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Expanded BRICS Set To De-Dollarize The World, Control Global Energy Supply

Expanded BRICS Set To De-Dollarize The World, Control Global Energy Supply

Authored by Darren Taylor via The Epoch Times (emphasis ours),

“The…

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Expanded BRICS Set To De-Dollarize The World, Control Global Energy Supply

Authored by Darren Taylor via The Epoch Times (emphasis ours),

“The expansion of BRICS has made it clear that the de-dollarization of the international finance system is inevitable.” 

This view, from economist William Gumede—who’s also executive chairperson of the Democracy Works Foundation in South Africa—has been echoed around the world since BRICS leaders announced the expansion of the bloc on Aug. 24 at a summit in Johannesburg.  

A large screen shows a news programme featuring Chinese leader Xi Jinping speaking via video at the opening of the virtual BRICS Summit being hosted by India, on a street in Beijing on Sept. 10, 2021. (Greg Baker/AFP via Getty Images)

Current BRICS members are Brazil, Russia, India, China and South Africa.

In January, BRICS—originally established in 2009 to represent the world’s strongest emerging market economies—will add Argentina, Egypt, Ethiopia, Iran, Saudi Arabia and the United Arab Emirates (UAE) to its ranks.  

Mr. Gumede, one of South Africa’s leading academics and thought-leaders, has been researching the potential impacts of de-dollarization since 2014. 

He told The Epoch Times the average per capita GDP of the G7 economies was currently six times that of BRICS economies. But, the unexpectedly swift expansion of BRICS would increase the trade bloc’s share of the global economy much faster than earlier predictions. 

“These forecasts did not take into account that BRICS would expand its membership very quickly. A larger BRICS will mean the world will increasingly use U.S. dollars less,” he said. 

Mr. Gumede said the bigger BRICS alliance would eventually rival the Group of Seven (G7) large industrial economies of the United States, European Union, United Kingdom, France, Japan, Italy, and Canada, which together are home to 16 percent of the world’s population and account for 62 percent of the global economy. 

Welcoming the new members in Johannesburg last week, Brazil’s President Lula da Silva said their addition would mean BRICS would represent 46 percent of the global population and 37 percent of the world GDP. 

The expansion means BRICS now consists of some of the globe’s largest oil producers: Russia, Saudi Arabia, UAE, and Egypt. Nigeria, another major oil exporter, is set to join when the bloc gets even bigger, probably at its next summit in Russia in 2024.  

“BRICS is going to dominate the world’s energy supply,” said Mr. Gumede. “The strength of the U.S. dollar is also partially based on the currency as underpinning oil trade—the so-called petrodollar—and members of OPEC (Organisation of the Petroleum Exporting Countries) settle their accounts in U.S. dollars.

"Therefore, enlarging BRICS to also include the oil producers and persuading them to use a new BRICS currency, rather than the U.S. dollar, to settle their accounts, will be a game-changer. It is likely to accelerate the de-dollarization of the world.”

Jakkie Cilliers, Head of the African Futures and Innovation program at the Institute for Security Studies in Pretoria, attributed the unexpectedly rapid expansion of BRICS, and its moves towards de-dollarization, to Russia’s invasion of Ukraine and its consequences.  

“BRICS has seen the West hit Russia with all kinds of financial sanctions, and threaten sanctions against South Africa for supposedly supporting Russia, and as a result it wants to end, or at least ease, its dependence on the dollar,” he told The Epoch Times. 

“De-dollarization, first mooted by [Russian President Vladimir] Putin, is a potent symbol of a shift away from a Western-led global order towards a new era of more uncertain and fluid multipolar connections. Change is in the air, and the next three decades will see the steady unfolding of this trend.” 

Mr. Cilliers said BRICS was “cloaking itself in resentment” against the West. 

“It’s quite easy for Russia and China to take advantage of the ill-feeling that still exists across much of the developing world because of colonialism, imperialism and sanctions by leading Western countries.

"Never mind the fact that Russia and China show similar imperialistic tendencies,” he commented. 

He said the Global South was “particularly unhappy” with international finance institutions, and with the U.S. Federal Reserve Bank. 

“When the Fed hikes interest rates, it sometimes sends smaller economies into turmoil. They’re subjected to shocks for no domestic reason. So they see the dollar as providing the United States with a very powerful weapon to use in its interests,” said Mr. Cilliers. 

“This is what unites BRICS in its desire to move away from the dollar-backed international financial system.” 

But, he added, de-dollarization was going to be a slow process. 

“Trade among BRICS countries is too small to sustain a common currency, and it only makes sense to trade in national currencies if the trade balance between the countries is more or less equal, which it most definitely is not likely to be in the near future,” said Mr. Cilliers. 

Mr. Gumede pointed to a recent example of Russia selling a lot of oil to India. 

“They dealt in rupees. But because India exports much less to Russia than it imports, Moscow now sits with rupees it cannot spend or convert, except to buy goods from India.” 

Mr. Cilliers said China’s renminbi also wasn’t sufficiently convertible and lacked deep capital markets, market transparency, independent central banks and supporting financial institutions of Western banks. 

He said there were also “perceptions of risk” associated with China’s future. 

“It is, after all, a repressive autocracy. It’ll battle to maintain stability in the face of slower economic growth. I’d also be very surprised if India supported a common BRICS currency, given its concerns about China as a regional and potential global competitor.” 

Mr. Gumede added: “The euro, a common currency, is stable because it’s underpinned by stable political regimes in a stable part of the world. Wherever you look in BRICS, there’s instability, like in Russia because of the Ukraine war. What would happen to the BRICS currency if China invades Taiwan?” 

Mr. Cilliers predicted that rather than a single alternative to the dollar, “new currency blocs” would emerge. 

“These will be based on bilateral and multilateral trade among the Middle East and China, South America, West Africa and elsewhere. And so we’ll see the power of the dollar slowly wane,” he said. 

Mr. Cilliers said the most important shift in the power of the greenback would happen once oil and gas prices were no longer set in U.S. dollars. 

“This is probably the motivation behind the inclusion of Saudi Arabia and the UAE in the expanded BRICS,” he postulated. 

Mr. Gumede said demand for U.S. dollars would remain high as long as U.S. GDP was close to 25 percent of the global economy.

He said President Putin—supported by China’s leader Xi Jinping—was pushing so hard for de-dollarization “because it’s key to the economic survival of Russia” following Western sanctions. 

The West froze $300 billion of Russia’s foreign trade reserves after it invaded Ukraine in February 2022 and its foreign trade transactions, including those with some emerging markets, have been blocked. 

Seven of Russia’s banks have been excluded from the world’s leading international payment messaging system, SWIFT. The ban means Russian banks cannot do digital cross-border transactions.

However, Russian banks doing transactions connected to oil and gas are exempt from the SWIFT ban, and this is preventing the Russian economy from collapsing, said Mr. Gumede. 

Russia is the world’s third-largest oil producer, but its the largest exporter of oil.

“BRICS countries have been buying oil and gas from Moscow, insulating Russia against isolation by the United States and the EU,” Mr. Gumede explained. 

For example, Indian imports of Russian oil in May 2023 reached record levels of about 1.95 million barrels per day.

According to the International Energy Agency, China and India bought 80 percent of Russia’s oil in May 2023, with China buying 2.2 million barrels per day.

Leslie Maasdorp, Chief Financial Officer of the BRICS financial mechanism, the New Development Bank, told The Epoch Times BRICS countries were prepared to conduct business with one another in domestic currencies. 

But, he added, they were not yet ready to issue a common currency that could challenge the dollar. 

“The creation of a global alternative currency to the dollar is a medium-to-long-term ambition, rather than an immediate possibility,” said Maasdorp.

“Even the Chinese renminbi is very far from becoming a global reserve currency.” 

Mr. Cilliers said it was also likely that intensifying rivalry between China and India would slow de-dollarization. 

“India has already said it wants to focus on strengthening its own currency ahead of anything else,” he said.  

Mr. Cilliers suggested that the expansion of BRICS, now and in the future, should not be seen as an “automatic sign” that developing countries were uniting behind a “simplistic, common vision” of overthrowing the West. 

“Many people have this view that if Russia and China, in particular, snap their fingers and say, ‘de-dollarize now,’ that other BRICS countries are just going to listen to the master’s voice.

"Believe me, there is deep resentment within BRICS and within the wider Global South about Russia’s invasion of Ukraine and the harm it continues to sow in developing countries, causing inflation spikes, for example, and even grain shortages. 

“Countries’ motivations for wanting to join BRICS differ but what stays the same is that few, if any, Global South nations will exchange one hegemon with another.” 

Tyler Durden Thu, 08/31/2023 - 02:00

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United Airlines adds new flights to faraway destinations

The airline said that it has been working hard to "find hidden gem destinations."

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March 8, 2024

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Since countries started opening up after the pandemic in 2021 and 2022, airlines have been seeing demand soar not just for major global cities and popular routes but also for farther-away destinations.

Numerous reports, including a recent TripAdvisor survey of trending destinations, showed that there has been a rise in U.S. traveler interest in Asian countries such as Japan, South Korea and Vietnam as well as growing tourism traction in off-the-beaten-path European countries such as Slovenia, Estonia and Montenegro.

Related: 'No more flying for you': Travel agency sounds alarm over risk of 'carbon passports'

As a result, airlines have been looking at their networks to include more faraway destinations as well as smaller cities that are growing increasingly popular with tourists and may not be served by their competitors.

The Philippines has been popular among tourists in recent years.

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United brings back more routes, says it is committed to 'finding hidden gems'

This week, United Airlines  (UAL)  announced that it will be launching a new route from Newark Liberty International Airport (EWR) to Morocco's Marrakesh. While it is only the country's fourth-largest city, Marrakesh is a particularly popular place for tourists to seek out the sights and experiences that many associate with the country — colorful souks, gardens with ornate architecture and mosques from the Moorish period.

More Travel:

"We have consistently been ahead of the curve in finding hidden gem destinations for our customers to explore and remain committed to providing the most unique slate of travel options for their adventures abroad," United's SVP of Global Network Planning Patrick Quayle, said in a press statement.

The new route will launch on Oct. 24 and take place three times a week on a Boeing 767-300ER  (BA)  plane that is equipped with 46 Polaris business class and 22 Premium Plus seats. The plane choice was a way to reach a luxury customer customer looking to start their holiday in Marrakesh in the plane.

Along with the new Morocco route, United is also launching a flight between Houston (IAH) and Colombia's Medellín on Oct. 27 as well as a route between Tokyo and Cebu in the Philippines on July 31 — the latter is known as a "fifth freedom" flight in which the airline flies to the larger hub from the mainland U.S. and then goes on to smaller Asian city popular with tourists after some travelers get off (and others get on) in Tokyo.

United's network expansion includes new 'fifth freedom' flight

In the fall of 2023, United became the first U.S. airline to fly to the Philippines with a new Manila-San Francisco flight. It has expanded its service to Asia from different U.S. cities earlier last year. Cebu has been on its radar amid growing tourist interest in the region known for marine parks, rainforests and Spanish-style architecture.

With the summer coming up, United also announced that it plans to run its current flights to Hong Kong, Seoul, and Portugal's Porto more frequently at different points of the week and reach four weekly flights between Los Angeles and Shanghai by August 29.

"This is your normal, exciting network planning team back in action," Quayle told travel website The Points Guy of the airline's plans for the new routes.

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Walmart launches clever answer to Target’s new membership program

The retail superstore is adding a new feature to its Walmart+ plan — and customers will be happy.

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March 8, 2024

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It's just been a few days since Target  (TGT)  launched its new Target Circle 360 paid membership plan. 

The plan offers free and fast shipping on many products to customers, initially for $49 a year and then $99 after the initial promotional signup period. It promises to be a success, since many Target customers are loyal to the brand and will go out of their way to shop at one instead of at its two larger peers, Walmart and Amazon.

Related: Walmart makes a major price cut that will delight customers

And stop us if this sounds familiar: Target will rely on its more than 2,000 stores to act as fulfillment hubs. 

This model is a proven winner; Walmart also uses its more than 4,600 stores as fulfillment and shipping locations to get orders to customers as soon as possible.

Sometimes, this means shipping goods from the nearest warehouse. But if a desired product is in-store and closer to a customer, it reduces miles on the road and delivery time. It's a kind of logistical magic that makes any efficiency lover's (or retail nerd's) heart go pitter patter. 

Walmart rolls out answer to Target's new membership tier

Walmart has certainly had more time than Target to develop and work out the kinks in Walmart+. It first launched the paid membership in 2020 during the height of the pandemic, when many shoppers sheltered at home but still required many staples they might ordinarily pick up at a Walmart, like cleaning supplies, personal-care products, pantry goods and, of course, toilet paper. 

It also undercut Amazon  (AMZN)  Prime, which costs customers $139 a year for free and fast shipping (plus several other benefits including access to its streaming service, Amazon Prime Video). 

Walmart+ costs $98 a year, which also gets you free and speedy delivery, plus access to a Paramount+ streaming subscription, fuel savings, and more. 

An employee at a Merida, Mexico, Walmart. (Photo by Jeffrey Greenberg/Universal Images Group via Getty Images)

Jeff Greenberg/Getty Images

If that's not enough to tempt you, however, Walmart+ just added a new benefit to its membership program, ostensibly to compete directly with something Target now has: ultrafast delivery. 

Target Circle 360 particularly attracts customers with free same-day delivery for select orders over $35 and as little as one-hour delivery on select items. Target executes this through its Shipt subsidiary.

We've seen this lightning-fast delivery speed only in snippets from Amazon, the king of delivery efficiency. Who better to take on Target, though, than Walmart, which is using a similar store-as-fulfillment-center model? 

"Walmart is stepping up to save our customers even more time with our latest delivery offering: Express On-Demand Early Morning Delivery," Walmart said in a statement, just a day after Target Circle 360 launched. "Starting at 6 a.m., earlier than ever before, customers can enjoy the convenience of On-Demand delivery."

Walmart  (WMT)  clearly sees consumers' desire for near-instant delivery, which obviously saves time and trips to the store. Rather than waiting a day for your order to show up, it might be on your doorstep when you wake up. 

Consumers also tend to spend more money when they shop online, and they remain stickier as paying annual members. So, to a growing number of retail giants, almost instant gratification like this seems like something worth striving for.

Related: Veteran fund manager picks favorite stocks for 2024

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President Biden Delivers The “Darkest, Most Un-American Speech Given By A President”

President Biden Delivers The "Darkest, Most Un-American Speech Given By A President"

Having successfully raged, ranted, lied, and yelled through…

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March 8, 2024

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President Biden Delivers The "Darkest, Most Un-American Speech Given By A President"

Having successfully raged, ranted, lied, and yelled through the State of The Union, President Biden can go back to his crypt now.

Whatever 'they' gave Biden, every American man, woman, and the other should be allowed to take it - though it seems the cocktail brings out 'dark Brandon'?

Tl;dw: Biden's Speech tonight ...

  • Fund Ukraine.

  • Trump is threat to democracy and America itself.

  • Abortion is good.

  • American Economy is stronger than ever.

  • Inflation wasn't Biden's fault.

  • Illegals are Americans too.

  • Republicans are responsible for the border crisis.

  • Trump is bad.

  • Biden stands with trans-children.

  • J6 was the worst insurrection since the Civil War.

(h/t @TCDMS99)

Tucker Carlson's response sums it all up perfectly:

"that was possibly the darkest, most un-American speech given by an American president. It wasn't a speech, it was a rant..."

Carlson continued: "The true measure of a nation's greatness lies within its capacity to control borders, yet Bid refuses to do it."

"In a fair election, Joe Biden cannot win"

And concluded:

“There was not a meaningful word for the entire duration about the things that actually matter to people who live here.”

Victor Davis Hanson added some excellent color, but this was probably the best line on Biden:

"he doesn't care... he lives in an alternative reality."

*  *  *

Watch SOTU Live here...

*   *   *

Mises' Connor O'Keeffe, warns: "Be on the Lookout for These Lies in Biden's State of the Union Address." 

On Thursday evening, President Joe Biden is set to give his third State of the Union address. The political press has been buzzing with speculation over what the president will say. That speculation, however, is focused more on how Biden will perform, and which issues he will prioritize. Much of the speech is expected to be familiar.

The story Biden will tell about what he has done as president and where the country finds itself as a result will be the same dishonest story he's been telling since at least the summer.

He'll cite government statistics to say the economy is growing, unemployment is low, and inflation is down.

Something that has been frustrating Biden, his team, and his allies in the media is that the American people do not feel as economically well off as the official data says they are. Despite what the White House and establishment-friendly journalists say, the problem lies with the data, not the American people's ability to perceive their own well-being.

As I wrote back in January, the reason for the discrepancy is the lack of distinction made between private economic activity and government spending in the most frequently cited economic indicators. There is an important difference between the two:

  • Government, unlike any other entity in the economy, can simply take money and resources from others to spend on things and hire people. Whether or not the spending brings people value is irrelevant

  • It's the private sector that's responsible for producing goods and services that actually meet people's needs and wants. So, the private components of the economy have the most significant effect on people's economic well-being.

Recently, government spending and hiring has accounted for a larger than normal share of both economic activity and employment. This means the government is propping up these traditional measures, making the economy appear better than it actually is. Also, many of the jobs Biden and his allies take credit for creating will quickly go away once it becomes clear that consumers don't actually want whatever the government encouraged these companies to produce.

On top of all that, the administration is dealing with the consequences of their chosen inflation rhetoric.

Since its peak in the summer of 2022, the president's team has talked about inflation "coming back down," which can easily give the impression that it's prices that will eventually come back down.

But that's not what that phrase means. It would be more honest to say that price increases are slowing down.

Americans are finally waking up to the fact that the cost of living will not return to prepandemic levels, and they're not happy about it.

The president has made some clumsy attempts at damage control, such as a Super Bowl Sunday video attacking food companies for "shrinkflation"—selling smaller portions at the same price instead of simply raising prices.

In his speech Thursday, Biden is expected to play up his desire to crack down on the "corporate greed" he's blaming for high prices.

In the name of "bringing down costs for Americans," the administration wants to implement targeted price ceilings - something anyone who has taken even a single economics class could tell you does more harm than good. Biden would never place the blame for the dramatic price increases we've experienced during his term where it actually belongs—on all the government spending that he and President Donald Trump oversaw during the pandemic, funded by the creation of $6 trillion out of thin air - because that kind of spending is precisely what he hopes to kick back up in a second term.

If reelected, the president wants to "revive" parts of his so-called Build Back Better agenda, which he tried and failed to pass in his first year. That would bring a significant expansion of domestic spending. And Biden remains committed to the idea that Americans must be forced to continue funding the war in Ukraine. That's another topic Biden is expected to highlight in the State of the Union, likely accompanied by the lie that Ukraine spending is good for the American economy. It isn't.

It's not possible to predict all the ways President Biden will exaggerate, mislead, and outright lie in his speech on Thursday. But we can be sure of two things. The "state of the Union" is not as strong as Biden will say it is. And his policy ambitions risk making it much worse.

*  *  *

The American people will be tuning in on their smartphones, laptops, and televisions on Thursday evening to see if 'sloppy joe' 81-year-old President Joe Biden can coherently put together more than two sentences (even with a teleprompter) as he gives his third State of the Union in front of a divided Congress. 

President Biden will speak on various topics to convince voters why he shouldn't be sent to a retirement home.

According to CNN sources, here are some of the topics Biden will discuss tonight:

  • Economic issues: Biden and his team have been drafting a speech heavy on economic populism, aides said, with calls for higher taxes on corporations and the wealthy – an attempt to draw a sharp contrast with Republicans and their likely presidential nominee, Donald Trump.

  • Health care expenses: Biden will also push for lowering health care costs and discuss his efforts to go after drug manufacturers to lower the cost of prescription medications — all issues his advisers believe can help buoy what have been sagging economic approval ratings.

  • Israel's war with Hamas: Also looming large over Biden's primetime address is the ongoing Israel-Hamas war, which has consumed much of the president's time and attention over the past few months. The president's top national security advisers have been working around the clock to try to finalize a ceasefire-hostages release deal by Ramadan, the Muslim holy month that begins next week.

  • An argument for reelection: Aides view Thursday's speech as a critical opportunity for the president to tout his accomplishments in office and lay out his plans for another four years in the nation's top job. Even though viewership has declined over the years, the yearly speech reliably draws tens of millions of households.

Sources provided more color on Biden's SOTU address: 

The speech is expected to be heavy on economic populism. The president will talk about raising taxes on corporations and the wealthy. He'll highlight efforts to cut costs for the American people, including pushing Congress to help make prescription drugs more affordable.

Biden will talk about the need to preserve democracy and freedom, a cornerstone of his re-election bid. That includes protecting and bolstering reproductive rights, an issue Democrats believe will energize voters in November. Biden is also expected to promote his unity agenda, a key feature of each of his addresses to Congress while in office.

Biden is also expected to give remarks on border security while the invasion of illegals has become one of the most heated topics among American voters. A majority of voters are frustrated with radical progressives in the White House facilitating the illegal migrant invasion. 

It is probable that the president will attribute the failure of the Senate border bill to the Republicans, a claim many voters view as unfounded. This is because the White House has the option to issue an executive order to restore border security, yet opts not to do so

Maybe this is why? 

While Biden addresses the nation, the Biden administration will be armed with a social media team to pump propaganda to at least 100 million Americans. 

"The White House hosted about 70 creators, digital publishers, and influencers across three separate events" on Wednesday and Thursday, a White House official told CNN. 

Not a very capable social media team... 

The administration's move to ramp up social media operations comes as users on X are mostly free from government censorship with Elon Musk at the helm. This infuriates Democrats, who can no longer censor their political enemies on X. 

Meanwhile, Democratic lawmakers tell Axios that the president's SOTU performance will be critical as he tries to dispel voter concerns about his elderly age. The address reached as many as 27 million people in 2023. 

"We are all nervous," said one House Democrat, citing concerns about the president's "ability to speak without blowing things."

The SOTU address comes as Biden's polling data is in the dumps. 

BetOnline has created several money-making opportunities for gamblers tonight, such as betting on what word Biden mentions the most. 

As well as...

We will update you when Tucker Carlson's live feed of SOTU is published. 

Tyler Durden Fri, 03/08/2024 - 07:44

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