The Great Reset and BRICS Nations: Reshaping the Global Economic Order
The term "Great Reset" has gained significant traction in global economic and political circles, representing a potential transformation in how economies function and interact. Meanwhile, the BRICS alliance has positioned itself as a counterbalance to Western financial dominance. Together, these developments signal profound changes that could reshape the global economic landscape for decades to come.
Understanding the Great Reset Concept
The Great Reset was originally introduced by the World Economic Forum as a proposed economic transformation following major global disruptions. This concept envisions restructuring economies to address wealth inequality, climate change, and technological disruption. In practice, it represents a potential reshaping of the global economic order through monetary policy changes, digital transformation, and shifts in international power dynamics.
The reset concept has evolved from theoretical discussions to practical implementations across various sectors. Central banks worldwide are reconsidering traditional monetary policies, while governments are exploring new approaches to economic management, particularly following global disruptions like the pandemic.
"Gold is becoming central to a new system, call it the skeletal system of a new monetary order, whether it be in the BRICS or whether it be in the United States." – Andy Scheckman, Miles Franklin Precious Metals
BRICS Alliance: A Counterbalance to Western Economic Dominance
The BRICS alliance—originally Brazil, Russia, India, China, and South Africa—has expanded to include additional nations, creating a formidable economic bloc. This coalition represents a significant portion of the world's population, natural resources, and economic activity.
BRICS nations have been actively developing financial infrastructure and cooperation mechanisms that operate independently from Western-dominated systems. Their efforts include establishing alternative payment networks, developing new reserve currency arrangements, and increasing bilateral trade agreements denominated in local currencies rather than U.S. dollars.
The alliance's strategic importance lies in its collective economic weight: the expanded BRICS framework encompasses countries that together represent a substantial portion of global GDP, manufacturing capacity, and natural resource reserves. This provides them with significant leverage in reshaping global economic relations.
How Are BRICS Nations Challenging Dollar Dominance?
One of the most consequential developments in the global financial system is the systematic effort by BRICS nations to reduce reliance on the U.S. dollar. This multi-pronged strategy includes creating alternative payment infrastructures, increasing gold price highs analysis, and developing new settlement mechanisms.
Development of Alternative Payment Systems
BRICS nations have made significant progress in developing alternative cross-border payment systems that operate independently from SWIFT, the Western-dominated international payment network. These systems offer several notable advantages:
- Settlement times of approximately 7 seconds (compared to 3-5 days through traditional dollar-based channels)
- Fee reductions of up to 98% for cross-border transactions
- Direct currency exchanges without first converting to dollars
- Freedom from potential Western sanctions or interventions
These technological advancements represent a fundamental shift in how international trade can be conducted, potentially bypassing traditional Western financial intermediaries altogether.
BRICSBridge: The New Cross-Border Payment Infrastructure
The BRICSBridge payment system (previously known as the M-Bridge technology) represents a significant advancement in BRICS financial infrastructure. This system connects central bank digital currencies (CBDCs) across participating nations, creating a network that can function independently of Western financial infrastructure.
According to recent statements from BRICS representatives, the system has already:
- Integrated 11 Asian countries and 5 Middle Eastern countries
- Encompassed approximately 38% of global GDP through its current participants
- Created a framework that could potentially expand to include Belt and Road Initiative countries, which would cover roughly 75% of the world's population and 50% of global GDP
The technical capabilities of this system are impressive, allowing near-instant settlement of cross-border transactions at a fraction of the cost of traditional systems. This represents a quantum leap in payment technology that could significantly alter global trade patterns.
The Role of Gold in BRICS Financial Strategy
Gold appears to be central to BRICS' financial strategy, serving as a backbone for a potential new monetary system. Key developments include:
- Expansion of the Shanghai Gold Exchange into multi-jurisdictional vaults across Belt and Road countries, beginning with Hong Kong
- Development of a settlement system that would allow trade in local currencies with imbalances settled in gold
- Immediate convertibility of the Chinese yuan into gold without first converting to dollars
- Creation of a distributed network of gold vaults across multiple jurisdictions to mitigate geopolitical risks
Former Brazilian president Dilma Rousseff, now heading the BRICS Development Bank, has reportedly indicated agreement "in principle to a new settlement system called the unit… it is a digital representation of a basket of 60% BRICS-plus currencies and 40% gold deliverable upon request."
This gold-centric approach represents a return to more tangible backing for international trade, potentially addressing concerns about the stability of purely fiat currency systems.
Is a New World Order Emerging in Global Finance?
The combined effects of BRICS initiatives, changing trade patterns, and shifts in central bank behavior suggest that a significant transformation in global finance may be underway. These changes could fundamentally alter how international trade and finance operate.
The Decline of Dollar-Based Trade
Recent data points to meaningful shifts in global trade patterns that could signal the beginning of a new economic order:
- China's trade with the United States has reportedly fallen to its lowest level in over 20 years, now representing less than 6% of China's total trade as of May
- Asian countries connected to the new BRICS payment infrastructure have become China's largest trading partners, surpassing both the EU and the United States
- Many countries are increasingly conducting trade in local currencies rather than dollars
- The Belt and Road Initiative has created economic interdependencies that operate partially outside the dollar system
These trends suggest a gradual but meaningful decoupling from dollar-centric trade, particularly among countries that have integrated with BRICS financial infrastructure.
Gold's Resurgence in International Finance
Gold appears to be experiencing a significant revival in international finance, with several noteworthy developments:
- Central banks globally have been increasing their gold reserves at the fastest pace in decades
- The United States has become the largest importer of gold globally since November, with over $100 billion worth of gold entering the country
- Physical gold deliveries on commodity exchanges have increased substantially, with unprecedented delivery rates
- Many central banks have repatriated gold from traditional storage locations like the New York Federal Reserve and the Bank of England
In early August, over 20,126 contracts at 100 ounces each stood for delivery on the COMEX, representing over 2 million ounces of gold worth almost $7 billion. Remarkably, a 100% delivery ratio was achieved—every contract issued settled for physical metal. This level of physical delivery is historically unprecedented.
"This is 4 ft of snow in Death Valley in July. This doesn't happen, but it is happening."
The Potential for Currency Revaluation
Some financial analysts suggest that major currency revaluations could be on the horizon:
- The concept of a "gold revaluation account" maintained by central banks could facilitate a formal revaluation of gold
- Historical precedents exist for gold revaluation as a policy tool, including the U.S. devaluation in 1933
- A significant revaluation of gold could help address sovereign debt challenges
- Such a move could potentially devalue fiat currencies relative to hard assets
The U.S. Treasury still values its gold reserves at $42.22 per ounce (unchanged since 1973), far below market rates. A mark-to-market adjustment would add almost $900 billion to Treasury assets, potentially creating new financial flexibility.
What Are the Implications for Global Manufacturing and Trade?
The shifting financial landscape has profound implications for global manufacturing and trade patterns, potentially reversing decades-long trends in global commerce.
The Triffin Dilemma and Reserve Currency Status
The "Triffin Dilemma" describes an inherent conflict faced by countries that issue reserve currencies. This economic theory suggests that:
- Reserve currency issuers must run trade deficits to supply the world with their currency
- These deficits eventually undermine confidence in the currency
- The strong currency makes domestic manufacturing uncompetitive
- This creates a long-term hollowing out of the manufacturing base in reserve currency countries
J.D. Vance has reportedly acknowledged this challenge, stating: "Because of Triffin's dilemma, being the world reserve currency at this stage of the game is probably not beneficial to the dollar."
This recognition at high levels suggests potential policy shifts that could favor manufacturing over financial services in countries like the United States.
Potential Strategies for Manufacturing Revival
Countries seeking to revitalize their manufacturing sectors might consider several approaches:
- Strategic devaluation of their currencies to make exports more competitive
- Implementation of tariffs to protect domestic industries
- Development of new financial instruments that support manufacturing
- Reducing borrowing costs for strategic industries through monetary policy
The manufacturing revival question is particularly important for countries with large populations without college education—approximately 60% of the U.S. population—who traditionally relied on manufacturing jobs for middle-class lifestyles.
The Role of Stable Coins and Digital Currencies
The rapid development of stable coins and central bank digital currencies (CBDCs) could play a significant role in reshaping global trade:
- Stable coins backed by government securities could create synthetic demand for sovereign debt
- CBDCs could facilitate more efficient cross-border payments
- Digital currencies might enable new forms of monetary policy implementation
- These technologies could potentially incorporate features like anti-money laundering controls, know-your-customer verification, and transaction monitoring
The integration of Know Your Transaction (KYT) protocols into new payment systems represents a significant shift toward greater financial surveillance, potentially changing how businesses and individuals interact with the financial system.
How Might These Changes Affect Personal Wealth and Investment?
The potential restructuring of the global financial system raises important questions about personal wealth preservation and 2025 investment opportunities. In the context of the great reset and the BRICKS nations, understanding how these shifts impact wealth is crucial.
The Historical Performance of Gold During Currency Devaluation
Gold has historically served as a hedge against currency devaluation:
- Over the past 25 years, gold has doubled the performance of 10-year Treasury bonds
- In 2005, it took 522 ounces of gold to buy a median-priced home ($232,500); today, that same amount of gold would be worth approximately $1.75 million, enough to purchase 4.5 comparable houses
- In 1960, when a typical house cost $17,000 and gold was $35/ounce, it required 485 ounces of gold; today those same ounces would be worth nearly $2 million
- Physical gold ownership removes counterparty risk present in many financial assets
These historical examples illustrate gold's effectiveness at preserving purchasing power over long periods, particularly for significant purchases like real estate.
Potential Investment Implications
Investors might consider several factors when positioning for potential changes in the global financial system:
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Diversification beyond dollar-denominated assets
- Exploring currencies of countries with positive trade balances
- Considering hard assets with intrinsic value
- Evaluating investments in countries benefiting from manufacturing reshoring
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Understanding potential impacts of currency revaluations
- Preparing for possible sudden shifts in relative currency values
- Considering the effects of potential gold revaluation on various asset classes
- Evaluating debt positions in light of possible currency adjustments
-
Evaluating manufacturing revival opportunities
- Identifying industries likely to benefit from reshoring initiatives
- Considering regional impacts of manufacturing revival
- Assessing infrastructure needed to support manufacturing growth
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Precious metals allocation strategies
- Determining appropriate allocation to physical precious metals
- Understanding storage options and security considerations
- Evaluating mining equities versus physical metal ownership
"If you save in dollars now, you're destined to go broke. If you're not a contrarian, you're destined to be a victim." – Rick Rule
Privacy Considerations in a Digital Financial System
The shift toward digital currencies and cashless transactions raises important privacy considerations:
- Digital payment systems typically incorporate tracking mechanisms
- Know-your-transaction (KYT) protocols may monitor spending patterns
- The trend toward cashless commerce continues to accelerate
- These developments could have significant implications for financial privacy
As financial surveillance increases, individuals may need to carefully consider how they structure their finances to maintain an appropriate level of privacy while complying with relevant regulations.
What Timeline Might We Expect for These Changes?
While precise predictions are challenging, several indicators suggest a potential timeline for significant changes in the global financial system.
Near-Term Developments to Watch
Several developments might signal acceleration in changes to the global financial system:
- Expansion of BRICS membership and cooperation mechanisms
- Further development of alternative payment infrastructures
- Changes in central bank gold holdings and repatriation movements
- New monetary policy announcements from major economies
The next 12-24 months could see significant announcements regarding BRICS payment infrastructure, central bank gold policies, and potential currency arrangements that would signal the pace of change.
Medium-Term Structural Changes
Over the next several years, structural changes might include:
- Gradual shifts in global trade settlement currencies
- Development of new financial instruments tied to hard assets
- Potential revaluations of currencies relative to gold
- Evolution of digital currency frameworks and regulations
Judy Shelton, formerly nominated to the Federal Reserve Board, has reportedly suggested July 4th, 2026 as a potential date for significant U.S. monetary reform, potentially including gold-backed Treasury instruments.
Long-Term Transformation of the Global Financial Architecture
The long-term transformation could potentially involve:
- A multipolar currency system replacing dollar hegemony
- New international financial institutions with different governance structures
- Changed relationships between currencies and hard assets
- Restructured global manufacturing and trade patterns
The U.S. fiscal situation adds urgency to potential reforms, with projections showing $28 trillion in Treasury obligations by 2028 against $5 trillion in annual tax revenue. This financial pressure could accelerate the need for a significant global financial recession 2025 response.
FAQs About the Great Reset and BRICS Nations
What countries are currently part of the BRICS alliance?
The BRICS alliance has expanded beyond its original five members (Brazil, Russia, India, China, and South Africa) to include additional nations. Recent expansions have brought in countries from the Middle East, Africa, and Asia, reflecting the growing influence of this economic bloc in global affairs.
How might these changes affect everyday consumers?
Potential impacts for consumers could include:
- Changes in purchasing power as currency relationships shift
- Altered availability and pricing of imported goods
- Potential reshoring of manufacturing creating new employment opportunities
- New payment systems for everyday transactions
- Possible adjustments to savings strategies as traditional financial instruments evolve
Is gold likely to remain an important part of the international monetary system?
Gold appears to be regaining importance in the international monetary system, with central banks increasing their holdings and new gold-based settlement systems under development. Its role as a neutral reserve asset without counterparty risk makes it attractive in an uncertain geopolitical environment.
The unprecedented physical delivery rates on gold exchanges and the reported integration of gold into BRICS settlement mechanisms suggest increasing rather than decreasing importance for the metal in international finance. Many experts are monitoring the 2025 gold market surge as an indicator of this shift.
What role might digital currencies play in this transformation?
Digital currencies, including CBDCs and stable coins, could facilitate more efficient cross-border payments, enable new forms of monetary policy implementation, and potentially incorporate features like anti-money laundering controls and transaction monitoring.
The development of the BRICSBridge system demonstrates how digital currency technology can create entirely new payment infrastructures that bypass traditional banking channels, potentially reshaping how international trade is conducted.
How might tariffs impact global trade patterns?
Tariffs can significantly impact global trade by:
- Increasing the cost of imported goods
- Potentially reshoring manufacturing to domestic markets
- Creating trade diversion to non-tariffed countries
- Potentially triggering retaliatory measures from trading partners
Countries seeking to revitalize domestic manufacturing may increasingly turn to tariffs as part of a broader strategy to address trade imbalances and create employment opportunities.
Further Exploration
The relationship between the Great Reset concept and BRICS nations continues to evolve, with significant implications for the global economic order. As these developments unfold, they will likely reshape international trade, monetary policy, and investment strategies in profound ways.
Understanding these shifts requires monitoring developments across multiple domains: central bank policies, international trade patterns, commodity markets, and geopolitical alignments. The coming years may prove pivotal in determining whether the post-WWII financial architecture undergoes fundamental transformation or merely incremental change. Many analysts continue to update their gold price forecast 2025 as these changes unfold.
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