Topic: The disappointing outcome of BRICS 2024 - page 4. (Read 1420 times)

That could be true, but there's no way to fix that. Since most countries have their own currencies they'd have to agree to give it up and allow someone to print new money for them.
Imagine that you're a leader of a strong country and someone wants you to dump hundreds of years of history where you had your own currency and accept something that some other poorer countries will also be able to use.

BRICS could work if there was no war in Ukraine and Russia wasn't sanctioned. If it encouraged other leaders to join them, slowly trying to create Asian monetary union, stronger than the Euro zone... Now they look more like a union of outcasts, mainly thanks to Russia.

I recommend to read this article on Brazilian + Chinese negotiations.
Reason being it shows why so many countries distrust the US.
A smart move would have been to double the investment China puts into latín America.

But rather they used the usual threat:

Ripped from the article:

https://www.bloomberg.com/news/features/2024-11-13/brazil-s-embrace-of-china-for-economic-growth-tests-trump-tariff-plan?srnd=homepage-europe
Without paywall https://archive.ph/BaYIL

Here you write about friendship lifting sanctions against terrorist countries, and then you write about how they will still continue to fight the US and the dollar Do you believe it yourself ?
BRICS needs to get rid of toxic “friends” who not only create problems for the whole world, but also drag down the “BRICS partners”, the reason is banal - Russia, Iran and the like do not need a quality, effective alliance and development. They need terror and intimidation, they need impunity, they need stupid propaganda that will be consumed, they need to threaten everything developed and civilized, driving everyone around them into the Middle Ages, ...and “the whole world at their knees”. So - either the BRICS will use their brains and kick these cancer cells out of the BRICS, or it will just destroy itself.
And many adequate BRICS members have already said - we will not oppose the West, we will not fight the dollar - it makes no sense and it will only hurt everyone!

That is plainly wrong. Its not the $ who is weaponized but the passing it on.
Imagine our world currency is tulips,  If a sanctioned person wishes to pass his 1000 tulips to a person or organization crossing a border the transporting business refuses to act due to sanctions.

That is the very reason Bitcoin was created or used. They could easily be called e-tulips.
Banks refuse some transaction, they accept them then turn around and tell you its not possible but we have to take our fee for handling the matter.
Such as some exchanges try to squeeze their clients.
 
A sanctioned person is not able to do business of any kind with the country issuing the sanction.
Take the latest, Russia sanctioned Kazakhstan, They cannot sell their Tomatoes to Russians.   

BRICS' ambitions to create an alternative payments system of its own, is partly due to rising US sanctions against Russia and its allies. The current administration has weaponized the US Dollar, leading many countries to look for other options. I'm confident this will end during Trump's second-term as President. Especially when Trump has a good relationship with Russia's Putin. He will settle down with world leaders and put an end to wars and the economic uncertainty once and for all.

With sanctions lifted, Russia and its allies will have no reason to move away from the USD. It's likely BRICS will drop its ambitions to create its very own currency powered by Blockchain tech. We'll see. The future is unpredictable, so I'd hope for the best.

I don't quite agree that monopolism is a good idea, as there should be alternatives. But they should be really high quality and promote high quality competition. And of course I agree that 100500 currencies on the world market will only mean more complicated interaction on the world market. And if we talk about the qualitative basis of BRICS, and this is economic interaction within the union, without disturbing the interrelations with the rest of the world - it will also be beneficial! But if the system is built not “for the good” but “to the detriment of someone”, and moreover, giving out as a “good idea” an attempt to solve only their own problems (by the way - absolutely deserved), such a solution will not benefit the participants, moreover, will harm them.

In reality, the world only needs one currency. Every country having their own currency only adds some % to the price of everything. I completely understand their wish of dedollarisation but what I don't understand is that how are they gonna do it? They blame all of their problems to dollar, which is not true. The reason of the low quality of life in BRICS countries is corruption, nepotism and some other problems, which needs a small cultural change and things will go well for them.

At the moment, I genuinely believe that if they even manage to create their own currency, their quality of life won't magically improve. Also, it's not like BRICS countries are gonna live in peace with each-other. Strong always wants to take over weak, so, their currency will be influenced by the strongest member and strongest member will try to get the benefit out of it.

If there are replacements, they can just say that they are doing the best they can. Like many believe, this doesn't have to work in a perfect way and make them all rich, economy all around the world is terrible, not like dollar is doing great, look at how much purchasing power a regular person lost in USA to see how dollar is losing value too, they printed more than 50% of the dollars in existence in the past five years, only reason why they are strong is because they spend a trillion dollars to military every year.

However, if we are talking about why these other nations (brics) is weaker, it is not just because of military power, obviously not, it's because they are not really ruled properly. USA may get some shit from people, but they are ruled properly, even a criminal got elected lol, the "freedom" they talk is real, and I mean very real, you can flip the bird to trump to his face, and nothing will happen. Try that in Russia or China, you will soon "disappear" without anyone knowing what happened to you.

I think there are a number of obstacles to the de-dollarization and BRICS currency ambition, 1 thing is that not all member countries, including India and Brazil, are fully on board with Russia's anti-Western stance, instead, they look to a far wider economic collaboration without directly opposing the dollar. It is also questionable how practical a single BRICS currency can be, considering the different economic goals and systems of its members, which make unified action rather difficult.

Besides that, economic integration within BRICS still remains limited, the internal trade constitutes but a tiny fraction of global trade, the lion's share of which is still performed using the dollar. That reliance on the global payment system represented by SWIFT and dollar based settlements implies that a clean break with the dollar is impossible in the near term. Particularly, attempts at creating an independent economic bloc are complicated by the fact that BRICS members remain deeply linked to the external markets of the US and Europe as a means of not undermining their own growth and stability.

I must commend your constructiveness and disposition in this article, it shows you understand the politics and economics around the BRICS of a thing and how they want to use it against the USD, and Western powers and their allies. But a "house built on a conspiracy will not stand."

Russia will also continue to prove the boss as every new development I see about BRICS is all about Russia. The latest one was the new BRICS Pay, and guess what again? The only version we saw was in Russian Ruppe.

This could be technically viewed as an alliance being forced on others due to political ties and respect for each other, but the real questions are; are they ready? Are they capable? I doubt that because the economic and political "might" of the USA and USD did not just happen today, and has been built on a solid foundation with huge branches across the globe.

Yeah, there is really not going to be something that will based on this at all. Think about this, if there is a BRICS method of moving money, then that would mean that it would only be between BRICS nations.

So what we are talking about here is the only downside would be BRICS nations which uses dollars to money to move money between other BRICS nations. That means, we are going to end up seeing only BRICS to BRICS that was done on Dollar to move to a new method. Does that really considered to be something high? I do not think that they were using all that much dollars anyway, and that is why I do not think that change would be anything all that complicated at all, we are not going to see Dollar be impacted.

In my opinion, in order to create a geopolitical union, there must be some factor that unites all the participants of this union.

What unites the BRICS countries? Geographical location? No. Single economic zone? No. Single currency? Also no.

Most of the countries that joined BRICS do not want to feud with the US and other Western countries, and do not want to give up the dollar as the world reserve currency. At the same time, these countries probably have a need to declare that the current world order is not entirely fair.

After all, almost all world trade is by sea and is controlled by English-speaking countries. That is, in my opinion, we are not talking about creating an effective and viable geopolitical union (too many different and dissimilar countries have joined this union).

Probably, we are talking about some message that developing countries want to convey to developed Western countries (which currently control all trade and financial flows of the world).

So who did he actually impose sanctions on ? Against the citizens of his country, who now will not receive products from Kazakhstan, and what is the most subtle - and Russia has nothing to replace it ! I.e. Putin has simply punished his citizens, he has never cared about them - they are only obedient labor force and expendable material for him ...
And Kazakhstan will find markets outside of Russia and will not return to them again. It's like the EU scare - “we'll be left without gas”. EU almost 90% refused from Russian gas, EU solved its problem by finding alternative suppliers, Russia lost this market forever, and has to either burn gas or sell it to China for pennies )

By the way, China has a strong enough influence on Kazakhstan, that's why Russia squeals when Kazakhstan makes decisions that Russia didn't expect, because it understands perfectly well - China is behind Kazakhstan, and you can't behave aggressively with Kazakhstan, you can “get a slap on the head from the master”

That didn't stop Russia from sanctioning others.

https://www.politico.eu/article/russia-bans-vegetables-from-kazakhstan-after-country-refuses-to-join-brics/

That demonstrates how a homogeneous a country acts in many ways.
It shows that there is little symmetry between ministers and Putin himself

The fact is that they will not be able to replace SWIFT (international payment system). What they will be able to do is a mimish SWIFT “on minimal”, for a small group of countries, for internal mutual settlements, and to a large extent - afraid of sanctions for violations they plan to make:)
But the essence of the key mistake of the “BRICS joy” is that they will be forced to interact with the rest of the world, because the BRICS will not be able to “close themselves in the BRICS shell” - it is absolutely not a self-sufficient union.

This is a result of the weaponization of the US Dollar. The Biden administration is to blame for this. Fortunately, Trump won the presidency again. So BRICS will no longer have a reason to exist. Or at least, it won't have a need to make an international monetary system of its own. Trump is known to be a staunch ally of Putin. I'm certain things will go well between the US and Russia within the next 4 years.

It's likely countries that once rejected the USD because of sanctions, will start using it again. A win-win for both the US and foreign countries. In the worse case scenario, BRICS can use an existing Blockchain network instead of making one from scratch. It could either use Bitcoin, XRP, Ethereum, or any of the many public blockchain networks (cryptocurrencies) we know and love today. Bitcoin seems to be the most likely option due to its store of value properties just like Gold. Some countries outside the bloc already made it legal tender, so adding a BTC reserve should be a no-brainer. If BRICS adopts Bitcoin, it will usher a new era in decentralized economics. It's an uncertain future. Therefore, I'd hope for the best.

BRICS is nothing more than a replacement of SWIFT.
It's hard to imagine that it goes further as Russia would like it.
I wonder how the BRICS nations wish to make a unique currency where the two factor they have in common, lack of their citizens purchase powers plus currencies not internationally accepted.

It seems that the joy of some people regarding the results of the US elections was ill-considered and now BRICS will face difficult times

The first problem is Trump's tough policy on China. China, with its economy in the state it is in now, receiving “gifts from Trump” may be if not fatal, but such that it will set China back for many years, with no prospects for quick fixes.  And this is after a blow from the EU, with their decision to raise duties on Chinese cars. You have to realize that in quantitative terms, the EU buys 40% of the Chinese car industry. In monetary terms, that's almost 60% of the car industry's profits.
But this is only the beginning of the problems. Further we will observe even faster degradation of economy of Chinese raw material appendage - Russia (terrorist country) ! The decline in production in China will definitely reduce the demand for resources that Russia supplies to its master for a penny.... Falling demand for resources means falling incomes and markets inside Russia (terrorist country).

And that's not all - it was Trump who stated that his goal is to reduce the price of oil to 50 dollars.... In a word it will be interesting !

PS At the same time, as part of the fight against terrorism, as Trump promised, all rogue countries and terrorists - Iran North Korea and ... again Russia

I highly recommend studying the financial interaction between russia and China. since 2022, when russia started a new stage of war against Ukraine, and started a large-scale terrorist war against Ukraine, russia has had problems with oil and gas sales. This accounts for half of Russia's total income (selling raw materials, in fact). Most of the oil, the terrorist countries, now actively 2 countries China and India. So find out how is the mutual settlement in rubles, yuan and rupee ? You will be surprised, but India simply blocked all the funds of Russia, for the sold oil, promising to return them later, somehow, in the form of dividends, from ... and China, paying for oil with yuan, simply does not allow to buy anything worthwhile in China for “dirty” yuan (dirty with Russia). It is “Russia's best friend” and “partner” in BRICS  

Let me remind you once again: BRICS is not a union of partners, it is a union of competitors, where the smartest are trying to maximize their profits by destroying some countries without the slightest hesitation. Or do the latest examples tell a different story ?

No sooner had I said that the presence of some countries in the BRICS is just a ploy to get additional benefits from the “suffering” pariah countries than some surprising news appeared:

Russia has started emergency purchases of butter from the UAE.
For those who did not understand the news - I explain.
There is a Vologda region in Russia. It is famous for its butter.
So the UAE is almost half the size of the Vologda region.
In addition, the UAE is a country created entirely in the desert. There is nothing but desert there. There are regular sandstorms there. In the summer, it's +50 in the shade.
And now huge Russia (the largest country by territory, 40% of the world's natural resources, ....) has rushed to buy butter from these tiny desert Emirates.
Boundless Russia. With all its endless flooded meadows and generous fields, with all its centuries-old praised cows, with all the “rich traditions of agriculture”.
Russia just doesn't care about oil. Russia is busy making cannons.
But cannons are good at killing people, but cannons are not good at feeding people.
That's why we need to ask for oil from the Emirates. But at the same time you must continue to shout about the greatness of Russia.

PS And “the cherry on the cake” - do you know for what currency the UAE sells its oil to “the richest Russia”? Yes, you guessed it - for US DOLLARS