From DJ: "BRICS and the GCR" 2-29-2023
DJ: DID YOU KNOW
When it comes to the reconstruction of the global financial system (GCR), flying under the radar is the further development of the BRICS. BRICS members are expanding their influence in the global financial system by offering an alternative global payment system.
At present, the five original members Brazil, Russia, India, China and South Africa, control 30% of the world’s total land surface and 41% of the world’s population. They contribute 16% to world trade and about 24% of global GDP.
The BRICS’s counter part is the G7 ( Canada, France, Germany, Italy, the United Kingdom, U.S. and the European Union). The two main factors where they differ are the populations they serve (over 3 billion in the BRICS as opposed to 987 million in the G7) and GDP, where the G7’s is currently $33.93 trillion and the BRICS are about $23.5 trillion.
While BRICS members are not well-represented in the global financial system, their collective GDP could reach half the global GDP by 2030. With the potential inclusion of new countries, this could happen much quicker than expected.
An expanded BRICS could account for more than half the world’s population, including countries with younger populations and rapid population growth. They would also hold 60% of known global gas reserves, 45 % of known global oil reserves and significant quantities of natural resources like water and rare earth minerals.
Recently ( starting in 2018) the BRICS are engaging in developing a potentially new reserve currency called the R5 or R5+ ( based on the first letters of the currencies of the original BRIC countries , real, ruble, rupee, renminbi and rand).
This BRICS reserve currency is a potential rival to the U.S. dollar and the IMF’s Special Drawing Rights currency. ( SDR’s “special drawing rights” is the currency used by the IMF for loans to member countries) .
Along with the new reserve concept the BRICS have already developed a counterpart to the IMF called the New Development Bank or NDB. Multiple countries have ratified their participation in the NDB ( Egypt as of Feb 2023).
The implications of the BRICS activities will have transformational consequences to the global financial system. A larger BRICS group would have greater control over key trade routes, exports and supply chains. And with an alternative payment system, move to compete with the U.S. dollar and current, flawed, western financial banking systems.
The Bank of Indonesia ( a GCR basket currency) has called on importers, exporters to stop payments in U.S. dollars. China, Japan, Thailand, and Malaysia have already agreed to use the BRICS two-way payment mechanism and de-dollarising , with Singapore and the Philippines planning to join the system. With the European Union (EU) also looking to de-dollarise, the BRICS format could also be a strong alternative.
When you look at these global factual circumstances, they are just another of the mechanisms surrounding the implementation of a GCR/RV. It’s like the Search for the Holy Grail where the “search” is the Holy Grail. We keep looking for a “GCR” but fail to see that the mechanisms that build the GCR is the GCR and the road is just about built.
DJ