The Russian government recently stated:

"The BRICS countries are planning to introduce a new trading currency, which will be backed by gold."

Analysts expect a formal announcement at the next BRICS summit in Johannesburg in the coming weeks.

What is your take?

Doug Casey: Let's try to parse the words in the statement. In particular, the use of the word "trading." I'm not sure what the difference between a "trading currency" and an ordinary currency might be. My guess is that it would only be used for settling accounts internationally. Also, if it's going to be backed by gold, where will that gold be held? Will the amount of this currency—let's call it the BRIC—that different governments get be based only upon the amount of gold that they have in their treasury? And will the currency be just for governments, or will it be available to companies or the average guy?

It's unlikely to be of use to the average guy. In the first place, they won't be printing 100 BRIC (or whatever they'll call it) notes in this age of CBDCs. Allowing its use by the plebs would give them entirely too much freedom to take their assets across borders. Remember that almost all the countries talking about replacing the dollar now have crappy "blocked "currencies that are essentially worthless outside their home countries. My guess is that the new BRIC will be for international settlement only, just so they don't have to use the dollar. Citizens will still have to use their crappy national currencies domestically.