馃挶馃捀 BRICS+ COIN: TOWARDS MULTIPOLARITY 馃捀馃挶

馃挶馃捀 BRICS+ COIN: TOWARDS MULTIPOLARITY 馃捀馃挶

Currently [June, 2024], the members of BRICS+ are: Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Iran, Saudi Arabia and United Arab Emirates. At least, the major ones (Russia, China and India) want to stand up to the US dollar. The USA has lost the hegemony and the credibility in the International System thanks to its discretional sanctions and its unidirectional policy in the Middle East for decades.

BRICS+ does not want to completely replace the US dollar, but rather a strong alternative that competes with the US dollar for diversification reasons. The cons to this might be:
- Asymmetric economies with underdeveloped debt and capital markets
- Lack of trust in their political institutions: many of them are autocracies
- Social inequality and existence of ethnic problems that could destabilize regions

In other hand, there are some pros to consider:
- They have many commodities for industrial and technological purposes
- They have the concentration of younger people, labor and potential consumer market
- Some countries are focused its economy on STEM [Science, Technology, Engineering and Mathematics] approach for getting advanced industries

Due to above, China has accumulated gold to leverage the project. The message is to try to give solidity to its currency because it could be another Fiat one (where the cons would be more important), or give a backup with real assets (where the pros will be more important).

In that sense, the graph shows a hypothetical distribution of the 5 main commodities that could be the strong side of these countries: gold, natural gas, copper, rare earths and oil. This is just an imaginary exercise of what could be strategic assets in the future.

It is important to note that its scientific, technical and industrial advances could be more important than just commodities. However, real assets will be predominant because the West is drunk on public spending and trying to reduce the influence of the BRICS (by making their currencies more inefficient).

The best analysis is yours!

J. Joel Padilla




Copyright: Joel Padilla 2024

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