BRICS is Expanding Against USA

The origins of BRICS — a bloc comprising Brazil, Russia, India, China, South Africa and, as of 2024, new members Egypt, Ethiopia, Iran and the United Arab Emirates — can be traced back to a 2001 publication by Goldman Sachs economist Jim O’Neill titled ‘Building Better Global Economic BRICs’. O’Neill argued that Brazil, Russia, India and China were poised to play an increasingly significant role in the global economy.

His prediction was that by 2050, these countries would collectively account for 40 per cent of the world’s economic output. In reality, from 2012 to 2022 China alone has accounted for around a quarter of global GDP growth, and the BRICS countries together contributed over 45 per cent.

BRIC was officially launched in 2009 and was renamed BRICS in 2010 when South Africa joined the group. Since then, trade relations have clearly grown, but in a very unbalanced manner.

Most of the growth in trade has been China-centric, with the contribution from the rest of BRICS remaining quite flat until recently. The recent increase is mostly explained by India, which has experienced an acceleration in economic growth. BRICS members are increasingly intertwined with China as far as trade is concerned, but the remaining members have very few ties among themselves. Bilateral trade between BRICS members other than China remains extremely low.  READ MORE...

BRICS Alternative to SWIFT

Cuba to Join BRICS

Following the expansion announcement at its 2023 annual summit, all eyes have been set on who could eventually join the BRICS collective. Subsequently, with its global cooperations growing by the day, that list has started to take shape. Amid recent discussions with Russia, could Cuba be set to join & accept BRICS currency in 2024?

Indeed, those expansionary theories have coincided with the BRICS development of its local currencies. Although its embrace of de-dollarization and promotion of local currencies has been integrated, its work on its native assets continues. For the nations seeking to join the alliance within this calendar year, the development of that currency could play a crucial role.     READ MORE...

Billionaires That Belong to BRICS

(L to R) Brazil’s President Michel Temer, Russia’s President Vladimir Putin, China’s President Xi Jinping, South Africa’s President Jacob Zuma and India’s Prime Minister Narendra Modi pose for a group photo during the BRICS 

Summit on September 4, 2017.    Wu Hong | Afp | Getty Images




Millionaire population in the BRICS countries will see a substantial surge over the next decade contributing to the largest increase in wealth across any group of nations, according to a recent report by Henley & Partners.

Millionaire count in the BRICS countries — which together hold $45 trillion in investable wealth — is forecast to rise by 85% over the next 10 years, the investment migration consultancy noted in its report published in partnership with global intelligence firm New World Wealth.


The BRICS bloc, which is composed of Brazil, Russia, India, China and South Africa, has expanded to include Egypt, Ethiopia, Iran, the United Arab Emirates this year, with Saudi Arabia also set to join the bloc.

Currently, there are 1.6 million individuals with investable assets of more than a million in the group.     READ MORE...

US Dollar DOWNGRADED

Multinational investment bank Morgan Stanley downgraded the outlook for the U.S. dollar from ‘Bullish’ to ‘Neutral’ on Friday. The global bank cited that the Federal Reserve initiating interest rate cuts led to the decline of U.S. Treasury yields. Morgan Stanley’s outlook for the U.S. dollar is now officially ‘Neutral’ and downgraded from its previous stance of ‘Bullish’. The downgrade comes at a time when the BRICS alliance is advancing to uproot the U.S. dollar’s global supremacy.  READ MORE...

Chinese Investors DUMP US Stocks

BRICS member China is pulling every trick up its sleeve to stall the growth of the US dollar and stocks. China is dumping both US treasuries and equities to keep the Yuan from ending at a new low against the US dollar. In August alone, China sold $21.2 billion worth of US treasuries and stocks to stop the rising dollar. The BRICS alliance combinedly indulged in a $123 billion worth of sell-off in US government bonds and treasuries this year. China is the flag-bearer for BRICS in its quest to free the world from the US dollar supremacy.

Local Currencies Needed to Buy Oil

Amid the recent BRICS expansion and the bloc’s de-dollarization approach, the US and Europe may soon require local currencies in order to buy oil. 

Indeed, the past several months have proven the dominance of the oil market that is maintained by the alliance. Moreover, the trajectory of purchases shows the bloc may soon require a move away from the greenback.

Saudi Arabia has recently embraced a sharp cut in its oil exports. Specifically, the figure has reached a 28-month low. Moreover, Russia has embraced a voluntary supply cut of 1.3 million bpd. 

That figure equates to around 1% of global demand, presenting a move that could tighten the market and unveil a clear power dynamic.

Subsequently, oil-purchasing nations are rightfully concerned about the market tactics of both countries. Yet, the development could present a chance for the BRICS to forward their own currency agenda. 

A reality that could align with alliance-wide interest in working towards multipolar progress.  READ MORE...

Reshaping The Global Order

At the BRICS Summit in Johannesburg on August 24, 2023, the bloc’s five members — Brazil, Russia, India, China and South Africa — announced the invitation of six new countries — Argentina, Egypt, Ethiopia, Iran, Saudi Arabia and the United Arab Emirates. Effective January 1, 2024, BRICS countries will represent almost half the world’s population.

While BRICS has struggled to make concrete achievements, the momentum may now be shifting. This expansion would have the BRICS overtake the G7 in total gross domestic product, with BRICS economies growing at higher demographic and economic rates than G7 members.

The BRICS expansion could help reduce tensions among the BRICS’s Middle Eastern countries, but could also provoke the United States and NATO, given the admission of Iran and the current membership of Russia and China.

A growing number of countries have expressed interest in joining the BRICS group. Yet there are internal disagreements about how the group should move forward. China and Russia have pushed for a quick expansion of BRICS to strengthen their geopolitical influence, while India has expressed concern about admitting many new members too quickly.

India’s concern has much to do with its historic, bitter border disputes with China, as well as the current strength of India’s bilateral relationship with the United States. India’s contribution in keeping BRICS from becoming outwardly anti-Western only strengthens the country’s geopolitical importance for the United States – US President Joe Biden quite literally pulled out the red carpet for India’s Prime Minister Narendra Modi during his June 2023 visit to the White House.  READ MORE...

World's Fastest Growing Cities

In this article, we will be taking a look at the 15 fastest growing cities in the world economically. If you want to skip our detailed analysis of emerging economies you can move directly to the 5 Fastest Growing Cities in the World Economically.

According to a report by the International Monetary Fund, the global growth rate is expected to fall to 3% in 2023 and 2024 from an expected 3.5% in 2022. The report suggests that rising inflation rates have contributed to the current state of the global economy. 

As per the current data, the global headline inflation rate is expected to fall from 6.8% in 2023 to 5.2% in 2024. Moreover, world trade growth is expected to decline from 5.2% in 2022 to 2.0% in 2023.

However, the future of the global economy is not as bleak as it may seem right now. The report suggests that 2024 may be slightly better for the world. The world trade rate is expected to rise to 3.7% in 2024. 

Emerging economies are expected to experience significant growth by the end of 2023 and 2024, at 4.0% and 4.1%, respectively. Particularly, emerging economies in Asia are expected to experience the highest growth globally and global growth is on track to rise to 5.3% in 2023 and 5.0% in 2024.

BRICS May Drive Future Economic Growth
Brazil, Russia, India, and China first grouped to form BRIC in 2006. In 2011, South Africa joined the group, which led the cluster to be renamed to the BRICS. These economies were grouped as expectations of high economic growth dominated the prospects for each country. 

You can take a look at some countries that are expected to experience significant economic growth.

On January 1 2024, BRICS is set to welcome new members formally. These include Saudi Arabia, Argentina, Egypt, Ethiopia, Iran, and the United Arab Emirates. On August 23, Forbes reported how the new arrangement between the BRICS countries could be a political move to attain energy dominance. 

As per the report, the arrangement immensely benefits China. Saudi Arabia, a major oil supplier to China, will benefit the country by the Riyadh-Teheran détente. The new treaty between Iran and Saudia Arabia promises trade and friendship between the two countries.  READ MORE...

Wanting to Join BRICS

WHAT IS BRICS?

The acronym BRIC, which did not initially include South Africa, was coined in 2001 by then Goldman Sachs chief economist Jim O'Neill in a research paper that underlined the growth potential of Brazil, Russia, India and China.

The bloc was founded as an informal club in 2009 to provide a platform for its members to challenge a world order dominated by the United States and its Western allies.

Its creation was initiated by Russia.

The group is not a formal multilateral organisation like the United Nations, World Bank or the Organisation of the Petroleum Exporting Countries (OPEC).

The heads of state and government of the member nations convene annually with each nation taking up a one-year rotating chairmanship of the group.

WHO ARE THE MEMBERS?

Brazil, Russia, India and China are the founding members.

South Africa, the smallest member in terms of economic clout and population, was the first beneficiary of an expansion of the bloc in 2010 when the grouping became known as BRICS.

Together the countries account for more than 40% of the world population and a quarter of the global economy.

Apart from geopolitics, the group's focus includes economic cooperation and increasing multilateral trade and development.

The bloc operates by consensus. All the BRICS countries are part of the Group of 20 (G20) of major economies.

WHICH NATIONS WANT TO JOIN BRICS AND WHY?
Over 40 countries, including Iran, Saudi Arabia, United Arab Emirates, Argentina, Algeria, Bolivia, Indonesia, Egypt, Ethiopia, Cuba, Democratic Republic of Congo, Comoros, Gabon, and Kazakhstan have expressed interest in joining the forum, according to 2023 summit chair South Africa.

They view BRICS as an alternative to global bodies viewed as dominated by the traditional Western powers and hope membership will unlock benefits including development finance, and increased trade and investment.

Dissatisfaction with the global order among developing nations was exacerbated by the COVID-19 pandemic when life-saving vaccines were hoarded by the rich countries.

Iran, home to around a quarter of the Middle East's oil reserves, has said it hopes the mechanism for new membership would be decided "at the earliest."

Oil heavyweight Saudi Arabia was among more than a dozen countries that participated in "Friends of BRICS" talks in Cape Town in June. It has received backing from Russia and Brazil to join the BRICS.

Argentina said in July 2022 it had received China's formal support in its bid to join the group.  READ MORE...

130 Countries Leave US Dollar

If the soon-to-be-released BRICS currency is considered a threat to the U.S. dollar, then the CBDC could be its death knell. Out of 195 countries in the world, 130 nations are moving towards building their Central Bank Digital Currency (CBDC). 

Therefore, 98% of the world is looking to launch their respective CBDC currency making it easier to settle cross-border transactions.

Among the 130 countries, a dozen nations have reached advanced phases and are moving towards launching their digital currency assets.

A total of 11 countries, including many Caribbean nations and Nigeria have already launched their CBDC pilot program. A report from the Washington D.C.-based think tank Atlantic Council shows that only 35 countries considered CBDC in 2020. 

The dramatic rise is putting the U.S. dollar in jeopardy as countries could end reliance on the greenback and consider CBDCs.

The BRICS alliance is looking to challenge the U.S. dollar’s global reserve status by launching a new currency for cross-border transactions. The next summit will be held in South Africa in August and the bloc will decide the formation of a currency.

If the BRICS currency strengthens itself in the global markets, more countries could flock toward it for international trade deals. Also, if the BRICS currency gains support in the markets, the U.S. dollar could be on the path of decline.

Therefore, both the yet-to-be-launched BRICS currency and the CBDC digital assets could pose a threat to the U.S. dollar. The greenback stands at a pivotal point in time where its prospects remain on the razor’s edge for survival.  READ MORE...

Ditching the US Dollar

BRICS countries are looking to sideline the U.S. dollar by launching a new currency to settle international trade. The development challenges the dollar’s supremacy and could dethrone it from the global reserve status. The move is inspiring other developing Eastern countries to ditch the dollar and promote their native currencies for global trade. If the momentum continues, many more Eastern nations could join hands and end reliance on the U.S. dollar completely.

The leaders of 10 Southeast nations and the members of the Association of Southeast Asian Nations (ASEAN) have agreed to promote their native currencies for cross-border transactions. The 10 countries will reduce settling payments with the U.S. dollar and use their local currencies for transactions.

The group of nations wants to “encourage the use of local currencies for economic and financial transactions.” The 10 nations that have decided to ditch the U.S. dollar are Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam.

The move will help these countries to end their dependency on the U.S. dollar and significantly boost their native currencies. The declaration accepted by the ASEAN nations said that their goal is to strengthen bilateral and multilateral payment activities. Trading in local currencies would be faster, cheaper, and easier to close deals than the usage of the U.S. dollar.

The official declaration accepted by these 10 developing Eastern countries read, “We adopted the ASEAN Leaders Declaration on advancing regional payment connectivity and promoting local currency transaction to foster bilateral and multilateral payment connectivity arrangements to strengthen economic integration by enabling fast, seamless, and more affordable cross-border payments across the region.”

In conclusion, apart from BRICS countries, now ASEAN nations will move away from the U.S. dollar. It is reported that the Gulf Cooperation Council (GCC) is also planning to move in the same direction. Read here to know more details on why the oil-rich Gulf countries want to end the U.S. dollar’s dominance.

Push Against US Dollar

Countries around the world have embarked on an irreversible agenda to divorce from the US dollar, according to veteran investment guru Matthew Piepenburg.

In a new interview at the Deutsche Goldmesse conference with the Soar Financially YouTube channel, Piepenburg, partner at emerging markets-focused Matterhorn Asset Management, says that economic powerhouses are now clearly attempting to “break ranks” with dollar supremacy.

He says that the raising of interest rates by the U.S. Federal Reserve is pushing nations like China and Russia to adopt settlement systems that don’t rely on USD.

Besides China and Russia, which are both part of the BRICS coalition, the family office guru says that 41 other countries are now following suit, perhaps concerned with the way the US has treated Russia during its conflict with Ukraine.

“So when that dollar gets higher, because Powell is raising the rates, that becomes more onerous and painful for the rest of the world and they begin to break ranks. Asia in general, China and Russia in particular are very big rank-breaking nations. And, of course, they’re bringing 41 other countries alongside to have trade settlements outside the US dollar.

And so there’s no doubt that the weaponization of the dollar, even the petrodollar comes into this because there’s threats to the petrodollar market and the demand of the petrodollar and the strong dollar. So a strong dollar was a real gut punch for years it became even more of a gut punch when we weaponized that dollar when we took Russia off of the STR and the SWIFT and of course froze its FX reserves. Other countries raise their eyebrows in alarm and looked differently in our thinking of ways to go around and break with the dollar.”   READ MORE...

Will BRICS be Successful?

Veteran investor Jon Wolfenbarger says that the success of BRICS could have serious effects on the US dollar and the living standards of Americans.

Wolfenbarger, a former investment banker at JPMorgan and Allianz, writes in a new article for the Mises Institute that throughout history, all empires have ultimately failed, and the US likely won’t be an exception.

He says that BRICS nations, which refers to the economic coalition of Brazil, Russia, India, China and South Africa, now have the power to dethrone the US after decades of irresponsible economic policy by the American government.

Says Wolfenbarger,

“If the BRICS are successful and the US does not change its policies to focus on a stronger dollar, less spending, and peace instead of war, it is possible the dollar will slowly lose its ‘reserve currency’ status.

This would hurt US living standards and lead to less power for the US government, similar to the weakening of the UK after World War II. All empires in history have failed, and the US will not likely be an exception – if the BRICS can create a successful hard currency to compete with the dollar.”

The investor, who founded investment research service Bull And Bear Profits, says that BRICS nations still have a big hill to climb if they’re serious about competing with the greenback.

According to Wolfenbarger, the BRICS can forget about taking the USD’s hegemony if it plans on creating another fiat currency that is created out of thin air.

“The US has the largest and safest government bond market, no capital controls, and a reputation for enforcing the rule of law. By contrast, the BRICS countries are hardly known for respecting laws or having strong currencies.

Perhaps more importantly, non-US entities have $12 trillion of US dollar-denominated debt that they need to pay back with dollars, so abandoning the dollar would be incredibly difficult and costly.”

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BRICS Nations Buying Gold

A group of economically-aligned nations are purchasing massive amounts of gold as they prepare to end their reliance on the U.S. dollar.

According to a new report from U.S. Global Investors, the nations known collectively as BRICS are piling into the precious metal and will continue to be “huge buyers” of gold for the foreseeable future.


The firm’s CEO and chief investment officer, Frank Holmes, says the mass accumulation of gold led by China aligns with the theory that the world is on a long-term path to economic bifurcation.

“If you look back at the list of net buyers [of gold], you’ll notice that three are members of the BRICS (Brazil, Russia, India, China and South Africa) countries. I point this out because, as I’ve been sharing with you for a couple of weeks now, we may be seeing the emergence of a multipolar world, with a U.S.-centric world on one side and a China-centric world on the other.

For the first time ever, BRICS countries’ share of the global economy has surpassed that of the G7 nations (Canada, France, Germany, Italy, Japan, the U.K. and U.S.), on a purchasing parity basis.”

According to a report from World Gold Council, China has added 102 tons of gold to its stockpiles since the start of the year.

And gold is the key to this potential multipolar economic future, says Holmes, as it will likely be used to back the creation of a new currency that does not utilize USD.

“The BRICS need the precious metal to support their currencies and shift away from the U.S. dollar, which has served as the global foreign reserve currency for about a century.

More and more global trade is now being conducted in the Chinese yuan, and there are reports that the BRICS—which could eventually include other important emerging economies such as Saudi Arabia, Iran and more—are developing their own medium for payments.”

BRICS nations are reportedly in the early stages of designing a new currency that aims to end global dependence on the dollar.

It remains to be seen just how effective their efforts will be, with early critics like billionaire Chamath Palihapitiya stating the China will never effectively de-dollarize as long as the yuan remains pegged to the dollar.

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US Dollar Abandoned

As the BRICS nations have made their opinion on the currency known, more countries are moving away from the US dollar as a reserve currency. Moreover, the collective has recently expressed its desire to diminish the prevalence of the greenback within international trade.

Now, various figures are speaking out on both sides of the development. Specifically, Donald Trump took to his social media platform, Truth Social, to comment on the matter. Stating that the potential unseating of the US dollar’s dominance would be the “biggest defeat for our country in its history.”

As the BRICS nations have made their opinion on the currency known, more countries are moving away from the US dollar as a reserve currency. Moreover, the collective has recently expressed its desire to diminish the prevalence of the greenback within international trade.

Now, various figures are speaking out on both sides of the development. Specifically, Donald Trump took to his social media platform, Truth Social, to comment on the matter. Stating that the potential unseating of the US dollar’s dominance would be the “biggest defeat for our country in its history.”

Now, amidst these actions from the BRICS nations, more countries are moving away from the US dollar as a reserve currency. Importantly, the American currency is threatened by the rising prominence of China as an economic juggernaut. READ MORE...

BRICS Consider Exxpansion

(Bloomberg) -- The BRICS group of nations plans to decide this year whether to admit new members and what criteria they would have to meet, with Iran and Saudi Arabia among those who’ve formally asked to join, according to South Africa’s ambassador to the bloc.

Enlarging the group that includes Brazil, Russia, India, China and South Africa would benefit Beijing, as the world’s second-biggest economy tries to build diplomatic clout to counter the dominance of developed nations in the United Nations, International Monetary Fund, World Bank and other institutions.

China initiated the conversation about expansion when it was chair last year, triggering concern among other members that their influence will be diluted, especially if Beijing’s close allies are admitted. China’s gross domestic product is more than twice the size of all four other BRICS members combined.

The proposal to expand BRICS will be one of the economic bloc’s main focuses this year, said Ambassador Anil Sooklal. South Africa is the group’s current chair.

“There are over a dozen countries that have knocked on the door,” Sooklal said in an interview in Johannesburg last week. “We are quite advanced at looking at a further group of new members.”

Vote Imbalance
The potential repositioning of BRICS comes as developed nations in Europe and North America seek to bolster alliances to push back against the influence of an increasingly dominant and assertive China by forming new blocs and signing trade and security pacts. The so-called Quad, an alliance between the US, Japan, India and Australia, has gained in prominence since being resurrected in 2017 after standing dormant for almost a decade. And in 2021, Australia, the UK and the US entered into a security alliance known as AUKUS.

We are living in “the world between orders. We don’t know what the new order is going to be,” Sooklal said. “We believe we need to play a role in ensuring that we have a more equitable, inclusive, transparent, global architecture.”  READ MORE...