BRICS TAKING OVER!? A New Global Reserve Currency!?

Recently the bricks countries met in South Africa for their annual Summit Some expected them to unveil a new Reserve currency backed by Commodities Primarily gold fortunately or Unfortunately this didn't happen however The bricks did unveil something arguably Much bigger when they invited six very Important countries to join the Coalition this is in addition to the Dozen other countries that have applied To join the bricks So today we're going To tell you everything you need to know About the bricks Alliance including how It came to be why it's more powerful Than people think and how it could Challenge the US dollar with crypto in The next Decade let's start with a bit of Background bricks is an acronym for Brazil Russia India China and South Africa the term was coined in 2001 by Jim O'Neal the former chairman of Goldman Sax's as Asset Management Division back then the acronym was brick South Africa wasn't part of the original Lineup naturally Jim was interested in The brick countries because he believed That they would be the fastest growing Economies of the coming decades and Become the largest economies by 2050 Jim Believed this would be due to their low Labor costs rapidly growing populations And abundance of Natural Resources today

This prediction seems crazy to many but Back then it made perfect sense to most For context many of these countries had Started joining us Affiliated Organizations at the time notably China Joining the World Trade Organization the Commodity markets were also booming Remember that for later now in a 2012 Interview Jim revealed that the Performance of The Bricks countries had Exceeded his Expectations by then it was The bricks because South Africa had Joined in 2010 Jim had predicted that The bricks would account for 14% of Global GDP by 2010 they ended up Accounting for over 18% by that point Goldman Sachs had Introduced a brics investment fund which Had accumulated almost $1 billion in Assets under management which was a lot Back in those days in all seriousness All of Wall Street was insanely bullish On the bricks but this sentiment had Turned bearish by 2014 now this shift in sentiment seems To have been due to two factors the First was that Z Jinping became the President of China in 2013 Z immediately Began embarking on various initiatives That were more in the interests of China And less in the interests of the United States such as the belt and Road Initiative if you watched our video About the man who predicted everything

You'll know that the belt and Road Initiative marked the end of the So-called age of debt wherein the West Had benefited from Eastern countries Purchasing its debt instead of buying Western debt China started building Global infrastructure it's possible if Not likely that Wall Street giants like Goldman Sachs were put under pressure by The US government to stop investing as Heavily in the bricks because of China Going rogue now the other factor that Caused Wall Street sentiment on the Bricks to flip was that commodity prices Collapsed in 2014 primarily oil this was Caused by an oversupply of oil coming From the United States us oil producers Had discovered new reserves in Texas a Few years earlier if you watched our Recent video about Nigeria you'll know That the country's economy got Absolutely decimated by the subsequent Decline in oil prices the same was true For other commodity Reliant economies in The global South by 2015 the bricks Narrative was all but dead and all the Bricks related funds on Wall Street had Closed or Consolidated in a recent interview about The most recent brics conference Jim Revealed that China was the only brics Country that had continued to grow According to his expectations Jim said That the growth in the other brics

Countries was disappointing and said the Same about brics's Evolution as an Organization in retrospect he said it Made no sense that South Africa was Added and that it made no sense that all The countries under consideration by the Bricks also had weak Economies but that is just the US side Of the story the brics side of the story Sounds very different and what it Suggests about the brics economies and Their evolution is a lot more nuanced For starters the brics technically isn't An official organization it doesn't even Have an official website or social media The current website for The Bricks seems To be run by Russians and that's not a Coincidence Russia was the one which Turned the acronym into an actual thing Driven by President Vladimir Putin at a Un meeting in 2006 the foreign Ministers Of the brics countries gathered for Their first informal meeting however it Wasn't until 2009 that the brics Countries held their first formal Meeting in Russia this this is Interesting because it's possible if not Likely that the 2008 financial crisis Was the Catalyst that brought the bricks Together for reference it's believed That 2008 shook Global confidence in the Us-led system now 2012 is when things Started to get truly interesting for the Bricks the countries collectively

Pledged to give 75 billion to the International monetary fund or IMF in Exchange for reforms If you've watched any of our videos About the IMF you'll know that it's an International organization closely Affiliated with the US that gives us Doll loans to developing countries You'll also know that these loans come With conditions that are often Unfavorable hence the bricks wanting Reforms not surprisingly the bricks Didn't get these reforms the result was India proposing that the brics set up Its own versions of the IMF and the World Bank another International Organization closely affiliated with the US that issues US dollar loans to Developing countries for infrastructure Development so in 2014 brics countries Created the brics contingent Reserve Arrangement or crra and the new Development bank which is colloquially Referred to as the brics Development Bank whereas the CRA is just a framework The brics Development Bank is an Official organization headquartered in China bricks countries have an almost Equal stake in both now the framework Includes a capital contribution of 100 Billion US which is primarily meant for A payment emergency in a member country Based on our understanding the bank can Issue up to $100 billion of loans for

Infrastructure development and if you're Wondering why this is so significant That's because the IMF and the World Bank were the international Organizations that set the stage for the Us-led world order both were created at The famous Breton Woods conference in 1944 where the US dollar was established As the world's Reserve currency in the Decades that followed other International organizations closely Affiliated with the US were established Such as the UN and many countries were Coralled into these organizations by the IMF and the World Bank this was done using those Aforementioned conditions on loans Which F favor US policy now obviously the Bricks aren't in the same position that The US was in the 1940s nobody believes That the Chinese Yuan the Russian Ruble The Indian rupee nor a basket of these Currencies is going to become the World's Reserve currency you can watch Our video about the bricks currency to Find out why Link in the description now That said it's clear that the bricks Wants to compete with other us Affiliated International organizations Like the UN and it's clear that the CRA And the brics Development Bank are Precursors to this but if the brics Truly want to compete first they must Become an official organization this

Ties in to the bricks most recent Summit In South Africa the most important part Of the summit seems to have been missed And that's the fact that c was Physically in attendance as pointed out By macro analyst Western Nakamura Z has Only left the Chinese mainland Land once Since January 2020 not only that but Z Was physically in attendance at a time When the Chinese economy is reportedly On the brink of collapse this suggests That the bricks is even more important Than China 2 Z alternatively it could Mean that most of what's being said in The media is fud or fake news which is Also possible regardless Z's presence Was very important and it begs the Question of why he made the effort from Our perspective the answer seems to be That Z wanted to show the world that the Bricks is a serious thing notably to the Countries that the bricks invited to Join their Coalition the other important News now in case you missed that news The bricks invited Saudi Arabia the United Arab Emirates Iran Egypt Ethiopia And Argentina to join the Coalition if They accept the invitation all six Countries will become a part of the Bricks starting January 2024 it's not Clear if the acronym will change again At that point the QB ASAS the Abby curus Sees the ubia crisis it's not easy with All those new vs leave your suggestions

In the comments now in any case these New countries are significant for many Reasons the main one being they are all Major oil or agriculture producers in Case you're wondering Saudi the UAE Iran And Egypt are the major oil producers While Ethiopia and Argentina are the Major agricultural Nations as a fun fact Argentina is the most self-sufficient Country in the world it's estimated that It could feed its entire population with Just a fraction of its resources it's a Damn shame that hyperinflation is Ruining everything they also aren't Being helped by the IMF which recently Forced the Argentine government to curb Crypto adoption anyway Commodities aside There are other reasons why these Countries are significant in Saudi Arabia's case it's significant because Of its role in supporting the so-called Petro dollar system for those unfamiliar The Petro dollar system ensures that all Oil is bought and sold using US dollars In case it wasn't clear enough Saudi has Been trying to dollarize this is evident In its experimentation with accepting Payment for oil in other currencies Namely Chinese Yuan oddly enough every Country that's tried to move away from The US dollar has found itself in Conflict on that note Iran is Significant because it's been heavily Sanctioned by the United States due to

Its alleged involvement in Terrorist Activity Iran's admission to the bricks Could therefore cause geopolitical Issues for its other member countries And potentially be a turnoff to the Other prospective applicants speaking of Which it appears that the main reason Why the bricks hasn't become an official Organization yet is precisely because Its members are concerned about push Back from the US India is the outlier in This regard it's been the most hesitant To side with the other bricks on issues Like a new currency and yet a dozen Other countries have formally applied to Join the bricks over the last year or so This list includes Algeria Bangladesh Bellarus Bolivia Cuba Honduras Kazakhstan Kuwait Palestine Sagal Thailand Venezuela and Vietnam over a Dozen other countries have expressed Interest in joining too this might have Something to do with the fact that the Bricks is already bigger than many People think quote the five existing Bricks countries account for almost 31.5% of global GDP compared to 30.7% for the G7 Furthermore with 3.14 Billion people bricks Nations account Account for 41% of the world's Population it's believed that bricks Will establish a formal organization Once it becomes large enough and the Recent and future additions could do the

Trick in that regard if just the six Invited countries join the bricks then The block will account for almost 40% of World GDP and if the applications from The other countries are approved then it Will account for more than 50% of the World's population it could also account For most of the world's commodity Exports by that point this relates to The only missing ingredient in brics's Rise and that's commodity prices you'll Recall that one of the main reasons why Jim was bullish on the brics was because Of their abundant resources and high Commodity prices you'll also recall that The bricks narrative fell apart when Commodities crashed but the other Reasons why Jim was bullish on the Bricks haven't really changed the cost Of Labor in these countries is still Very cheap and most of their populations Continue to grow when you realize this The addition of South Africa and the Other countries makes sense all that's Missing is commodity prices well as it So happens commodity prices follow a Cycle which repeats every 20 to 30 years As you can see prices of oil agriculture Livestock and base metals are highly Correlated though they Peak and trough At slightly different times even so they Seem to follow a trend of 10 to 15 years Up and 10 to 15 years down the last Commodity cycle peaked in the early

2010s this means the next Peak could Happen as soon as the mid 2030s however commodity prices could Continue to fall until the mid 2020s the Caveat is that commodity prices are Likely to vary by type and by region With some Rising first and others Rising Later anyway technicalities aside The Brics Narrative will likely flip back to Bullish during the next commodity cycle And not just because they have lots of Natural Resources as you can see the Profits for extracting resources and Turning them into Commodities are much Higher in current and future brics Countries this is due to many factors Such as developed countries having Exhausted the most accessible resources Developed countries having higher labor Costs and fewer people and developed Countries having more regulations the Bricks countries are at the opposite end Of the spectrum for all these factors if The brics Coalition manages to add all The major commodity exporters it could Establish monopolies on the most Valuable Commodities and force countries To side with the bricks in exchange for These Commodities the same way that the US has forced countries to side with it In exchange for US Dollars now to be Clear the US and some of its allies have Lots of Natural Resources too again the Difference is that the US and select

Allies have less accessible resources Higher costs of Labor and more Regulations investors will see this Dynamic and probably take their money to The bricks for bigger profit margins at The same time us allies who are unable To secure most of their own resources Such as Europe will face extreme Pressure to buy less expensive Commodities from the bricks the Inevitable result of this is that the Bricks will have a de facto Monopoly on Commodities outside of everywhere but North America this pertains to an important Question that countries around the world Will have to ask themselves when the Next commodity cycle inevitably comes Around which do I value more the US Dollars used to buy Commodities or the Commodity themselves again the answer Will ultimately depend on geography Countries which produce most of their Commodities will likely be the first to Ditch the US dollar lo and behold most Of the bricks countries produce most of Their own Commodities and have been Actively trying to ditch the US dollar In recent years this is not a Coincidence from a commodity point of View conversely countries who import Most of their Commodities will likely Continue to value US dollars more so Long as it's commercially viable to do

So the inflation of the US dollar High Commodity prices from us allies and Geopolitical tensions with the bricks Will likely force them to side with the Bricks in the end as far as we can tell The EU will be the first to fold large European countries such as France have Already been hesitant to side with the US when it comes to China chances are That an EU country could break ranks and Join the brick bricks in the coming Years this is likely when the block will Be taken seriously again all of which Brings me to the big question and that's Where crypto could fit into this picture Well as the US dollar continues to Decline an alternative currency will Rise it's evident that the bricks want a Common currency they can use for Commodity payments in lie of the USD as I mentioned earlier it's very unlikely That any one of the bricks currencies Could play this role and even less Likely that a basket of bricks Currencies could play this role either That's simply because there will be Constant disagreement about the Composition and governance of these Currencies case in point bricks Countries apparently couldn't agree on The details of the CRA and the brics Development Bank when they were first Proposed never mind that many of the Brics countries also have significant

Geopolitical tensions between them such As China and India over disputed Territory the idea that bricks countries Could trust each other's currencies on a Large scale is quite frankly laughable And it will be downright hilarious when They start rolling out Central Bank Digital currencies or cbdcs that's Because it'll become that much easier to Control the transactions of others as We've mentioned in many videos what the Bricks countries require is a credibly Neutral currency preferably one that's Digital so that it's easy to store and Transfer across borders now as amazing As it would be to have a gold-backed Currency of some kind it would not be Very user friendly to say the least now Believe it or not but the ideal brics Currency would be bitcoin's BTC that's Because BTC is created by proof of work Mining which requires lots of Commodities for computers and the Bitcoin blockchain is secured by the Energy Commodities that computers use News flash bricks countries have most of Both this makes BTC a credibly neutral Currency that the bricks can Collectively control albeit to a much Lesser extent than a fiat currency to Make any sort of change brics countries Would have to account for most of Bitcoin's mining power and collectively Agree on changes with Bitcoin developers

And the community by contrast if the Bricks adopted a proof of stake Cryptocurrency then the us could easily Print the dollars it requires to buy up The stake it needs to maintain control Of the blockchain so long as the US Dollar retains its Supremacy it could Undermine any proof of State crypto Adopted by the bricks some would argue That proof of stake cryptos are Fundamentally a derivative of the US Dollar for this reason but that's a Topic for another time now if you think All this is just baseless Crypt bro Speculation think again the bricks have Actually been discussing using crypto For payments since at least 2017 in 201 19 bricks countries discussed creating a Unified crypto payment system with Russia proposing a unified stable coin Less than a year later what's Fascinating is that this push for the Bricks to adopt crypto seems to be Coming primarily from Russia this could Be because of Russia's outsized Development of crypto related technology Whatever the reason it seems that Russia Is more open to adopting crypto than Ever there have been multiple reports About Russia considering ing using Crypto for international trade and even Mining its own BTC for these purposes One Russian bank is apparently using Crypto for international trade already

Of course Russia's recent willingness to Adopt crypto is doubtless due to the Unprecedented sanctions imposed on it by The US and its allies after invading Ukraine last year this is a position That Iran is familiar with and probably Why Iran is also reportedly using crypto For international trade as of last Autumn come to think of it Iran joining The bricks in 2024 could be one of the Catalysts that opens the door to BTC Adoption within the block the fact that Central banks around the world will be Allowed to hold up to 2% of their Balance sheets in crypto starting 2025 Sets the stage for non- bricks countries To follow suit and then Bitcoin will be Just a few steps away from becoming the World's next Reserve currency and you Can learn more about that using the link In the Description anyway that's all for Today's video folks if you learned Something new Smash that like button to Let me know if you want to keep learning New things subscribe to the channel and Ping that notification Bell if you want To help others learn something new take A second to share this video with them If you're already accumulating the World's next Reserve currency make sure You're doing so using a trustworthy Exchange and storing your SATs on a Secure Hardware wallet and if you don't

Know where to find these well the coin Bureau deals page is the only place you Need to go it's got up to $40,000 in Discounts and airdrops on the best Crypto exchanges along with the biggest Trading fee discounts in the industry We've also got some of the best deals on The best hardware wallets too the link Of course will be down in the Description so as always thank you for Watching and I'll see you next time this Is guy over and out