PDB Special Report | June 29th, 2025: PDB Special Report: The Rio Reset & The End of Dollar Dominance?

Summary

The President's Daily Brief: PDB Special Report | June 29th, 2025

Hosted by Mike Baker, Former CIA Operations Officer

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Introduction

In the June 29th, 2025 episode of The President's Daily Brief (PDB), hosted by Mike Baker, the focus centers on a pivotal development in global economics: the upcoming BRICS summit in Rio de Janeiro. This summit is poised to challenge the longstanding dominance of the US dollar, marking a potential shift in the world's financial landscape.

BRICS Summit in Rio: A Turning Point for the US Dollar

Mike Baker initiates the discussion by highlighting the significance of the BRICS coalition's gathering on July 6th and 7th in Rio de Janeiro:

"Today we're going to talk about something that's flying under the radar, but it shouldn't be. It should be on your radar. On July 6 and 7, the BRICS coalition is gathering in Rio de Janeiro. Why wouldn't you? It sounds posh and it may mark the most serious challenge that the US dollar has faced in 80 years." ([01:00])

BRICS, an acronym for Brazil, Russia, India, China, and South Africa, has expanded to include new members like Iran and the UAE. This expanded coalition now represents 50% of the world's population and accounts for slightly more than 50% of global GDP ([06:12]). The primary agenda of the upcoming summit is to establish a financial system that diminishes the reliance on the US dollar, aiming to "push the US dollar off the global stage" ([02:19]).

Implications of a Dollar-less Financial System

The potential shift away from the US dollar carries significant ramifications for global economic order and American influence. Philipp Patrick, a precious metals specialist and spokesperson for Birch Gold Group, provides deeper insights into the motivations and implications of this move:

"De-dollarization is happening already. So US dollars held by central banks today are at 30 year low. So we're starting to see that process now." ([03:53])

Patrick explains that the BRICS nations are establishing a shadow financial system designed to rival the existing Western-controlled systems like SWIFT. This involves creating alternative payment systems and developing infrastructure such as undersea cables to facilitate transactions without relying on the dollar ([03:53]).

Motivations Behind BRICS' Move

The drive to move away from the US dollar stems from two primary factors:

1. Devaluation of the Dollar: The US has been increasing its money supply extensively, leading to a 21% loss in the dollar's purchasing power since the pandemic five years ago ([07:15]). Central banks globally have responded by reducing their dollar holdings and increasing their gold reserves.

2. Weaponization of the Dollar: The US has significantly ramped up its use of economic sanctions, especially post-2001, with a dramatic increase of 900%. These sanctions have served as leverage against nations that contravene Western interests, prompting countries like China to seek alternatives to shield their assets and economic activities from such measures ([07:15]).

"The dollar has lost 21% of its purchasing power just since the pandemic five years ago. The central banks around the world... are starting to see that process now." ([03:53])

Building an Alternative Financial Infrastructure

To effectively challenge the dollar, BRICS is not only advocating for its reduction in global reserves but actively constructing the necessary infrastructure:

• Payment Systems: Developing new systems that can operate independently of Western-dominated networks.
• Development Bank: Establishing institutions like the New Development Bank to reduce dependence on entities like the IMF.
• Undersea Cables: Laying down extensive undersea communication and transaction cables to support their financial systems.

"They have a payment system now to rival our swift payment system. They have the new development bank which is designed to reduce reliance on the IMF." ([03:53])

The Role of Gold in the Transition

Gold emerges as a critical component in BRICS' strategy to de-dollarize. Phil Patrick emphasizes gold's historical role as a safe haven asset and its inverse relationship with the dollar:

"Gold is a safe haven asset... the dollar's losing value, when the government debt is in question, people are looking at gold." ([13:00])

Central banks worldwide have been significantly increasing their gold holdings, with gold surpassing the euro as the second-largest global reserve asset last year. The BRICS nations are considering a gold-backed currency, referred to as the "unit," to ensure stability and legitimacy in their new financial system.

"The dollar has a directly inverse relationship. When the dollar goes down, gold goes up." ([13:00])

Impact on American Consumers and the Economy

The potential decline of the dollar's global standing poses direct consequences for the average American:

• Inflation and Reduced Purchasing Power: As the dollar devalues, prices for goods and services are likely to rise, eroding the savings and wealth of the middle class.

"Our dollar doesn't go far enough. The prices of goods and services start to increase and ultimately we start to see the wealth of the middle class evaporate." ([11:33])

• Investment Shifts: In times of economic uncertainty, investments in gold become more attractive as they preserve value better than traditional assets.

Protecting Wealth Through Precious Metals

Given the economic uncertainties discussed, Mike Baker, alongside Birch Gold Group spokesperson Patrick, advocates for investing in gold as a hedge against the depreciating dollar:

"Gold has historically been a safe haven in uncertain times. And these current times do frankly appear uncertain." ([08:37])

Baker encourages listeners to consider gold-backed retirement accounts to safeguard their savings.

Conclusion

The upcoming BRICS summit in Rio represents a critical juncture in global economics, with the potential to redefine the international monetary system. The initiative to reduce reliance on the US dollar, backed by strategic investments in gold and the establishment of alternative financial infrastructures, signals a significant shift that could have profound implications for global and American economies alike.

Mike Baker concludes by urging listeners to stay informed and consider safeguarding their assets amidst these unfolding global changes.

"I'll be back tomorrow. Until then, stay informed, stay safe, stay cool." ([15:15])

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Key Takeaways:

• BRICS Expansion: Now includes half of the world's population and GDP, intensifying its influence.
• De-Dollarization Goals: Aiming to establish a dollar-less financial system, challenging US economic supremacy.
• Gold as a Safe Haven: Increasingly seen as a reliable store of value amidst dollar instability.
• Impact on Individuals: Potential for higher inflation and erosion of purchasing power, highlighting the importance of strategic financial planning.

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Notable Quotes:

• "De-dollarization is happening already. So US dollars held by central banks today are at 30 year low." – Philip Patrick ([03:53])
• "Gold is a safe haven asset... when the dollar goes down, gold goes up." – Philip Patrick ([13:00])
• "Our dollar doesn't go far enough. The prices of goods and services start to increase." – Philip Patrick ([11:33])

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Stay tuned to The President's Daily Brief for more in-depth analyses and updates on the developments shaping our world.

Transcript

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[Mike Baker]

This special edition of the PDB is brought to you exclusively by Birch Gold Group. Protect your retirement with gold. It's a proven safe haven in times of uncertainty. Text PDB to 989-898 to claim your free information kit from Birch Gold. Welcome to a special edition of the President's Daily Brief. I'm Mike Baker, your eyes and ears on the world stage. All right, let's get briefed. Today we're going to talk about something that's flying under the radar, but it shouldn't be. It should be on your radar. On July 6 and 7, the BRICS coalition is gathering in Rio de Janeiro. Why wouldn't you? It sounds posh and it may mark the most serious challenge that the US dollar has faced in 80 years. If you're not familiar with BRICS, this.

[Host]

Is an international coalition made up of.

[Mike Baker]

Brazil, Russia, India, China and South Africa, along with new members like Iran and the uae, which now represents half the world's population and industrial output. The goal of July's meeting is to finalize a dollar less financial system. Right. They're basically looking to push the US.

[Host]

Dollar off the stage.

[Mike Baker]

That could upend the global order and diminish America's economic dominance. This so called real reset, that's a clever name, has massive implications for US influence, inflation and the value savings. Joining me now for more on this is Philip Patrick. He's a precious metals specialist and full.

[Host]

Disclosure, he's a spokesman for one of.

[Mike Baker]

Our excellent sponsors, Birchgold Group.

[Host]

Philip, thanks very much for taking the time to join us.

[Philip Patrick]

Thank you for having me.

[Mike Baker]

Let's, let's start with the.

[Host]

With the obvious question. Maybe at 30,000ft. What makes this upcoming BRICS meeting in Rio different from past meetings?

[Mike Baker]

Why now?

[Host]

Why is it important?

[Philip Patrick]

Look, I think this is the culmination of the work that they've been doing for really the last decade. Obviously it's been escalating significantly over the last half decade and last few years. But the BRICS now have made their intentions clear. De dollarization is on the horizon. They are teaming up to move away from the dollar for international trade. Now I don't think it's going to happen July 10th but this meeting, like I said, is a culmination of all of their work over the last 10 years. And it's a, I think a very.

[Host]

Telling sign from your perspective. If you had, I know this is speculation and it's tough to do. It's a soft science based on what.

[Mike Baker]

You'Re seeing out there.

[Host]

Is there a timeline that you're concerned about? Is there sort of, is it a short term issue? Are we going to be having to fight on this for, for you know.

[Mike Baker]

A fairly long time?

[Host]

Where are we at?

[Philip Patrick]

Look, I think it's, you know, we're not going to lose global reserve currency status tomorrow. But de dollarization is happening already. So US dollars held by central banks today are at 30 year low. So we're starting to see that process now. What's happening with the brics. With the BRICS is they're setting up a shadow financial system. So it's not a case of if they're going to start moving away from the dollar. The question is in what quantities, at what volume. But when I say they've set up a shad I mean physically, right. They have a payment system now to rival our swift payment system. They have the new development bank which is designed to reduce reliance on the imf. Most importantly of all, they have thousands of miles of undersea cables so they can move away from the western controlled system. So like I said, there's been a huge amount of expense. This is all there and ready. The meeting I think is just solidifying.

[Host]

Okay. Now for those that. And I think there are a lot of folks out there who haven't or don't pay attention to the BRICS nations. Talk to me a little bit about that. I mean, you know, in terms of how it got started but it's also been growing, right? They've been adding members for some time.

[Philip Patrick]

Yeah, absolutely. So the BRICS of course is Brazil, Russia, India, China, South Africa. We have new members now, Nigeria, Indonesia to behemoth large populations, large natural resources and I think around 25 other nations now clambering to sign up to no longer trade at least bilaterally between them in the dollar. And I think this will be a significant issue. We have to remember since 1971, since we were removed from the gold standard, the dollar's value has been based on supply and demand. Obviously we've been massively increasing supply with huge money printing. As demand starts to wane, it becomes problematic. And we're seeing that now already with borrowing rates on government treasuries shooting up on the back of waning demand.

[Host]

Okay, now am I wrong in thinking that at this stage of the game, if you take in all the members of the BRICS nations, that that represents some half of the world's population and half of the industrial output?

[Philip Patrick]

It's exactly, exactly correct. Actually 50% of the world's population and as of last year slightly more than 50% of the world's GDP. So they are now a force, not a joke. And that for me is the big concern. They are gathering steam and they're not a natural alliance, right? Russia and China, certainly not. India and China, certainly not. But it's an alliance through shared interests.

[Host]

If you will talk about that, if you could.

[Mike Baker]

The motivation, right?

[Host]

I mean you could look at this and say, well, it's an anti American movement or however you want to say it. But what is the, what's the underlying.

[Mike Baker]

From your perspective, underlying motivation for why.

[Host]

This push to move the US dollar.

[Mike Baker]

Off as the global currency?

[Philip Patrick]

I mean, it's a great question. I think broadly speaking there's two drivers, right? So one is devaluation of currency. Right? You have to remember, as global reserve currency, it's a very privileged position to be in nations around the world stock compile our currency, therefore creating demand to use for international trade. Well, we've been printing money hand over fist. In fact, in the last 10 years we printed more money than ever before in history combined. And what that does is devalue the dollar. The dollar has lost 21% of its purchasing power just since the pandemic five years ago. The central banks around the world, that's a big problem. So what they've been doing is dumping dollars and, and buying gold. 22, 23 and 24 central banks set historical records for gold buying. The second side of it, and I think this was perhaps the main catalyst for the BRICS was weaponization of our currency. The straw that we have increased global sanctions significantly since the turn of the century. US led sanctions have increased by 900% following 2001, the straw that broke the camel's back I believe were the sanctions against Russia. We took their dollar holdings, essentially froze their sovereign wealth fund and in doing so, we told any nation around the world, if you do something that we morally object to in the west, your assets can become liabilities. Well, obviously countries like China who have aspirations for Taiwan realize they have to end dollar hedge of money. So I think it's a combination of both of those things.

[Host]

There's a lot there in that, in that answer that was, There's a lot to unpack and what you just said. But, but in terms of practical application.

[Mike Baker]

Here, if, if BRICS rolls out its.

[Host]

Its own currency, right, what does that look like in practice? I mean is, I guess what I'm saying is are we talking, you know, in part digital, Are we talking gold backed? You know, how do they pull this off?

[Philip Patrick]

Look, so, so both of those things actually certainly gold backed I think will be key. The problems, the problem that the BRICs have at the moment is they don't have a currency that can usurp the dollar. Listen, China want to dump their dollars, but they don't want to hold their wealth in rubles or rupees. These things are far too volatile. So the dollar is, is still the cleanest dirty shirt in the hamper, if you will. So what the BRICs are doing short term is using gold as a means to de dollarize and you can see it, right? So US dollar holdings by central banks are at 30 year lows, gold buying at all time highs. Gold last year overtook the euro as the number two global reserve asset. And it was a function of central banks selling their dollars and buying gold, a BRICS currency and one's being touted, called the unit. They're saying that likely it will be gold backed because it needs some measure of stability and legitimacy and gold provides that. They're also talking about payment systems that would allow multiple different currencies. So they're creating a version of our western system, but they're updating it, tweaking it and making it more efficient.

[Mike Baker]

Hey, Mike Baker here. Now, as we've been discussing, the Rio reset set for the July 6th that's coming up could mark the biggest challenge to the US dollar's dominance in over 80 years. Brics nations are looking to bypass the dollar entirely and they're already dumping US assets in favor of gold. So you ask yourself, how do you protect your hard earned dollar savings? Well, may I suggest with Birch Gold Group. Look, gold has historically been a safe haven in uncertain times. And these current times do frankly appear uncertain. Just text PDB to 989898 to get your free information kit on tax sheltered gold IRAs. July 6th is coming. Don't wait. Get your free information kit simply by texting PDB to 989898. And now back to my interview with Philip Patrick. In a sense, right?

[Host]

I mean I mentioned I don't think a lot of people are following day to day what's going on with the BRICS nations but there's this direct potential impact here. So what we're talking about in terms of the devaluing of the dollar, the.

[Mike Baker]

Move to push it off as a global reserve currency.

[Host]

I know this is a broad question, but what could that mean for people's savings, for the retirement for and as.

[Mike Baker]

You mentioned, their purchasing power?

[Philip Patrick]

Ultimately the dollar's value is based on supply and demand, right? As I mentioned earlier and sorry about that, I was in proportionate that dollars value was based on supply and demand, right? And ultimately when demand starts to wane like we're talking about at the moment, what that leads to is a devaluation of currency. Central banks around the world see that as lost purchasing power. We feel that as inflation. So what it means to people like you and I, our dollar doesn't go far enough. The prices of goods and services start to increase and ultimately we start to see the wealth of the middle class and get evaporated. And we've been seeing that trend over.

[Mike Baker]

And over again in a sense.

[Host]

I mean I guess this is going to be speaking a little bit to what we've talked about already. But it does seem whenever things get shaky out there in the global economy.

[Mike Baker]

Gold enters the picture.

[Host]

It always seems to pop in.

[Mike Baker]

Anytime there's uncertainty, there's instability.

[Host]

So I know we talked about it.

[Mike Baker]

A little bit, you've already touched on some.

[Host]

But in a broad sense, why is that? Why does gold keep surfacing? Why does it carry so much weight? No pun intended.

[Philip Patrick]

It's a great question. So first of all, gold is a safe haven asset, right? So when things are tough, people flood to safe haven assets. Now that used to be the dollar, it used to be government debt. But in a time where the dollar's losing value, when the government debt is in question, people are looking at gold. The second side of it, and this has really been the catalyst over the last few years is devaluation of the dollar. Listen, people buy gold when they're worried about the dollar losing value for a very simple reason. Gold and the dollar have a Directly inverse relationship. And that means when the dollar goes down, gold goes up. To explain it and to explain why, because I think it's important. Gold is a store of value. It has been for centuries and it doesn't really lose purchasing power. To give an extreme example, per religious scriptures, one ounce of gold would buy 400 loaves of bread. In biblical times, today it buys 400 loaves of bread. So it's not the buying power of gold that's changing, it's the value of the dollar. So essentially, as the dollar becomes weaker, we need more weaker dollars to buy gold. Hence that inverse relationship. And just to add to that, quickly look at gold. Last century, compared to something like the markets, it didn't really grow. This century it has outperformed almost every financial market. And it's because of the increase in the money supply that really started at the turn of the century and escalated significantly over the last five years. So it's the climate we're in.

[Mike Baker]

Philip.

[Host]

Patrick, I got to tell you, it's really insightful. We very much appreciate your comments, your experience on all of this and would encourage people to pay attention to what's going to be happening in Rio with the next BRICS summit. But listen, Philip, thank you very much for taking the time to join us. Really appreciate it.

[Mike Baker]

Well, that, my friends, is all the.

[Host]

Time that we have for this special.

[Mike Baker]

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[Host]

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[Mike Baker]

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[Host]

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[Mike Baker]

I'll be back tomorrow. Until then, stay informed, stay safe, stay cool.