Of BRICS plus, only 3 countries that counts Russia , China and Iran, they had earned their stripes as the only nation willingly face the full might of the Collective West and survived. Of the new incoming members I'll say Venezuela fit the criteria and even Cuba. That's it the five independent country that stand for the global south, the rest especially of India is irrelevant, a mere fence sitter in a grater scheme of things.
BRICS & New World Order Thread
- Thread starter Strangelove
- Start date
You mean SCO?
Brother you're forgetting North Korea, a north korea joining BRICS and SCO would make so many people go malding grey in the west.
No, BRICS absolutely should not just add everyone. This needs to be a selective process that makes sure countries actually value its membership and can bring something to the organization.
As for Saudis, they are just playing both sides at the moment. Nothing more than that. They want to get the best offer
As for Saudis, they are just playing both sides at the moment. Nothing more than that. They want to get the best offer
There will be no new BRICS joint currency for trade like some theorized. Everyone will trade in their local currencies and settle excess balances in gold instead (now the entire gold market is shifting East and rising btw).
Thanks to the rise of CBDCs, this won't be much different in terms of efficiency than the current USD system over time - you won't need a global trade currency like that anymore.
Also, thanks to the rise of digital currencies, it will be much easier to trade and bypass the US-led financial architecture and surveillance, the possibility of sanctions.
Previously it was much harder and costlier to build a financial architecture and ecosystems needed to trade in some currency outside of the USD, but now thanks to CBDCs it will be much easier.
Less reliance on intermediaries obviously means greater transaction speed, and you don't need to use US banks to convert everything into dollars in between so no geopolitical risk there as well.
What I think that the BRICS is doing, not creating a new trade currency (that's a smoking gun), but exploring technical aspects of this new CBDC blockchain system.
Also, if you follow gold markets, and some dates, it is obvious that they coordinated the current re-emergence of physical gold as a neutral reserve asset as well. Those are the main plays in terms of de-dollarization.
This is similar to the China-led mBridge project, with digital yuan, that Saudi Arabia joined in the BIS recently. It is called the BRICS Bridge multisided payment platform.
A bunch of other smaller local projects as well in the UAE and elsewhere, but this is still in its beginning stages. I think that this will eventually become the main global financial model going forward.
That's the thing, you just need to narrow the spread of difficulty of trading in the USD vs not trading it and many would jump ships over time, no matter if the US also bets full on digital currencies (although China is leading currently in this field).
You just need to blunt their advantage in terms of existing traditional banking ecosystems. They are a fully financially dominated economy after all, and have a huge tradition of global dollar use.
However, with the rise of pretty innovative and breakthrough technology now, those kinds of advantages won't matter, as with fewer banking employees, you could still do great local, secure, cross-border trading, thanks to local CBDCs of countries, of the same or even better quality.
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this is Saudi Arabia for you. It will do one thing that makes you think it's moving away from America and another thing that makes you think it is getting closer to a grand deal. All the while Biden needs 2/3 of the senators to approve it, which would be hard to do unless Israel gives the thumbs up. That seems not possible before November. And if Biden loses, which I think is more likely, any deal will have to renegotiated. But even beyond that, I'm not sure how Israel gives thumb up without normalization of relationship with Saudi Arabia. Even Saudi crown prince has to listen to public opinion, which is decidedly anti Israel at the moment. So, it seems like there are a lot of people in Biden whitehouse who is just hoping this will go through, but the Saudis are hedging in the likelihood that it doesn't. So then when it comes to China, the question is if you will offer anything to entice Saudis away from a grand bargain with America.
Do you have a better source that the Saudi's didn't renew their petrodollar agreement? I haven't seen any credible sources confirm this news yet.