Hey, the big news is that the USA is going to sell F35s to India. To be paid in rupees? Is this an attempt to make Putin and Xi pee in their pants? F35s are expensive and beset with all kinds of problems, which the USA is trying to unload on India. India is still stuck with highly expensive French outdated fighter jets and unable to come up with their own innovation in fighter jet technology. Continuing to buy them from the West is the only way out.
Now we can understand better why India cannot de-dollarize. The USA is not in a position to accept rupees from India for its trade for sure There is a touted US$500 billion trade between India and USA coming up. Who is selling to whom? F35s will cost a big part of the trade deal. India is now selling oil to the EU, having been given a big bonus by Russia to do it. The Indians are going big in oil refining, leveraging on cheap Russian crude over the last couple of years.
If India does pivot towards the USA, what will Russia do to those cheap crude for their refineries? High discounts will no longer be given to India for a start. India thinks it can have its feet straddling two boats and reap benefits from both sides. It is not going to work. The USA is trying to wean India away from buying Russian crude, outside of the US$. Russia does not want rupees for its crude sales to India but is prepared to accept Chinese Yuan. India wants to internationalize the rupee and is against using the Yuan. Thus, the USA is the only recourse for India, but have India thought about at what price they are going to pay and certainly still not in rupees.
Channel News America is making a song and dance about Modi meeting Trump. Little India is excited as well.
Anonymous
4 comments:
India cannot benefit being in BRICS because Indian rupees are shunned by the other members of BRICS, particularly Russia and, of course, China. The Indian rupee has fallen over the cliff lately and who in his right mind would want to keep rupees to trade with India.
De-dollarization means conducting trade outside of the US$, in other country's currency, which India is unable to do so. Otherwise, what is BRICS being created for? India will only be able to deal with trade in US$ and it has to bow to the USA, even if it means being thrown under the bus. India has no leverage dealing with the USA but have to continue to use the US$, a stance that is diametrically opposed to the agenda of BRICS. India is stuck between a rock and a hard place.
Modi thought that being early, uninvited at that, to pay respect to the emperor will give him an advantage and possible exemption over tariffs. He was blindsided, as Trump had already complained earlier that India was the 'Tariff King', which gives him the early opportunity to retaliate.
Many in India are criticizing the slight and shame that Modi failed to gain anything by meeting with Trump and instead got clobbered with reciprocal tariffs and being forced to buy more from the USA to reduce the USA's trade deficit with India. The USA is forcing India to buy weapons like the F35 and other weapons, which if it goes ahead, is going to hold India hostage by being tied to USA expertise needed to service those weapons like the trouble-prone F35 and split the India/Russia alliance that had been forged for decades.
In the face of this, Putin is not going to sit by and watch twiddling his thumb. Energy flow to India is not going to remain cheap as before and India would also be forced to buy highly expensive energy as well from the USA to reduce its deficit. What then will be India's future in BRICS? India leaving BRICS is also one of the items on the USA's playbook to weaken the bloc.
Would India also be buying F35s, paid for them, and parking them in the USA. Can see cannot touch?
India should offer to sell the Taj Mahal for $10 billion. The conditions, the buyer must leave it there and send a team of cleaners to maintain and keep it clean?
Modi told Trump he wanted to take back India's gold parked in Fort Knox.
Trump said no as it would affect American interests and destabilise the financial system. Modi went back without the gold.
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