With destructive Democrats as their domestic arm, the Communist Chinese will make easy work of the end of the American century.
The top two issues during the August 22-24 Brics meeting are a possible expansion of the group and the oft-discussed but mostly elusive idea of creating a denomination, possibly backed by gold.
By: NY Sun, August 15, 2023:
By: Benny Avni, NY Sun, August 14, 2023:
Can the Beijing-dominated group known as Brics successfully challenge America’s decades-long dominance of the global economy?
In 2001, Goldman Sachs’s chief economist, Jim O’Neill, predicted that as a group Brazil, Russia, India, and China would within a decade surpass the world’s top economies. Next week the group, which was later organized under the acronym Brics, adding South Africa, will meet at Johannesburg for its most-anticipated annual gathering to date.
The top two issues during the August 22-24 meeting are a possible expansion of the group and the oft-discussed but mostly elusive idea of creating a denomination, possibly backed by gold. This would help members and others to bypass what is currently the dominant coin in world trade: the greenback.
The International Monetary Fund, though, could prove to be a roadblock to backing any new currency with gold, as a senior research faculty member at the American Institute for Economic Research, Thomas Hogan, observed in the Sun. That’s because the Second Amendment to the IMF’s articles of agreement “specifically forbids the use of gold as a currency denominator” by member nations.
Meanwhile, as part of Brics, Communist China has created financial institutions to compete with global bodies like the IMF and World Bank, and Beijing’s institutions increasingly dominate lending in countries known as “the global south.” South Africa, which holds the rotating Brics presidency in 2023, is allying with Moscow and Beijing. The rest of the security-challenged continent is following Pretoria’s cue.
Brics’ China-based New Development Bank is “allowed to operate on the international scene equivalent to other international organizations, even though it has only a narrow membership” of the five countries, a former World Bank president, David Malpass, told Bloomberg Television, adding, “I think there has to be a rethinking of the international financial system to give less dominance to Russia and China.”
America “is a world power, and should seek peace through strength,” Mr. Malpass tells the Sun. Yet, Washington seems to eschew rethinking multilateralism. Instead, it actively encourages African countries to associate with Brics, even at the expense of America-dominated institutions like the World Bank and the IMF.
“We have long stood for the proposition that countries should be able to freely associate with other countries in any groupings that they want,” Secretary Blinken told reporters in June, when asked about the upcoming Brics meeting.
As a group, Brics is far from united politically. India, for one, is a member of the “quad,” which along with America, Australia, and Japan was formed to counter China’s expansionism. This week Chinese and Indian representatives met in an apparently unsuccessful attempt to reduce military tensions on their joint border in the Himalayas.
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