Originally published on Jun. 28, 2022 by TraderStef at CrushTheStreet
Vladimir Putin opined a mouthful this month at the BRICS (Brazil, Russia, India, China, and South Africa) virtual summit and the Saint Petersburg International Economic Forum (SPIEF), where he slammed the West over sanctions and called on all emerging economies to cooperate in rerouting global trade and upending the unipolar political and financial world order.
The BRICS nations represent roughly 42% of the global population, 26% of GDP, 30% of the territory, and 20% of trade. In comparison, the Group of Seven (G7 includes Canada, France, Germany, Italy, Japan, United Kingdom, and the United States) represent roughly 10% of the global population, 45% of GDP (vs. 70% three decades ago), 15% of the territory, and 26% of trade. Russia joined the G7 in 1998 and made it the G8 but was suspended indefinitely over its annexation of Crimea from Ukraine in 2014.
Combined, the BRICS crew is larger than the eurozone, and its collective power is nearly on par with the U.S. The war in Ukraine has launched our world into a process of transitioning to a bipolar state that will deepen financial bedlam and prolong supply chain difficulties, and incomprehensible failures at diplomacy are leading the world down a thorny path to WW3 (Twitter thread).
The new BRICS PLUS 186 countries mission statement aims to “create new and unique points of international interaction on the development of an environmentally oriented economy, culture, social responsibility and medicine, through interstate and intersectoral cooperation.” There are 195 countries in the world as of 2022, and 193 of them are member states of the United Nations. Here are a few quotes from Putin’s speech at the SPIEF and BRICS summit:
Previous world order won’t return… “It is a mistake to suggest that the times of turbulent changes can be waited out and that things will return to normal; that everything will be as it was. It won’t. The changes that the world is going through at the moment are fundamental, radical, and irreversible. The ruling elites of some Western countries refuse to notice this obvious shift and choose to cling to the shadows of the past… For example, they believe that the dominance of the West in global politics and economy is a constant, eternal value, but nothing is eternal. Since claiming victory in the Cold War in the early 1990s, the US has declared itself the messenger of God on Earth, who has no obligations, but only interests, and those interests are pronounced to be sacred. The idea of a unipolar world is flawed at its core, as the norms of international relations can’t always be interpreted in favor of a single nation, even if it’s a strong one… It seems as if Washington refuses to see the new centers of power that have emerged in recent decades and which have every right to ‘protect their interests and ensure their national sovereignty.” – Putin at SPIEF, Jun. 17, 2022
BRICS 2022 Virtual Summit… “It is only on the basis of honest and mutually beneficial cooperation that we can look for ways out of the critical situation that has emerged in the world economy because of the ill-conceived and selfish actions of certain states, which, by using financial mechanisms, are actually shifting their own macroeconomic policy mistakes onto the rest of the world.” – Putin, Jun. 22
China is the largest economy in BRICS and accounts for roughly 70% of the group’s overall $27.5 trillion economic power. President Xi Jinping chaired the BRICS summit and made it clear that China is opposed to the abuse of international sanctions and called on BRICS nations to rise to the occasion with their responsibility to the world.
“We must abandon Cold War mentality and block confrontation and oppose unilateral sanctions and the abuse of sanctions. The global economic recovery remains a tortuous process while peace and security become more salient problems.” – Xi
Due to the geopolitical fallout over NATO’s proxy war in Ukraine and the West’s failed attempt to sanction and cancel-culture Russia into oblivion, the West is suffering from a severe case of blowback. Moscow is successfully redirecting its international trade and oil exports to BRICS countries and all “friendly” nations under the BRICS+ umbrella. China, India, and South Africa abstained from voting on a U.N. resolution that condemns Russia’s military operation in Ukraine. Brazil voted in favor of the motion, but Brazilian President Jair Bolsonaro said Brazil will not take sides. The leaders of numerous countries were in attendance at the SPIEF and BRICS meetings and were duly noted by TheDuran today in their podcast that’s posted at the end of this article.
Meanwhile, the G7 leadership is disconnected from reality and prefer making fun of Putin, and Biden is not leading the U.S. because he’s wandering around with notecards that provide him with commands and directions for simple tasks.
Leaders at G7 mock bare-chested horseback rider Putin… “As the besuited leaders sat down for their first meeting of the three-day G7 summit in the sweltering Bavarian Alps, British Prime Minister Boris Johnson asked if their jackets should come off – or if they should even disrobe further. ‘We all have to show that we’re tougher than Putin,’ Johnson said, to laughter from some of his colleagues. ‘Bare-chested horseback riding,’ shot back Canada’s Justin Trudeau.” – Reuters, Jun. 26
Russia May Win the War in Ukraine… “If the two sides do not end the war through negotiations in the coming months, it is likely – not just possible – that Ukraine will lose the war.” – 1945, Jun. 22
Russia’s Welcome at BRICS Summit Shows Disconnect With West – WSJ, Jun. 23
The White House Needs To End Its Embarrassing, Petulant War On U.S. Oil… “As it relates to inflation, the Biden administration has publicly shot itself (and the middle class) in the foot and, rather than address their errors and admit wrongdoing, they have instead been unfairly using the oil and gas industry as a scapegoat for problems that the administration helped create.” – QTR, Jun. 27
A new global reserve currency that dethrones the U.S. dollar has been a topic of much debate since the Great Financial Crisis (GFC) of 2007-2008 that nearly obliterated the American dream and global financial system. The unipolar world order is now moving toward a multipolar framework, and a new reserve currency is being openly reported, discussed, and developed by BRICS+ participants. A global paradigm shift has taken shape since the start of Russia’s “Operation Z” and the West’s unprecedented response that weaponized the dollar via sanctions and restricted access to SWIFT.
BRICS working on new global reserve currency and alternative mechanism for int’l payments: Vladimir Putin… “‘The issue of creating an international reserve currency based on a basket of currencies of our countries is being worked out,’ he said at the BRICS business forum. According to the Russian president, the member states are also developing reliable alternative mechanisms for international payments. Earlier, the group said it was working on setting up a joint payment network to cut reliance on the Western financial system. The BRICS countries have been also boosting the use of local currencies in mutual trade.” – The Economic Times, Jun. 23
The world is in the process of abandoning the petrodollar system that’s been in existence since the mid-1970s. While BRICS+ expands its membership to include OPEC nations and other countries around the world that can provide various financial and natural resources, a time will dawn upon Western leadership that the light switch to a weakening hegemony was turned off as they slept. Concurrently, the West will likely be cornered in a hard-landing recession and face a growing conflict on the European continent without a happy ending.
There is a lot of speculation on how, when, and which assets and currencies will back that new reserve currency. I cannot speculate or venture into specifics, but the GFC and Ukraine war forever shifted the political chessboard, and I suspect the International Monetary Fund (IMF) won’t have a reserved seat at the big show. The new reserve currency will likely include gold and originate from the East. Hope for the best, and be prepared for the worst. Keep your food pantry stocked, and be sure your financial house is in order.
We Have Never Been Here Before… “The seven most dangerous words in journalism are: “The world will never be the same.” In over four decades of reporting, I have rarely dared use that phrase. But I’m going there now in the wake of Vladimir Putin’s invasion of Ukraine.” – NYT Opinion , Feb. 25
G7 banning gold and capping oil price, BRICS on the rise – TheDuran, Jun. 28
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