BRICS 'wall' mounts resistance to dollar

global china daily ^ | 2023-07-19 | By HENG WEILI in New York

[NorseViking]

BRICS shouldn’t be stable in a sense you assign to the term. Having enough common interests, ending the US dominance is one of them, is enough.

[Tom Tetroxide]

As de-dollarization picks up more and more speed, expect to see increasingly higher and higher inflation while our economy goes into the toilet.

Let’s call it a hyper-stagflationary environment.

[BobL]

“The BRICS alternative currency is not a sure victor over the dollar.”

I tend to agree that countries will hedge their bets, but the BRICS weren’t supposed to haven’t gotten this far, for YEARS, according to our geniuses in DC.

The bottom line will be the same as far as US power is concerned - we try to sanction, say Botswana, they just go full BRICS currency...NO MORE SANCTIONS!!!

[Wallace T.]

The United States, Britain, and NATO may collectively try to provoke a war with either Russia or China to try to thwart the collapse of the dollar. They could be delusional, considering the sorry state of the American and NATO armed forces. They may be betting that the two adversaries are paper tigers. Russian performance against the Ukrainians has been less than stellar. The Chinese have a lot of men and modern equipment, but they are untested. Even in World War I, we had senior officers and NCOs that fought in the late Indian Wars, the Spanish American War, the Philippine Insurrection, and numerous brush fire wars in Latin America and the Caribbean. The Chinese have not fought a major war in 70 years, and failed against the Vietnamese 45 years ago.

[Bobalu]

The killshot would be if they meet in August and agree not to accept the dollar anymore as payment.

A reversal of the agreement where the Saudis agreed to accept only US dollars as payment for oil, inverted to be the Saudis will accept anything BUT the US dollar for payment for oil... people gotta have the oil, so they would have little further use for the dollar...

All those shrinking dollars would start flowing back to US, what a good time it would be :-/

A word to the wise, it’s past time to be moving some assets out of dollars and into something that is real...

[TexasM1A]

South Africa huh. Only the best people are apart of BRICS.

[hinckley buzzard]

The important thing to remember about BRICS is that it is primarily a political development not economic. It is being driven by a reaction against the US weaponizing the dollar to enforce hegemonic adventurism around the world. Biden’s Russia sanctions proved to the world that the U.S. cannot be trusted. The BRICS countries and those interested may look like a motley crew but as they say, politics makes strange bedfellows. Like Saudi and Iran mending fences.

[Bobalu]

good post

[SamAdams76]

Looking at the U.S. dollar, it is still the big box Home Depot/Lowes behemoth compared to the BRICS equivalent of your local Ace Hardware store. Maybe someday the Ace Hardware chain overtakes the Home Depot/Lowes chains but we are years away from that as that gap between them is still so wide.

But this movement towards BRICS and away from the U.S. Dollar should concern everybody. Our corrupt and increasingly dictatorial government is failing not only its citizens but the rest of the world.

I prefer shopping at my local Ace Hardware to Home Depot/Lowes so there's that too.

[beancounter13]

“King Dollar won’t fall overnight.”

The Dollar won’t fall at all until China allows the Yuan to rise. If they do, their economy will crash. So they continue to flood the world with Yuan buying up as many Dollars as they can.

Hence the Dollar will not fall.

It’s simple economics that many people ignore. They would rather scream that the sky is falling!

[FarCenter]

The most practical approach would be a new currency used for trade in goods and services.

Trade transactions are at least an order of magnitude less than financial transactions such as currency swaps, derivatives of various kinds, repos, bonds, stocks, and other paper assets.

There is really no reason for the BRICS to replicate the entire dollar casino in order to do trade without US interference.

[griswold3]

The most practical approach would be a new currency used for trade in goods and services.

^^This makes too much sense ^^

[Georgia Girl 2]

This is the kick off of the new banking system that we will all soon be on. The petro dollar is dead. The Federal Reserve is on death watch. Pretty soon when you pull a dollar out of your pocket its going to say US Treasury note not Federal Reserve note and its going to be backed by gold.

[Repealthe17thAmendment]

It reminds me somewhat of the streaming wars that happened a few years ago. Netflix was the undisputed king, with little competition. But in a few years, seeing the advantages of having their own streaming services, many appeared on the stage, and fractured the industry. Netflix is still the king, but others like Disney, Apple + , and Paramount have made inroads. Content providers have more choices to sell their work.

And so, the US dollar, along with the Euro will remain the prominent currencies, but they will lose some leverage and the competitors will gain some influence. In the long term, I'd expect there to be more volatility in exchange rates, and US foreign policy will lose a tool that had been used too often for the wrong reasons.

This emerging bloc of countries are bound to become active in testing their newfound power, and while it might not hurt America, it will diminish our influence in the world.

[Gunslingr3]

What I want to know is organized crime will not work well with digital economy

Black market was using Bitcoin before you ever heard of Bitcoin.

[RomanSoldier19]

[RomanSoldier19]