BRICS vs USA, fight!

What happened, how’s it going and predictions

May you live in interesting times. Well, we just might.

Russian alliance with China is deeper and better than ever.

USA hostility and hunger for was is higher then ever.

To make things more spicy:

• Russia has a deal with China to trade in yuan instead of US dollar
• China just helped Saudi Arabia end a generations long conflict with Iran and now they are willing to join Shanghai Security Bloc (which is an Asian equivalent of NATO)
• Mexico’s president is openly criticising USA and having discussions about joining BRICS
• Brasil made a deal with China to ditch US dollar and trade in their local currencies
• India is pushing rupee to become a trading currency with it’s partner countries
• Where do African countries stand? They are being courted by Russia and chinese investements and they seem to be pretty ok with that. Few days ago, 40+ African countries sent representatives to Moscow.

It feels like a drunk, bullying uncle (USA) is fighting teenagers (BRICS countries) on a family dinner and Europe is an old grandpa, who has money, but nothing to add really.

The war is slowly creeping out of the corner, and first it will be a currency war. De-dollarisation is already happening, first energy transactions are being held in yuan instead of the petro-dollar.

Also, BRICS countries announced that they want to introduce their own currency this year (!). To make it more viable, they want their currency to be backed in gold. US dollar used to be bound to the gold standard till 1971. Now it’s back by… nothing really but belief of people that USA is the best country in the world.

What does it mean?

Most of the dollars there, are not in US. They are in the financial reserves of countires all around the world. Right now, the vast majority (but it was all a month ago!) of energy transactions are being held in dollars, meaning that every country that wants to buy energy, like oil, has to do it in dollars. Meaning that every country in the world has to buy and keep dollars. But soon… soon they will have a choice. And guess what… most of the developing countries hate US. And rightfully so.

It can only end in hyperinflation and dollar losing it’s value. I don’t know whether this will happen next year, in 5 or 10 years, but it seems inevitable at this point.

It’s exciting. It’s scary. It’s going to change the world as we know it. And who knows if for the better?

I’m not a fan of US propaganda, but constant government invigilation and social score system don’t seem optimistic to me either.

Let’s see how it develops.