This is something USD bulls fail to grasp. They just revert back to images of aircraft carriers and bald eagles as if that’s going to save them.
BRICS have the edge on every important geopolitical angle from demographics and population to commodities to energy to manufacturing, and everything in between.
These things move slow but they’re already decades in the making. Western hegemony is going away, prepare accordingly.
Absolutely. Despite the USD being utilised for ~90% of all trade, currently. I still forsee the arrogance of those who ignore these growing statistics of dedollarisation getting the better of them in the long run.
Don’t have it handy but USD share of global reserve has dropped from 71% 20 years ago to around 49% now.
Yes it’s still highly used for trade but that’s for lack of competition (and competition has largely been met with invasion - see Saddam and Gaddafi), if BRICS go ahead with a currency I expect this gradually will become more suddenly and the USD will drop back to something more akin to its share of global GDP within a decade.
Something I haven’t seen Balaji or Brent Johnstone or anyone who looks at this stuff really talk about is what this divide would look like. I’m a nobody but I’ve played it out and anticipate the *effective* annexure of Western economies to the dollar by the US.
They’ll gin up wars whilst they’re still strong and drag their allies in whether they like it or not (like they did to Europe by blowing up Nordstream) - the US would rather rule over 1/3 the earth than compete head-to-head in multipolarity and god knows their currency can’t compete on equal terms if hard money comes to the fore so they’ll lean on their “friends” whose economies are screwed anyway.
For our lifetimes, The West was always the safest and best place to be; whilst it is still true today, I don’t believe that will hold true for much longer.
