BRICS and what that means for all of us
Before we dive into what’s going on, we need to talk about what BRICS is. In short, it’s an acronym that stands for the 5 emerging large economies in the world. The keyword is emerging. Brazil, Russia, India, China, and South Africa.
First Coined as BRIC in 2001, these economies were predicted by Goldman Sachs to collectively dominate the world economy by 2050. That may occur sooner than that, but we will get into that here in just a minute. In 2010 South Africa was added thus creating the term we know today.
While this group hasn’t really posed much of a threat to the US economy or the global norm, 2022 changed all of that. Specifically when one of its members, Russia, invaded Ukraine. We all know the massive global sanctions that quickly fell on Russia with the goal of economically punishing, if not crippling, them. The ruble took a brief hit and then Russia did something no one expected. After being cut off from the global economy and the Swiss system, Russia dumped the US Dollar and brought its ruble back up under the gold standard.
What makes this a big deal, is that in the short term, it saved their economy under sanctions, at least for the short term, but what makes it an even bigger deal is that one of the goals of BRICS is to move away from the US Petrodollar and uproot it as the world reserve currency. And then they created the NDB…
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