BRICS Is Expanding: Here’s Why That’s Very Concerning for the US
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
Article from LewRockwell