Economist’s “News and Views” Thursday 7-25-2024
BRICS Now Controls 72% of the World’s Rare-Earth Metals
We love Africa: 7-24-2024
In a significant geopolitical shift, the BRICS nations—Brazil, Russia, India, China, and South Africa—have now emerged as custodians of an astonishing 72% of the world’s rare-earth metals. After consolidating control over a significant portion of global oil supplies, this new monopoly on rare-earth elements presents profound implications for global trade, technology, and the balance of power in the international arena.
Rare-earth metals are a group of 17 elements essential for the production of high-tech devices, renewable energy technologies, and various defense applications. Items ranging from smartphones, electric vehicles, and wind turbines to military equipment rely heavily on these metals. As the world increasingly pivot towards technology and sustainable energy solutions, the demand for these precious resources has skyrocketed.
The BRICS nations, by controlling such a substantial share of rare-earth metals, position themselves as crucial players in an increasingly competitive global economy. Imagine if BRICS decided to trade these materials in currencies other than the US dollar. Such a strategy could undermine the dollar’s role as the world’s primary reserve currency, disrupting established commercial practices and inciting economic volatility.
This potential disruption could lead to a significant shift toward a multipolar world, where power and influence are distributed among several nations rather than being concentrated in a few Western countries. The implications of this could resonate across numerous sectors, including technology, industry, and defense. With dominance over essential resources, BRICS would have leverage in negotiations, partnerships, and global policy decisions.
The BRICS nations controlling 72% of the world’s rare-earth metals represents both a seismic shift in global economics and the potential for lasting geopolitical ramifications. If they leverage this power effectively, it could catalyze a transition to a multipolar world where Western dominance is challenged.
As the global landscape continues to evolve, businesses, governments, and societies must adapt to these changes. The strategic approaches adopted by both BRICS and the Western nations in response will undoubtedly shape the contours of the future economy and international relations. The world is on the brink of a new era—one where resources dictate power and alliances are more crucial than ever.
Powerful Economic Indicator Signaling "Hard Landing" May Have Started
George Garmin: 7-24-2024
Is the US Dollar’s Dominance Coming to an End?
Kitco News: 7-24-2024
In a recent illuminating interview on Kitco News, anchor Jeremy Szafron had the opportunity to converse with Tavi Costa, a Partner and Macro Strategist at Crescat Capital. Their discussion touched on some of the most pressing concerns in the economic landscape today: the future of the U.S. dollar, growing sovereign debt concerns, and the implications for global markets. As inflationary pressures mount and geopolitical tensions escalate, these topics are increasingly relevant for investors and everyday citizens alike.
Lower interest rates could potentially create a temporary alleviation of debt obligations, but they may also spur inflationary pressures, diminishing the dollar’s purchasing power. This, Costa believes, will have cascading effects across global markets, especially in commodities.
The forecasts may look grim for the dollar, they open the door for substantial investment opportunities in the commodities sector. Investors looking for a hedge against inflation and currency risk might find solace in allocating their assets towards tangible commodities.
Costa’s insights on the U.S. dollar, sovereign debt, and global markets are both sobering and enlightening. His bearish outlook prompts a reconsideration of long-held assumptions about currency strength and encourages a shift toward commodities as a potential safeguard against economic instability. As we navigate through these challenging times, the perspectives shared in this interview serve as a crucial reminder of the interconnectedness of global financial systems and the importance of proactive investment strategies.