Opinion by Mathew Carr
Aug. 20-24, 2023. The world could become a more peaceful and financially successful place if an enlarged BRICS country grouping also counterbalances the OECD “led” by the US.
Whether this means a new financial order is not clear, yet we should know more in a week after BRICS countries (and the G77) meet in South Africa. That summit is now winding up.
Did the BRICS pull it off? It seems so, to some extent.
I’ve not seen details of any new global alternative currency, yet that idea has legs because it forces the US to be more collaborative. (One possibility is pegging the currency to gold.)
On any new currency, let’s make it mathematical so it attracts less political heat. Let’s call it the #antiUSD and the #BRICS could cleverly invite all currencies to become involved on a voluntary basis (like the Paris climate deal). It could have a more collaborative name, too.
The #AUSD? The BRICS rupee-yuan?
This could include the euro and ruble and the least popular African currency. All of it. Truly global and truly international.
A mathematical currency or index where weightings change with GDP or share of global trade or something (I’m not being prescriptive). It could be a little bit crypto, backed by all reserve banks except the Fed.
This is just an idea, but my sense is America won’t change unless more pressure is put on the USD.
Reuters story on currency, Thursday:
Some argue competition between India and China might thwart more BRICS collaboration. I’m not so sure because so much is at stake. Ten meters of sea-level rise, anyone, by 2300? Collapsing ecosystems? Massive food inflation? (Correct, see notes)
The world we are getting?:
An enlarged BRICS grouping might be big enough to stand up to corporate America and encourage a better form of global capitalism that respects national sovereignty … and protects all voters (not just rich ones) and future generations, specifically.
It does not have to be bad for America or China — yet I do expect fireworks.
See these snips on social media last weekend.
Even moderate presidential candidates in the US don’t seem to see the perversity of surrounding China with weapons then saying the US will never accept a China military base in Cuba (see snip above).
Yes, this is about Taiwan and its important computer chips, too — and the prospect of more war.
If the world is lucky and clever — and less warmongering — the formation of these two blocks could result in a framework for global cooperation that’s not only more truly international, but one that prompts sustainability in terms of climate and nature and encourages more equality between rich and poor people, wherever they live.
Who wants to join?
As you can see from the above the expansion was planned. Weirdly, Reuters said it was a surprise.
Separate story: https://apple.news/ApsLVrBU-RhiznNAGANPWsw
WSJ, Aug 20:
WSJ: Russian President Vladimir Putin was originally slated to attend, but a warrant for his arrest by the International Criminal Court for alleged war crimes in Ukraine would have obliged South Africa, an ICC member, to arrest him had he shown up. Russian Foreign Minister Sergei Lavrov will attend instead. Putin is expected to address the summit virtually.
To expand ….or not?
(I toned down my exaggerated 70 meter sea level rise. To 10 meters potentially by 2300. Depends who you ask. More to come.)