Comments by "Louis Giokas" (@louisgiokas2206) on "Can a BRICS Currency Replace the US Dollar? || Peter Zeihan" video.

  1. Great video. This is a great spin on the situation without having to go into a lot of detail about economics, etc. Classic Peter. The whole irony of why only western systems will be successful is precisely because they are not designed and developed by the government from the top down for some governmental purpose. In addition to a "new" currency regime the Chinese keep talking about and investing in reviving the old Silk Road. There are a lot of things that are involved, and it is a long and complex history, but consider what killed it. It was not a government edict or clever plan. The Silk Road cannot compete with seaborne transport. Period. End of story. Thus, a lot of private merchants killed off this thing that governments (and in some places bandits) controlled. China trying to do the same is just daft and is a waste of their and everyone else's resources. I mention that because in addition to the scale issues involved with a world trade currency, there are the trust and efficiency factors. What makes the whole "western" currency work is the ability to do transactions reliably across borders. This basically means the SWIFT system. That system is basically run by, and was designed by, the banks, not governments. Like all banks they operate in a regulatory environment. The government can sanction organizations and even countries, but typically only after some sort of legislative process. Now think about how that would work if the Xi and Putin were involved. As President Joe likes to say, "C'mon man!" Just a little side note, in the 1980s I worked for a woman who had a math background and was a computer scientist. We were at an aerospace firm. She had been heavily involved in the specification and design of SWIFT with a previous employer (Burroughs). Basically, the higher-level design hadn't changed at that time, and I expect is still valid. Stability is key.
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