Monday 21 August 2023

BRICS CURRENCY

21 August 2023

Worth defining a few terms.

1. Common currency. I gather because alliance means enemy and China wants money not military there may be bloc(s) and banks, but not inter-operable military stuff. Believe it when I see it.

2. Also, not see this as "closing the parenthesis" on Western liberal democracy and human rights. No, we would like these good things back please. But recognise that there are other, what you might characterise as "top down" ways of organising a society ... eg traditionalist:

https://youtu.be/Fzj2Odt6HRo

3. The BRICS+ is the original famous five, plus there are I gather 24 applicants and 50 countries will be in attendance at the conference 22-24 Aug 2023, so anyway  BRICS+ means the admitted membership.


4. Will there be a BRICS+ common currency? 

The USDollar likely has another 10, 20 years left in it as reserve currency. The idea is that each member should fix a parity with gold by weight - so by weight not by price. Then the dollar value of what an ounce of gold would buy in that currency will vary on the day. As a concept and practise, this takes quite a bit of mental gymnastics to figure out what it means.... just picture yourself as an Asian manufacturer looking to buy propylene polymers off Saudi Arabia. You can pay in yen into the Asia Development Bank and the bank will pay Saudi Arabia in dinars, with the conversion rate of USD to a unit of gold being the common factor. Com-pli-ca-ted.

5. Categories of governance. Not think in terms of kleptocracies V rule-of-law countries, after all the greatest fraud ever perpetuated on this planet was the GFC great financial crisis;
and what is the idea behind sanctions if it isn't for the American / EU gov.ts to illegally use their power to confiscate property that is not their own, for political purposes.

Also not useful to split the world by autocracy / democracy because for example Brazil and India are both democracies, while Gore and Trump can complain the election was stolen.

Nor Colonial Powers vs ex-Colonised

6. Best to depoliticise and desensitise and try to see the world in all its objective detail as it is in reality and context, if that is at all possible, at least before exercising our personal or groupthink prejudices and preferences.

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