Are they expecting the dollar to collapse or are they preparing to use their own currencies to replace the petrodollar? Or both? Or something else? (I can't open the link right now.)

[–] yogthos@lemmy.ml 0 points 2 years ago (2 children)

I think the main motivation is to create an independent financial system outside western control.

BRICS have also stated that they will introduce their own reserve currency that will be backed by a basket of currencies fr BRICS members. Having large gold reserves would go a long way in legitimizing this scheme.

This will necessarily result in dollar based economy shrinking as much of the world trade will be happening outside it. US will also lose the ability to use sanctions as a weapon.

This likely won't lead to complete collapse of the dollar being in the foreseeable future. However, it will drastically reduce the influence US has over the global economy.

[–] redtea@lemmygrad.ml 1 points 2 years ago (1 children)

I see. Another possible positive, then, might be in giving some states an alternative to the IMF if restructuring is 'needed' within the BRICSphere.

I recall a recent story of Britain and or France offering 'development' money to 'Africa'. It was a pittance and would be recouped through imperialism, I'm sure, but it was implied that this would give 'Africa' the 'independence' it would need to be able to avoid 'Chinese imperialism'. Ironic, I know. It'll be funny if/when these 'beneficiaries' turn around and rely on a BRICS reserve currency, to reduce the value of Western debt to nothing.

[–] yogthos@lemmy.ml 0 points 2 years ago

For sure, there already lots of examples of countries getting loans from China on much better terms than IMF offers.

[–] pingveno@lemmy.ml 1 points 2 years ago (1 children)

I'm guessing this is largely resulting from the exclusion from SWIFT as part of the Russian sanction regime. China likely wants as little exposure to that, especially with the apparent build up to an attempt at invading Taiwan.

[–] yogthos@lemmy.ml 0 points 2 years ago* (last edited 2 years ago) (1 children)

Pretty much every country that's not a vassal state of the US now wants to divest from the dollar based economy. After the west decided to freeze Russian foreign assets without any legal basis it became clear that it's a lawless system.

[–] Kulun@mander.xyz 1 points 2 years ago (1 children)

The only lawless system here is russia invading ukraine.

[–] yogthos@lemmy.ml 0 points 2 years ago (1 children)

Russia invading Ukraine is literally modelled on the precedent of NATO invading Yugoslavia. Thanks for providing us with the 🤡 perspective once again.

[–] Kulun@mander.xyz 1 points 2 years ago* (last edited 2 years ago) (1 children)

Like your west-is-bad china-russia-good 🤡 perspective,
and, as always, didn't disappoint in not forgetting to mention the NATO. Well done comrade.

[–] yogthos@lemmy.ml 0 points 2 years ago (1 children)

I've seen Markov chains produce more coherent arguments than you.

[–] Kulun@mander.xyz 1 points 2 years ago (1 children)

How thoughtful of you, respect, comrade.

[–] yogthos@lemmy.ml 0 points 2 years ago (1 children)

Exactly the output you'd expect a Markov chain to produce.