If you want to see power struggle, just keep an eye on that group. India and China are rivals. They will try to undermine each other’s ability to gain more power.
It’s not even a cohesive group. It was some dude at Goldman Sachs seeing a few countries grow quickly and even then it was more like brIC since Brazil and Russia saw growth only from resource extraction. South Africa decided they wanted to be part of the show despite shit growth and it became BRICS. They don’t do that much trade with each other and now outside of China, their growth is shit. If they want to become more economically integrated, go for it.
As per the deal, 95 per cent of the $260 billion worth of trade will be settled in yuan.
It’s like an economic visual of Putin’s balls in Xi Jinpeng’s grip. The other 5%? A blend of rubles and euros.
In essence, BRICS is trying to make the yuan a world reserve currency. That’s how they’re going to “sanction proof” them selves, by leaning on Chinese economy, and tbh, since a crapton of manufacturing and fabrication already happens in China, it does make a lot of sense.
Perhaps we’ll see the return of cold war era economic policies as a result. You can almost hear the liberals (neo or classical, take your pick - they both suck) begrudgingly press the button marked “Protectionism”.
In any case, welcome to the CwaaS, or “Cold war as a Service”. Smack SWIFT and BRICS together, see what happens.
since a crapton of manufacturing and fabrication already happens in China, it does make a lot of sense.
Western manufacturing and fabrication is already pulling out of China; this action will accelerate that trend. It’s also a poor bet due to China’s slow motion demographic collapse.
Frankly this could be implemented tomorrow and by the end of 2034 it would be dead; torn apart by internal conflict and China’s gradual economic decline.
I feel like this not being the case would be a headline, but the fact of it is, or should be, patently unsurprising
I mean, isn’t De-dollarization the entire point of creating a new currency as an alternative to the US dollar?
I don’t get it. They’re still using all of their local currencies? Why not band together and do a united currency like the Euro or the CFA Franc?
Maybe because they don’t want to be scammed?
In what way is the Euro a scam?
When they implemented it, it was a scam because of round up. Happened across every country in Europe
What are you even talking about?
Sorry if you are American 🫢 (and hate maths apparently)
That’s not an explanation.
Yeah, basically not worth my time sorry. If you want to know, you can search the internet
Because that would fail very quickly. The CFA franc works because France dominated their exports. The euro took a long fucking time to make work and took a lot of planning and market integration. Even then it has some struggles.
brICs has very little market integration. While many of them do a good chunk of trade with China, it’s often not very even. Essentially it would be China dictating monetary policy which also ties itself to US monetary policy via a floating peg. There is also no freedom of movement between most of them. Without that, countries can very easily fall into a liquidity trap and be forced to deflate because of capital flight. As bad as the PIIGS financial crises were, they would have been significantly worse without people being able to move away from the countries.
