BRIC

[frank]

I have been reading on different sites that an organization called BRIC is about to become the dominate currency overtaking the dollar. I was just wondering why this hasn't been opened up for discussion. Is this a real threat or just more media scare tactics?

 

[Midpack]

BRICS currency isn’t a done deal but a worthy topic.

https://fortune.com/2023/06/25/dollar-reserve-currency-brics-brazil-russia-india-china-south-africa/

BRICS currency faces major hurdles before becoming a reality. But what currency discussions do show is that the BRICS countries are seeking to discover and develop new ideas about how to shake up international affairs and effectively coordinate policies around these ideas.

 

[audreyh1]

They’ve been working on it for a long time now. Doesn’t seem “imminent”. Sounds like the focus is more on reducing their dependence on the US dollar.

 

[Aerides]

I have been reading on different sites that an organization called BRIC is about to become the dominate currency overtaking the dollar. I was just wondering why this hasn't been opened up for discussion. Is this a real threat or just more media scare tactics?

Not sure what/where you are reading that, so perhaps evaluate your sources. It's working to become a thing, and not yet an actual currency. So...about Overtake the dollar? No.

Anything within our community rules is open for discussion. Members open topics of interest - so perhaps (until today) this hasn't been one.

 

[Surewhitey]

I looked at the GDP of BRICS vs EURO vs USA. Per person GDP is significantly lower (I'm thinking purchasing power per person). GDP BRICS vs USA is pretty close to equal, but population of BRICS is dramatically more, 10x-ish.

It will be interesting to see if any other significant countries will join their fight. The only one pulling their weight is China on growth...

 

[Koolau]

Yeah, and I think it's basically China driven. Smart "partners" in this ploy would be advised (IMHO) that China would eventually run the whole thing and use BRIC just like USA uses the dollar to effect worldwide policy. Understand: China intends to dominate. They won't stop.

One way to stop BRIC? Quit buying cheap stuff from China (and, less so, India.) We won't, of course. We like $500 big screens that would cost 4 times that in the USA (if we knew how to make 'em.) Time to steal technology from China?

 

[Surewhitey]

And yet Teslas & Ikeas are everywhere. It could be done for big ticket items, just not the majority of things, especially electronics...

 

[Koolau]

And yet Teslas & Ikeas are everywhere. It could be done for big ticket items, just not the majority of things, especially electronics...

It COULD be done, but only a few companies are as smart as Tesla and Ikea. Also few companies are patient enough - insisting on good quarters instead of good decades.

 

[Koolau]

By the way, on a wider point. We won't "solve" the BRIC issue a couple of months after it's officially announced. That will be a couple of years (or more) too late to have any influence. IF we solve it, we'll begin solving it now. Of course, we won't, so I see BRIC (or some permutation - change only the letters other than "C") as inevitable.

The Chinese think globally and strategically while much of USA business thinks locally and tactically. ("We'll deal with that when it comes up.") That won't w*rk any more. We're up against a different competitor (adversary.) I have no special insight, but I sense we are ignoring such things here in USA. IOW I've just told you more than I know so YMMV.

 

[Spock]

I have been reading on different sites that an organization called BRIC is about to become the dominate currency overtaking the dollar. I was just wondering why this hasn't been opened up for discussion. Is this a real threat or just more media scare tactics?

The topic of BRICS and dethroning the USD as a reserve currency is not discussed much here because the sources reporting such things are generally scoffed at. Yet it makes sense that to obtain alternative views one has to include alternative sources.

There is a BRICS summit meeting later in August. Saudi Arabia, Indonesia, UAE, and Egypt are reportedly going to join BRICS. Also mentioned are Argentina and Mexico.


One article anticipated that the upcoming summit would also take steps to rollout the long discussed alternate currency. It's kinda like nuclear fusion... it's always been talked about but always X years away. However there are new motivators such as the US weaponizing the dollar against Russia (unilaterally seized Russia's offshore dollar reserves) as punishment for invading Ukraine which has other countries now understanding the same could happen to their assets. Another is growing tensions between the US and China. Yet another is the growing realization that the US is going to print trillions more dollars for the forecasted future which makes the dollars their dollars worth less each time the supply multiplies.



The new currency is expected to be based on a basket of commodities. The countries interested in joining alternative currency arrangements generally all produce most of the worlds commodities. While people scoff at BRICS, China's Belt and Road Initiative, Shanghai Cooperation Organization, etc, those countries produce the materials consumed by first world countries. Meanwhile the "developed" economies consume vs. produce anything of real value.


Ancient Chinese curse: "may you live in interesting times"

 

[Koolau]

The topic of BRICS and dethroning the USD as a reserve currency is not discussed much here because the sources reporting such things are generally scoffed at. Yet it makes sense that to obtain alternative views one has to include alternative sources.

There is a BRICS summit meeting later in August. Saudi Arabia, Indonesia, UAE, and Egypt are reportedly going to join BRICS. Also mentioned are Argentina and Mexico.


One article anticipated that the upcoming summit would also take steps to rollout the long discussed alternate currency. It's kinda like nuclear fusion... it's always been talked about but always X years away. However there are new motivators such as the US weaponizing the dollar against Russia (unilaterally seized Russia's offshore dollar reserves) as punishment for invading Ukraine which has other countries now understanding the same could happen to their assets. Another is growing tensions between the US and China. Yet another is the growing realization that the US is going to print trillions more dollars for the forecasted future which makes the dollars their dollars worth less each time the supply multiplies.



The new currency is expected to be based on a basket of commodities. The countries interested in joining alternative currency arrangements generally all produce most of the worlds commodities. While people scoff at BRICS, China's Belt and Road Initiative, Shanghai Cooperation Organization, etc, those countries produce the materials consumed by first world countries. Meanwhile the "developed" economies consume vs. produce anything of real value.


Ancient Chinese curse: "may you live in interesting times"

Thanks for the summary. Here we are "talking" about BRICS and it's rarely in the news. I don't think our gummint is particularly focused on it, but I submit that China is. Very focused.

 

[Surewhitey]

Didn't "they" say that the Euro was going to disrupt the USD? If all the other countries mentioned jumped in, it would definitely make it interesting.

 

[Ian S]

Didn't "they" say that the Euro was going to disrupt the USD? If all the other countries mentioned jumped in, it would definitely make it interesting.

Yeah, they're all pretty much authoritarian or outright dictatorships - Brazil appears to have dodged the authoritarian bullet for now. Should BRICS+ pan out, I fear the world really will be on its way to hell in a currency hand-basket!

 

[arcyallen]

I have been reading on different sites that an organization called BRIC is about to become the dominate currency overtaking the dollar.

In case this wasn't clear with the other responses - BRIC isn't an organization but is an acronym for Brazil, Russia, India and China. I've been told emphatically and convincingly that they are going to overtake the US in practically every important economic measure. But I was told that in 2007, and yet here we are.

 

[madatrub]

OPEC tried this in the 70s. EU tried this in the 2000s.

I wouldnt waste too much time on it. But thats just me.

 

[VFK57]

BRICS= Brazil, Russia, India, China and South Africa an economic alliance of countries to promote trade and ties based on non Western loans, investments and control of economic developments. The next meeting has scheduled agenda on a "new currency", what likely will be backed by the Gold, Natural resources and manufactured goods. Why they want to do it is obvious - they all want a currency based on something nobody could print as much as needed and penalizing of countries by sanctions, what we use as a weapon. If they succeed in this, the move will greatly undermine the US$ status and potentially hurt our economy. There are a few major oil producers like Iran, Saudis, UAE who wants to join them as well as many other countries in Asia, Africa and Latin America.

 

[VFK57]

OPEC tried this in the 70s. EU tried this in the 2000s.

I wouldnt waste too much time on it. But thats just me.

On the contrary to your statement, it is very serious if they succeed.

 

[VFK57]

I have been reading on different sites that an organization called BRIC is about to become the dominate currency overtaking the dollar. I was just wondering why this hasn't been opened up for discussion. Is this a real threat or just more media scare tactics?

It is a real threat. Currently BRICS has 40% of population and 25% of world economy but there are many, who plan to join (Iran, Indonesia, Saudis, UAE, Egypt, Mexico etc.) and it will give the impulse to success by growth of total GDP and bigger world population in this what is going to give them a boost.

 

[Koolau]

OPEC tried this in the 70s. EU tried this in the 2000s.

I wouldnt waste too much time on it. But thats just me.

I think the difference now is China. China is much more committed to displacing the USA as a world power, while OPEC just wanted to dominate the oil markets.

EU vs USA - Fugidaboudit.

It's not the same and the comparison fails because of one thing. China. China is different than any previous adversary.

Of course, this is just my opinion and my opinion is not shared by a LOT of people (heh, heh, yet!)

 

[joesxm3]

India is one of the few countries with an up and coming young educated work force. I have started DCA into India ETF.

 

[VFK57]

India is one of the few countries with an up and coming young educated work force. I have started DCA into India ETF.

It is dangerous to invest in some foreign countries stocks and funds, at least I had a very bad experience. One on China telecom: I was informed only about one week of stopping of trade on US stock exchange and sold with a big loss. The other investment was with Russian Lukoil. No any warning about it, even when the war started and again a huge loss as the ETrade did not let me know that it will be de listed on NYSE. India is a democracy but will not exit the BRICS as per PM Modi and US reaction on clear challenge is unknown.

 

[madatrub]

On the contrary to your statement, it is very serious if they succeed.

The USD is 44% of all global transactions. China is 2%. BRIS combined arent top 10. Its going to be ok.

 

[Toocold]

BRIC has been around since 2001. Right now, it's more IC + everybody else. Brazil and Russia have declining economies. While South Africa had much fanfare after Mandela, they have simply stalled. They have been trying to be an alternate to the G7, but I think impact has been minimal. Can anybody think of one thing they have accomplished over the last 20+ years?

My personal view is that the I (India) will eventually become part of the G8, as it conforms more with rules based law, and they have been invited every year.

China is obviously worth watching, as they try to create an alternative system to the US/EU. Unfortunately, no one trusts them.

 

[Koolau]

BRIC has been around since 2001. Right now, it's more IC + everybody else. Brazil and Russia have declining economies. While South Africa had much fanfare after Mandela, they have simply stalled. They have been trying to be an alternate to the G7, but I think impact has been minimal. Can anybody think of one thing they have accomplished over the last 20+ years?

My personal view is that the I (India) will eventually become part of the G8, as it conforms more with rules based law, and they have been invited every year.

China is obviously worth watching, as they try to create an alternative system to the US/EU. Unfortunately, no one trusts them.

Yeah, I think we can almost forget about the various other letters. China might surround itself with an alphabet soup of other countries for some level of "legitimacy" or "palatability" but make no mistake, it will be run by and for China.

Of course, there is a sense in which USA already does the "bric" thing. We just don't add the letters or acknowledge their participation (at our "behest.")

Once again, this is me telling you more than I know so judge accordingly.

 

[madatrub]

Yeah, I think we can almost forget about the various other letters. China might surround itself with an alphabet soup of other countries for some level of "legitimacy" or "palatability" but make no mistake, it will be run by and for China.

Of course, there is a sense in which USA already does the "bric" thing. We just don't add the letters or acknowledge their participation (at our "behest.")

Once again, this is me telling you more than I know so judge accordingly.

Cant be a world currency if you wont give the international community access to your capital vehicles/markets. China unwilling to do that. Not to mention there are extreme trust issues all around the world.