What is a BRICS currency and is the U.S. dollar in trouble?

[WicketLord]

Brazil's President called on Wednesday for the BRICS nations to create a common currency for trade and investment between each other, as a means of reducing their vulnerability to dollar exchange rate fluctuations.

Luiz Inacio Lula da Silva made the proposal at a BRICS summit in Johannesburg.

Officials and economists have pointed out the difficulties involved in such a project, given the economic, political and geographic disparities between Brazil, Russia, India, China and South Africa.

WHY DOES LULA WANT A BRICS CURRENCY?
Brazil's president doesn't believe nations that don't use the dollar should be forced to trade in the currency, and he has also advocated for a common currency in the Mercosur bloc of South American countries.

A BRICS currency "increases our payment options and reduces our vulnerabilities," he told the summit's opening plenary session.

WHAT DO OTHER BRICS LEADERS THINK?
South African officials had said a BRICS currency was not on the agenda for the summit.

In July, India's foreign minister said, "there is no idea of a BRICS currency". Its foreign secretary said before departing for the summit that boosting trade in national currencies would be discussed.

Russian President Vladimir Putin said the gathering, which ha attended via videolink, would discuss switching trade between member countries away from the dollar to national currencies.

China has not commented on the idea. President Xi Jinping spoke at the summit of promoting "the reform of the international financial and monetary system"

 

[Varun]

There is zero chance we will use the same currency as the Chinese.

 

[Asad T]

Most of these countries can't even maintain a stable exchange rate themselves, so I can't see a BRICS currency succeeding. The US dollar will probably reign supreme for some time. They have the strongest millitary in the world and will not let the dollar fall into irrelevance.

 

[KingKhanWC]

Most of these countries can't even maintain a stable exchange rate themselves, so I can't see a BRICS currency succeeding. The US dollar will probably reign supreme for some time. They have the strongest millitary in the world and will not let the dollar fall into irrelevance.

This is wrong. Western currencies are backed by nothing. US $ is only supreme due to being a petrodollar. Once BRICS currency arrives it will be backed by gold, the US $ will no longer be the worlds reserve currency. BRICS is set to overtake G7 in a few years. See my thread on the Countdown towards the end of the Petrodollar.

 

[bones]

Most of these countries can't even maintain a stable exchange rate themselves, so I can't see a BRICS currency succeeding. The US dollar will probably reign supreme for some time. They have the strongest millitary in the world and will not let the dollar fall into irrelevance.

Unfortunately this is a I'll informed comment. The petrodollar is gradually losing its power as more and more countries trade using other currencies. It's a question of when not if t he dollar is replaced.

 

[daytrader]

Saudi Arabia, Iran, UAE among six new entrants to BRICS

• Move aimed at accelerating group’s push to reshuffle ‘outdated’ world order
• Entry of oil powers highlights their drift away from US

JOHANNESBURG: The BRICS bloc of developing nations agreed on Thursday to admit Saudi Arabia, Iran, Ethiopia, Egypt, Argentina and the United Arab Emirates in a move aimed at accelerating its push to reshuffle a world order it sees as outdated.

The group’s leaders left the door open to future enlargement, potentially paving the way for the admission of dozens more countries motivated by a desire to level a global playing field they consider rigged against them.

The expansion adds economic heft to BRICS, whose current members are China, the world’s second largest economy, as well as Brazil, Russia, India and South Africa. It could also amplify its declared ambition to become a champion of the Global South.

But long-standing tensions could linger between members who want to forge the grouping into a counterweight to the West — notably China and Russia — and those that continue to nurture close ties to the United States and Europe.

Saudi Arabia, Iran, UAE among six new entrants to BRICS

Group's leaders leave door open to future enlargement; expansion adds economic heft to BRICS.

www.dawn.com

 

[Hassan A]

Interesting to see the new entrants. This reshuffling definitely hints at a changing world order. This could reshape global dynamics in a big way.

 

[Devadwal]

India will not use Chinese currency so chance are very slim

 

[Hassan A]

In terms of combined GDP, BRICS Nations now account for 32.1% of global GDP of this year while G7's is 29.9%.
Plus the new additions, Saudia has a trillion dollar economy, and adding Ethiopia means soon BRICS will represent 50% of the world's population. So while choice of currency is still an interesting question, however key numbers would be in terms of BRICS combined share of Global GDP, Population, Oil Production and Exports.

 

[Cricket Warrior]

Pakistan has not made formal request to join BRICS: FO

Foreign Office Spokesperson Mumtaz Zahra Baloch says Pakistan will examine developments and make determination about future engagement with the group

Pakistan has said that it has not made any formal request to join BRICS group of nations, Radio Pakistan reported.

While answering a question about the BRICS summit in Johannesburg, Foreign Office Spokesperson Mumtaz Zahra Baloch said Pakistan will examine the latest developments and make a determination about its future engagement with the group.

The statement comes a day after BRICS - Brazil, Russia, India, China and South Africa - decided to invite six countries - Argentina, Egypt, Iran, Ethiopia, Saudi Arabia and the United Arab Emirates - to become new members of the bloc.

More than 40 countries have expressed interest in joining BRICS, say South African officials, and 22 have formally asked to be admitted.



Brecorder

 

[Champ_Pal]

BRICS currency will not work. Too many divisions between China and India. Brazil is broke. South Africa would be lucky if they can keep their lights on. They are pretty much a failed nation. Russia cannot even defeat friggin Ukraine. Russia is not a super power. Their economic clout is not going to scare NATO nations.
However, with this enemity, both BRICS nations as well as west will suffer. This is silly on their part to have their own currency to undermine Dollar and replace it as the world trading currency.

China is struggling. Their economy is going down the drain. Too much unemployment and their biggest industry which is the real estate is struggling mightily. India will be wise to not invest too much of their time and efforts into this failure of a plan.

 

[Chief Destroyer]

There is no BRICS currency in sight rather a trading system for settlements between the countries which excludes western currency.

 

[Technics 1210]

There is no BRICS currency in sight rather a trading system for settlements between the countries which excludes western currency.

Which is good enough to move away from SWIFT.

 

[Hassan A]

 

[captain.hansolo]

In terms of combined GDP, BRICS Nations now account for 32.1% of global GDP of this year while G7's is 29.9%.
Plus the new additions, Saudia has a trillion dollar economy, and adding Ethiopia means soon BRICS will represent 50% of the world's population. So while choice of currency is still an interesting question, however key numbers would be in terms of BRICS combined share of Global GDP, Population, Oil Production and Exports.

Math is not your friend mate. The global GDP is a little over $100T. Saudi Arabia and Ethiopia combined are under $1T. Adding these two to BRICS will mean that its share increases from 32 to 33, assuming that the 32 is accurate.

Unless you have a Japan or Germany or Canada join BRICS, there is no shift in global economic power.

With china is decline and now two whole years of very anemic growth, expect India to align themselves with the west European economies and of course United States. When or if ever, Russia’s little oil loophole through India comes to an end, expect Russian economy to be comparable to Bangladesh.

 

[captain.hansolo]

View attachment 136050

Haha Argentina, Congo, Algeria, Venezuela… real stable, economic powerhouses there! Lol

The common element here is that these are also the countries with significant debt owed to the Chinese and often the debt is yuan denominated.

This is just an attempt by the Chinese to pump the yuan as a global currency. Considering that the Indian economy is so heavily focused on trade with Western Europe and United States, good luck trying to convince India to adopt anything other than the dollar.

 

[Hassan A]

Haha Argentina, Congo, Algeria, Venezuela… real stable, economic powerhouses there! Lol

The common element here is that these are also the countries with significant debt owed to the Chinese and often the debt is yuan denominated.

This is just an attempt by the Chinese to pump the yuan as a global currency. Considering that the Indian economy is so heavily focused on trade with Western Europe and United States, good luck trying to convince India to adopt anything other than the dollar.

India trades with a bunch of countries, not just the US and Europe. They've got deals with the ASEAN countries, the Middle East, and even China. The global trade scene is pretty mixed up, it's not all about one currency or one partner. Maybe like within BRICS countries they may settle in their own currencies.

 

[rickroll]

Saudi Arabia, Iran, UAE among six new entrants to BRICS

• Move aimed at accelerating group’s push to reshuffle ‘outdated’ world order
• Entry of oil powers highlights their drift away from US

JOHANNESBURG: The BRICS bloc of developing nations agreed on Thursday to admit Saudi Arabia, Iran, Ethiopia, Egypt, Argentina and the United Arab Emirates in a move aimed at accelerating its push to reshuffle a world order it sees as outdated.

The group’s leaders left the door open to future enlargement, potentially paving the way for the admission of dozens more countries motivated by a desire to level a global playing field they consider rigged against them.

The expansion adds economic heft to BRICS, whose current members are China, the world’s second largest economy, as well as Brazil, Russia, India and South Africa. It could also amplify its declared ambition to become a champion of the Global South.

But long-standing tensions could linger between members who want to forge the grouping into a counterweight to the West — notably China and Russia — and those that continue to nurture close ties to the United States and Europe.

Saudi Arabia, Iran, UAE among six new entrants to BRICS

Group's leaders leave door open to future enlargement; expansion adds economic heft to BRICS.

www.dawn.com

Is Pakistan not admitted yet into the BRICS block? Why not?

 

[Technics 1210]

The West is bricking it with BRICS.

An alliance with the power and influence to topple Amreekan dominance.

Love it.

 

[KingKhanWC]

Is Pakistan not admitted yet into the BRICS block? Why not?

Pakistan Generals and government are slaves of USA. You dont defy your masters when in chains.

 

[Chief Destroyer]

Haha Argentina, Congo, Algeria, Venezuela… real stable, economic powerhouses there! Lol

The common element here is that these are also the countries with significant debt owed to the Chinese and often the debt is yuan denominated.

This is just an attempt by the Chinese to pump the yuan as a global currency. Considering that the Indian economy is so heavily focused on trade with Western Europe and United States, good luck trying to convince India to adopt anything other than the dollar.

Lol, this guy desperately wants the British Raj back. Poor little colonized thing.

 

[Hassan A]

The fact that many nations are showing interest in joining BRICS signifies their desire for a more inclusive international platform. These nations are not only looking for an alternative to the West but are seeking a platform that resonates more with their interests. The West's unwillingness to adapt to the new world order is only pushing more countries towards these emerging platforms.

 

[FPresidential]

America then >>>>>>>>>>>>>>>>>>>>>> the rest of the world.

Rest of the world will take decades before they even reach to American standards of military and influence.

This move, lets say, more to do with better negotiation with American influence than anything else.

 

[captain.hansolo]

Lol, this guy desperately wants the British Raj back. Poor little colonized thing.

hey bro you can use ad hominem attacks to hide your weak sauce argument. but we can revisit this thread in 5 years, maybe 10 years, maybe even 15 years. and you will still be wishful.

maybe i should mention that the US did not colonize India, britain did. but keep wiping your backside with whatever little jingoistic nonsense you want to believe. the global currency is dollar denominated, not sterling pound.

finally, if the resident jester (kingkhan) likes your comment, the joke is really on you bro.

 

[captain.hansolo]

The fact that many nations are showing interest in joining BRICS signifies their desire for a more inclusive international platform. These nations are not only looking for an alternative to the West but are seeking a platform that resonates more with their interests. The West's unwillingness to adapt to the new world order is only pushing more countries towards these emerging platforms.

not true. the desire to seek an alternative is to by pass the interest payments that would be dollar denominated as a sovereign currency denominated debt can be easily discharged with just an increase of currency in circulation, whereas a dollar denominated debt is a lot more challenging to discharge.

in fact, if you study US history, a similar attempt to provide an alternative to the us dollar was introduced in the us itself (!!!!) during the civil war to discharge the debt from the war. This was known as the greenback and like modern dollar, it was fiat currency, and thus to discharge the national debt, the government just increased currency in circulation. it made for a quick fix but was eventually discarded when it was exchangeable with the gold bullion denominated continental dollar (equivalent to the modern dollar).

the point is, in very layman terms, it is to the advantage of a country such as argentina that its massive sovereign debt be dischargeable in some new currency that is has greater access to, greater supply of, all in order to save itself the painful route of having to pay the dollar denominated debt using a much more restrictive fiscal policy.

timmy owes tommy a $100 but then timmy is able to pay tommy back in rocks and pebbles. of course timmy will want to promote rocks and pebbles as an 'alternative'.

 

[Chief Destroyer]

hey bro you can use ad hominem attacks to hide your weak sauce argument. but we can revisit this thread in 5 years, maybe 10 years, maybe even 15 years. and you will still be wishful.

maybe i should mention that the US did not colonize India, britain did. but keep wiping your backside with whatever little jingoistic nonsense you want to believe. the global currency is dollar denominated, not sterling pound.

finally, if the resident jester (kingkhan) likes your comment, the joke is really on you bro.

What is my argument? I was just having a laugh at your overly confident misinformed claims.

 

[Gilly]

This is wrong. Western currencies are backed by nothing. US $ is only supreme due to being a petrodollar. Once BRICS currency arrives it will be backed by gold, the US $ will no longer be the worlds reserve currency. BRICS is set to overtake G7 in a few years. See my thread on the Countdown towards the end of the Petrodollar.

Guess which country has the most gold?

America has 480bil in gold, thats twice what China(115bil) and Russia(135bil) have combined.

 

[Technics 1210]

Guess which country has the most gold?

America has 480bil in gold, thats twice what China(115bil) and Russia(135bil) have combined.

No one knows for sure, the fact is USA doesn't allow an audit on its gold, but the general concensus is that Amreeka has far less than what it claims.

The only records available are Gold trades by governments.

 

[Gilly]

No one knows for sure, the fact is USA doesn't allow an audit on its gold, but the general concensus is that Amreeka has far less than what it claims.

The only records available are Gold trades by governments.

I can't find any reference to these claims. The world bank, World gold council, International monetary fund all indicate the same value for America.

 

[Technics 1210]

I can't find any reference to these claims. The world bank, World gold council, International monetary fund all indicate the same value for America.

Then you are not searching hard enough.

U.S. Congressman Seeks Full Audit of America’s Gold Reserves

CHARLOTTE, NC / ACCESSWIRE / May 26, 2021 / America's gold reserves would be audited for the first time in more than 60 years if a measure introduced yesterday by U. Representative Alex Mooney (R-WV) becomes law.

finance.yahoo.com

 

[Gilly]

Then you are not searching hard enough.

U.S. Congressman Seeks Full Audit of America’s Gold Reserves

CHARLOTTE, NC / ACCESSWIRE / May 26, 2021 / America's gold reserves would be audited for the first time in more than 60 years if a measure introduced yesterday by U. Representative Alex Mooney (R-WV) becomes law.

finance.yahoo.com

Thats over two 1/2 years old, anything more recent or substantial?.

 

[Technics 1210]

Thats over two 1/2 years old, anything more recent or substantial?.

It is clear the audit was not granted, and funny you focused on the article being 2.5 years old, but not the 60 years since there was an audit.

Search Google, there is plenty of evidence, better yet find me an article that says an audit was conducted in the last 62.5 years. Tip : Search for USA Gold audit.

But, if you want to believe the World Gold Council, IMF, and the World Bank, all conclude Amreeka has a specific amount of Gold without an audit in the past 62 years, then be my guest.

 

[Gilly]

It is clear the audit was not granted, and funny you focused on the article being 2.5 years old, but not the 60 years since there was an audit.

Search Google, there is plenty of evidence, better yet find me an article that says an audit was conducted in the last 62.5 years. Tip : Search for USA Gold audit.

But, if you want to believe the World Gold Council, IMF, and the World Bank, all conclude Amreeka has a specific amount of Gold without an audit in the past 62 years, then be my guest.

Can you name any country that has had an audit in the last 62 years and if they did have an audit was it independent or self auditing.

Until proven otherwise I will continue to lean towards World Gold council, IMF, and the world bank as a more reliable source for gold reserves.

 

[Technics 1210]

Can you name any country that has had an audit in the last 62 years and if they did have an audit was it independent or self auditing.

Until proven otherwise I will continue to lean towards World Gold council, IMF, and the world bank as a more reliable source for gold reserves.

Read my response to your claim, I said no one can be sure, meaning the figures from IMF, WGC etc must be taken with a pinch of salt in the absence of an audit. In simple English, it applies to ALL countries.

You have little understanding here, and your best line of defense is attacking an age of an article which is like saying the Aussies never stole land from the Aboregines, cos that news is is over 100 years old.

What is proven however is you cannot find ONE article, no matter how old, that proves there was an audit.

Happy leaning.

 

[Gilly]

Read my response to your claim, I said no one can be sure, meaning the figures from IMF, WGC etc must be taken with a pinch of salt in the absence of an audit. In simple English, it applies to ALL countries.

You have little understanding here, and your best line of defense is attacking an age of an article which is like saying the Aussies never stole land from the Aboregines, cos that news is is over 100 years old.

What is proven however is you cannot find ONE article, no matter how old, that proves there was an audit.

Happy leaning.

You seem confused, it was England that stole the land from the Aboriginies.

You dont trust the World bank, IMF and WGC when it comes to US gold reserves, Makes no difference to me. I do trust them and have no valid reason to think otherwise.

 

[Technics 1210]

You seem confused, it was England that stole the land from the Aboriginies.

You dont trust the World bank, IMF and WGC when it comes to US gold reserves, Makes no difference to me. I do trust them and have no valid reason to think otherwise.

On one hand you tell others to apply critical thinking when it comes to MSM, then on the other you lean towards organisations by trusting their information without verification.

Absolutely brilliant.

 

[Gilly]

On one hand you tell others to apply critical thinking when it comes to MSM, then on the other you lean towards organisations by trusting their information without verification.

Absolutely brilliant.

The reason for the audit was to facillitate tying the dollar to gold, Alex Mooney is still trying to have the dollar tied to gold.

The US has the largest gold reserves no matter how you chop and change the story.

 

[Technics 1210]

The reason for the audit was to facillitate tying the dollar to gold, Alex Mooney is still trying to have the dollar tied to gold.

The US has the largest gold reserves no matter how you chop and change the story.

More lies.

Gold enables central banks to diversify away from assets like U.S. Treasuries and the dollar. Why would USA buy Gold to move away from the Dollar and their US Bonds? You cannot answer this.

Even the WGC admits most purchases are not reported publicly or privately by central banks. See link below.

Like I said, you have no idea.

And no England didn't steal the land from Aborigines, it was Australians, you can prove me wrong by citing a link from this week.

----------------

Banks including those of Turkey, China, Egypt and Qatar said they bought gold last year. But around two-thirds of the gold bought by central banks last year was not reported publicly, the WGC said.

Central banks bought the most gold on record last year, WGC says

Central banks added a whopping 1,136 tonnes of gold worth some $70 billion to their stockpiles in 2022, by far the most of any year in records going back to 1950, the World Gold Council (WGC) said on Tuesday.

www.reuters.com

 

[Gilly]

More lies.

Gold enables central banks to diversify away from assets like U.S. Treasuries and the dollar. Why would USA buy Gold to move away from the Dollar and their US Bonds? You cannot answer this.

Even the WGC admits most purchases are not reported publicly or privately by central banks. See link below.

Like I said, you have no idea.

And no England didn't steal the land from Aborigines, it was Australians, you can prove me wrong by citing a link from this week.

----------------

Banks including those of Turkey, China, Egypt and Qatar said they bought gold last year. But around two-thirds of the gold bought by central banks last year was not reported publicly, the WGC said.

Central banks bought the most gold on record last year, WGC says

Central banks added a whopping 1,136 tonnes of gold worth some $70 billion to their stockpiles in 2022, by far the most of any year in records going back to 1950, the World Gold Council (WGC) said on Tuesday.

www.reuters.com

You seem to think this is about me, I'm not that important, sorry.

US Congressman Proposes Bill To Reintroduce The Gold Standard​

Bill Implementation​

If H.R. 9157 passes, the Federal Reserve and the US Treasury would have up to 30 months to publicly disclose its gold reserves and all gold transactions. After the audit takes place, the Federal Reserve note would be converted into a gold-backed currency fixed to a certain weight at its market value.
The gold-backed dollar would then become exchangeable and redeemable in gold at a fixed price. Furthermore, the US Treasury would use its gold reserves as a guarantor for each dollar.

 

[Gilly]

And no England didn't steal the land from Aborigines, it was Australians, you can prove me wrong by citing a link from this week.

No I can't prove you wrong, The great Australian explorer Captain James Cook sailed his Australian boat into Sydney Harbor in 1788 and declared that the land belonged to Australia.

What do they teach you in schools in England?.

 

[Technics 1210]

You seem to think this is about me, I'm not that important, sorry.

Why would USA buy Gold to move away from the Dollar and their US Bonds?

Don’t cite a bill that is not law from from 2021 when you refused to accept Congressman Alex Mooney requested an audit of US Gold in 2021.

 

[Technics 1210]

No I can't prove you wrong, The great Australian explorer Captain James Cook sailed his Australian boat into Sydney Harbor in 1788 and declared that the land belonged to Australia.

What do they teach you in schools in England?.

They teach us that Australia is ashamed of their history to the point they will rewrite it.

 

[rickroll]

No I can't prove you wrong, The great Australian explorer Captain James Cook sailed his Australian boat into Sydney Harbor in 1788 and declared that the land belonged to Australia.

What do they teach you in schools in England?.

Didn't you know? Apparently they teach in some British schools that America is spelled "Amreeka" ... 'nuff said!

 

[WicketLord]

I think it will take time as infrastructure is being set up. BRICS currency whether it becomes the reserve currency or not don't know.

it does have very good chances because it won't be used to abuse others and will be based on solid basis like gold, energy, metals etc

 

[captain.hansolo]

No one knows for sure, the fact is USA doesn't allow an audit on its gold, but the general concensus is that Amreeka has far less than what it claims.

The only records available are Gold trades by governments.

Good luck with your gold backed currency. I prefer my currency fiat, fungible, and centrally regulated.

 

[FearlessRoar]

Saudi Arabia and Russia, the two nations leading OPEC+ oil cuts, boosted their crude exports last month, offering solace to a global market where supply is getting increasingly tight.

The two lifted their combined crude exports by about 1 million barrels a day in September. Their collective flows remained well down on where they were as recently as July. The final number for September could be lower if some of the oil ends up going to refineries on the country’s west coast.

The increase in Saudi shipments from a 30-month low was expected despite an ongoing pledge to curb flows through the end of the year. Middle Eastern producers generally burn through their own crude in the summer months as domestic power demand rises for air conditioning. That can limit the amount available for export.

Flows from Russia’s key Baltic and Black Sea ports were up by about 325,000 barrels a day. They slipped from its terminals in the Arctic and Pacific.

Russian oil is currently trading at closer to $100 a barrel than a Group of Seven-imposed cap of $60 a barrel. US Treasury Secretary Janet Yellen said on Friday that the cap may be losing its sting.

Saudi officials didn’t immediately comment on the export figures.

The kingdom’s shipments to China, its top buyer, hit a five-month high. For Russia’s western exports, India was the main buyer, while its Arctic and Pacific flows are mostly en route to China.

Source: Bloomberg

 

[Cricket Warrior]

Pakistan eyes BRICS membership, seeks assistance from Russia

Pakistan is actively pursuing membership in the BRICS economic alliance and aims to join the group in the coming year, according to Muhammad Khalid Jamali, the country's newly appointed Ambassador to Russia.

In an interview with TASS news agency on Wednesday, Ambassador Jamali mentioned that Pakistan has already applied for membership and is seeking Russia's assistance in the admission process, especially since Russia will assume the chairmanship of BRICS in 2024.

"Pakistan would like to be part of this important organisation, and we are in the process of contacting member countries in general and the Russian Federation in particular for extending support to Pakistan’s membership," stated Ambassador Jamali.

In September, Caretaker Foreign Minister Jalil Abbas Jilani briefed the Senate Standing Committee on Foreign Relations about Pakistan's efforts to gain full BRICS membership. He highlighted that joining BRICS aligns with Pakistan's objectives of restructuring the international financial structure and reducing dependence on the dollar. The foreign ministry has initiated consultations with relevant stakeholders as part of this exploration, he added.

Pakistan eyes BRICS membership, seeks assistance from Russia | The Express Tribune

Islamabad expects to be accepted next year during Russia’s chairmanship, says ambassador to Moscow

tribune.com.pk

 

[Champ_Pal]

Entire Brics is broke.

Brazil and Russia are practically broke.
Chinese economy is struggling massively.
India and China alliance will never work. They will never work together. Just trade is okay.
South Africa is a joke.
China convinced Saudis to join Brics. Not wise from Saudis to ditch US.

 

[BouncerGuy]

The U.S. dollar remains the dominant reserve currency globally, but its status has seen gradual erosion over the past two decades. However, it’s still unlikely to be challenged soon by any other currency.

 

[Hassan A]

The U.S. dollar remains the dominant reserve currency globally, but its status has seen gradual erosion over the past two decades. However, it’s still unlikely to be challenged soon by any other currency.

True, the military, technological and financial capabilities at present does not indicate US is going to lose its status any time soon.

 

[The Bald Eagle]

How BRICS Doubled in Size​

What was the impetus for expansion?
The push was largely driven by China, which has sought to increase its global clout, and had the backing of Russia and South Africa. India was concerned a bigger BRICS would transform the group into a mouthpiece for China, while Brazil was worried about alienating the West.

3. What does a larger BRICS mean for the world?
Expansion is “more about politics and less about economics,” according to analysts at Bloomberg Economics. Adding major fossil-fuel producers may give the bloc more scope to challenge the dollar’s dominance in oil and gas trading by switching to other currencies, a concept referred to dedollarization. More generally, the enlarged alliance may become a stronger counterweight to the so-called Group of Seven — Canada, France, Germany, Italy, Japan, the UK and the US. Other groupings that are already promoting a move toward a more “multipolar” world — and away from the post-Cold War dominance of the US — include OPEC, the Shanghai Cooperation Organization, the Southern Common Market (Mercosur), and the African Union.

4. What does BRICS do?
The biggest achievements of the group have been financial. The countries agreed to pool $100 billion of foreign-currency reserves, which they can lend to each other during emergencies. That liquidity facility became operational in 2016. They founded the New Development Bank — a World Bank-inspired institution that has approved almost $33 billion of loans — mainly for water, transport and other infrastructure projects — since it began operations in 2015. (South Africa borrowed $1 billion in 2020 to fight the Covid-19 pandemic.) By comparison, the World Bank committed $70.8 billion to partner countries in fiscal 2022.

5. How have trade relations changed?
Trade among the bloc’s first five members surged 56% to $422 billion between 2017 and 2022. Economically, the natural resources and farm products of Brazil and Russia make them natural partners for Chinese demand. India and China have weaker trade connections with each other, partly due to their geopolitical rivalry and an acrimonious border dispute.

6. How did BRICS get started?
“BRIC” was coined in 2001 by economist Jim O’Neill, then at Goldman Sachs Group Inc., to draw attention to strong economic growth rates in Brazil, Russia, India and China. The term was intended as an optimistic scenario for investors amid market pessimism following the terrorist attacks in the US on Sept. 11 that year. The four nations took the concept and ran with it. Their rapid growth at the time meant they had shared interests and challenges, and combining their voices could increase their influence. The first meeting of BRIC foreign ministers was organized by Russia on the sidelines of the United Nations General Assembly in 2006. The group held its first leaders’ summit in 2009. South Africa was invited to join in 2010, adding another continent and the letter “S.”

7. Who’s in charge?
For most of the time BRICS has existed, China’s gross domestic product has been more than twice the size of the four existing members combined. In theory, that should give it the most sway. In practice, India, which recently surpassed China in population, has been a counterweight. BRICS hasn’t formally endorsed China’s big push to build infrastructure abroad, called the Belt and Road Initiative. That’s partly because India objects to such projects in disputed territory held by Pakistan, its neighbor and archrival. The New Development Bank has no dominant shareholder: Beijing agreed to the equal holdings for each member advocated by New Delhi. The bank is headquartered in Shanghai, but has been led by an Indian and two Brazilians, most recently former President Dilma Rousseff.

8. Has Russia’s invasion of Ukraine affected the group?
The other BRICS countries have adopted a broadly neutral stance toward the war, viewing it as more of a regional issue than a global crisis. However, the war changed Russia’s relations with BRICS institutions. The New Development Bank quickly froze Russian projects, and Moscow hasn’t been able to access dollars via the BRICS shared foreign-currency system. Essentially, with US sanctions piling up, other BRICS countries prioritized ongoing access to the dollar-based financial system over helping Russia.

9. Are investors still interested in BRICS?
There’s still intense interest in emerging markets. But BRICS is largely irrelevant as an investment theme today due to geopolitical changes and the members’ different economic trajectories. Except for India, the BRICS have underperformed their emerging-market peers over the last five years, according to Bloomberg Intelligence. US-led sanctions have put Russia off limits for most foreign investors, and some sectors in China — especially technology companies — have also been sanctioned or face potential investment bans. China also is a maturing economy, increasingly separated from other emerging markets and facing a structural slowdown. Brazil’s economy slowed markedly following the end of a global commodity boom about a decade ago. South Africa’s has been subjected to years of rolling power blackouts, because the state utility can’t produce enough electricity to meet demand, as well as logistics snarls. India is still a growth story that investment banks compare with China 10 or 15 years ago, though it’s unclear if it can follow China’s manufacturing-led model.

Source : Bloomberg

 

[BouncerGuy]

BRICS gets boost as Saudi Arabia joins group of emerging nations

South Africa’s foreign minister said Saudi Arabia and four other countries have accepted the invitation to join the BRICS club of nations that was extended during a summit last year.

Minister Naledi Pandor said that Russia, who takes over as chair of the bloc this year from South Africa, has received written interest from 34 countries who want to join. Saudi Arabia, Iran, Egypt, Ethiopia and the United Arab Emirates are now full members, she said.

"Argentina has written to indicate that they will not act on this successful application by the previous administration to become full members of BRICS and we accept their decision,” Pandor told a news briefing in the capital, Pretoria, on Wednesday.

Leaders from Brazil, Russia, India, China and South Africa agreed to enlarge their BRICS group from Jan. 1 at a summit held in Johannesburg in August.

BRICS foreign ministers are developing a so-called BRICS partner country model to accommodate 17 nations who were not accepted as full members, Pandor said.

The bloc is also devising a framework to allow members to use their local currencies for inter-BRICS trade. The minister said that the bloc found the current, predominantly dollar-based international payment system to be "unfair and costly.”
​

SOURCE: https://www.japantimes.co.jp/news/2024/02/01/world/politics/brics-saudi-arabia-joins/

 

[BouncerGuy]

BRICS move meant to position Islamabad alongside strong economies, says Mushahid

Pakistan’s bid to join the BRICS economic bloc marks the country’s significant strategic intent to position itself alongside the world’s burgeoning and influential economies, besides underscoring its aspiration to be an integral player in the ascendant collective of the Global South.

This was stated by Mr Mushahid Hussain Sayed, a former senator and head of Pakistan-China Institute and Pakistan-Africa Institute for Development & Research, at the International BRICS Forum held in Russian far eastern port city of Vladivostok.

The two-day forum was organised by Russia’s ruling ‘United Russia’ Party.

In November of last year, Pakistan officially applied for membership in BRICS, a coalition of emerging economies — Brazil, Russia, India, China, and South Africa. The bloc last year accepted four new members — Egypt, Ethiopia, Iran and the United Arab Emirates — and came to be known as BRICS Plus. Islamabad’s application coincided with BRICS growing recognition as a prominent group representing the Global South.

Pakistan is among the 29 more countries that have applied for membership in BRICS, a group representing nearly half the world’s population and accounting for 30 per cent of the global GDP. Additionally, 50pc of the world’s oil and gas producers are members of this bloc.

Mr Sayed said that an expanded BRICS could significantly shape contemporary international relations in three major ways. First, he envisioned it promoting the democratisation of international relations, fostering dialogue and relationships among states based on equality and the rule of law, as opposed to hierarchical power dynamics.

Second, he suggested that BRICS could lead to the demilitarisation of international relations, countering the current Western-led order, which he characterised as mired in a new Cold War hysteria. This includes militaristic policies like arming Israel, promoting an ‘Asian Nato’, and forming groups like QUAD and AUKUS aimed at containing China and Russia.

Third, Mr Sayed discussed the dedollarisation of the international financial system, highlighting how the US uses the dollar as a political weapon. He pointed out that 68 of the 193 UN member states have already started moving away from the US dollar, with significant shifts like Saudi Arabia ending its 50-year-old agreement with the United States to only trade oil in dollars, now opting for non-dollar currencies.

Through these changes, Mr Sayed saw BRICS potentially reducing US economic influence globally and advancing a more multipolar world order.

Mr Sayed said that that the ’post World War II Western-propped global economic and political order was already unraveling and organisations like BRICS and Shanghai Cooperation Organisation (SCO) would be the pillars of this emerging new global order.

On the need for a new approach to security issues, he welcomed the June 14 initiative of President Putin for a new Eurasian Security paradigm based on indivisible security of nations so that no one country’s security can be at the expense of others.

He also lauded a similar endeavour of President Xi Jinping for a ‘Global Security Initiative’.

DAWN

 

[Bhaijaan]

BRICS about to change the world order.

Nervous times for the US/EU camp

 

[Champ_Pal]

I don't see much future for BRICS.

 

[Red-Indian]

I don't see much future for BRICS.

While there isn't much future for BRICS as an economic or political entity, I could see a new global settlement system emerging as an alternative to SWIFT. What the West has been able to do to Russia using it has scared a bunch of these middle powers (plus China) and this forum includes the right members to do something about setting up an alternative. G20's another option but this one's more clearly economics oriented.

 

[cricketjoshila]

While there isn't much future for BRICS as an economic or political entity, I could see a new global settlement system emerging as an alternative to SWIFT. What the West has been able to do to Russia using it has scared a bunch of these middle powers (plus China) and this forum includes the right members to do something about setting up an alternative. G20's another option but this one's more clearly economics oriented.

A number of countries will use a separate BRICS settlement system in future plus if Saudi Joins(They have been invited haven't joined) a lot of trade can happen in Rubles Yuan INR Rials and Dirhams. Lots of these currency will find usage then.

But there are internal issues that will make it difficult for countries like Pakistan(Will be near impossible for them to join) or Turkey (Difficult) or Vietnam (Difficult) etc to join.

 

[Red-Indian]

A number of countries will use a separate BRICS settlement system in future plus if Saudi Joins(They have been invited haven't joined) a lot of trade can happen in Rubles Yuan INR Rials and Dirhams. Lots of these currency will find usage then.

But there are internal issues that will make it difficult for countries like Pakistan(Will be near impossible for them to join) or Turkey (Difficult) or Vietnam (Difficult) etc to join.

Agreed. It's going to be fiendishly complicated to devise a settlement system without an underlying medium of exchange though. That's where the almighty Dollar is so useful.

Eventually you'll have to allow everyone in. Else it'll be a nonstarter since everyone will be too worried about it's useful as a political weapon.

 

[cricketjoshila]

Agreed. It's going to be fiendishly complicated to devise a settlement system without an underlying medium of exchange though. That's where the almighty Dollar is so useful.

Eventually you'll have to allow everyone in. Else it'll be a nonstarter since everyone will be too worried about it's useful as a political weapon.

If BRICS countries decide to do trade in the original 5 BRICS nation currencies plus Dirhams and Riyals it would solve the exchange issue.

Basically if you are a BRICS member you can use any of the above mentioned currencies to settle transaction with another BRICS nation.

 

[Red-Indian]

If BRICS countries decide to do trade in the original 5 BRICS nation currencies plus Dirhams and Riyals it would solve the exchange issue.

Basically if you are a BRICS member you can use any of the above mentioned currencies to settle transaction with another BRICS nation.

Yeah I'm well aware of the theory. It's one of my responsibilities at my job to keep tabs on it.

In practice though, it's very unlikely unless China concedes a lot. China is 70% of the GDP of the entire BRICS group and has a trade surplus of $200Bn with the rest of the BRICS countries. Unless in agrees to start accepting payment in Roubles, Rupees etc., the whole structure is pointless. Of course, for the Chinese, there's little value in this. What would they do with the Rupees, Roubles etc.?

Experts have been working to dream up a fair system of determining relative value for such deals but in the end it comes down to finding a measure. Proposals are gold, a basket of freely traded currencies or of course, the Dollar.

In the end, unless countries are willing to allow free float of their currency, it's very difficult to trust their own determination of the value. I think a simpler objective would be to just agree that the BRICS countries will continue to use the Dollar as a determinant of value but set up an alternate settlement system. Each country is then free to sign it's own multi-currency settlement deals with partners it trusts.

 

[Cpt. Rishwat]

Yeah I'm well aware of the theory. It's one of my responsibilities at my job to keep tabs on it.

In practice though, it's very unlikely unless China concedes a lot. China is 70% of the GDP of the entire BRICS group and has a trade surplus of $200Bn with the rest of the BRICS countries. Unless in agrees to start accepting payment in Roubles, Rupees etc., the whole structure is pointless. Of course, for the Chinese, there's little value in this. What would they do with the Rupees, Roubles etc.?

Experts have been working to dream up a fair system of determining relative value for such deals but in the end it comes down to finding a measure. Proposals are gold, a basket of freely traded currencies or of course, the Dollar.

In the end, unless countries are willing to allow free float of their currency, it's very difficult to trust their own determination of the value. I think a simpler objective would be to just agree that the BRICS countries will continue to use the Dollar as a determinant of value but set up an alternate settlement system. Each country is then free to sign it's own multi-currency settlement deals with partners it trusts.

Couldn't some form of e-currency be set up to facilitate this?

 

[Red-Indian]

Couldn't some form of e-currency be set up to facilitate this?

Again yes...in theory. In practice, it comes down who gets the authority to regulate the currency, prevent manipulation, lend it to those who need it and (horror of horrors!) issue it if the global economy needs some. It either needs trust among the members to hand over control to a multilateral agency - say a BRICS bank OR a big bully like the US was at the Bretton Woods conference who everyone agrees to hand over control to.

All these fancy Bitcoin type unbacked currency models finance bros keep coming with it are never going to fly with control freak counties like China and Russia.

 

[Bhaijaan]

Sputnik Bharat meme game is too lit

https://twitter.com/x/status/1848673974240047174

 

[Bhaijaan]

BRICS membership

1. Brazil
2. Russia
3. India
4. China
5. South Africa
6. Egypt
7. Ethiopia
8. Iran
9. UAE

Officially invited to join

10. Saudi Arabia

Officially applied for membership

11. Algeria
12. Azerbaijan
13. Bahrain
14. Bangladesh
15. Belarus
16. Bolivia
17. Cuba
18. Kazakhstan
19. Kuwait
20. Malaysia
21. Pakistan
22. Palestine
23. Senegal
24. Thailand
25. Turkey
26. Venezuela
27. Yemen
28. Zimbabwe

 

[Cpt. Rishwat]

Again yes...in theory. In practice, it comes down who gets the authority to regulate the currency, prevent manipulation, lend it to those who need it and (horror of horrors!) issue it if the global economy needs some. It either needs trust among the members to hand over control to a multilateral agency - say a BRICS bank OR a big bully like the US was at the Bretton Woods conference who everyone agrees to hand over control to.

All these fancy Bitcoin type unbacked currency models finance bros keep coming with it are never going to fly with control freak counties like China and Russia.

But it's control freaks like China and Russia who ultimately need an alternative to the dollar based system and world banking which is controlled by their enemies. So either they will have to come up with some creative solutions or make their peace with the USA and give them control instead.

 

[Red-Indian]

But it's control freaks like China and Russia who ultimately need an alternative to the dollar based system and world banking which is controlled by their enemies. So either they will have to come up with some creative solutions or make their peace with the USA and give them control instead.

In the end, I think there's only one solution if China really wants this freedom from the dollar. It's got to do what the US did and underwrite this currency - either the Renminbi itself or provide the backing for a new Global South currency. At this point, India...maybe even Brazil will pull out but that's the price of moving forward.

China alone is double the GDP and has double the forex reserves of the rest of the BRICS combined. They have to step forward to make it work.

China will benefit hugely from it but will also have to give up some control. Since they have such a huge trade surplus, there's no way for the other countries to earn enough renminbi to trade in. They have to be able to borrow from either Chinese Banks or from this new bank backed by China.

Question is whether China has the will to do it

 

[The Bald Eagle]

They will do it as usual just "bidding for their time" ~ Deng Xiaoping philosophy

In the end, I think there's only one solution if China really wants this freedom from the dollar. It's got to do what the US did and underwrite this currency - either the Renminbi itself or provide the backing for a new Global South currency. At this point, India...maybe even Brazil will pull out but that's the price of moving forward.

China alone is double the GDP and has double the forex reserves of the rest of the BRICS combined. They have to step forward to make it work.

China will benefit hugely from it but will also have to give up some control. Since they have such a huge trade surplus, there's no way for the other countries to earn enough renminbi to trade in. They have to be able to borrow from either Chinese Banks or from this new bank backed by China.

Question is whether China has the will to do it

 

[SportsWarrior]

In the end, I think there's only one solution if China really wants this freedom from the dollar. It's got to do what the US did and underwrite this currency - either the Renminbi itself or provide the backing for a new Global South currency. At this point, India...maybe even Brazil will pull out but that's the price of moving forward.

China alone is double the GDP and has double the forex reserves of the rest of the BRICS combined. They have to step forward to make it work.

China will benefit hugely from it but will also have to give up some control. Since they have such a huge trade surplus, there's no way for the other countries to earn enough renminbi to trade in. They have to be able to borrow from either Chinese Banks or from this new bank backed by China.

Question is whether China has the will to do it

unless the consumption in BRICS, especially China increases tremendously uprooting Dollar is not easy. USA'a advantage is they imports and consume goods, increase their quality of life and in exchange export dollars. They have been printing dollars non-stop and appetite for the dollar around the world has not reduced. Infact most of the currencies have lost values against dollar indicating strong demand for dollar.

Only way to change this is China becoming a huge consumer and start exporting their currency to the world. But demographic decline in China means they may never reach the level of consumption of USA. Right now, the median age of China is close to 40 and actually a bit older than US standing at 39. USA population is expected to increase until end of this century and China is expected to halve their population. That is unbelievable reduction in population resulting in loss of consumption. Remember young people consume products more and older people consume services (mostly medical, live in support, etc which are in person) more. So their appetite for goods import will never match that of USA.

Next Option is India. India is like 20% of China and has atleast 25 to 30 years before it can match China in terms of GDP. Although India is young now, even our population growth is under replacement level, meaning we will start to lose population before we get wealthy at the same level as USA or any western country. So basically, we will be at the same level as China in about 20 years.

So uprooting of Dollar is a dream that may not be achieved by BRICS. But what might certainly happen is some kind of an alternative settlement mechanism. After what happened to Russia during war, everyone is wary of getting tangled with American/western dominated settlement system. So expect some progress in this regards

By the way India has already made their stand clear

https://indianexpress.com/article/business/economy/targeting-us-dollar-is-not-indias-economic-policy-but-looking-for-workarounds-jaishankar-9600714/#:~:text=As%20India%20actively%20pushes%20for,part%20of%20India%27s%20economic%20policy.

 

[Red-Indian]

unless the consumption in BRICS, especially China increases tremendously uprooting Dollar is not easy. USA'a advantage is they imports and consume goods, increase their quality of life and in exchange export dollars. They have been printing dollars non-stop and appetite for the dollar around the world has not reduced. Infact most of the currencies have lost values against dollar indicating strong demand for dollar.

Only way to change this is China becoming a huge consumer and start exporting their currency to the world. But demographic decline in China means they may never reach the level of consumption of USA. Right now, the median age of China is close to 40 and actually a bit older than US standing at 39. USA population is expected to increase until end of this century and China is expected to halve their population. That is unbelievable reduction in population resulting in loss of consumption. Remember young people consume products more and older people consume services (mostly medical, live in support, etc which are in person) more. So their appetite for goods import will never match that of USA.

Next Option is India. India is like 20% of China and has atleast 25 to 30 years before it can match China in terms of GDP. Although India is young now, even our population growth is under replacement level, meaning we will start to lose population before we get wealthy at the same level as USA or any western country. So basically, we will be at the same level as China in about 20 years.

So uprooting of Dollar is a dream that may not be achieved by BRICS. But what might certainly happen is some kind of an alternative settlement mechanism. After what happened to Russia during war, everyone is wary of getting tangled with American/western dominated settlement system. So expect some progress in this regards

By the way India has already made their stand clear

https://indianexpress.com/article/business/economy/targeting-us-dollar-is-not-indias-economic-policy-but-looking-for-workarounds-jaishankar-9600714/#:~:text=As%20India%20actively%20pushes%20for,part%20of%20India%27s%20economic%20policy.

Yeah it's pretty clear that despite Russia's fervent wishes, a BRICS currency isn't even a pipedream.

What they should aim for is something more realistic - an alternate settlement system. It'll take atleast 5 years to settle and be properly adopted. But they've got to make a start and China+Russia+maybe Iran will have to fund most of it. India will chip in but we have no urgent need for an alternate settlement system. We're okay with SWIFT but wouldn't mind having an alternate in case we ever fall afoul of the West.

 

[Bhaijaan]

unless the consumption in BRICS, especially China increases tremendously uprooting Dollar is not easy. USA'a advantage is they imports and consume goods, increase their quality of life and in exchange export dollars. They have been printing dollars non-stop and appetite for the dollar around the world has not reduced. Infact most of the currencies have lost values against dollar indicating strong demand for dollar.

Only way to change this is China becoming a huge consumer and start exporting their currency to the world. But demographic decline in China means they may never reach the level of consumption of USA. Right now, the median age of China is close to 40 and actually a bit older than US standing at 39. USA population is expected to increase until end of this century and China is expected to halve their population. That is unbelievable reduction in population resulting in loss of consumption. Remember young people consume products more and older people consume services (mostly medical, live in support, etc which are in person) more. So their appetite for goods import will never match that of USA.

Next Option is India. India is like 20% of China and has atleast 25 to 30 years before it can match China in terms of GDP. Although India is young now, even our population growth is under replacement level, meaning we will start to lose population before we get wealthy at the same level as USA or any western country. So basically, we will be at the same level as China in about 20 years.

So uprooting of Dollar is a dream that may not be achieved by BRICS. But what might certainly happen is some kind of an alternative settlement mechanism. After what happened to Russia during war, everyone is wary of getting tangled with American/western dominated settlement system. So expect some progress in this regards

By the way India has already made their stand clear

https://indianexpress.com/article/business/economy/targeting-us-dollar-is-not-indias-economic-policy-but-looking-for-workarounds-jaishankar-9600714/#:~:text=As%20India%20actively%20pushes%20for,part%20of%20India%27s%20economic%20policy.

You are not thinking out of the box.

Let’s go back a little, I mean almost a century. Why did the US Dollar become a thing in the first place? Wars. World Wars.

How is the US still trying to exert its influence on the world? Wars.

Demand-Supply is one thing but the US actually exerts its influence on the world through foreign interference, direct and through puppet institutions like U.N, IMF, WTO, NATO, SWIFT etc. This is what the BRICS aims to balance out. Unless the current US led global order is not challenged, you cannot bring about any global economic reform ever.

 

[SportsWarrior]

You are not thinking out of the box.

Let’s go back a little, I mean almost a century. Why did the US Dollar become a thing in the first place? Wars. World Wars.

How is the US still trying to exert its influence on the world? Wars.

Demand-Supply is one thing but the US actually exerts its influence on the world through foreign interference, direct and through puppet institutions like U.N, IMF, WTO, NATO, SWIFT etc. This is what the BRICS aims to balance out. Unless the current US led global order is not challenged, you cannot bring about any global economic reform ever.

Yes it does exert its influence and projects its power. There is no country which will come close to doing both as well as USA does. Demographics doesn’t support China doing it. Most countries would be happy living under US hegemony than China’s

 

[Bhaijaan]

Yes it does exert its influence and projects its power. There is no country which will come close to doing both as well as USA does. Demographics doesn’t support China doing it. Most countries would be happy living under US hegemony than China’s

Why would you even want any country ever to be as dominant as the USA?

The whole point of this is that the era of the US solo dominance is over and a multi polar era is about to begin and is almost here. That’s the best for the world.

 

[Bhaijaan]

To be honest, the USA is in a very healthy situation as a country. Despite their sheer size and all their fadde everywhere in the world they’re growing at a remarkable 2.8%. That’s a fantastic achievement for the USA and goes to show how strong their economy is.

The ones that are in trouble are the majority of their G7 lieutenants who for decades have only worsened their relationship with the rest of the world by sucking up to the Americans.

 

[aboveandbeyond]

To be honest, the USA is in a very healthy situation as a country. Despite their sheer size and all their fadde everywhere in the world they’re growing at a remarkable 2.8%. That’s a fantastic achievement for the USA and goes to show how strong their economy is.

The ones that are in trouble are the majority of their G7 lieutenants who for decades have only worsened their relationship with the rest of the world by sucking up to the Americans.

Britain is forecasted to grow fastest out of all the G7 economies.

 

[SportsWarrior]

Why would you even want any country ever to be as dominant as the USA?

The whole point of this is that the era of the US solo dominance is over and a multi polar era is about to begin and is almost here. That’s the best for the world.

we don't want and without that we will never have any other country's currency being as dominant as Dollar. If you just want multi currency world, we already have that to an extent. We have Euro, Yuan both of which are reserve currencies.

 

[SportsWarrior]

Britain is forecasted to grow fastest out of all the G7 economies.

no they are not. Here is the latest forecast by IMF



US will grow more than twice as fast as UK which will grow similar to France.

 

[SportsWarrior]

To be honest, the USA is in a very healthy situation as a country. Despite their sheer size and all their fadde everywhere in the world they’re growing at a remarkable 2.8%. That’s a fantastic achievement for the USA and goes to show how strong their economy is.

The ones that are in trouble are the majority of their G7 lieutenants who for decades have only worsened their relationship with the rest of the world by sucking up to the Americans.

USA has outperformed whole of Europe since 2008 by a wide margin.




Its remarkable that they can grow at the rate at that GDP level. China, which has GDP per capita smaller, which should theoritically allow them to grow faster, is already showing signs of slowing down.. In the meantime, US keeps on growing. None of the G7 members will come any closure apart from may be Canada, which is mostly due to cross border trade with US and increased immigration.

 

[BouncerGuy]

India's balancing act with the West as Brics flexes new muscles

For years, Western critics have dismissed Brics as a relatively inconsequential entity.

But this past week, at its annual summit in Russia, the group triumphantly showcased just how far it has come.

Top leaders from 36 countries, as well as the UN Secretary General, attended the three-day event, and Brics formally welcomed four new members - Egypt, Ethiopia, Iran, and the United Arab Emirates. More membership expansions could soon follow. Brics had previously added only one new member - South Africa in 2010 - since its inception (as the Bric states) in 2006.

There’s a growing buzz around Brics, which has long projected itself as an alternative to Western-led models of global governance. Today, it’s becoming more prominent and influential as it capitalises on growing dissatisfaction with Western policies and financial structures.

Ironically, India - perhaps the most Western-oriented Brics member - is one of the biggest beneficiaries of the group’s evolution and expansion.

India enjoys deep ties with most new Brics members. Egypt is a growing trade and security partner in the Middle East. The UAE (along with Saudi Arabia, which has been offered Brics membership but hasn’t yet formally joined) is one of India’s most important partners overall. India’s relationship with Ethiopia is one of its longest and closest in Africa.

Brics' original members continue to offer important benefits for India too.

Delhi can leverage Brics to signal its continued commitment to close friend Russia, despite Western efforts to isolate it. And working with rival China in Brics helps India in its slow, cautious effort to ease tensions with Beijing, especially on the heels of a border patrolling deal announced by Delhi on the eve of the summit. That announcement likely gave Prime Minister Narendra Modi the necessary diplomatic and political space to meet with Chinese President Xi Jinping on the summit's sidelines.

Additionally, Brics enables India to advance its core foreign policy principle of strategic autonomy, whereby it aims to balance relations with a wide spectrum of geopolitical players, without formally allying with any of them.

Delhi has important partnerships, both bilateral and multilateral, inside and outside the West. In that sense, its presence in an increasingly robust Brics and relations with its members can be balanced with its participation in a revitalised Indo-Pacific Quad and its strong ties with the US and other Western powers.

More broadly, Brics’ priorities are India’s priorities.

The joint statement issued after the recent summit trumpets the same principles and goals that Delhi articulates in its own public messaging and policy documents: engaging with the Global South (a critical outreach target for Delhi), promoting multilateralism and multipolarity, advocating for UN reform (Delhi badly wants a permanent seat on the UN Security Council), and criticising the Western sanctions regime (which impacts Delhi’s trade with Russia and infrastructure projects with Iran).

And yet, all this may appear to pose a problem for India.

With Brics gaining momentum, inducting new members, and attracting global discontents, the group is seemingly poised to begin implementing its longstanding vision - articulated emphatically by Beijing and Moscow - of serving as a counter to the West.

Additionally, Brics' new members include Iran and, possibly further down the road, Belarus and Cuba - suggesting the future possibility of an outright anti-West tilt.

While India aims to balance its ties with the Western and non-Western worlds, it would not want to be part of any arrangement perceived as avowedly anti-West.

However, in reality, such fears are unfounded.

Brics is not an anti-West entity. Aside from Iran, all the new members have close ties with the West. Additionally, the many countries rumoured as possible future members don’t exactly constitute an anti-West bloc; they include Turkey, a Nato member, and Vietnam, a key US trade partner.

And even if Brics were to gain more anti-West members, the grouping would likely struggle to implement the types of initiatives that could pose an actual threat to the West.

The joint statement issued after the recent summit identified a range of plans, including an international payment system that would counter the US dollar and evade Western sanctions.

But here, a longstanding criticism of Brics - that it can’t get meaningful things done - continues to loom large. For one thing, Brics projects meant to reduce reliance on the US dollar likely aren’t viable, because many member states’ economies cannot afford to wean themselves off of it.

Additionally, the original Brics states have often struggled to see eye to eye, and cohesion and consensus will be even more difficult to achieve with an expanded membership.

India may get along well with most Brics members, but many new members don’t get along well with each other.

Iran has issues with both Egypt and the UAE, and Egypt-Ethiopia relations are tense.

One might hope that the recent easing of tensions between China and India could bode well for Brics.

But let’s be clear: despite their recent border accord, India’s ties with China remain highly strained.

An ongoing broader border dispute, intensifying bilateral competition across South Asia and in the Indian Ocean region, and China’s close alliance with Pakistan rule out the possibility of a détente anytime soon.

Brics today offers the best of all worlds for Delhi. It enables India to work with some of its closest friends in an expanding organisation that espouses principles close to India’s heart, from multilateralism to embracing the Global South.

It affords India the opportunity to stake out more balance in its relations with the West and non-Western states, in an era when Delhi’s relations with the US and its Western allies (with the notable exception of Canada) have charted new heights.

At the same time, Brics' continuing struggles to achieve more internal cohesion and to get more done on a concrete level ensure that the group is unlikely to pose a major threat to the West, much less to become an anti-West behemoth - neither of which India would want.

The most likely outcome to emerge from the recent summit, as suggested by the joint statement, is a Brics commitment to partner on a series of noncontroversial, low-hanging-fruit initiatives focused on climate change, higher education, public health, and science and technology, among others.

Such cooperation would entail member states working with each other, and not against the West - an ideal arrangement for India.

These collaborations in decidedly safe spaces would also demonstrate that an ascendant Brics need not make the West uncomfortable. And that would offer some useful reassurance after the group’s well-attended summit in Russia likely attracted some nervous attention in Western capitals.

BBC