Author of What to Eat When You’re Broke and Bloom Where You’re Planted online course
You may have heard the term “BRICS” when reading about world affairs and wondered what it was all about. As we watch the American dollar and economy lose power on the world stage, this alliance could quickly move to take its place, especially as other countries that used to be allied with us move over this bloc.
As a matter of opinion, I think that on the global stage, BRICS is a union we should watch, as there are several large economic powers involved that aren’t exactly friends of the United States of America. Should this group continue to grow, it’s possible that it could dramatically affect us with regard to world trade. And that’s at the very least.
Let’s look a little deeper into it.
What is BRICS?
BRICS is an economic alliance that has been around since about 2001. Jim O’Neill from Goldman Sachs coined the acronym BRIC to represent the original countries: Brazil, Russia, India, and China. By 2010, South Africa had been added, bringing us to the current acronym. O’Neill predicted that by 2050, the original four nations would be the dominant forces in the global economy. Investopedia explains:
Brazil, Russia, India, China, and South Africa ranked among the world’s fastest-growing emerging market economies for years, thanks to low labor costs, favorable demographics and abundant natural resources at a time of a global commodities boom.
It’s important to note that the Goldman Sachs thesis wasn’t that these countries would become a political alliance (like the EU) or even a formal trading association. Instead, Goldman said they have the potential to form a powerful economic bloc, even acknowledging that its forecasts were optimistic and dependent on significant policy assumptions.
Still, the implication was that economic power would bring political power, and indeed leaders from BRICS countries regularly attended summits together and often acted in concert with each others’ interests.
Interest faded in the BRICS countries by around 2015, as per Investopedia. But does that mean we should write them off, too?
BRICS is expanding.
For many years, the United States has been a primary global economic power, but as our star shines a little less brightly due to our economic difficulties, poor governmental management, and less than stellar relationships with several other countries, BRICS seems poised to step into the position our nation once held.
In 2015, at their 6th summit, the founding nations created the New Development Bank, with a currency pool of 100 billion USD and an additional reserve of another hundred billion. The countries also agreed to cooperate with one another in regard to credit and innovation.
This has expanded over the years, and the nations have cooperated in things like planning an optical fiber submarine communications cable system for BRICS countries so that the US could not spy on its communications. (Although plans are in place, it has not yet been built at the time of this writing.)
But now, with the war between Russia and Ukraine, and tensions with China, things seem to really be gearing up.
What countries are involved in BRICS?
Current members of BRICS are still the original ones.
- Brazil
- Russia
- India
- China
- South Africa
But…the union seems intent on expanding, and other nations are in the midst of an application process. Multiple countries have asked to become a part of the bloc.
The nations that have formally applied for acceptance into the cooperative are:
- Algeria
- Argentina
- Bahrain
- Egypt
- Indonesia
- Iran
- Saudi Arabia
- United Arab Emirates
In addition, interest has been expressed by the following countries:
- Afghanistan
- Bangladesh
- Belarus
- Kazakhstan
- Mexico
- Nicaragua
- Nigeria
- Pakistan
- Senegal
- Sudan
- Syria
- Thailand
- Tunisia
- Turkey
- Uruguay
- Venezuela
- Zimbabwe
Sources: OilPrice.com, Bloomberg, Times of India, Anadolu Ajansi, Sputnik Globe
The original nations are meeting in South Africa on June 2nd and 3rd to discuss expansion.
Why do we care about BRICs?
Not a great deal has been mentioned about this in the news, but I believe that such a union is a very troubling sign. I’ve written before that the dollar is rapidly losing international trust and potentially even petrodollar status, and it seems as though a group such as this is well-poised to step into our place. Plus, a lot of these nations aren’t exactly friendly to the United States in the first place. A formal alliance between countries like China, Russia, India, and Iran is troubling, particularly as our government has instituted brutal sanctions in the past.
Bloomberg has said it expects the growth of BRICS to surpass the economic expectations of the G-7, the economic group of which the US is the leader, which consists of the United States, France, the United Kingdom, Germany, Japan, Italy, and Canada.
Zero Hedge reports on several reasons this is concerning.
Per their analysis, while G7 and BRICS nations each contributed equally to global economic growth in 2020, the western-led bloc’s performance has recently declined. By 2028, the G7 is expected to make up just 27.8 percent of the global economy, while BRICS will make up 35 percent.
The estimations came just a few weeks after the Deputy Chairman of Russia’s State Duma, Alexander Babakov, revealed that BRICS is working on developing a “new currency” that will be presented at the organization’s upcoming summit.
BRICS member states account for over 40 percent of the global population and around a quarter of the global GDP.
The interest from Global South nations to join the bloc comes at a time when more and more governments move away from the US dollar.
The greenback has become more unreliable for dollarized economies due to rising interest rates regulated by the US Federal Reserve (FED) and the bank’s weaponization of the dollar through financial sanctions.
In addition, the west – especially Europe – is facing a growing energy crisis resulting from sanctions targeting Russian energy markets due to its invasion of Ukraine and the US sabotage of the Nordstream pipeline.
Add to this that several Central and South American countries are interested in joining the ranks of BRICS, and this alliance could quite literally be in our own backyard. While this is assumed to be strictly an economic alliance, what happens if there is a global conflict? Would this coalition carry over into that realm as well?
Sides are being chosen.
What it looks like to me is that sides are being chosen and lines are being drawn. The United States has powerful enemies. (And that’s not even including the ones within our own borders who seem intent on destroying the very fabric of our culture.) While BRICS is not a threat to our way of life today, they could be a formidable foe in the very near future. While we lose economic power, they gain economic power. And in our modern world, that is everything.
For our entire lives, the United States has been on top of the global pyramid. One must wonder, when rivals begin to group together, how long we will keep that position.
The expansion of the BRICS alliance is very important to watch. While we certainly can’t personally influence the proceedings, our awareness can help us to be one step ahead in our preparations. This could eventually destroy our already volatile financial system, so if you haven’t put your savings into a safe holding like gold and silver, you may want to look into that sooner rather than later. We always think we have time, but it looks to me like that presumed time is rapidly running out.
Our concerns are not only within our system but also from alliances that could destroy our global economic power. This would be a crushing blow that would change everything from the price and availability of imports to the very fuel our country runs upon.
But what do you think?
Is the potential expansion of the BRICS alliance concerning to you? Why or why not? Is this something you’ve been watching? How do you think we Americans could be affected by a large, competing economic bloc? Will this affect the way you prep in any way?
Let’s discuss it in the comments.
About Daisy
Daisy Luther is a coffee-swigging, adventure-seeking, globe-trotting blogger. She is the founder and publisher of three websites. 1) The Organic Prepper, which is about current events, preparedness, self-reliance, and the pursuit of liberty; 2) The Frugalite, a website with thrifty tips and solutions to help people get a handle on their personal finances without feeling deprived; and 3) PreppersDailyNews.com, an aggregate site where you can find links to all the most important news for those who wish to be prepared. Her work is widely republished across alternative media and she has appeared in many interviews.
Daisy is the best-selling author of 5 traditionally published books, 12 self-published books, and runs a small digital publishing company with PDF guides, printables, and courses at SelfRelianceand Survival.com You can find her on Facebook, Pinterest, Gab, MeWe, Parler, Instagram, and Twitter.
Aber dieses Problem haben die USA selbst mit ihrer Politik geschaffen. Für mich ist das kein Problem, wenn andere Länder sich zusammen schließen. Doch ein Imperator verliert sein Positionen dabei. Er brauch nicht jammern darrüber. Er hat es sich selbst verdient.
People in other countries are fed up with our empire building and policing of the world. Hell I’m sick of it. We don’t even take care of our own. Got no business telling other countries how to operate.
The dollar has to fail for the big new global digital currency to succeed. There are powerful people behind the dollars demise. Not sure we can stop it when the entire banking cartel is actively orchestrating the dollars death. Our economy has been tanked on purpose. Until many more people understand this, nothing will change for the better. Putting your hope in the outcome of the next election is foolish. Politics has become the bane of society.
I can’t afford gold. Have some silver. More importantly is my faith and trust in God-not earthly kings. I have skills and a will to survive. You can only prep so much with things. Gotta have a certain attitude. Pretty sure you understand this Daisy. We all have a time to die. If we are seeking to avoid death at all costs, then perhaps our perspective needs to be adjusted☺️
A big Amen to that! God bless you Missouri Prepper!
GOOD for Missouri Prepper and Stephen. According to scripture we are also supposed to be concerned for our neighbors. Love they neighbor as thyself….I wonder just how many people will actually do that when the going gets rough and food becomes scarce. Hummm. Do unto others as you would have them to do unto you has already become thoughts of long ago…I think it all boils down to the “condition of our hearts”. Does anybody agree with that? Blessings and be safe.
Kudos to previous commentators. We have organized our small neighborhood to present a united front should SHTF. I started prepping in 2012 and have space to store shelf stable foods. Neighbors’ all have gardens to provide fresh veggies/fruit. We have a year-round running spring nearby and enough water treatment supplies to last decades. Chickens and goats to be added at last minute from local farmers. Now all we can do is pray and be vigilant to the circles of events.
Thanks Daisy! BRICS is certainly one to watch. As for your question of how it affects my preps, I’ve mostly “bought ahead” on items made in China or India that I could not make for myself, primarily shoes and boots. I’ve set aside several pairs of each. I’m not saying that supply chain or other problems would make footwear unavailable. But having spares around before my “currently in-use” footwear gets worn out just seemed like a good idea. I know some footwear is made in the USA but it seems rare to find them in the extra-wide that I require. You really don’t want to go without footwear, especially in the Northwoods!
I’m old, been prepping since Y2K. Learned the cheap rubber soles degrade in storage. Shoe Goo is a must have.
While it may cause significant problems for the US public for quite a while, it could also be a plus in the long run for the US public and the world as a whole. The US govt is able to maintain a grip on much of the world by its ability to wage wars and wield an economic sword over disobedient nations using the power of the dollar. When much of the world refuses to use the dollar in trading, the value of the dollar tanks and the US govt loses its ability to economically control other nations and wage interventionist wars. The downside for us is rampant inflation as the unwanted dollars come flooding back into the US, economic collapse as the govt finds itself unable to pay for all of its bloated bureaucracy and programs and collapses, and the country potentially splits into its component parts. The big worry that I have is that when the totalitarian govt that is developing here realizes that it can no longer control the world, it will decide that if it can’t have it all, then no one will have it, and pulls the nuclear trigger. That’s what keeps me awake at night…not the coming hard times, but the increasing irrationality of the US govt.
Actually, if viewed and handled correctly (there’s the rub) it could be quite liberating.
First, to Jürgen, I’d say, “Sie haben Recht. Ich bin ein “Leben und laß andere Leuten leben” Typ.
In translation, he’s right, and I’m a “live and let live” type. Someone has something you want, do business with them, make a deal.
If prices of imported goods go up, then there will be less sold, and they can do business among themselves. The exporters there will have some adjustments to make. To a certain extent people in the US will have to learn to live the way we used to, and stop being large children; and those times were better in many ways. In ways they were not, had little to do with imported goods, it was the treatment of our fellow citizens.
For things we truly need, there are substitutes and substitute suppliers. It will take time to bring some things back to domestic production, but we need to do it.
For others, don’t need dollars? No problem. Yes, foreign aid stops. It’s really, really stupid to borrow to give away. Also time to stop being the world’s policeman. Yes, a lot of people say that, but it’s also hard to do politically, meaning international politics. So much of strength has to do with perception. I feel the return to the US can be done without looking like a retreat, though I have to say the current administration is hardly the one to do it (Afghanistan, anyone?) Americans have to think, and not react like children. If we are perceived to “run away” then we are weak, and that leads to war. (Ref: Munich, 1938, Chamberlain).
The advantages of bringing troops home are numerous. Since this article is financial, let’s say troops here equals payment spent here.
Handled properly, they have done us a favor. The trouble is, can we find politicians honest enough to do that? (yes, you can stop laughing after a bit)
All empires have a beginning and an end.
Our enemies see and smell it. Our frienemies see and smell it. Even our allies see and smell it.
The BRICS have set up alternative means of banking and international trade outside of the US/Western ones.
The idea of anyone other than Russia and China using other currencies for trade would of been unheard of 10 years ago.
Now, some countries are doing it openly. I expect more to join in the coming years.
In 2001, the USD was 73% of held reserve currency. By 2021 it dropped to 55%. From 2021 to 2022 it dropped to 47% or a 19% loss (care to take a guess what happened during that time?). If this decline continues at the same rate it will be down to 30% by 2024.
What happens when all those dollars are no longer being held by all those other countries? They come back to the US and flood the US markets in the form of inflation. Not the nice warm and fuzzy kind we have now that has 58% of American’s living paycheck to paycheck. Some 44% taking on second jobs to make ends meet. Food banks at record high usage and they are feeling the inflation pain.
No. Imagine a inflation rate in the upper teens or mid 20s. That is going by the new inflation math. Using the old method it would look more like in the 30s and 40 percent.
Can you imagine your grocery bill 30-40% higher than it is today? Fuel? Utilities? Rent?
Watching the regional banking crisis might be another cut to the American Empire.
And that could be a BIG cut!
We have spent decades using our position to bully other countries, to try and force them to do what we want, or even worse think as we do. We have abused our position of privilege to print our way out of financial difficulties and export our inflation overseas to the detriment of other countries national interest. We have taken a privilege and turned it into a sense of entitlement. It has allowed us to control international finances while we cannot manage our own. We have the ability to unilaterally “sanction” countries that do not bend to our will. The SWIFT system was set up to be an international monetary system that would allow economic trade between all countries, yet we co-opt it for our own purposes, ignoring the wishes and the opinions of other members.
Now the chickens have come home to roost, and we complain that the very people that we have victimized have finally grown tired of it. We piss and moan about the fact that BRICS will result in losing our dominant power in the world – that we have continually abused. We seem to think we have the inherent “right” to dictate what others can do – that we are always in the right, and anybody that questions us is wrong.
To quote someone famous, “ With great power, comes great responsibility!” Well, we had the great power, thanks to previous generations, but like a spoiled frat boy on spring break we have pissed away what our forefathers sacrificed to give us.
Well said, Canadian! And I understand that “we” does not mean the readers here!
If I may attempt to add on your post, the U.S. wanted to create a reserve currency becuase doing so is positive for the U.S. by helping trade, growth, so much more. Today’s politicians seem to have forgetten that we WANTED this for our nation’s BENEFIT, and instead used it as a weapon, thinking it could never be taken away. But it can be taken away. And we not only lose the benefits, but pay the price (and that “we” will include these readers).
“Fratty and out of touch” – New Bud Lite ad w/Alyssa H and AOC wet t-shirt/mud wrestling. That’ll bring ‘em back!
We? Who are you calling we? We-ing comments just piss me off….shitty thinking and writing gets folks into trouble. Folks who think and write like this can do better by not claiming responsibility for other folks’ behaviour.
I am not responsible for the behaviour of U S gimmevermin folks toward other folks.
The wait is almost over. The dollar is now in it’s death throws and the digital dollar and banking system will be made mandatory soon. The new system is designed to control us, to take our liberties. Do not comply. Once you are in that new system, it may not be possible to leave it without significan pain, because you have signed a legal contract. If you are mostly self sufficent and off grid, and live in the rural setting, it will be possible to barter and trade.
Precious metals are for those whom process excess wealth and can afford to preserve that wealth to the other side. Most can not afford to do that. Sell non-essential stuff, and pile up the grub ASAP. Begin with the lowest cost items that are dry staple goods first, and buy a well rounded supply for 6 months before buying more. Any one can afford to do this if they avoid the expensive prepackaged foods. Use the link below that goes to the LDS food calculator. https://www.thefoodguys.com/foodcalc.html
Prepping should become a lifestyle. For breakfast with coffee, I am eating genuine whole wheat biscuits made from home ground Hard Red Winter Wheat baked in a skillet. I will finish canning lard today, replace the carb on my truck, and then plant the garden. To replace our phones, we will switch to radio…. Create an alternative system and economy in your area. An alternative communications system is necessary for a solid defense and to participate in a new economy.
I’ve been a prepper for 16 years . After having been deeply involved in blogs, I believe Selco’s experience and advice is exceptional, yet under appreciated. Many give advice, yet Selco’s advice is based upon hard earned experience. In addition, I would also relocate to a remote rural area ASAP, and learn how to run a small farm. I live on the edge of the wilderness in remote Montana. Selco would approve. Read Selco Begovic’s blog to learn how to survive the coming mess… https://www.theorganicprepper.com/author/selc0/
You can find some of my articles posted over on Survivalblog.com written under this alias, Tunnel Rabbit by use the search engine there.
My main concern is that those ” in Charge ” will seek to strike out against those they oppose in any manner they see fit. Even if it means the end for all.
I do worry. Semper Fi . M
I agree it’s as troublesome as it’s concerning. Realistically though there’s not a damn thing I can do about, other than view it as an indicator of impending collapse. Whether the economic collapse is just in this country, or sporadic and scattered as those other countries,, not a part of BRICs, collapse.
We’ve a little silver saved. Gold’s beyond our means, and with the Demented One at the Tiller of this ship we’re all on, inflation going to get worse.
I remain convinced we’re on the brink of Civil War. The nation is as divided now as deeply if not more so, as it was in 1860. This War won’t be fought over slavery. It’ll be fought over Ideology. All we lack is the “Fort Sumter Moment/Event to trigger armed conflict.
Sad as it is to admit it, we lost our Republc.
LOL! Right you are about the there is nothing any of us can do about it. Insulate ourselves the best we can if it is really a economic collapse.
I used to think of it as in a late 80s’ like Soviet Union like collapse.
As you note of Civil War I think is more likely or Balkanization. The old Soviet Union had more homogeneous society and culture.
We get into fights over football teams! And even worse in terms of politics, race, religion, socio-economic class, even sex!
The whole thing is dumb.
As I have mentioned recently, some of Daisy’s articles have me reconsidering PMs.
Lead might be a better investment.
My wife is a walking encyclopedia of history. I asked her what was the time frame of the Weimar Republic of Germany. About 15 years give or take one’s interpretation of the period and the rise of the third Reich.
In a Civil War or Balkanization like situation of 15 years, I might be melting down any PMs I have into bullets. Them there are some dang expensive bullets!
Saudi Arabia just joined BRICS
Incompetence or part of the plan? obama said he wanted to take the USA down a few pegs.
First a comment on the Nordstream pipes sabotage—according to Scandinavian and now Polish sources, the Russians blew it up themselves. They tracked Russian ships, transponders turned off, one with a deep diving sub, monitored radio communications with Moscow, shortly before the sabotage happened. The purpose was to inflict such severe economic pain on Germany that they would quit NATO. Indeed, there have been calls in the Bundestag (German parliament) for such an action.
As for personal preparations, I can expect to live another 20–25 years if I live as long as my grandparents. There’s no way I can store up enough supplies for that length of time. No matter what happens with the BRICS, I expect that international trade will crater and our nation’s standard of living crash. In order to survive, we’ll need to be producers so that we have goods and/or services to barter. What skills have most people developed to do just that?
From what i heard, the Russian been mapping the submarine optical fiber cables around the world for some time now, years to be more clear, i don’t think they will stop in gas pipes, this whole circus is predictable but not with the accuracy id like to have.