- cross-posted to:
- worldnews@lemmy.ml
- cross-posted to:
- worldnews@lemmy.ml
You must log in or register to comment.
As per the deal, 95 per cent of the $260 billion worth of trade will be settled in yuan.
It’s like an economic visual of Putin’s balls in Xi Jinpeng’s grip. The other 5%? A blend of rubles and euros.
In essence, BRICS is trying to make the yuan a world reserve currency. That’s how they’re going to “sanction proof” them selves, by leaning on Chinese economy, and tbh, since a crapton of manufacturing and fabrication already happens in China, it does make a lot of sense.
Perhaps we’ll see the return of cold war era economic policies as a result. You can almost hear the liberals (neo or classical, take your pick - they both suck) begrudgingly press the button marked “Protectionism”.
In any case, welcome to the CwaaS, or “Cold war as a Service”. Smack SWIFT and BRICS together, see what happens.
since a crapton of manufacturing and fabrication already happens in China, it does make a lot of sense.
Western manufacturing and fabrication is already pulling out of China; this action will accelerate that trend. It’s also a poor bet due to China’s slow motion demographic collapse.
Frankly this could be implemented tomorrow and by the end of 2034 it would be dead; torn apart by internal conflict and China’s gradual economic decline.
I feel like this not being the case would be a headline, but the fact of it is, or should be, patently unsurprising
I mean, isn’t De-dollarization the entire point of creating a new currency as an alternative to the US dollar?
This would be about trade. Your country can make whatever currency it likes, but when you go to buy goods overseas, you tend to have to pay in USD. Not always, but it’s the default.
BRICS don’t like this, for obvious reasons, but they lack alternatives. They can try shifting to the Chinese Yuan, but that only moves the problem for everyone who isn’t China. They can try to make their own currency union, but they aren’t even as politically united as the EU, and the Euro has issues keeping everyone moving the same direction.
If you want to see power struggle, just keep an eye on that group. India and China are rivals. They will try to undermine each other’s ability to gain more power.
It’s not even a cohesive group. It was some dude at Goldman Sachs seeing a few countries grow quickly and even then it was more like brIC since Brazil and Russia saw growth only from resource extraction. South Africa decided they wanted to be part of the show despite shit growth and it became BRICS. They don’t do that much trade with each other and now outside of China, their growth is shit. If they want to become more economically integrated, go for it.
