BRICS+ Multipolar Era Replacing NWO and Weaponized Petrodollar: De-Dollarization Zephyr

The first BRICS meeting convened in 2006 with a core membership of four nation states, and the BRICS+ bloc of nations gathered for its 16th BRICS Summit this week in Kazan, Russia. The association has grown with the participation of 186 countries that include nine core members (Brazil, Russia, India, China, and South Africa officially in Jun. 2009 plus Egypt, Ethiopia, Iran, and the United Arab Emirates [UAE] in Jan. 2024). They also approved thirteen “partner states” post-application this week with an invitation to join (Turkey, Indonesia, Algeria, Belarus, Cuba, Bolivia, Malaysia, Uzbekistan, Kazakhstan, Thailand, Vietnam, Nigeria, and Uganda). Coordinators of the conference reported that leaders of 36 countries attended in person, and U.N. Secretary-General Antonio Guterres also traveled to the summit, which elicited a notable scolding by Ukraine’s foreign minister.

• The West wants Putin isolated. Summit he’s hosting shows he’s far from alone – CNN, Oct. 22

 

President Vladimir Putin held the chairmanship this year under the motto “Strengthening Multilateralism for Just Global Development and Security and focus on positive and constructive cooperation with all countries concerned.” Here are two excerpts from the initial article in this series published in Jun. 2022:

“Vladimir Putin opined a mouthful this month at the BRICS 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… Russia joined the Group of Seven (G7) in 1998 and made it the G8 but was suspended indefinitely over its annexation of Crimea from Ukraine in 2014… Due to geopolitical fallout over NATO’s proxy war in Ukraine and the West’s failed attempt to sanction and isolate 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… A new global reserve currency (trade ledger) that dethrones the U.S. dollar hegemony 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 (watch ‘The Last Days Of Lehman Brothers’ [2009] timestamp 5:15 to 9:00)… A global paradigm shift has taken shape since the start of Russia’s ‘Operation Z’ in Ukraine and after the West’s unprecedented response that weaponized the dollar by removing Russia’s access to the SWIFT international payment system and implementing extraordinary sanctions.” – TraderStef

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. 2022

According to data from various sources, current BRICS+ core members represent about 45% of the world’s population and 35% of global GDP. After adding Iran and UAE this year, the bloc’s combined oil production accounts for almost 30% of global output. Last year, the members accounted for 22% of global merchandise exports, and China alone accounted for 2/3 of that commerce. In comparison with the latest data available this month on the G7, it accounts for 10% (776 million / 8,161,972,572) of the world’s population and 15% of the territory. Two years ago, it was responsible for 26% of international trade and 25.8% of global GDP vs. 70% three decades ago.

 

At this week’s summit, Putin unveiled a “symbolic” BRICS bank note that implies the bloc’s progress in dumping the dollar may be closer to realization than analysts and economists expect. Before reading any further, I highly recommend viewing the following video clip or full interview Tucker Carlson conducted in person with Putin in Moscow earlier this year.

 

Interview w/Vladimir Putin, Dollar vs. Geopolitics – Tucker Carlson, Feb. 2024 (timestamp 1:17:25 to 1:36:30)

 

Note that in June of this year, Moscow’s stock exchange ended the U.S. dollar and the European Union’s euro from trading on the platform, and many countries have substantially reduced their trade in dollars for goods, commodities such as oil, miscellaneous services, and/or lessened exposure to dollar-denominated assets such as Treasuries and bonds and using their national currency for payments. The following are only a few notable examples of the de-dollarization process taking place.

 

China’s Moves Away From US Dollar Hit New Milestone… “China sold a record amount of U.S. government bonds in the first quarter of 2024, according to U.S. Treasury data, continuing what many economists believe is a strategic shift away from dollar assets. In the first three months of 2024, China sold $53.3 billion worth of U.S. Treasuries and agency bonds. China’s actions come as it rapidly increases its purchases of gold and other commodities, part of a broader strategy to diversify its assets amid rising geopolitical tensions with the U.S.” – Newsweek, May 20

BRICS: Russia’s Moscow Stock Exchange Halts US Dollar, Euro Trading… “In response to a new round of sanctions on the BRICS nation, Russia’s Moscow Stock Exchange has halted all trading in the US dollar and Euro. The leading financial marketplace in the BRICS 2024 chairmanship nation had also stated that both share trading and money market trade in both currencies would also stop. The halt was implemented following the US Treasury Department’s newly implemented financial penalties on Russia. Specifically, the agency sanctioned more than 300 entities, while noting it is taking a ‘sweeping aim at the foundational financial infrastructure’ of the country in a recent press release.” – WatcherGuru, Jun. 12

The death of the petrodollar: What really happened between the US and Saudis?… “In January 2023, Saudi Arabia openly stated that it was willing to sell oil in currencies other than the dollar, the first public acknowledgement of what had been a source of speculation for years… If the dollar isn’t pegged to gold and isn’t even implicitly backed by oil, and Washington won’t preserve its integrity, then it is hardly up to the task of facilitating trade in critical resources. A system as deeply entrenched as the petrodollar won’t disappear overnight, but when its economic foundation has eroded, it can only be maintained for so long by bluster and smoke and mirrors.” – RT, Jun. 23

Nigeria’s Bold Move: Selling Oil in Naira Reshapes Economic Landscape… “Nigeria has taken a groundbreaking step in its oil industry. The country now sells crude oil and refined petroleum products in its local currency, the naira. This change began on October 1, 2024, following a directive from the Federal Executive Council. The decision marks a significant shift from the long-standing practice of using US dollars for oil transactions.” – The Rio Times, Oct. 7

Major Shift Revealed As Western Investors Suddenly Run to Gold… “Western investors are abandoning their old pricing model, too. Instead of participating in the gold market for speculative reasons, they are now buying gold as a safe haven. This is highly bullish because Wall Street has little exposure to gold… As the East has recently shown, it can be a driving force in the gold market as well, and the reasons for doing so haven’t faded… To a large extent, the Chinese and Saudi central banks—and to a lesser extent, the private sector in, for example, China, Thailand, and Turkey—were driving gold higher due to geopolitical tensions and deteriorating financial conditions.” – The Gold Observer Jan Nieuwenhuijs, Oct. 25

JPMorgan’s CEO Jamie Dimon worries ‘World War III has already begun’… “He lamented the wars in Ukraine and the Middle East, and the growing cooperation between U.S. adversaries including Russia, China, North Korea and Iran. ‘The risk is extraordinary. WW3 has already begun. You already have battles on the ground being coordinated in multiple countries.’” – Marketwatch, Oct. 25

The BRICS membership embraces “reliable foreign partners” with a goal of de-dollarization (DCMS alternative to the West’s SWIFT), lessening the dominance of the dollar’s reserve currency status, and is clearly noted within one of the bullet points from their “final declaration” of long-term goals that were published this week:

• “Welcomed the use of national currencies in financial transactions between the bloc’s member states and their trading partners.”

The U.S. is currently in a technical bankruptcy with debt at roughly 130% of GDP due to overspending (“The Idiot Class”: Rep. Schweikert Hammers Congress On Spending – Sep. 2023) and unlimited printing of the currency to rob Peter to pay Paul, which is a rabbit hole I’m not going down today. One analyst (Jim Rickards) who is always ahead of the curve has clearly explained what to expect while the de-dollarization process accelerates. The most misunderstood factor is that a BRICS bank note is unlikely to emerge as a “reserve currency” in your wallet or central bank anytime soon, although a “payment currency” that “settles purchases and sales of tradable goods and services” is definitely in our near future as BRICS rolls out what Rickards explained in Jun. 2023 would be a “permissioned ledger maintained by a new BRICS+ financial institution” they’re working on. The more immediate threat is the imposition of sanctions and/or the confiscation of assets from any country by the “collective West” that does not follow it. That behavior is severely debasing trust in the dollar and the U.S. government.

The Three Key Messages From St. Petersburg to the Global Majority… “Arguably the major breakthrough in St. Petersburg is how the BRICS are working on their own payment infrastructure, independent from pressure/sanctions by the collective West. Putin had a special meeting with Dilma Rousseff, president of the BRICS New Development Bank (NDB). They did talk in detail about the bank’s development – and most of all, as later confirmed by Rousseff, about The Unit, whose lineaments were first revealed exclusively by Sputnik: an apolitical, transactional form of cross-border payments, anchored in gold (40%) and BRICS+ currencies (60%).” – Pepe Escobar, Jun. 10

This Will Destroy the Dollar… “The irony is that Yellen herself is the greatest threat to the Treasury market through her persistent and illegal efforts to steal $300 billion in U.S. Treasury securities owned by the Central Bank of Russia and held in custody in U.S. and European banks and the Euroclear clearinghouse in Brussels… Will a new BRICS currency instantly displace the dollar in its role as leading reserve currency? How much of a threat would it be?” – Jim Rickards, Oct. 14

You can peruse the following articles that covered the ascension of BRICS in dribs and drabs, and two interviews mentioned below that were published today are must-watches.

• Russia’s Retreat From Counterparty Risk & SWIFT Over Ukraine Part 1 – Jan. 2022
• Russia’s Retreat From Counterparty Risk & SWIFT Over Ukraine Part 2 – Feb. 2022
• King Dollar Drifting at the Edge of De-Dollarization Road Part 1 – Mar. 2023
• King Dollar Drifting at the Edge of De-Dollarization Road Part 2 – Apr. 2023
• Tail Wagging the Dog Before the Next Bond Storm Part 1 – Oct. 2023
• Tail Wagging the Dog Before the Next Bond Storm: Ouroboros – Nov. 2023
• Surge of “Little Green Men” & Metal Poised to Strike – Part XXII: REPO Man – Apr. 2024
• The Recession Arrived With Wardogs and Goldilocks’ Hopium: SHTF – Apr. 2024
• Surge of “Little Green Men” – Part XXIII: Virtue Signaling – May 2024

BRICS Bridge & BRICS Clear, new financial architecture – The Duran, Oct. 25

 

Prof. Jeffrey Sachs : Building BRICS Around the West – Judge Napolitano, Oct. 25

 

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TraderStef on Twitter / Website: TraderStef.com