BRICS Gaslighting
Back on September 7, 2022, we wrote about the beginnings of a movement known as BRICS (Brazil, Russia, India, China, and South Africa) in an article titled BRICS and Yen. We also did an earlier financial article on July 25, 2022, titled Far Away Events Matter. In both articles, we cautioned that China and Russia were spearheading a movement to transition away from the dollar. There are several geopolitical reasons for them to go in this direction, and this movement is rearing its ugly head repeatedly. Asleep at the Switch Our U. S. Government financial experts dismissed the BRICS movement as a moribund and unproductive effort. They considered unseating the dollar as the world’s reserve currency idiotic and a waste of time. Yet, we must remember that these experts, despite their credentials, have had their fair share of misjudgments. They failed to forecast the recession, labeled it as transitory when it arrived, considered Modern Monetary Theory as plausible, and believe inflation will be tamed by the end of the year. The world of finance is a complex and ever-changing landscape, and it’s crucial to remain vigilant and open to new possibilities. Unable to connect the dots with central banks buying gold in record quantities, sanctions against Russia, tariffs against China, the Silk Road Initiative, onshoring of technical production, the Inflation Reduction Act, record deficits, Ignoring threats against Taiwan, funding the Ukraine, and a whole host of other idiotic moves in Washington, these informed economists took the Alfred E. Newman approach to changes in world economic trends. I guess the economic analysis is beyond their spreadsheet! BRICS Continues to Move Along What has happened since we last wrote about BRICS? Many, many things have changed in the world order. The war in Ukraine has lasted much longer than Russia thought possible, pushing China and North Korea to aid Russia with military and raw materials and commodity purchases. The Silk Road Initiative has continued, with many countries in Africa and Asia becoming entangled in the Chinese lending web. Green initiatives keep ignoring the conflict with China and pushing for more transition efforts,
