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1 Less BRIC In The Wall (apologies to Pink Floyd)
GoldFinger1969
Posts: 3,543 ✭✭✭✭✭
Russia has effectively abandoned attempts to replace the dollar with China’s yuan under the pressure of US secondary sanctions, underlining the difficulties facing other nations looking for an alternative global currency....
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linky with no paywall
ironic - weaponization of the dollar (sanctions) is why BRICS seeks alternative payment systems. US used economic sanctions to force Russia out of the BRICS movement. BRICS continues to pursue limited local-currency trade settlements and alternative payment systems. This move likely reinforces BRICS to advance their need to abandon dollars. Look for Russia to ramp up their indepence to the dollar in creative ways.
Central banks understand if more that reserves held in dollars are only as secure as a country’s relationship with Washington.
Governments can print currency. Only the people can print faith in it — and they’re running low on ink.
Russia is ruled by criminal outlaws and thugs. Most countries are not.
BRICs was never going to work, this is just the nail in the coffin.
All countries are ruled by criminal outlaws and thugs. Some just make a better "show" of it. You're quite naive if you don't believe the US has its own oligarchs pulling economic and political strings. The difference is that capitalism conditions us to look up to them.
Governments can print currency. Only the people can print faith in it — and they’re running low on ink.
Yes Russia has made some bad decisions lately. Too bad no way to throw the bums out.
Lots of "Presidents for life" in the BRICS gang.
Should any country base their decisions on what another country wants. Isn't that a primary reason we are in a new war?
I suspect Russia does what is best for Russia and that is why it gets punished with sanctions by another country for wanting to break free of that other country's control of what currency it uses for international trade. Why should country "A" be required to use the currency of country "B" in its trade with country "C"? The US has proven that it can and will use the dollar as a weapon for world-wide economic and political control. Need of it and enforcement through sanctions is what keeps the dollar afloat. The whole idea behind a BRICS is to break free of independency on a currency that can be used to threaten sanctions if one does not fall in line with what the US wants. BRICS has succeeded in doing so until now. US is using Russia (via threat of more sanctions) to put BRICS on notice. While this a good thing for those who depend on the dollar's strength (purchasing power) it is not a good thing for countries who seek their own independence on economic and political matters. Do we not hold PMs because we believe the US is losing control of the value of our dollars? Sanctions give the US more time to keep kicking the can.
Governments can print currency. Only the people can print faith in it — and they’re running low on ink.