A short while ago, I used this blog to alert people to the BRICS clearing system and how that system would eventually have an impact on the USD. I talked about how the clearing system would use a CBDC to replace the USD and thus undermine it. I don’t believe the article garnered much attention and a question to our thought leadership panel of commodity experts on this topic so far has seen little enthusiasm in terms of answers. Now, I would argue, the BRICS are the biggest challenge going forward to commodity markets. Today, I found this insightful video in which the presenter talks about the BRICS clearing system and its fundamental challenge not just to the USD but to all western producers and banks – and nations. What I did not discuss in my original article was price discovery. You see, as trades are conducted on western exchanges in USD, all of this intelligence gets pumped through our systems giving us insights into prices, and supply and demand. But as this trade moves into the BRICS clearing system, all of that intelligence is lost to us. Now, as the presenter points out, China is cancelling huge volumes of… continue reading