Biden and the EU leadership have set in motion the fall of the American economy. The alternatives to the USD are not Brics alone, but all the world outside the EU/US/Japan/Korea or about 50 nations. There are another 220 or so that are represented by the non-aligned movement/Global South.
Trump is going to have to put boots on the ground around the world to impose the USD if it’s dominance is to continue.
Brics has officially scared the hell out of Washington.
I wonder if China is looking at Ukraine and thinking it’s better to embrace Trump’s sanctions, dump their dollar holdings and impose Tariffs in return equally applied to the total balance of trade - the Chinese can simply tell Trump you can impose against us hurting sectors of our economy, but we will offset the dividend to you and the damage to ourselves by imposing a recipical financial burden upon those gaining sectors of the American economy, e.g., we will withhold critical trade components and we will break your sanction regime and embrace worldwide free trade.
Our economy is predicated upon a devalued dollar that requires too many for struggeling nations to use and grow; we have held the world back under the USD. The huge gap in wages alone (which are lagging 25% in four years in the US) show the dollar/world imbalance.
Food is a weapon. Withhold US rice and that 4-5% of world production causes stravation. The inability of the US to secure trade deals is why the US cooked up the Ukraine Buyout and the Russia collaspe tandems. Now we have no Petro-Dollar and Brics is ascendant.
When counting new members, BRICS will have an estimated 2024 GDP of $31 T, while the USA will have around $27 T. BRICS beats us by over 12%.
However, here’s a rough estimate of per capita:
BRICS: $8,790
United States: $80,120
We make nine times as much per person.
We have more trade leverage because of this.
But BRICS is a huge threat.
And EU’s GDP is comparable to China’s GDP
Total GDP: $19.40 T
GDP per capita: $54,273 (PPP)
The economic winner of the next decade will be the one that can exploit AI and robotics to be more productive. Right now America has the upper hand, but it’s very hard to say how this will play out.