Money spent=/=production or productive capacity or performance.
Everything in the west is just really fucking expensive, because defense industry is a racket meant to make profit not weapons.
‘The more I see of what you call civilisation, the more highly I think of what you call savagery.’
Money spent=/=production or productive capacity or performance.
Everything in the west is just really fucking expensive, because defense industry is a racket meant to make profit not weapons.
Eu doesn’t have the weapons to replace the US, much less do anything more. All action by EU and European Nato is at best a political stunt to make US and Trump to change their minds.
I mean US sanctions will force companies to use it, if it ever becomes real. Think like Huawei wanting to sell stuff to Russia, but US threatens to kick any bank out of swift that trades with Russia. So then they would have this Brics-$ to circumvent that. That’s the whole point. US is sanctioning so many countries that there is a need for alternative, not that USD/swift is bad system for those using it. USD needs replacing because it has become a Washington’s geopolitical sledgehammer and a chokepoint to free flowing world trade. Even Putin said that only reason they have been reduing dollar usage, because they have been barred from using it, not because they are particularly eager to do it by itself.
Companies would want it because it would a one way to secure their profits and nation’s would want it because it frees them from the unilateral sanction sledgehammer.
“Brics currency” would go around the problems of gold, becausse they have been planning for it to be tied to a “basket of goods” like oil, wheat, gold, etc. It has always been about solving the balance of payments issue among the member states, without using the dollar or gold. You are right that an Euro-like currency would be bad for Brics countries economies because of their development levels’ but so is Euro stifling for most the EU countries, but I digress.
It’s really difficult to even start to build even an Keynes’ Bancor like global reserve currency, much less some “Brics Euro” to be used within the countries (which was never in the cards to begin with btw). However this American sanction obsession is very much creating the need to replace the dollar worldwide. Under Biden one set of countries were sanctioned, and now Trump is sanctioning pretty much everybody else that Biden didn’t sanction. US itself is the main driver of de-dollarization, not Brics. Who the hell even wants to live with a US gun on their temple anyway, even if you are so called “US ally”. Now Canada and Europe are getting slapped punitive tariffs on, because the administration changed, countries therefore can’t have just one main way to do global trade.
All of them have turned into chickens