Announcing MishBucks, 100 Percent Backed by Gold – MishTalk

I am not really announcing MishBucks. However, the concept, as described below, is real. I also discuss where a currency crisis is likely to start.

Understanding MishBucks

You deposit fiat money, credit cards not allowed, and I buy physical gold, held in your name, never lent. In return you get MishBucks^TM. All transactions are on blockchain.

You can redeem your MishBucks for gold on demand. I will send gold to you, insured. If you prefer, I will sell your gold and send cash in any of six major currencies to your bank account on file.

Audits every month.

This is a super-duper-deal because I refuse to take any profit.

You do have to pay shipping costs, storage costs, and audit costs, but I will not profit in any way from any part of the process.

This unbelievable deal is 100 percent out of the goodness of my heart.

Want In?

Of course you don’t.

If you want gold, there are a number of places that already do what I just proposed, except that someone will profit a tiny bit.

Competition keeps the profit margin small.

But Wait! There’s More!

Along with the above, I announce the MBTC^TM MishBucks Trading Currency (ooooh, ahhhh)!

As with MishBucks, the MBTC is 100 percent backed by gold and redeemable in gold on demand.

Who in their right mind would not want to be in on this obviously brilliant currency idea?

The floodgates are open. Everyone in the world will surely want to base their international trade entirely on the MBTC.

Right?

Introducing The BRICK

The Brick is my proposed name for a BRICS-based currency.

BRICS is an acronym for Brazil, Russia, India, China, and South Africa, nations that have little to do with each other.

On January 1, 2024, BRICS – the intergovernmental organization comprising Brazil, Russia, India, China and South Africa – admitted four new members: Egypt, Ethiopia, Iran and the United Arab Emirates.

Unfortunately, the more nations the BRICS add, the more unwieldy the group will become. The EU and UN are prime examples.

A BRICS Gold Standard?

A constantly recycled proposal claims The BRICS Will Use a Gold Standard 40 to 60 percent backed by gold.

Let’s do a one-on-one comparison.

MishBucks vs the BRICK

• MishBucks: 100 percent backed by gold at all times.
• The Brick: 40-60 percent backed by gold with no explanation as to how that works or what that means.
• MishBucks: Immediately redeemable in gold on demand, alternatively to six major currencies.
• The Brick: Not redeemable in gold, nor dollars, nor euros, nor yen.
• MishBucks: Don’t float. They represent a fixed amount of gold deliverable on demand. But at your request, you can alternatively convert your holding to dollars, euros, or yen instead.
• Bricks: Who the hell knows? Since the Brick does not represent a fixed quantity of anything, it needs to float.

Questions Abound

Is the Brick redeemable to anything, ever? If so to what and how?

Does the Brick float? If it doesn’t float, how is the peg maintained?

How liquid is the Brick?

Who or what controls the number of Bricks?

Is the Brick freely tradeable? Where? How?

Key Question: Why would anyone want to buy Bricks?

BRICS Gold Standard

I addressed the key question (Why would anyone want to buy Bricks?) in my post Will the BRICS Currency Use a Gold Standard?

Here’s a review the key points of the discussion.

Let’s start with this claim: “The Brics will go on a gold standard. By every definition of the word this person can think of.“

Really? What about redeemability? How can something backed by 40 percent gold or “perhaps 60 percent” be redeemable for gold?

It can’t. It is impossible to “back” something with 60 percent of something else.

Also, there is no explanation of whether the currency floats, how the currency comes into existence or any other details about how anything works.

Investor Questions

If you are an investor, would you buy BRICKs or would you rather buy gold, silver, or Bitcoin?

Trade Between Nations?!

But Mish, this is not for investors, BRICKs are for trade between nations!

OK let’s march down that path with more questions. This time let’s assume you are a Brazilian farmer (BF) who sells soybeans to a Chinese merchant (CM).

CM offers BF BRICKs for soybeans.

Why would BF want BRICKs? Can BF buy fertilizer with BRICKs? Farm equipment from John Deere? Pay rent?

What possible use does BF have for BRICKs? And why would CM have BRICKs to offer in the first place?

Logical Answers

BF has no need for BRICKs. He needs the Brazilian Real or US dollars to pay his bills or buy things he needs.

Similarly, CM has no reason to hold BRICKs because his expenses are in Yuan, the official currency in China.

Think of BF as any person. Think of CM as any other person. Why would anyone, anywhere, want to trade in BRICKs?

Trade…