De-dollarization is progressing much faster than
expected and is good news for BRICS but distressing to know for the USA
and the West. Venezuela, as expected is joining BRICS. Venezuela is
reported to have the biggest oil reserves in the world. Trump wanted to
seize those reserves during his first term and the USA is eyeing that as
well today.
With that, BRICS would be controlling global oil
with Saudi Arabia, UAE, Russia, Iran and Venezuela put together. They
would then be pricing oil outside the US$ for sure when the time comes.
That will be a major nail in the coffin of the US$ hegemony.
What
about other resources that BRICS countries are playing major roles?
Brazil, Argentina, Russia are big players in grain production. If trade
is carried out under BRICS, the US$ is also out of the equation and
diminishing in demand.
What about metals? Those are essential and
major commodities that are found in vast quantities in South America,
Africa and Central Asia, with large concessions under the control of
China or joint venture with China. Not only that, but China is also
controlling the processing of most metals needed by the world.
Sure,
it is time to play catch up for the USA and Europe, but the time factor
is too big a gap for them to draw level fast enough. Processing
logistics, supply chains and manufacturing setups are easy to talk about
and dream of, but not so easy to bring about to fruition.
Anonymous
1 comment:
BRICS is not cheering for Biden or Trump winning in November. To them, it is an election of minor importance, unlike in the past. The policies will be the same under the lame 'walking dead' Biden or the con-man Trump.
Both are immune to shame trying to tell the world their achievements. Trump's boasts had been laughed at by UN members, but he felt no shame. Does a conman feel shame cheating others? Certainly not! What have they really achieved besides bringing more misery to the world with trade wars, sanctions, wars and threats.
The irony is that both are hurting their own citizens with their trade wars and sanctions, rather than hurting the other party. Raising tariffs is not going to kill Chinese exports overall. China can easily migrate its products to the Global South, continue selling them at prices outside the tariffs.
USA citizens will have to pay more for their purchases of Chinese goods, with the tariffs piled on top. Raising tariffs to 1,000% is still going to hurt their consumers much more than hurting China. Sure, Chinese exports to USA will fall due to lower demand in that market, but never forget the Global South market is much bigger than the USA and Europe combined. Unless China had no other outlets to sell their products, keeping Chinese products out of the USA is no magic cure that is going to backfire badly.
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