INDIA , Russia, Brazil, China, and South Africa may soon consider creating their own currency for BRICS : FM Lavrov

[Hecig]

Exactly, people forget how powerful US alliance is, from east to west, north to south, most countries have deep tactical/geopolitical alliance with the USA. US just needs to empower countries to fight their battles, this is why US hegemony has been unbroken since last 7-8 decades.

US alliance ensures dominance of the USD and then US uses the same USD to provide "Aid" and "security" to these Allies. Which would not be possible unless these allies supported the USD.

Its a cozy setup with all controls in US hands.

The sheer brilliance of this system is its simplicity.

Which is why the US needs an unstable world. In a stable world order, NO ONE needs US "security"

Its like the Pakistan Army keeping pakistan "safe" while sucking it dry and keeping its population hostage.

 

[Burnol_Wala]

Chinese GDP is greater than combined GDP of the rest of the countries in BRICS.

I don't understand why did China even include these useless countries.

China's right place is in G2 not BRICS.

yes china should form an alliance with Pakistan, as both have such a booming and thriving economy. ^_^

 

[Hecig]

What will such a currency accomplish?

If the purpose is to take a shot at the US$ it is sadly inadequate. US economy resources and innovation ate leagues ahead of the BRICS put together.

Further, China has peaked and beginning downward trajectory; Russia has fast become a pariah state and struggling, Brazil is unstable and India though in a good trajectory is just too slow to make a near term difference. S.Africa is too little to make a difference.

If USA is able to hold its economy so well in spite of a decade of dysfunctional govt, social decay and military misadventures , imagine how far ahead they are ! If they manage to get a half decent leader .....

That currency would free the trading nations from US blackmail to a large extend.

That would mean greater FREEDOM in global trade and Global Economies and That would mean a BETTER living standards for all those nations.

 

[etylo]

I believe it is about making new currency to allow trade flows better and become the challenger of USD. The new currency can also be used by countries to buy Russian/Iranian fuels. All countries dont have to give up their own currency. With the sanction of Russian oil, the currency popularity can be really growing.

It serves Russian interest and it serves China interest as well as they need to convert many of their USD reserves to currency/asset that is saver. China has bought lot of Gold last year for example

If they are going to create a BRICS currency to supplement those currencies of the BRICS countries but not to replace them for the ease and benefits of flow of trades between these BRICS countries and other blocks, then it makes sense and realistic.

 

[etylo]

This is why china is short sighted while US takes a Long view of things.

US alliance ensures the dominance of the US currency. The global "rules based order" we keep hearing about is the product of the Brentton woods Agreement. Global institutions like the World Bank and IMF were created from this agreement.

British economist John Maynard Keynes and American Chief International Economist of the U.S. Treasury Department Harry Dexter White wanted to establish a powerful global central bank to be called the Clearing Union and issue a new international reserve currency called the bancor. While White’s plan envisioned a more modest lending fund and a greater role for the U.S. dollar, rather than the creation of a new currency.

Bretton Woods System included 44 countries and as per the agreement U.S. dollar to be pegged to the value of gold and all other currencies in the system were then pegged to the U.S. dollar’s value.

Purpose of the IMF was to monitor exchange rates and identify nations that needed global monetary support. The World Bank, (International Bank for Reconstruction and Development) was established to manage funds available for countries devastated by World War II.

After the Brenton Woods collapsed, US pegged the Dollar to Oil and Petro-Dollar became the global currency to funnel Saudi petrodollars into U.S. Treasuries.

This gave birth to "Credit Card" that fueled US internal consumption and drove its economy.

It is this alliance that still prop up the USD and in exchange US promises to keep them Safe. In pretty much the same way the East India Company promised the smaller kingdoms of India Safety if they enter into an "alliance" with them.

Its just Indian History repeating itself on a global scale. Not by accident since this was what the British taught the US.

What about India ? It considers China a sworn enemy yet it wants to be the biggest beneficary borrower of AIIB, how far sighted and reasonable is your foreign policy ?

 

[beijingwalker]

US alliance ensures dominance of the USD and then US uses the same USD to provide "Aid" and "security" to these Allies. Which would not be possible unless these allies supported the USD.

Its a cozy setup with all controls in US hands.

The sheer brilliance of this system is its simplicity.

Which is why the US needs an unstable world. In a stable world order, NO ONE needs US "security"

Its like the Pakistan Army keeping pakistan "safe" while sucking it dry and keeping its population hostage.

Every thing has two sides, actually US dollar domiance is the root cause of today's US decline, this system hollows out US , made US products very uncompetitive and business all have to outsource and the country is forever hooked to importing, defict and borrowing, it's a big bubble constantly building up. The same bubble killed the Britain and now US is repeating it.

 

[Hecig]

What about India ? It considers China a sworn enemy yet it wants to be the biggest beneficary borrower of AIIB, how far sighted and reasonable is your foreign policy ?

Our Foreign policy is pragmatic.

If China acts like an enemy it will be seen as one. Its as simple as that.

If it doesn't, it won't be seen as an enemy. Its not rocket science.

 

[beijingwalker]

Further, China has peaked and beginning downward trajectory;

One month covid outbreak means downward trajectory? lol.. your Indian trajectory is so tiny.

Our Foreign policy is pragmatic.

If China acts like an enemy it will be seen as one. Its as simple as that.

If it doesn't, it won't be seen as an enemy. Its not rocket science.

Same as how China sees India.

 

[Hecig]

Every thing has two sides, actually US dollar domiance is the root cause of today's US decline, this system hollows out US , made US products very uncompetitive and business all have to outsource and the country is forever hooked to importing, defict and borrowing, it's a big bubble constantly building up. The same bubble killed the Britain and now US is repeating it.

True, but US can sustain the bubble till the feel the need to ease out of it. That would be their long term plan anyway. Its not as if they are totally oblivious to the future.

US don't need products, it can print as many paper currency as it wants as long as the World needs Oil.

Britain's economy was just a front for the "common wealth" economy. It had no real legs to stand on. US has Nukes and IMF and World Bank and SWIFT and Oil.

Same as how China sees India.

Nope, that is not how china sees India.

China's world view is that of itself as the "middle kingdom". As the center of the world. Same as US.

 

[etylo]

Our Foreign policy is pragmatic.

If China acts like an enemy it will be seen as one. Its as simple as that.

If it doesn't, it won't be seen as an enemy. Its not rocket science.

It should be the other way around, India is acting as an enemy to China all the time now on behalf of US, China will respond in kind is the logical outcome.

Our Foreign policy is pragmatic.

If China acts like an enemy it will be seen as one. Its as simple as that.

If it doesn't, it won't be seen as an enemy. Its not rocket science.

It is like the other way around, India acts as an enemy to China all the time on behalf of US, and China will respond in kind is the only possible outcome.

 

[beijingwalker]

True, but US can sustain the bubble till the feel the need to ease out of it. That would be their long term plan anyway. Its not as if they are totally oblivious to the future.

US don't need products, it can print as many paper currency as it wants as long as the World needs Oil.

Britain's economy was just a front for the "common wealth" economy. It had no real legs to stand on. US has Nukes and IMF and World Bank and SWIFT and Oil.

It's very unhealthy developmet and a disaster waiting to happen, no one can go on printing money forever, China never wants to take this path.

 

[etylo]

True, but US can sustain the bubble till the feel the need to ease out of it. That would be their long term plan anyway. Its not as if they are totally oblivious to the future.

US don't need products, it can print as many paper currency as it wants as long as the World needs Oil.

Britain's economy was just a front for the "common wealth" economy. It had no real legs to stand on. US has Nukes and IMF and World Bank and SWIFT and Oil.



Nope, that is now how china sees India.

China's world view is that of itself as the "middle kingdom". As the center of the world. Same as US.

Talking nonsense, you are talking of ancient or past dynastic China that really concerned only pretends to its own world. China is in the 21 century now and no way China takes the world view you describe. I have no doubt that the US does think its the centre of universe now and forever.

 

[Hecig]

It is like the other way around, India acts as an enemy to China all the time on behalf of US, and China will respond in kind is the only possible outcome.

lol. do your best.

It's very unhealthy developmet and a disaster waiting to happen, no one can go on printing money forever, China never wants to take this path.

True again. But that is the inevitable path of such action. It was never a long term solution, just the best path back then or till the world needed Oil.

As time changes, systems change too. Some smoothly, others violently.

The Birth of a global currency is inevitable, it only remains to be seen WHO will take the initiative THIS TIME and become the custodians by default.

 

[jhungary]

This is not going to work.

If you create a common currency between all 5, you either adopting the same common currency (like EU and Euro) or you have to be able to freely change into that currency from your local currency like a token.

Would China want to bend that far backward to accommodate the other 4? Which have less than half the economic productivities than China? So do you supposed China just going to ignore their own advantage and go equal between BRICS on its currency??

Or how about each BRICS country hold their own currency and convert that to token? Then how does it work when Yuan and Rouble are the most regulated currencies on earth?

It won't work either way, you may as well ask BRICS to adopt Yuan as Official currency, but then what happened to USD will happen to RMB in a smaller scale, it will devalue RMB.

 

[GiantPanda]

The BRICS currency reserve will just be the acceptance of the Yuan for trade.