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Donald Trump threatened tariffs on BRICS, claiming the group is “dead”, but it is growing in size and influence. 10 members and 10 partners participated in a summit in Brazil, discussing dedollarization, trade and investment in local currencies, and how to create a more multipolar global order.
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The Global South-led organization BRICS has been growing in size and influence, and this has frightened some Western politicians.
Donald Trump is particularly rattled. After he returned to the White House for his second term as US president, Trump threatened very high tariffs on BRICS, and falsely said he had destroyed the organization.
“BRICS is dead”, Trump claimed in a press conference on 13 February. The US president stated:
BRICS was put there for a bad purpose, and most of those people don’t want — they don’t even want to talk about it now; they’re afraid to talk about it.
Because I told them, if they want to play games with the dollar, then they’re going to be hit with a 100% tariff, the day they mention that they want to do it. And they will come back and say, “We beg you, we beg you not to do this”.
BRICS is dead, since I mentioned that. BRICS died the minute I mentioned that.
And I know, I remember when Obama and Biden in particular, I guess he said that, “Oh, they have us over a barrel”. They don’t have us over a barrel; we have them over a barrel.
If BRICS wants to play games, those countries won’t trade with us; we won’t trade with them. And if any trading gets through, it’ll be a 100% tariff, at least.
Trump’s claim that “BRICS is dead” could not be further from the truth. The exact opposite is happening: BRICS is continuously expanding.
In July, representatives of BRICS countries gathered in Brazil for an annual summit. This was the first meeting that featured the 10 partner countries that were added to BRICS in 2025, in addition to the new members that were admitted in 2024.
Representatives of the 10 BRICS members at the 2025 summit in Brazil
BRICS now consists of 20 countries.
The 10 BRICS members are the founding five — Brazil, Russia, India, China, and South Africa — plus Egypt, Ethiopia, Indonesia, Iran, and the United Arab Emirates.
The 10 BRICS partners are Belarus, Bolivia, Cuba, Kazakhstan, Malaysia, Nigeria, Thailand, Uganda, Uzbekistan, and Vietnam.
The 2025 BRICS summit in Río de Janeiro was historic, because it included for the first time the participation of Vietnam, which had been admitted to the group in June.
Geopolitical Economy Report previously detailed how the US government has tried to divide China and Vietnam, in an unsuccessful attempt to recruit Hanoi for Washington’s Cold War Two against Beijing.
Vietnam’s decision to join BRICS was a clear sign that its foreign policy remains independent and non-aligned.
Moreover, on the sidelines of the BRICS summit in Brazil, Reuters reported that Vietnam’s Prime Minister Pham Minh Chinh and China’s Premier Li Qiang held a friendly meeting, and “agreed to boost trade and investment ties”.
The 2025 BRICS summit also featured the participation of Cuba’s President Miguel Díaz-Canel.
This was symbolic, given that Cuba has suffered under illegal US sanctions and a devastating blockade for more than 60 years, despite the fact that, every year the United Nations General Assembly, nearly every country on Earth votes to demand an end to the criminal US embargo.
The vision that BRICS has for a more multipolar world, where the Global South is equal and the colonialist nations of the Global North no longer have an unfair “exorbitant privilege”, is very attractive to most countries on Earth.
Even the United States’ top trading partner and southern neighbor, Mexico, participated in the BRICS summit in Río de Janeiro.
Mexico’s progressive President Claudia Sheinbaum sent Foreign Secretary Juan Ramón de la Fuente to Brazil to participate, even though Mexico is not officially a member or partner of BRICS.
The Mexican government announced that it had been invited to serve as an “observer” by Brazil, which holds the annual rotating BRICS presidency for 2025.
The US president clearly was unsettled by the BRICS summit held in Brazil on 6 July, because on that day he took to his website Truth Social to threaten the organization.
“Any Country aligning themselves with the Anti-American policies of BRICS, will be charged an ADDITIONAL 10% Tariff”, Trump wrote.
“There will be no exceptions to this policy”, he added.
This 10% tariff threat was a significant reduction of the 100% duty that Trump had originally vowed to impose on BRICS countries.
Brazil’s President Lula da Silva shot back at Trump’s threats, implying that the US president was trying to become a global “emperor”.
“The world has changed. We don’t want an emperor”, Lula said.
“This is a set of countries that wants to find another way of organizing the world from the economic perspective”, Lula added. “I think that’s why the BRICS are making people uncomfortable”.
Nevertheless, it should be underscored that Trump doesn’t really understand what BRICS is.
In a White House press conference in January, Trump again threatened BRICS, and he falsely claimed that Spain is part of the Global South-led organization. The European nation is not involved, and never has been.
Trump said:
They’re a BRICS nation, Spain. You know what a BRICS nation is? You’ll figure it out. But — and if the BRICS nations want to do that, that’s okay, but we’re going to put at least a 100% tariff on the business they do with the United States.
You know what the BRICS is, right? You guys know, you know what I’m saying, you know what I’m saying.
The US government’s fear of BRICS is rooted in the Global South-led organization’s increasing power.
The 20 BRICS members and partners already represent more than two-fifths of the global economy: 43.93% of world GDP, when measured at purchasing power parity (PPP).
The BRICS 20 also have a combined population of 4.45 billion, meaning they represent 55.61% of the global population — the majority of the world.
One of the key issues discussed at the 2025 BRICS summit was dedollarization — the attempt to create alternatives to the US dollar as the global reserve currency.
Brazil’s left-wing President Lula da Silva has long been an advocate of dedollarization.
“The world needs to find a way that our trade relations don’t have to pass through the dollar”, Lula said at the BRICS summit.
“Obviously, we have to be responsible about doing that carefully. Our central banks have to discuss it with central banks from other countries”, the Brazilian leader explained, according to Reuters. He added, “That’s something that happens gradually until it’s consolidated”.
Lula qualified that dedollarization is “complicated” and will be a slow, gradual process, but he maintained that it is necessary.
At the 2025 BRICS summit, the Brazilian president even reiterated his call for the creation of a new global currency to challenge the US dollar.
“That’s why your debate about the need for a new trade currency is so important. Is it complicated? I know. There are political challenges. But if we don’t find a new formula, we’ll end the 21st century the same way we started the 20th. And that won’t benefit humanity”, Lula said.
At the summit on 6 July, 2025, the 20 BRICS members and partners signed a lengthy joint statement. The Rio de Janeiro Declaration was 31 pages long, and consisted of 126 points, encompassing a wide variety of subjects.
The joint declaration made many references to BRICS initiatives to encourage dedollarization.
It called to strengthen the BRICS bank, the New Development Bank (NDB), to “support its growing role as a robust and strategic agent of development and modernization in the Global South”.
In particular, the document emphasized the need for the NDB to “expand local currency financing”.
The BRICS declaration similarly urged further development of the Contingent Reserve Arrangement (CRA), which could serve as an alternative to the US-dominated International Monetary Fund (IMF), by providing short-term liquidity to countries facing balance-of-payments crises.
Another initiative discussed in the document was the New Investment Platform (NIP), which seeks to facilitate investments in local currencies, instead of US dollars, British pounds, or euro.
The declaration addressed the BRICS Interbank Cooperation Mechanism (ICM), which is working on “finding acceptable mechanisms of financing in local currencies”.
The joint statement also highlighted the work of the BRICS Cross-Border Payments Initiative and BRICS Payment Task Force (BPTF), which it noted are identifying “the potential for greater interoperability of BRICS payment systems”, as part of “efforts to facilitate fast, low-cost, more accessible, efficient, transparent, and safe cross-border payments among BRICS countries and other nations and which can support greater trade and investment flows”.
The current chief of the BRICS bank is Dilma Rousseff, the former president of Brazil, from Lula’s left-wing Workers’ Party.
She announced that two more countries had joined the New Development Bank: Colombia and Uzbekistan.
Colombia’s accession was especially symbolic, given that the South American nation has historically been one of the closest allies of the United States.
Under its first ever left-wing president, Gustavo Petro, Colombia has adopted a more non-aligned foreign policy, and has expressed support for BRICS.
Just a few days before the BRICS summit, leaked audio recordings exposed the US government’s links to a coup attempt against Colombia’s democratically elected left-wing leader.
With the addition of Colombia and Uzbekistan, the New Development Bank now has 11 members, including the founding five of Brazil, Russia, India, China, and South Africa, plus the United Arab Emirates, Bangladesh, Egypt, and Algeria.
In her remarks at the BRICS summit, Dilma emphasized that the New Development Bank is promoting financing in local currencies.
“Any business or government that borrows in foreign currency becomes subject to decisions made by the Federal Reserve or other central banks in developed nations”, she said, warning of exchange-rate risk and currency volatility.
As a positive example of an alternative, the BRICS website noted that Dilma “pointed to a project in Brasil funded directly in renminbi, without the need for dollar conversion”.
The official BRICS readout of Dilma’s speech emphasized that “local-currency operations will remain an absolute priority as a means of building a more diverse, balanced international financial system”.
Dedollarization will be slow and steady, the NDB president stressed. The role of the US dollar as the global reserve currency will not end overnight, “But the rise of initiatives to expand trade in local currencies is undeniable, and I see that as a positive development”, Dilma explained.
In speeches they delivered at the 2025 summit, several Global South leaders emphasized that they see BRICS as following in the footsteps of the Non-Aligned Movement and the anti-colonial Bandung Conference of 1955.
Brazil’s President Lula declared that “BRICS is an indispensable actor in the struggle for a multipolar, less asymmetrical, and more peaceful world”.
He lamented that the US-dominated international financial system benefits the rich colonial countries at the expense of the poor, formerly colonized ones.
Lula stated (emphasis added):
The frameworks of the World Bank and the IMF currently support a “reverse Marshall Plan,” where emerging and developing economies essentially finance the more developed world.
International aid flows have decreased, and debt costs for the poorest countries have soared. The neoliberal model only deepens inequalities.
For instance, 3000 billionaires have collectively earned USD 6.5 trillion since 2015.
Tax justice and the fight against tax evasion are essential to truly consolidate inclusive and sustainable growth strategies fit for the 21st century.
In another speech at the BRICS summit, the Brazilian president said the following (emphasis added):
The United Nations recently marked its 80th anniversary on June 26 of this year, and we are witnessing an unprecedented collapse of multilateralism.
The advent of the UN marked the defeat of Nazi-Fascism and the birth of a sense of collective hope.
The vast majority of countries that currently comprise the BRICS were among its founders.
Ten years later, the Bandung Conference refuted the division of the world into zones of influence and advanced the fight for a multipolar international order.
BRICS is an heir of the Non-Aligned Movement.
With multilateralism under attack, our autonomy is once again in check.
…
International law has become a dead letter, as has the pacific resolution of controversies.
We are before an unprecedented number of conflicts since World War II.
NATO’s recent decision feeds the arms race.
It is easier to designate 5% of the GDP to military spending than to allocate the 0.7% that has been promised for Official Development Assistance.
Lula condemned the “genocidal practices by Israel in Gaza, the indiscriminate killing of innocent civilians, and the use of starvation as a weapon of war”.
The Brazilian government demanded an “end of the Israeli occupation and the establishment of a sovereign Palestinian State”.
Lula also “denounced the violations of Iran’s territorial integrity” by the United States and Israel.
Lamenting the “loss of credibility and paralysis” in the UN Security Council, due to Washington’s abuse of its veto power, Brazil reiterated its call for “deep transformations in the Security Council”, with the inclusion of “new permanent members from Asia, Africa, Latin America, and the Caribbean”.
Malaysia’s Prime Minister Anwar Ibrahim also delivered a powerful speech likening BRICS to the Non-Aligned Movement and Bandung Conference.
Anwar stated (emphasis added):
It is a historic moment for those of you who have been following the antecedents of history, who realize the attempt to save the voice of newly emerging economies and countries post colonialism was by Sukarno of Indonesia, Zhou Enlai of China, Jawaharlal Nehru of India, Kwame Nkrumah of Africa.
It was a bold attempt to ensure that the voice of conscience, those struggling for freedom and justice is heard. Not much success. It was a bold attempt.
Then we have a Non-aligned Movement, proceeding that. Then we have G77, still not achieving the desired results.
Now, I salute you, President Lula, for having the courage to proceed with a clear vision, a clear commitment to voice the concerns, aspirations of the people, particularly of the Global South.
…
We have enormous potential to increase because only with that strength can we safely, fairly, justly negotiate with all other partners multilaterally.
We must demand a change. Democratic, just international and multilateral organization from the United Nations to WTO to IMF in the World Bank
…
We have attempted in ASEAN other than enhancing international trade is even using financial settlement systems. We use our local currency. Of course, we’re not talking about de-dollarization because there’s a long way to go, but at least we try, Malaysia with Indonesia, Malaysia with Thailand, and together with China, trying to use our own local currency, even beginning with 10 or 20%, it makes a difference, because we cannot continue complaining but not executing our own plan among in our countries and our friendly neighbors.
…
But I come back to the major and central issue: BRICS today of 2025 is not the first attempt.
The Bandung Conference of 1955 — at that time we were struggling, No industry, no new technology, no competence except for a united nation, the country, and political leadership.
Now we have political leadership with that vision and we have strong business community.
Eric Arthur Blair
2025-07-10 at 16:15
Is BRICS perfect? No, but they are making incremental steps, not in a straight line but zigging and zagging, towards an economic network free from the shackles of AngloEuroZionist neocolonial parasitism.
Trump constantly brags about ending the BRICS, but everything he does backfires worse on himself. TACO!!!
He bombastically bloviates as though he is some sort of virile turgid rooster, but in reality he is just an impotent flaccid cock.
Rubicon
2025-07-10 at 16:21
We think Dr. Michael Hudson said it best 7/9/25: “The dollar’s free lunch — this exorbitant privilege of being able to run huge military and trade deficits, without having to see its exchange rate decline and prices rise. Now you’re having a flight out of the dollar. The dollar’s exchange rate has gone down 10%. That’s the largest decline since Franklin Roosevelt devalued the dollar in 1933. They’re running for the exit. So we’re seeing the end of an era. This bill is that important.” (See Trump’s Big Bill in Congress.) But most remarkable is:”The Dollar’s Exchange Rate has gone down 10%.” Amazing news!!
Rubicon
2025-07-10 at 16:35
Here’s another observation by Professor Wolff: “I checked this morning, and the Euro is now costing $1.18. Okay, that’s a devaluation relative to the Euro of 18%.
By the way, a devaluation of the dollar by 18% means that you have a situation where you have to give more and more dollars to get the European currency. It’s a statement to everyone in the world who has dollar assets, who holds anything denominated in a dollar — like a U.S. Treasury note, of which there are 700 billion in the hands of China, of which there are a trillion in the hands of Japan, and so on — are now worth 18% less.
That is a screaming message because, as Michael correctly says, that’s a devaluation at a speed that is frightening. That is a screaming recommendation to people to get rid of the dollar before they suffer worse losses. They’ve been doing that for the last year, and they’re going to continue to do it since there is no end in sight.” 7/9/25 Dr. Michael Hudson/Prof Wolff’s conversation.
Eric Arthur Blair
2025-07-10 at 16:36
WHY THE US PETRODOLLAR WILL SOON BE DEAD (but will not go gentle into that dark night)
Ben Norton recently delivered a good basic summary as to why one reason for the recent Israel/US twelve day war against Iran was that it was a desperate act to try to restore the US Petrodollar status following Iranian regime change.
https://www.youtube.com/watch?v=_ziGNmvOh6k or
https://podbay.fm/p/multipolarista-146684/e/1751365186
Ben offered the audience undergraduate level Petropolitics 101. Unfortunately important gaps need to be filled if you want to achieve postgraduate level comprehension. He said you cannot understand oil markets without understanding geopolitics. Actually, I think the converse applies: you cannot understand geopolitics without understanding the geology, physics and chemistry of oil and gas, which in turn influence international politics and military and economic and financial shenanigans, not infrequently leading to fraudulent scammery in the oil and gas markets. Lies pervade the industry eg OPEC countries massively overstating their oil reserves in 1985 or US scammers massively overstating Monterey shale reserves by 20 times.
With regard to gas, Ben in the past mentioned briefly the massive gas fields off the Levantine coast (Leviathan, Tamar etc) as being an important motivation for the Israelis wanting to expel the Palestinians from Gaza (and sieze southern Lebanon) so the Israelis can claim ownership of all the gas. Easy enough to understand.
Less understood, indeed never mentioned by anyone (except me), is the concept of “I drink your milkshake!” as motivation for the foreign destabilisation of Assad’s Syria, especially by Qatar. The idea was dramatically explained in DDL’s Oscar winning performance in “There will be blood”. He was talking about draaaaaaainage from one oil well into another in the same field, but that concept is waaaay more applicable to natural gas, which moves through porous rock magnitudes faster than oil. I may later post an old article I wrote about it if I have time.
Regarding Ben’s current presentation, here is some gap filling:
Firstly one needs to understand that Peak Oil is a physical fact, it is a real world OBSERVATION. It has NOT been debunked as certain ignoramuses like George Monbiot published a decade or so ago. It only appeared to be debunked then because of the large volumes of fake oil (shale LTO, not petroleum) which the USA produced after depleting its domestic conventional oil fields, but as I previously explained, shale LTO was and is a SCAM now on the verge of collapsing along with the hundreds of billions of dollars of associated derivatives.
The USA reached Peak conventional oil production around 1971 (as correctly predicted by M. King Hubbert) and despite a slight uptick in the Hubbert curve a few years later (Prudhoe Bay coming online) it went into terminal decline such that now the USA’s conventional fields are essentially depleted. US shale LTO scammery took off from 2008 when the whole world reached Peak / Plateau conventional oil production. Such US scammery was facilitated by the US importing conventional foreign oil for free (courtesy of the Petrodollar status) to extract domestic low EROEI LTO, combined with a 15 year policy of ZIRP, combined with Quantitative Easing, combined with heavy government subsidies, combined with share buybacks by the shale oil scammers to drive up share prices in a PONZI SCHEME, combined with heavy investments from suckers domestically and internationally (eg BHP) who almost all LOST THEIR MONEY. You can make tons of money from the tulip trade of you recruit enough suckers.
Going back to 1953 however, the USA was then producing heaps of cheap high EROEI conventional oil on a rising Hubbert curve at a rate greater than any other country and was truly oil independent. What then was the US motivation to overthrow Mohammed Mossadegh of Iran when the US truly had zero need for any foreign oil at the time? The US motivation then was NOT OIL, it was 100% political, as a result of manipulation by the British and MI-6. It was not Kermit Roosevelt who masterminded it, even though he wrote a grandiose book about it later taking credit. It was MI-6 agents and it was Britain who persuaded the CIA to bankroll the astroturf coup. Britain had no domestic oil resources but desperately needed cheap Iranian oil to maintain its Industrial wealth. The red-under-the-bed hysteria was raging full throttle then and the Brits told the US that unless that Iranian radical socialist / commie fanatic was deposed, Iran would 100% fall under the influence of the Soviet Union, hence Mossadegh had to be removed by the USA at all costs. So the US motivation for that particular coup was not petroleum, but the British motivation was absolutely 100% about petroleum. After the coup, the risk of the Anglo Persian Oil Company being nationalised by Iran evaporated and APOC then morphed into BP, today notorious for Macondo / Deep Water Horizon, but that is another story.
Regarding the OPEC oil embargo of 1973, Ben omitted to mention the triggering event, which was the preceding Yom Kippur War, in which the US proxy Israel kicked the asses of the Arabs (yet again). The pissed off Arabs then embargoed oil exports to the West in retaliation. However please remember that US Peak Oil production occurred in 1971 and the USA in 1973 was still near peak output and still the largest producer of oil in the world. Nevertheless it was also the largest oil consumer because the USA was the largest industrial and agricultural producer in the world then, all run by oil, and needed oil imports to slightly top up the huge domestic US production. Note that the OPEC embargo resulted in only a 5% shortfall of oil availability in the USA, yet the price of oil at the pumps went up MORE THAN 4 TIMES!!!! Why? Because the US supply-demand equation was exquisitely sensitive to oil availability then, because US wealth was intimately tied to real world output of commodities then, which depended on real world oil inputs. This is far less applicable to the US today because of the financialisation / deindustrialisation of today’s US house-of-cards economy.
Why did Saudi Arabia agree to the US Petrodollar scheme in 1974? If Faisal had been assassinated before that, one may argue that it was CIA regime change that had persuaded the Saudis, however Faisal was killed in 1975, AFTER he had agreed to the US Petrodollar. Nevertheless an MK ultra type CIA assessination in 1975 for other reasons cannot be excluded.
In 1974, the USA made the Saudis an offer they could not refuse. The Saudi regime was a greedy corrupt monarchy only interested in one thing: the preservation of their filthy rich status as ruling royals who could pilfer the oil coffers of their country like their own personal piggy bank. They were shit scared that further military victories by the Israelis over the Arab countries could threaten their status. So the US gave an iron clad guarantee to the Saudi Royals that they would be kept in power in perpetuity by US military might, who would establish US bases in Saudi Arabia to “protect” the Saudis from the dreaded Israeli bogeymen (conveniently ignoring the fact those bogeymen were in fact US proxies). It was a goddamn PROTECTION RACKET, in which the US promised to protect the Saudis from the US proxy, so long as the US got oil for FREE!!! (and also required that oil be sold to all other countries only in USD, which raised the value of the USD and cemented its status as global reserve currency, which nearly fell apart after Nixon went off the gold standard in 1971).
To further reassure the Saudis, the USA would generously sell them advanced US weaponry to protect themselves against the aforementioned Israeli bogeymen (conveniently omitting to mention that even more advanced US weaponry would be provided to the Israelis, requiring that the Saudis would then need to modernise their inventory every year in an endless arms race, the USA laughing all the way to the bank, regularly selling armaments to both sides).
I will not go into other aspects of the Petrodollar such as recycling into US debt securities.
Fast forward to 2023 when Biden tried to persuade the Saudis to maintain the US petrodollar status and forsake all links with China. Result? In 2024 the Saudis declined to renew their 50 year old memorandum of understanding for the US petrodollar status. They have since expressed intent to sell oil to the Chinese for Yuan.
Are the Saudi’s still scared of the Israeli bogeyman? Not after the Israelis got their asses kicked by the Iranians and Israel is now teetering on the edge of civil war and social collapse and has already economically collapsed. In fact, the Saudis are more afraid of the Yemenis, who a few years ago forced the Saudis to cease bombing Yemen, because the Yemenis showed they could strike Saudi oil installations with their missiles with impunity. Iran is magnitudes more powerful than Yemen, much more capable of destroying all Saudi oil facilities within minutes. Result? The Saudis brokered a peace deal with the Iranians mediated by the Chinese a couple of years ago.
Why should the Saudis now export their oil only in USD today? Why should they accummulate more US Tbills, stored in US banks, when the US could seize it at any moment, just as the Europeans and US seized $300 billion equivalent of Russian foreign reserves in 2022? This weaponisation of the USD by the USA is the number one reason for countries, particularly oil rich countries, for abandoning the USD, why no amount of cajoling by the USA can restore he Petrodollar status. It was daylight robbery committed by the USA now backfiring on them big time.
Furthermore, why recycle oil profits in US bonds when the US bond market is facing collapse? Even the vassal Japanese recently shed US bonds, the traditional so-called safe haven which is now completely unsafe. What can the Saudis buy with devaluing US bonds, what material goods and commodities does the USA produce other than overpriced underperforming military paperweights and Iron Sieve phony missile defence systems? US bonds represent trillions of dollars of irredeemable US debt which anyone with two functioning brain cells knows the USA will hyperinflate away, to make their irredeemable debt vanish.
On the other hand, what can the Saudis buy with the Petroyuan? Apart from upgraded airports and seaports, high speed electric rail, 100% renewable electricity infrastructure, nuclear power plants, brand new cities, high technology imports (chips, computers, electric cars and buses), military hardware superior to European technology etc etc?
As of now, China is rapidly expanding its blockchain based cross-border interbank payment system (CIPS) which setttles trade in Yuan (RMB) and counterpart national Gulf State or ASEAN currencies, completely bypassing the USD, completing transactions in seconds rather than the not-so-SWIFT old system which takes days, and reducing transaction costs by 98%.
Summary: The US Petrodollar is faaaarked.
Other resources:
https://www.youtube.com/watch?v=1Zr5h12-OlA
https://www.youtube.com/watch?v=ZLTrph5JREs
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As Trump threatens BRICS, it grows stronger, resisting US dollar and Western imperialism – Geopolitical Economy Report
