Sunday, September 10, 2023

I Concur.

Larry's title is spot on: The Rise of BRICS and the Fall of the G20. As Larry posits:

I do not think that the majority of the West’s financial gurus are comprehending the significance of the BRICS countries earnest effort to create an alternative to the dollar. They are calculating that the BRICS countries will fail and will be compelled to be under the thumb of the U.S.-led international financial order. I think they are making a grave mistake. The status of the U.S. dollar as the reserve currency is based primarily on belief. As long as foreign countries believe they have no choice but to submit to using the dollar for international trade the system remains intact. But that belief is being seriously challenged. I do not think the system will crumble over night, but the moves by China, India, Saudi Arabia, Brazil, South Africa, Iran and Argentina to make payments for oil and other commodities without using the dollar is accelerating.

And now get a load of this:  

Just think about it for a minute--from 25% to 80%+ in 18 months. Unprecedented, this is called dumping. Now, comes this issue of SMO and belief, as Larry pointed out. Ask yourself a question if China believes in SMO? I'll give you the answer--Beijing is in awe from what it observes. And guess what DO they believe now. Now back to the end of 2020. Recall this table:

Since then, the share of G-7 shrunk, while RIC's grew dramatically. But even then (end of 2020), RIC's output combined was much larger that that of G-7. Bar some exceptions such as a serious leadership of G-7 in commercial aerospace and few other fields, what else do they have today? Pretty much nothing. With the exception of the US and Canada, they are resources starved and standard of living declining Sodom and Gomorrah with NO prospects of addressing their debilitating systemic problems. G20-G7==G13. Or, to be prudent, G20-G5 (Europe and Japan)= G15, which is dwarfed by BRICS, now with the addition of Iran and Saudi Arabia. A crunch time for Washington. You could be 100% sure that they will fuck it up no matter what.  

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