BRICS Economies Emerging
While De-Dollarization Gathers Momentum
The BRICS nations are often described as “emerging economies.”
What exactly is an “emerging” economy? Before we delve into this topic further, it is good to mention that we should all know a lot more about BRICS later this month when South Africa hosts leaders from Brazil, Russia, India, China, and several other countries. BRICS was formed in 2009 so the August 2023 BRICS summit will be the 15th annual meeting.
Initial reports are indicating that nearly 70 countries have been invited to attend the August 2023 BRICS summit in Johannesburg, South Africa.
The bloc of five nations will also discuss bilateral trade agreements and focus on using local currencies (rather) than the U.S. dollar for cross-border transactions. BRICS will initiate dialogues to convince developing countries to end reliance on the U.S. dollar for global trade.
So let’s begin this post with a very simple word definition exercise.
Q: What does the word “emerge” mean?
A: Move out of or away from something and come into view….become apparent, important, or prominent….or to become known.
One might say, “The lion emerged from the shadows and came into clear view.”
Q: And what is the opposite of emerging?
A: Disappearing · leaving · vanishing · evaporating · dispersing · submerging · evanescing · receding · disintegrating · waning · going.
One might shout with a baseball announcer’s exuberance as a homerun is leaving the ballpark, “Going, going, gone!”
So when someone or something emerges, is it safe to say that it is taking the place of someone or something else that is disappearing? More directly, is a BRICS currency (digital ruble maybe?) emerging while the US dollar begins to disappear or wane? It appears that Putin and friends are creating gold-backed currency options that the BRICS nations will begin using soon.
Are we witnessing the end of the US dollar altogether….going, going, gone? What would the geopolitical and economic impacts be if the US dollar was completely removed from the global markets?
We shared this post entitled “The End Of The US Dollar” with our subscribers a few months ago. It has been read by hundreds of people so the content apparently resonated with many across the fruited plain.
It appears that a rise and fall is occurring simultaneously….some sort of new BRICS currency is emerging while a slow demise of the US dollar as the world’s default currency is happening simultaneously. But why?
Our team thought that this article did a pretty nice job of articulating the de-dollarization that seems to be gathering momentum.
Q: How many countries make up BRICS again?
A: 5 right? Brazil, Russia, India, China, and South Africa
After further review, there may actually be 8 countries. 3 other countries seem to be BRICS affiliated through treaties. The 3 other countries (or dependent territories) are Hong Kong, Macao, and Taiwan.
So one could correctly state that 8 (5+3) countries are already affiliated with BRICS. And how many more countries are applying to join BRICS this month? It looks like 22 countries have submitted applications so 30 countries (8+22) could be affiliated with BRICS as of August 2023.
22 countries apply for BRICS membership (7/20/23)
In addition, a new BRICS currency could be approved and operational in 30 countries. Take a moment to consider the global impacts this could have when you compare BRICS purchasing power to the G7.
As of 2011, this was the picture that the Visual Capitalist presented showing G7 (33.2%) with the slight upper hand on BRICS (27.6%).
As of 2018, this was the picture as the gap narrowed with the lines crossing in 2020.
And this is the forecast for 2025, showing BRICS taking the upper hand, or better stated, emerging.
Do you get the picture? These charts get worse if there are actually 8 countries in BRICS, as only 5 are shown in the figures above. And these charts get much worse if an additional 22 countries join BRICS. Could BRICS soon account for 50-65% of the world GDP?
The BRICS are considered the chief geopolitical rival to the G7 bloc of leading advanced economies.
Are we witnessing World War III in slow motion? A financial “overthrow” of sorts?
To refresh, what is G7?
The Group of Seven (G7) is an intergovernmental political forum consisting of Canada, France, Germany, Italy, Japan, the United Kingdom and the United States; additionally, the European Union is a "non-enumerated member."
We guess you can say G7+ adding the (+) for whatever the EU is considered these days. We are pretty sure that the European Union is NOT a country, but it is listed as a "non-enumerated member" of G7. We will let you decide what that means exactly.
Your friends at The Fruited Plain would encourage each of you to keep a close eye on the currencies. Take ample notice of which one is “emerging” and which one is slowly waning or even disappearing.
Then ask yourself a few painful questions….why would any currency need to slowly disappear from circulation? Is something far more sinister playing out through BRICS? Is Project Sandman in motion? Or are BRICS nations on an international rescue mission of sorts?
Our team is wondering if Operation Sandman or Project Sandman is a real thing. We can neither confirm or deny this so we archive things like this under the constantly widening category “something to be aware of.”
We do know with certainty that the Federal Reserve printing press was created 110 years ago in 1913 for the US Corporation that was formed in 1871. What do you think would happen if a bunch of countries simply returned their US (Corporation) treasury securities simultaneously? #ReturnToSender
And which countries (and/or British Overseas Territories) are we talking about as holding treasury securities in BILLIONS of dollars as of January 2023?
How many of these are BRICS countries? Here is a link to major foreign holders of US Treasury securities as of April 2023.
And finally, why would a slow, controlled demolition of any currency ever be required?
Our team is guessing that it depends on who committed crimes against humanity (to create this international humanitarian crisis in the first place) and which currency was utilized to carry out these horrific acts. Remind us again…who funded the biolabs in Ukraine? And the Wuhan lab? And are there more bio weapon development labs off-shored in Taiwan?
Stocks sink after historic US credit rating downgrade (8/2/23)
US Treasury yields held steady Wednesday morning (8/2), and Goldman Sachs analysts said they don’t believe there are any significant holders of Treasury securities who will be forced to sell due to a downgrade.
China and Japan are the largest foreign investors in American government debt. Together they own $2 trillion, which is more than a quarter of the $7.6 trillion in US Treasury securities held by foreign countries. There's no evidence they're about to start selling off their holdings.
While the US is fixated on yet another indictment of Donald J. Trump for questioning election outcomes and while Jair Bolsonaro serves his 8-year “time-out” from politics in Brazil for questioning the EVMs there, the world is on the brink of major transformation financially.
