Should We Be Worried About BRICS Expansion?

[What Would Jesus Do?]

Heard a radio ad (I think it was one of the buy gold firms) that said BRICS+ is about to launch a digital global currency that will greatly reduce the value of the dollar (i.e. so you should buy metals from them).

So there. It's scary because an ad said so.

The strength of the dollar was partly built on the concept of the petrodollar. With the addition of SA, Iran and UAE, BRICS now represents a huge chunk of the world's oil reserves.

Many said the main reason (or at least a big reason) we went to war with Iraq was because Iraq stopped selling its oil in dollars.

Years ago I read speculation that if the dollar stopped being the world's reserve currency, the value of the dollar - which is to say the purchasing power of folks like us - would plunge anywhere from 25% to 45%.

Obviously nobody - including foes like China and Iran - wants that to happen overnight. That could plunge the whole world into a depression. But they do want it to happen eventually. Some, like China, because they want to be top dog. Others because they don't want us to rule.

 

[GOHOX69]

The strength of the dollar was partly built on the concept of the petrodollar. With the addition of SA, Iran and UAE, BRICS now represents a huge chunk of the world's oil reserves.

Many said the main reason (or at least a big reason) we went to war with Iraq was because Iraq stopped selling its oil in dollars.

Years ago I read speculation that if the dollar stopped being the world's reserve currency, the value of the dollar - which is to say the purchasing power of folks like us - would plunge anywhere from 25% to 45%.

Obviously nobody - including foes like China and Iran - wants that to happen overnight. That could plunge the whole world into a depression. But they do want it to happen eventually. Some, like China, because they want to be top dog. Others because they don't want us to rule.

Look here's the thing. If they de-dollared, don't you think we have retaliatory measures? The US keeps the world going. Think about it. Where is all the innovation done? Those countries only provide labor and manufacturing. Ultimately, they buy our crap and will continue to do so. If they do that, we just pull out of those shitholes. Who is China and India going to sell to? Broke ass Chinese and Indians? Yeah, right!

We butter their bread. They can do what they want but if they get a little bold, there's always a cold water hose available.

 

[What Would Jesus Do?]

Look here's the thing. If they de-dollared, don't you think we have retaliatory measures? The US keeps the world going. Think about it. Where is all the innovation done? Those countries only provide labor and manufacturing. Ultimately, they buy our crap and will continue to do so. If they do that, we just pull out of those shitholes. Who is China and India going to sell to? Broke ass Chinese and Indians? Yeah, right!

We butter their bread. They can do what they want but if they get a little bold, there's always a cold water hose available.

You make good points but you miss the main driver. The dollar is not just a currency but also a commodity. If nations are required to hold plentiful dollars in reserve as is now the case - then they need to buy those dollars. Which bids up the value of the dollar.

If more and more global trading is done in other currencies, nations won't need to hold as many dollars. The value (the"cost") of the dollar will decline.

Meanwhile, other currencies will ascend in value, because nations - eventually including us - will need to hold other currencies in reserve.

The net change is where those predictions of a 25-45% decline in the value of the dollar come from.

 

[GOHOX69]

You make good points but you miss the main driver. The dollar is not just a currency but also a commodity. If nations are required to hold plentiful dollars in reserve as is now the case - then they need to buy those dollars. Which bids up the value of the dollar.

If more and more global trading is done in other currencies, nations won't need to hold as many dollars. The value (the"cost") of the dollar will decline.

Meanwhile, other currencies will ascend in value, because nations - eventually including us - will need to hold other currencies in reserve.

The net change is where those predictions of a 25-45% decline in the value of the dollar come from.

I understand what you are saying and similar concerns were expressed when the world and the US moved away from the gold standard. Look, that bloc is going to implode. For all its bravado (I know, I am Indian American and visit India), for every rich Indian (my relatives) there are a 1000 who are literally eating garbage. There are 0 safety standards and the legal system is a joke, not to mention corruption and ethnic strife. China is sitting on an implosion. I work in Biotech and everyday I have some Chinese company that is trying to sell us equipment. We simply say no and they cut the price by 50% the very next day. These countries aren't immune to what we face. Do you think even with a so called digital currency, their currency will have any worth given that half of the new members and some of the founding are joke places. They can try to give up the dollar but fat chance.

 

[Hawk_82]

Look here's the thing. If they de-dollared, don't you think we have retaliatory measures? The US keeps the world going. Think about it. Where is all the innovation done? Those countries only provide labor and manufacturing. Ultimately, they buy our crap and will continue to do so. If they do that, we just pull out of those shitholes. Who is China and India going to sell to? Broke ass Chinese and Indians? Yeah, right!

We butter their bread. They can do what they want but if they get a little bold, there's always a cold water hose available.

How well did the sanctions work in Russia? Most advocates thought it would cripple then, in reality, it scared the rest of the world to know that we could sanction them if we choose.

This is the whole point of the brics, to create a currency system outside the dollar, so life can go on like normal when the us sanctions one of them.

 

[GOHOX69]

How well did the sanctions work in Russia? Most advocates thought it would cripple then, in reality, it scared the rest of the world to know that we could sanction them if we choose.

This is the whole point of the brics, to create a currency system outside the dollar, so life can go on like normal when the us sanctions one of them.

They can do what they want. But they will still have to interact with America. Let's see what happens.

 

[Dirt Boy 2]

This is going to end up like the Big Ten-ACC-Pac12 Alliance. Someone is going to get F’d.

 

[Hawkize!!]

The strength of the dollar was partly built on the concept of the petrodollar. With the addition of SA, Iran and UAE, BRICS now represents a huge chunk of the world's oil reserves.

Many said the main reason (or at least a big reason) we went to war with Iraq was because Iraq stopped selling its oil in dollars.

Years ago I read speculation that if the dollar stopped being the world's reserve currency, the value of the dollar - which is to say the purchasing power of folks like us - would plunge anywhere from 25% to 45%.

Obviously nobody - including foes like China and Iran - wants that to happen overnight. That could plunge the whole world into a depression. But they do want it to happen eventually. Some, like China, because they want to be top dog. Others because they don't want us to rule.

They do want it to happen ... as does the US under Biden. We are in controlled descent.

Opinion | Dethrone ‘King Dollar’ (Published 2014)

America can’t afford to maintain the world’s reserve currency.

www.nytimes.com

President Biden Announces Key Members of his Economic Team | The White House

Today, President Biden announced key members of his economic team, including Lael Brainard to serve as Director of the National Economic Council and his intent to nominate Jared Bernstein as Chair of the Council of Economic Advisers. Additionally, the President named Bharat Ramamurti, who...

www.whitehouse.gov

 

[What Would Jesus Do?]

They do want it to happen ... as does the US under Biden. We are in controlled descent.

Opinion | Dethrone ‘King Dollar’ (Published 2014)

America can’t afford to maintain the world’s reserve currency.

www.nytimes.com

President Biden Announces Key Members of his Economic Team | The White House

Today, President Biden announced key members of his economic team, including Lael Brainard to serve as Director of the National Economic Council and his intent to nominate Jared Bernstein as Chair of the Council of Economic Advisers. Additionally, the President named Bharat Ramamurti, who...

www.whitehouse.gov

Certainly suggestive.

And when you think about it, if it's inevitable then better to do it gently, on our own terms, rather than aggressively and driven by our enemies.

 

[Hawkize!!]

Certainly suggestive.

And when you think about it, if it's inevitable then better to do it gently, on our own terms, rather than aggressively and driven by our enemies.

Biden has surrounded himself with key advisors who are advocating for a return of manfacturing back to the US. Jake Sullivan wrote a very influential paper in this regard. None of this is possible as long as the US is the largest exporter of paper money ... a version of the Dutch disease that's been discussed elsewhere.

Nobody, including the US, wants the USD as the world's reserve currency anymore.|

Foreign policy for the middle class: Jake Sullivan outlines a different vision of economic leadership | Milwaukee Independent

www.milwaukeeindependent.com