USA & it’s allies sanctions on Russia as a result of the unprovoked war on Ukraine has led to strengthening of Russia trade ties with India, China and other nations.
They’re trying to establish a multipolar world where USD is no more a world reserve currency. A thread 🧵
If you look at the worlds countries from their largest trading partners perspective, US is on a steady decline and China is dominant lately.
USA and other nations have been moving manufacturing offshore mostly to China which made it a $14 Trillion GDP second largest economy.
Almost 400 tons of gold scooped up was by the worlds central banks. It’s the largest buy back from worlds central banks ever since 1967 when dollar was still backed by gold. It looks like the central banks around the world realize that the USD paper Ponzi has gone on for too long
US warning sanctions on those who purchase Russian oil is like asking an addict to stop buying cheap meth from a specific dealer.
Countries don’t care, they buy anyways. If not they are pushed to trade with BRICS+. Russian economy got stronger amid U.S. sanctions.
If 12 more countries join BRICS+ and if they’re able to trade in their own asset backed currency, that’ll definitely dethrone USD from reserve currency.
All these years US has been able to export inflation due to a strong dollar. Nations don’t need dollar reserves anymore.
Algeria formally applies to join BRICS+
Algeria is Europe’s largest provider of natural gas after Russia and Norway. It has the 11th largest gas reserves in the world.
BRICS is turning into the world's source for commodities. They need to figure out a BRICS trade currency.
USA is $31 trillion in debt. Entire world is around $350+ trillion in debt.
At current debt levels, nations are under huge pressure to revive growth & reduce spending. As long as they’re under the chokehold of USD which US can inflate at will, they’ll never be debt free.
Looking at the national debt levels with a debt-to-gdp measure, Japan is the worst. Most western nations are heavily debt ridden. USA with its $31 trillion in debt, they’ll have to spend roughly $1.5 trillion just for interest payments at current rising rates.
USA #MilitaryIndustrialComplex is a tool to keep the world in check with USD being reserve currency for the last century. Now that the world realized that Ukraine is a tool for conflict with Russia & Taiwan a tool for conflict with China, it’s hard for USA to keep funding wars.
Argentina
Nicaragua
Senegal
Nigeria
Algeria
Egypt
Turkey
Saudi Arabia
UAE
Iran
Afghanistan
Kazakhstan
Thailand
Indonesia
If accepted, the new proposed BRICS members would create an entity with a GDP 30% larger than the United States, over 50% of the global population.
They’d control over 60% of global gas reserves. Its not a free trade bloc, but members do coordinate on trade matters and have established a policy bank, the New Development Bank, (NDB) to coordinate infrastructure loans. NDB rivals the IMF which has been totally U.S. centric.
The Asian Infrastructure Investment Bank (AIIB) was set up by China at about the same time for largely the same reasons, to offer alternative financing than that provided by the IMF & World Banks, which were felt to impose political reform policies designed to assist the USA
Both the NDB & AIIB banks are Triple A rated, capitalised at US$100 billion. The NDB bank shares are held equally by each of the five members. In total, the BRICS grouping as it currently stands accounts for over 40% of the global population and nearly a quarter of world’s GDP.
Together the new BRICS members create an entity with a GDP 30% larger than US
Afghanistan $22 B
Algeria $168 B
Argentina $492 B
Egypt $404 B
Indonesia $1.2 T
Iran $232 B
Kazakhstan $192 B
Nicaragua $14 B
Nigeria $441 B
Saudi Arabia $834 B
Senegal $28 B
Thailand $506 B
UAE $36 B
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