for October 2024 in Kazan, Russia.
Russia and Brazil have emerged as proponents of a common currency backed by commodities, a move that could potentially rival the dominance of the U.S. dollar. The broader implications of this endeavor, its feasibility, and its potential to reshape global financial dynamics are eloquently addressed by Middelkoop in the video above.
The Grand Reset: Implications for the International Monetary System and Gold Prices
Central to the discourse surrounding the BRICS expansion is the possibility of reshaping the international monetary system. Middelkoop’s insights underscore the malleability of this system, emphasizing the potential for transformation in pursuit of financial equilibrium.
Middelkoop envisions the revaluation of gold as a cornerstone of this transformation. Central banks’ accumulation of substantial gold reserves across countries east of Germany reflects a strategic anticipation of impending shifts within the monetary landscape. As these countries strategically prepare for eventualities, the stage is set for an evolution in the value of gold.
The question that looms is which country will take the pioneering step. Middelkoop remains open to the possibility of the U.S. recalibrating its stance, potentially linking the dollar to gold once again. Amid the delicate interplay between nations, he perceives the recalibration of gold as a potential strategy to salvage central banks’ balance sheets and restore equilibrium to the monetary system.
A Fortuitous Trajectory for Gold Prices
Middelkoop forecasts a trajectory that could propel gold and silver prices upwards within the next 5 to 10 years. The historical patterns of gold’s behavior relative to the amount of fiat currency in circulation hint at the potential for substantial revaluation. Past instances in the 1930s, 1970s, and between 2000 and 2011 have demonstrated gold’s ability to readjust and surge, reflecting a historical precedent for such shifts. With a perspective that gold could witness a surge reaching up to 5x, 8x, or even 10x, Middelkoop’s outlook points toward a potential future where gold could reach an astonishing $10,000.
In the grand tapestry of global dynamics, the evolution of the BRICS alliance, the emergence of a common currency, and the recalibration of gold values form threads that intertwine, shaping the contours of the future financial landscape. Middelkoop’s insights offer a glimpse into the potential avenues through which these changes could manifest, serving as a guidepost through the complexities that lie ahead.