Brics News Week

The highly anticipated BRICS summit arrived this week, with the entire world watching. Specifically, the geopolitical sector sought to see what could come from the gathering. A focus had been placed on both local currency development and potential expansion.

Now, after expansion had already been announced, the BRICSNATION is set to officially abandon the US dollar for trade settlements. The move falls in line with the economic policies the bloc had been set to embrace and was confirmed by Brazil’s president. Ultimately, it is set to have a notable impact on the performance of the greenback in the impending months.

The proposal was initially made by Brazil’s Lula da Silva at this week’s BRICS summit. Moreover, he had lobbied for the continued development of a BRICS currency. Specifically, so that the bloc could increase “payment options and reduce our vulnerability,” he told the summit attendees.

The call for the abandonment of the US dollar in international trade has been consistent. Yet, with the arrival of countries like Saudi Arabia, the United Arab Emirates (UAE), and Iran, its implications grow greater. With large oil sales set to transition out of the US dollar, the geopolitical ramifications should undoubtedly be noticeable.

Brics Vs Dollar

According to Brazil’s president, the BRICS economic alliance is officially set to abandon the US dollar for trade settlements. Moreover, the development aligns with recent de-dollarization efforts embraced by the bloc. As they continue to promote the use of local currencies internationally. 

Brazil’s President, Luiz Inacio Lula Da Silva, confirmed the development at this week’s BRICS Summit. Additionally, the bloc announced its agreement to expand. Changing the geopolitical landscape, the alliance is set to welcome six additional countries by 2024. 

Though home to about 40% of the world’s population and a quarter of global gross domestic product, internal divisions have long hobbled BRIC ambitions of becoming a major player on the world stage.

It has long been criticised for failing to live up to its grand ambitions.

The regularly repeated desire of its member states to wean themselves off the dollar, for example, has never materialised. And its most concrete achievement, the New Development Bank, is now struggling in the face of sanctions against founding shareholder Russia.

Fed Rate Hike, The Fed’s last rate hike will come in January, but stocks will still be under pressure from dismal earnings in 2023, a Morgan Stanley strategist says

• The Fed could stop hiking rates as soon as January of next year, according to Morgan Stanley’s Andrew Sheets.

• Sheets pointed to evidence of falling inflation, though he noted central bankers would likely keep monitoring the economy after pausing rate hikes.

• But while investors are hoping a pause could spark a new rally, he warned that stocks will still be under pressure next year on poor earnings.

According to Morgan Stanley strategist Andrew Sheets, the Federal Reserve’s last rate hike could come as soon as January, but stocks will still be under pressure from dismal earnings into 2023.

“We are in the camp that the Fed will be early to pause. We think the last Fed rate hike is in January,” Sheets said in an interview on Bloomberg TV on Wednesday.

Fed officials have warned the central bank needs to make more progress on inflation, which remains well above the Fed’s 2% target, before letting up on rate hikes.

But inflation is showing clear signs of coming down, potentially causing the Fed to pause its monetary tightening regime earlier than expected, Sheets said. Prices clocked in at 7.7% in October, down from the 41-year-high of 9.1% in June.

Comparing the Speed of U.S Interest Rate Hikes (1988 – 2022)

Fed Rate Hike, last rate hike will come in January, Morgan Stanley strategist says

After its last rate hike in January, the Fed will likely hold its policy rate and continue monitoring the economy to see the full effect of its tightening so far, he predicted, adding that there is still a lot of uncertainty on inflation’s trajectory next year.

But central bankers risk undoing the tightening they’ve done so far by pausing rate hikes, Sheets pointed out.

“Can the Fed really pause without reversing the progress that it’s made in tightening financial conditions? Almost by definition, once it stops hiking, it’s easing. And does that work against everything the Fed is trying to achieve?” he said. “How does its message that I think is a really big debate.”

Stocks are still likely to face downward pressure with dismal earnings into 2023, Sheets said. He pointed to estimates from Morgan Stanley’s top stock strategist Mike Wilson, who warned that earnings were 20% too high at current levels, which could cause stocks to plunge to a new bottom early next year. FED RATE

Uganda Gold Deposits

Uganda has announced the discovery of 31 million metric tonnes of gold deposits in the country. A spokesperson from the Ministry of Energy and Mineral Development in Uganda, Solomon Muyita, said that these reports are aimed at attracting gold miners and investors.

uganda gold discovery

After several surveys, Uganda has finally announced that it had discovered tons of gold waiting to be mined in the country. These gold deposits are valued at approximately $12 trillion in a single country.

Check out how big it is: at the moment, ALL THE GOLD IN THE WORLD is valued at $8-$10 trillion

What if one day gold is found in some other secluded corner of the planet? Theoretically, the supply of this precious metal can be unlimited. And Uganda can potentially start reckless and quick mining of its own gold, which will easily lead to a gold market collapse.

Gold is the most reliable asset for investment, they said

Investors like to compare bitcoin with gold, and news like this confirms the advantage of the former asset. Satoshi didn’t come up with BTC’s deflationary mechanism for nothing.

Bitcoin is not digital gold, what kind of inferiority complex is this BTC is a unique one-of-a-kind asset that has already made and will still make hundreds of people millionaires

Uganda Gold Deposits and Discovery Image

What is Optimism?

Optimism is a Layer 2 Optimistic Rollup network designed to utilize the strong security guarantees of Ethereum while reducing its cost and latency.

is a low-cost and lightning-fast Ethereum L2 blockchain.

That’s what a blockchain needs to survive. Very few of them check all these boxes. Ethereum is one of them.

A strong foundation determines the long-term success of any endeavor.
Join a thriving digital metropolis of decentralized applications that’s here to stay…

Optimism was stolen from Optimism

Before the airdrop, Optimism developers transferred 20M $OP to the multisig wallet of Wintermute market maker. However, due to some internal error, the team never got access to the wallet. The hacker did it instead of them

He spent about a million from those tokens, sent another million to supposedly Vitalik Buterin’s wallet, and returned 17 million. Poly Network’s hacker certainly did it better when he returned all $611 stolen millions.

If the funds got stolen from a crypto company, they could easily be stolen from you.

That’s why you should use only trusted platforms and avoid depositing all of your money in any of them. Today, crypto lender Celsius stopped withdrawals, swaps, and transfers on its platform due to “extreme market conditions.” We don’t get to trust any platform too much these days.

Optimism addresses the practical needs of developers and users. It works great now, and it’s only getting better.

A community of builders

Hop in the Discord and get all the technical support you need from the Optimism Support Nerds or find teammates for your next big project.

Not a Financial Advice

The information provided on this post does not constitute investment advice, financial advice, trading advice, or any other sort of advice and you should not treat any of the website’s content as such. Fxkinfin does not recommend that any cryptocurrency should be bought, sold, or held by you. Do conduct your own due diligence and consult your financial advisor before making any investment decisions.

US bill on digital assets

There’s a document shared around on the internet, which looks like a leaked US bill on crypto. It seems to be a draft of an upcoming U.S. bill on digital assets, but this info is unofficial, and the document may not even be real.

However, there are some key statements I’d like to point out:

• It requires DAOs to be registered entities in the US

• Anon projects would be almost impossible to run due to new disclosure requirements

• Exchanges will face a huge increase in compliance costs, which may lead to fees going up

• Bankruptcy definition changes, making it clear assets deposited would get returned to users and not liquidated

• Gives depository institutions the right to issue stablecoins which is good.

US Bill

This “document” definitely needs to be ironed out, but it’s a nice start if we’re looking at a long-term perspective. But again, it may not even be real

US Treasury Bill Rates

3 Month Treasury Bill Rate is at 1.54%, compared to 1.69% the previous market day and 0.04% last year. This is lower than the long term average of 4.18%.

Average Growth Rate: 116.6%