What is BRICS?

brics leadersYou may have heard a term recently called “Bricks.” It is specifically relevant in the world banking system and is actually spelled BRICS. It is an acronym for Brazil, Russia, India, China and South Africa, a group of five emerging economies that are seen as having significant potential for growth and development. The term was first coined by Jim O'Neill, an economist at Goldman Sachs, in a 2001 paper titled "Building Better Global Economic BRICs," which highlighted the rapid economic growth of these countries and their potential to become major players in the global economy.

BRICS officially became a grouping in 2006, when the foreign ministers of Brazil, Russia, India, and China met on the margins of the United Nations General Assembly in New York. South Africa joined the group in 2011, and the acronym was changed to BRICS to reflect its inclusion.

The formation of BRICS was motivated by several factors, including the desire of these countries to have a greater say in the international economic and political system, which they believed was dominated by the Western powers and specifically, the United States. They also sought to increase trade and investment among themselves and to collaborate on issues such as energy, infrastructure, and technology.

From my perspective, they are not wrong. The west, and in particular the Central Banking systems around the world have controlled the world economic system by requiring oil to be traded in US Dollars and then controlling that system by weaponizing the “SWIFT” system. In simple terms, the SWIFT system is the mechanism that allows for liquidity as well as the ability other nations to participate in the world economic system through trading oil with dollars.

Recently, we saw the weaponization of the SWIFT system when they condemned Russia for their involvement in protecting their borders against the encroachment and violation of multiple peace deals with NATO. Over the years, NATO has continuously violated agreements and in essence has been “poking the bear” to incite Russia to act. This would be similar to biological weapons and military build up on the Mexico/Texas border. To believe that the USA would sit idle as a build up of such magnitude occur is delusional. For example, in the 1960’s we saw how we responded when Russia tried to put nuclear weapons in Cuba under President Kennedy.

The same thing has been happening in Ukraine at the Russian border. After years of insincere and obfuscating intentions, Putin eventually said “no more.” No more build up on our borders, no more biological weapons, no more lies and most importantly no more killing of Russians living inside Ukraine. The reaction and so called “punishment” for Putin protecting his own country and its people, was for the west and specifically the Central Banking system to “kick out” Russia from participating in the SWIFT system and boycotting Russian oil and gas.

Russia’s response was reasonable and to be expected. They accelerated the BRICS monetary system, which competes directly with the Central Banks “petro-dollar system.” They would sell their oil directly to countries for gold or the Russian Ruble, in essence blunting and nullifying the intended effect of the Central Bank. Instead of the Central Bank “sticking it to Putin,” he turned the tables and has been laughing all the way to the bank, as Russian monetary policy has been strengthened while the US system has been weakened even further.

To make matters worse for the United States and the Central Banks, when the United States proved their ineptness by their blundering withdrawal from Afghanistan, immediately Saudi Arabia negotiated with Russia to seek protection from other adversaries. In the mind of the Saudi’s, it was obvious, that under President Joe Biden, the United States could no longer be trusted, so the Saudi’s reached out to Russia and brokered a deal. Then, to add insult to injury, the Saudi’s also applied to become the sixth member of the BRICS system.

These actions are like “body blows” to our present economic system. Now, 80% of the world’s population is moving toward the new BRICS monetary system. What makes the system so intriguing is that it is a system backed by a basket of commodities and/or gold. The Central Bank system is based on NOTHING. This is why inflation is pervasive and inevitable. It is a system set up and destined to fail. We are witnessing the slow destruction of the banking system.
When asked how bankruptcy happens, Ernest Hemmingway was famously quoted saying, ‘It happened slowly, and then all at once.” That is a perfect description of our banking system. It has been happening slowly since it was founded (Illegally I could argue) in 1913. It was bolstered when President Roosevelt made it illegal to own gold in 1933 and confiscated it at $20 per ounce. The system was again protected by President Nixon in 1961 when he “temporarily” halted the conversion of dollars to gold and then again in 1974 when the US completely decoupled from gold altogether.

We now have a 100% fiat currency back by nothing at all. A currency that can be multiplied, literally by the click of a mouse. We were outraged in 2008 when congress voted to inject $800 Billion into the system to bail out bankers. The same bankers who foreclosed on our homes and then paid themselves millions of dollars in bonuses. Bonuses that we the taxpayers funded.

Then, just last week, The Federal Reserve injected $2 Trillion to bail out banks Silvergate, SVG and Credit Suisse. There is no stopping the amount of money to be created out of thin air. This is why inflation is “sticky” and will continue to get worse. This is why the BRICS coalition was formed. Fiat currency has always been the cause of financial collapse. Our founding fathers knew this, which is why it was specifically written into the Constitution that Gold and Silver must back our currency.
History is full of examples of how fiat money destroys nations. World dominating countries like Rome, Holland, Great Britain, and soon, the United States fiat monetary policy are real life examples. The US dollar’s destruction and collapse is inevitable. Not to think so is naïve.

Can we get it back? Only time will tell, but one thing is for certain, it cannot survive the way it is. The only possible way I can see for returning the dollar (and our country) to prominence is to return to a sound monetary policy that is backed by real money like gold and silver or something equivalent. For now, BRICS is a new alternative and BRICS, like competition always does, is exposing problems and capitalizing on them by improving and providing an alternative monetary system.
The five countries that make up BRICS are significant in their own right. Brazil is the largest economy in Latin America and has a diverse economy with strengths in agriculture, mining, and manufacturing. Russia is a major global power with vast natural resources, particularly oil and gas. India has the world's second-largest population and is one of the fastest-growing economies in the world, with a strong service sector and a rapidly expanding middle class. China is the world's most populous country and the second-largest economy, with a dominant manufacturing sector and a growing middle class. South Africa is the most industrialized economy in Africa and has significant mineral resources, particularly gold and platinum.

BRICS has its own development bank, the New Development Bank (NDB), which was established in 2014 to finance infrastructure and sustainable development projects in member countries and other developing countries. The bank is headquartered in Shanghai, China, and has an authorized capital of $100 billion. It has already financed a number of projects, including a renewable energy project in South Africa and a highway project in India.

BRICS has also established a number of other initiatives, including a joint business council, a think tank council, and a cultural council. The group holds annual summits, where leaders discuss issues of common interest and seek to strengthen cooperation among themselves. The most recent summit was held in Brazil in 2019.
BRICS faces a number of challenges, including divergent economic interests among its members, geopolitical tensions, and concerns about the sustainability of some of the member countries' economic models. Nevertheless, the group remains an important force in the global economy and is likely to play an increasingly influential role in shaping the international economic and political order in the coming years.

Unless the United States gets on the ball and starts to seriously address the toxic nature of our banking system, it appears to me that BRICS will be the next dominant world monetary system, leaving the USA behind like every other nation in history who failed to manage their finances properly. Buckle your seat belts, we are in for one bumpy ride ahead.
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