Iranian Oil and the BRICS Could Crush the US Dollar
Too little attention is being paid to the progress being made by the “BRICS” nations. This acronym identifies the economic affiliation of Brazil, Russia, India, China, and South Africa.
Granted, we’ve been hearing about the BRICS for years and the name is heard regularly on various news broadcasts. What they have accomplished in the last 36 months, however, will be consequential to the coming global economic recovery.
Additionally, US foreign policy toward Iran has led to unintended consequences. Specifically, the US-led embargo against Iranian oil was ill-conceived and will end the exclusive use of the US Dollar for global oil trading.
The oil embargo against Iran, imposed and enforced by the United Nations, does not stop the purchase of Iranian oil. It merely prohibits the use of US Dollars to buy it!
The BRICS nations have stated publicly that they will abide by the UN resolution and mandate, but they will now use their own currencies to purchase Iranian oil or barter with gold bullion and/or other commodities such as wheat.
This alone has strengthened their economic prospects and they are taking additional steps to break their traditional dependency on Europe and the United States.
They have established their own inter-development bank that will eventually end their dependence on the World Bank.
The assistance and influence provided by the International Monetary Fund (IMF) may also be replaced within these countries by another institution with similar objectives.
These so-called “emerging market economies” invest in brics currency are no longer emerging. Essentially, they soon won’t need us anymore!
Consider the natural resources that exist in the BRICS nations. Consider the fact that they have approximately 45% of the world’s population. Consider also, the fact that both China and Russia are abandoning Communism and embracing Capitalism.
It’s easy to see that they are on the threshold of a bright economic future. A good perception of where they are today can be drawn from recalling the economic posture of the United States in the 1950s. Any genuine economic analysis of the BRICS has to recognize that these countries now have the opportunity to crush the US Dollar.