Iran accepted into BRICS

[khansaheeb]

Well come Iran. Suswagatam.

Hasn't India been kicked out yet?

 

[khansaheeb]

The new BRICS alliance is a mortal threat to the West

This week it was announced that Iran and Argentina had applied to join the BRICS. The BRICS — which until recently has been made up of Brazil, Russia, India, China, and South Africa — is a forum that allows countries outside of Western developed economies to forge alliances on economic issues...

unherd.com

The new BRICS alliance is a mortal threat to the West​

A new global reserve currency will undermine US dollar supremacy​

The new squad. Credit: Getty
This week it was announced that Iran and Argentina had applied to join the BRICS. The BRICS — which until recently has been made up of Brazil, Russia, India, China, and South Africa — is a forum that allows countries outside of Western developed economies to forge alliances on economic issues. As it gets larger, its influence and economic importance grows.

Last week at one of the BRICS forums President Putin announced that Russia, alongside China and other BRICS nations, was getting ready to launch a new global reserve currency made up of a basket of BRICS currencies. If successful, such a reserve currency would be a direct threat to the currently dominant US dollar.

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It is difficult not to read the two stories as part of the same general arc. Iran and Argentina are jumping on the bandwagon because they sense an opportunity to build an alternative alliance to Western-led globalisation. Meanwhile, the other BRICS members are inviting them on board because they smell blood because they see large economic weaknesses being exposed by the quick collapse of the Western sanctions against Russia.


Could a new trade bloc with its own reserve currency be a threat to the West and to US dollar dominance? Almost certainly. In their current form the BRICS make up around 31.5% of world GDP when adjusted on a purchasing power parity basis. With Iran and Argentina added, this rises to 33% of world GDP. This is a huge potential trade bloc, and 33% of global GDP is certainly enough to justify a reserve currency.

But beyond this, the potential for synergies between the countries is enormous. Taken together, the expanded BRICS countries currently produce around 26% of global oil output and 50% of iron ore production used to make steel. They produce around 40% of global corn production and 46% of global wheat production. If these were all traded in the new reserve currency, it would instantly become a cornerstone of the world economy.

Meanwhile, the US dollar is already sagging. At the beginning of June, the IMF released a report showing that the US dollar today makes up 59% of global reserves — a far cry from the 70% it made up in 1999. The report noted that central bank reserve managers were actively shifting their portfolios away from dollars and into non-traditional currencies.

Now imagine what that would look that if the BRICS launched its reserve currency — let’s call it the ‘BRIC’. Assume that the BRIC was held as a reserve roughly in line with the bloc’s importance in terms of global GDP and that it took a bite out of all other reserve holdings equally. The impact would look something like the chart below. As we can see, even this simple exercise shows that the BRIC would easily hold its own against the US dollar.

The changes that are taking place in the global economy are certainly the biggest that have been seen since 1945. Yet there is very little discussion of it in the press or in political circles. Are Western leaders planning for this? Do they have a strategy for this brave new world? We should hope so, as these upheavals could drastically impact Western living standards and our place in the world.

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[925boy]

The entire reason why the Rouble is so high is due to Russia literally not being able to spend it pretty much anywhere.

but thats also false, bacause foreign countries such as China and India already have Rouble based accounts in their countries that they use and do transactions with so wtf do you mean??? it has use outside, and countries PAY Russia with it for oil and gas ,so off course that creates demand for it outside Russia.

In reality, this means the Russian Rouble is "useless in most of the world"

no its not, just in your mind or perspective.

The point of a currency is as a unit of account and a medium of exchange.

and Rouble serves that function well today , because peggiing it to gold made it a more coherent actual currency, period.

 

[Communism]

but thats also false, bacause foreign countries such as China and India already have Rouble based accounts in their countries that they use and do transactions with so wtf do you mean??? it has use outside, and countries PAY Russia with it for oil and gas ,so off course that creates demand for it outside Russia.

no its not, just in your mind or perspective.

and Rouble serves that function well today , because peggiing it to gold made it a more coherent actual currency, period.

Go convert your dollars to roubles.


I'm waiting.


Oh wait, you can't.


Literally not a medium of exchange in most of the world in terms of GDP.


Pretending to not read my entire post 2 times in a row means you are simply a propaganda bot and don't actually know how this works at all, one and/or the other.


The rouble isn't backed by anything, it's literally a fiat currency.


China using a tiny bit of Russian currency is simply a charity from China to keep up appearances.


If trade with China in the currency was the determinator, then Pakistan also has exactly as strong currency as Russia, since China trades a bit in PKR and keeps a bit of PKR as reserves.


That is, however, more or less meaningless economically.

Four Functions of Money | Uses, Role & Standard of Money - Video & Lesson Transcript | Study.com

Learn about the definition of money, the role of money in the economy, the four main functions of money, and the properties that help money perform...

study.com

 

[Ajamal]

Hasn't India been kicked out yet?

What is there to kickout? Zahiliyat jati nahi hai.

 

[khansaheeb]

What is there to kickout? Zahiliyat jati nahi hai.

Zaleel hai woh log jo Masjid jala lathein or insaan ko martey hein.

 

[Ajamal]

Zaleel hai woh log jo Masjid jala lathein or insaan ko martey hein.

Aisa Sab se Jyada Kahan hota hai?

 

[MH.Yang]

Hasn't India been kicked out yet?

We should want to drive India out of the SCO. But we should leave India in the BRICS.

Indonesia and Mexico is the next logical addition for the size of their economy, and Venezuela for energy security.

Iran is an excellent member state. But I look forward to Indonesia and Saudi Arabia joining the BRICS countries.
There is no need to bring Venezuela into the BRICS countries, which are not equal to OPEC.
As for Mexico, what can it bring to the BRICS countries?

 

[khansaheeb]

We should want to drive India out of the SCO. But we should leave India in the BRICS.


Iran is an excellent member state. But I look forward to Indonesia and Saudi Arabia joining the BRICS countries.
There is no need to bring Venezuela into the BRICS countries, which are not equal to OPEC.
As for Mexico, what can it bring to the BRICS countries?

Nazis should not be given space in any world organisation, don't help create a monster that will bite you later.