Thanks, 19th
The planet’s eighth largest economy (excl. US, incl. CA) makes another move toward sound currency. “[Texas] House Bill 1056, cleared by both chambers in late May, designates properly marked gold and silver ‘specie’ as legal tender in the Lone Star State starting September 1, 2026. A second phase – launching no later than May 1, 2027—authorizes an electronic payment rail fully backed by bullion stored in the Texas Bullion Depository.”
And not a moment too soon. “Fifty years after Nixon defaulted on gold convertibility, the dollar faces a new reckoning. But this time, there’s no Saudi oil deal, no Volcker rate hike, and no geopolitical consensus to save it. The DXY just posted its worst start to the year since 1973. Central banks are ditching Treasurys for gold. And BRICS nations are building a parallel system to kill dollar dependence.”
Regarding the latter, the weaponization of the dollar seems to have been the last nail in the coffin. For perspective on proportion, 2024 US GDP was $30.51T, for BRICS, $27.94T. If one includes the BRICS+ countries (Egypt, Ethiopia, Indonesia, Iran, UAE), $30.72T. Of course, this does not include other nations in the BRICS+ orbit.
The BRICS strategy has teeth. Gold reserves are currently (if one believes any of these data – sources differ wildly) 8,133 metric tons for the US, 5,757 for BRICS, and 6,618 for BRICS+. (Personal holdings in India are estimated to be 25,000 metric tons, currently valued at $2.7T. The annual consumption in India is estimated to be 800 metric tons.)
BRICS+ also has the corner on gold production with 1033 metric tons per annum, compared to 158 for the US (2024 estimates).
And a quick examination of a world map reveals added leverage to this system, as the BRICS++ community (getting more linked with the OPEC+ community by the minute) controls most of the world’s oil production, as well as vital sea gates.
