Russia and economic war by the west #3

Kiko wrote:At yet another completely internal working meeting with the Russian government, President Vladimir Putin proposed "thinking" about the possibility of limiting supplies to foreign markets of strategic raw materials such as uranium, nickel, titanium and a number of others, provided that this does not harm the Russian economy.

If Russia cut supplies of nickel and titanium the West will just buy these from China instead. I think any cut in these supplies would have to be coordinated with the Chinese to have proper effects.

The Chinese already put export quotas into place for gallium and germanium to the West. For example the US isn't getting any gallium or germanium anymore. This was their response to US semiconductor sanctions on China. Gallium and germanium are used to make RF equipment which has military applications. So they might be more amenable to do this sort of embargo than a lot of people would think.

Given US and EU sanctions on Chinese EVs, the Chinese might go along with regards to export limits on nickel to those places.

I also think it is long overdue for Russia to move its metals trading from the West to either its own exchanges or to China. Continuing to use Western exchanges is nonsense.

As for uranium this would have a much higher impact, at least on the US and France, which are the major users of nuclear energy in the West right now.

The problem is Rosatom gets like $10 billion USD a year by selling uranium fuel. This is what they are using to build those nuclear power stations abroad in Turkey, Egypt, Bangladesh, India, China, etc. If the sales are cut then the Russian state will have to come up with alternative ways to fund these projects.

Of course if Russia continues waiting to apply uranium sanctions the risk is the West will just come up with its own uranium enrichment capacity by building additional enrichment plants. Rendering any possible future sanctions ineffective.

Of course if Russia continues waiting to apply uranium sanctions the risk is the West will just come up with its own uranium enrichment capacity by building additional enrichment plants. Rendering any possible future sanctions ineffective.

That is an important point... by drip feeding sanctions Russia is giving them time to make adjustments and adaptations and preparations so the damage is reduced and in the end they will be more independent.

Of course the west setting up their own enrichment is going to cost a lot of money and will never be able to produce the product as cheaply as Russia can deliver it for, but really the actual goal of Russia is to prove that western materials markets are western biased and that Russia and China and the BRICS countries should set up their own markets for such things where prices are not manipulated to create artificial prices to make things cheaper for the west or to increase profits etc etc.

They are doing it with grain AFAIK so why not everything else... and that will really damage the west when they no longer can control the market price of things.

The west can't build obsolete nuclear power plants for less than $10 billion. Any fuel processing capacity would require hundreds of billions of dollars
and well over a decade to deploy. But there is no evidence of any such activity. Looks like NATzO will be relying on France.

kvs wrote:The west can't build obsolete nuclear power plants for less than $10 billion.   Any fuel processing capacity would require hundreds of billions of dollars
and well over a decade to deploy.   But there is no evidence of any such activity.   Looks like NATzO will be relying on France.

France imports Russian nuclear fuel as well. They do not have enough capacity.
https://apnews.com/article/russia-ukraine-france-global-trade-only-on-ap-business-c521f2248c823f69f0a677735a78e89d
https://www.lemonde.fr/en/energies/article/2022/12/03/russia-owns-the-only-plant-in-the-world-capable-of-reprocessing-spent-uranium_6006479_98.html

The West's problem is not really getting uranium ore, aka yellow cake, or making the fuel elements. Their problem is they lack enriched uranium capacity. Russia has like 45% of global enrichment capacity, and they have the most efficient centrifuges, which means their enriched uranium is the cheapest. Most nuclear reactors in the West need 5% enriched uranium fuel.

Russia could also interfere with their supply of uranium ore though. Although Russia itself is not the largest uranium miner, Rosatom owns a lot of uranium mines all over the world, and have a dominant hand in the market.

The West, through the hands of Israel, has given the world an ultimatum, by Kirill Strelnikov for RiaNovosti. 09.20.2024.

The special operation to mass-produce consumer electronics into weapons of terror was likely intended to restore the reputation of the Israeli intelligence agency Mossad, which had been tarnished by its failure to prevent the bloody attack by Hamas militants on October 7, 2023, and to create administrative chaos in the ranks of Hezbollah ahead of the IDF's planned military operation in Lebanon.

According to some reports, the signal to explode thousands of devices — from pagers and radios to intercoms and scooters — was sent ahead of time due to the risk of detection of "bookmarks", in connection with which the Israeli army is now adjusting its plans literally on the fly. And the IDF offensive in Lebanon that began yesterday was no surprise for Hezbollah.

As for "polishing" the image of the Mossad, Israel and its main patrons have achieved their goals in exactly the opposite way.

In essence, the organizers of the terrorist operation in Lebanon, with their own hands, together with civilians and children, finally finished off the favorite myth of the globalists about the ideal world, where Latin Americans and Africans dig ore with songs and dances, hardworking Taiwanese-Chinese stamp chips in the smoke of incense sticks, and noble Anglo-Saxons slap on beautiful fruit and vegetable logos and sell the triumph of Western technology back for dollars. And at the same time, everyone says to each other "how are you?" and smiles.

Instead, Israel and the US, which covers it , sent the world an ultimatum in kilometer-long letters: "If we want, this can happen to you at any moment." That is, for the first time in history, the line between "military" and "civilian" is completely erased, where some rules have more or less been in effect until now.

Now these rules do not exist.

Yesterday, the Speaker of the State Duma of the Russian Federation Vyacheslav Volodin expressed himself more than specifically: "The very fact that household electronic devices were used as explosive devices requires an appropriate investigation. The possibility of mass production of such "weapons" takes terrorism to a new level. This is a global threat to all countries. International institutions must develop measures against such crimes. Otherwise, no one will be able to feel safe."

Those countries that enjoyed the delights of an "effective international division of labor" and "enlightened globalism" are now in for a deafening gnashing of teeth, while dense and backward Russia, which was almost laughed at for its idée fixe on technological independence, has received full confirmation of its rightness and foresight.

The situation is made especially acute and relevant by the fact that the Israeli terrorist special operation did not happen spontaneously, but was carefully and long-term prepared - most likely, for years. Foreign sources report that as part of the operation, the Israeli special services at one time created an entire system of various real and fictitious companies that calmly functioned in the advanced Western "division of labor", without raising any suspicions, and only after the scandal broke out did it become clear that neither the Taiwanese pager manufacturer nor the Japanese radio manufacturer had the slightest idea that someone was making killer devices under their brand. At least, that is what their official representatives say. Accordingly, no one in the world (except for the Israeli and US special services) now knows what electronics and where can start to explode on command from the outside.

The Russian leadership has been developing import substitution programs in high-tech industries since the 2010s, primarily in the defense sector. In July 2014, Vladimir Putin announced the need for "the broadest possible transition to domestic materials and components in the production of special equipment and weapons," because "import substitution plays a decisive role in ensuring Russia's technological and military security."

In parallel with successful import substitution in the defense industry, the country's leadership began to consistently extend this approach to dual-use areas, as well as previously purely civilian spheres. For example, back in March 2022, the president signed a decree prohibiting the acquisition of foreign software, including as part of hardware and software systems, for critical information infrastructure facilities (on the issue of "sleeping bookmarks"). According to information from the import substitution competence center, the figures in this area are approaching 100%.

The tasks of achieving full import substitution and technological sovereignty in civilian areas are also being addressed at full speed within the framework of specialized national projects, including "Means of Production and Automation", "New Materials and Chemistry", "Industrial Support for Transport Mobility", "Advanced Space Technologies and Services", "Modern Health-Saving Technologies", "Food Security", "Unmanned Aircraft Systems", and "New Nuclear and Energy Technologies". For example, within the framework of the flagship project of the Russian medium-range aircraft MC-21, which is currently being prepared for serial production, after a number of foreign suppliers refused to work with UAC, it was necessary to replace 36 (!) systems. According to experts, there is not a single country in the world that would independently produce this entire range of products. Russia did it.

It would be a lie to say that we do not have difficulties along the way. For example, in the area of ​​microchip production, it is expected that we will be able to do without even "friendly" boards only by 2030.

But the path can only be mastered by the one walking it, and we will not turn away from it, no matter what ultimatums are presented to us.

https://ria.ru/20240920/izrail-1973714519.html

kvs wrote:The west can't build obsolete nuclear power plants for less than $10 billion.   Any fuel processing capacity would require hundreds of billions of dollars
and well over a decade to deploy.   But there is no evidence of any such activity.   Looks like NATzO will be relying on France.

not for lack of capability. they are not allowed. the real owners of the planet have decided after the USSR died and the golem suddenly became much more powerful than they are comfortable with, that the west has no need of any more promethian fire and are steadily whittling down their stockpile.

No coincidence that Putin startes his rebellion a year after construction of the first of the only two remaining fast breeder reactors on the planet...

Just saw this article by Market Insider appear on my phone. Jeffrey Christian, a commodities expert who thinks dollar dominance isn't going away anytime soon and thinks De-dollarization is a fad that will backfire on countries.


What do you guys think and what are any weaknesses in his analysis?

https://markets.businessinsider.com/news/currencies/de-dollarization-dollar-war-usd-yuan-china-russia-brics-currency-2024-7

Western economies in decline – Putin, 09.26.2024.

Future growth will be concentrated in BRICS nations, the Russian president has predicted.

Leading Western economies have entered an era of irreversible decline, as BRICS nations and those cooperating with the group become the main drivers of global growth, Russian President Vladimir Putin said on Thursday.

Speaking at the ‘Russian Energy Week 2024’ forum, Putin said a new multipolar development model is being formed, which will lead growth through the 21st century, “concentrated neither in Europe, nor in North America.”

The “powerful” pillars of Western economies will make their slowdown a lengthy process, the president acknowledged, adding that they are still “losing their positions among the world economics.”

“Major growth will be concentrated… in the BRICS nations and those countries that would like to join our group – those that see the prospect of equal partnership that takes national interests into account.”

Back in 1992, the countries that later comprised BRICS accounted for just 16% of global GDP, but their share now surpasses that of the G7, Putin noted.

According to the World Bank, the group’s cumulative GDP based on purchasing power parity amounted to more than 35% the global total as of 2023. The G7 group of wealthy nations accounts for 29% of global GDP.

According to the Russian leader, BRICS intends to create an effective development platform free of external interference. He pointed to the planned creation of an independent payment and settlement system to facilitate foreign trade between group members. “Friendly nations” already account for 90% of Russia’s energy exports, the president added.

Founded in 2006 by Russia, China, India, and Brazil, the organization was joined by South Africa in 2011. In 2024, the group expanded further to include Egypt, Iran, the United Arab Emirates, and Ethiopia. In mid-September, Putin said that up to 34 nations had expressed an interest in BRICS, with ongoing discussions about potential partnerships.

BRICS’ share in the global economy continued to increase last year while that of the G7 – comprising the US, UK, France, Germany, Canada, Italy and Japan – continued to shrink. Last year, it expanded by 0.6% while the G7 share slid by 0.4%, World Bank data showed.

https://www.rt.com/business/604739-western-economies-decline-putin/

Just saw this article by Market Insider appear on my phone. Jeffrey Christian, a commodities expert who thinks dollar dominance isn't going away anytime soon and thinks De-dollarization is a fad that will backfire on countries.

A westerner immersed in the western dominated global system. He likely has never had funds seized or frozen because of something he has said or posted so he probably does not understand what it is like for Russia or China to trade in the world under essentially western rules and diktats.

But what he is missing is that the US and the west have declared war on Russia and China, and has imposed sanctions on the use of US dollars by Russia now and perhaps China in the future as that little conflict plays out.

Russia isn't choosing dedollarisation as much as the US imposed it on them and once bitten Russia realises that the US dollar is not safe and secure for them to use as standard trading currency and the Euro is no better for all the same reasons.

If Russia was a gas station that had nukes but nothing else then I would agree they would eventually need to fold, but the fact of the matter is that the western dominated international market does not suit anyone except the US so creating a new alternative is actually in the interests of every other country.

The US can control the UN via the three vetoes the US controls in the UNSC, so no real change is possible or likely there.... so plan B will be to achieve the same changes through BRICS.

This means BRICS is going to start expanding and will likely expand every year from now on as more countries decide that free and fair trade makes more sense than western protectionism and bias and colonialism.

GarryB wrote:

Just saw this article by Market Insider appear on my phone. Jeffrey Christian, a commodities expert who thinks dollar dominance isn't going away anytime soon and thinks De-dollarization is a fad that will backfire on countries.

A westerner immersed in the western dominated global system. He likely has never had funds seized or frozen because of something he has said or posted so he probably does not understand what it is like for Russia or China to trade in the world under essentially western rules and diktats.

But what he is missing is that the US and the west have declared war on Russia and China, and has imposed sanctions on the use of US dollars by Russia now and perhaps China in the future as that little conflict plays out.

Russia isn't choosing dedollarisation as much as the US imposed it on them and once bitten Russia realises that the US dollar is not safe and secure for them to use as standard trading currency and the Euro is no better for all the same reasons.

If Russia was a gas station that had nukes but nothing else then I would agree they would eventually need to fold, but the fact of the matter is that the western dominated international market does not suit anyone except the US so creating  a new alternative is actually in the interests of every other country.

The US can control the UN via the three vetoes the US controls in the UNSC, so no real change is possible or likely there.... so plan B will be to achieve the same changes through BRICS.

This means BRICS is going to start expanding and will likely expand every year from now on as more countries decide that free and fair trade makes more sense than western protectionism and bias and colonialism.

This is a good article discussing the fall of the dollar could lead to fall of US empire; I think the US would go to war with Russia and China out of anger.

https://watcher.guru/news/brics-expert-says-failing-dollar-will-lead-to-fall-of-us-empire

West's attempt to undermine Russia economically "has produced an opposite result", 10.02.2024.

Despite the expected collapse of the Russian economy and the discontent of the inhabitants, it remains strong and the population is satisfied more than two years after the imposition of international sanctions, says a column published by the news portal 'The Hill'.

Almost two and a half years after the beginning of the special operation in Ukraine, the inhabitants of Russia seem less affected by the conflict than in 2022.

"Neither Ukraine's incursion into the Kursk region nor the most recent Western sanctions seem to be igniting discontent among 'ordinary' citizens or the affluent populations of Russia's largest cities," the text reads.

"Thus, the West's attempt to weaken Russia economically since 2022 has produced an opposite result, at least so far," he adds.
This lack of discontent, the publication highlights, is due to the fact that the capital and other Russian metropolises have become much more "westernized" in recent years, as there is a huge concentration of wealth in them, a rapid modernization of the city's infrastructure and the development of various digital services.

Most of the money that would have previously been channeled to the European luxury real estate sector began to flow to Moscow, St. Petersburg and their suburbs.

"Since 2021, the average dollar price of an apartment in Moscow has increased by a staggering 43%, and the city government has invested enormous efforts in expanding transport facilities and stimulating private companies in the service sector to meet the growing demand," the text of the American information portal mentions.

In addition, it is said that 78 new metro stations have been built in the capital in the last ten years and the city now has the largest fleet of locally manufactured fully electric buses.

In addition, the Russians have managed to turn around the suspensions of Visa and MasterCard on their territory, using the Central Bank's Instant Payment System, which allows transferring any amount of money using the mobile phone number as an identifier, immediately and without commissions.
On the other hand, the attractive job offers in the country have caused the return of compatriots who could not integrate into European societies.

"Russian post-communist society became extremely individualized and focused on, as the late Polish-British sociologist Zygmunt Bauman used to say, personal solutions of systemic contradictions. These people are not so much disturbed, but rather pleased by the exodus of liberal Russians, and they welcome the positive economic changes they witness in their everyday life," he notes.

Yandex Translate from Spanish.

https://noticiaslatam.lat/20241002/intento-de-occidente-de-socavar-economicamente-a-rusia-ha-producido-un-resultado-opuesto-1157920420.html

This is a good article discussing the fall of the dollar could lead to fall of US empire; I think the US would go to war with Russia and China out of anger.

Even if the dollar collapses the US is not going to disappear, and the substantial US military is no going to disappear overnight either.

I rather suspect a collapse of the dollar will lead to a lot more infighting than there is now and most of those in power in the US will be more interested in fighting over what is left and how it can be salvaged and converted into something that has value. I also think, as a positive, the world will stop accepting US bribes, which means US bases around the world will have to start earning their keep. Most are maintained by bribes and corruption and therefore the vast majority will likely be closed overnight.

The US presence in Europe will rapidly diminish if not collapse... Cuba might even get US forces off their territory if they are lucky.

In its attempt to undermine Russia's economy, the US is living through hell, by Javier Benítez for SputnikSpanish. 10.06.2024.

Russians seem to be less affected by the conflict in Ukraine after two and a half years. This is stated by the media 'The Hill', indicating that neither the incursion into Kursk, nor the most recent package of sanctions causes discontent among the citizenry, much less affects the economy. Meanwhile, a historic port strike is being unleashed in the United States.

Russia-the West: day and night

"We have completely crushed Russia's economy," were the words of former White House press secretary Jen Psaki, when less than three weeks had passed since the beginning of the conflict in Ukraine provoked by the United States and its substitutes from the collective West. Knowing the 'Psaki character', those words that came out of her mouth did not attract attention.

Two and a half years have passed and the economy that is heading to be crushed is that of the United States, and that of Europe as well, while that of Russia shows a strength that the American country itself and its vassals on the other side of the Atlantic would like to have: the European Union. This is what can be read between the lines in the article published in The Hill entitled Why do the Russians seem so satisfied despite the war in Ukraine?

The publication highlights the current situation in Moscow. "Looking at Moscow, we see not only a huge concentration of wealth, which makes the capital a contributor of 20% of all taxes to the Russian federal budget, but also a rapid modernization of the city's infrastructure and the development of various digital services that are hardly seen anywhere else."

It also refers to the impact of illegal sanctions against Russia, the results of which were opposite to those expected by the collective West. "The Western sanctions imposed in 2022 caused a sharp drop in Russia's capital exports. Almost all the money that would have previously been channeled into the European luxury real estate sector began to flow to Moscow, St. Petersburg and its suburbs (...) In the last 10 years, 78 new Moscow metro stations were built [more than in the previous four decades] and the commuter network was integrated into a broader railway system."

Former diplomat and UNAM (Autonomous National University of Mexico, in its Spanish acronym) professor Héctor Lerín explains the failure of Western sanctions. "Russia is a geopolitical power (...) apart from the fact that it has many friends, it has many resources and can work and operate among the BRICS, for example, with Africans, with the friends it has in Latin America. These sanctions simply and simply did not have the effect they wanted. And it did not happen what the collective West always wants, when it comes to making these issues, that people are unhappy, that they get angry with their government and can bring it down," the analyst notes.

Meanwhile, the US is turning on its head. The Financial Times reports that tens of thousands of American dockworkers are going on strike for the first time in almost five decades. Analysts warn that this closure as a result of a "deadlock" over negotiations on wages and automation could cost the US economy about 5 billion dollars a day.

"This is practically being a hook to the liver for the Democratic government. It is a situation that does not suit the current US government or the campaign of Mrs. [Kamala] Harris (...) A nation [USA] in some sense, maritime, with tremendous coasts by the Atlantic [ocean] and by the Pacific [ocean], with a lot of international trade, and that has this problem, are major words," says Lerín.

At the same time, the American aeronautical corporation Boeing suffers a strike, the first since 2008, just when it fails to get out of a series of scandals related to the quality of its products and faces a collapse in the price of its shares and the threat of a low rating.

In July 2024, employees at the Boeing plant in Seattle announced a strike, with which they intended that, in their new contract, the management would increase their salaries by 40% over the next three years. The previous agreement expired on September 12. "We just want a fair wage. We are not greedy. It's hard to live in this state [of Washington]. You have to charge more than $160,000 [a year] to buy a house," an electrician at a Boeing plant told an American outlet.

"Obviously, this reveals a crisis of the entire system, there is discontent, that things are not going well, that the Democratic Party has not just solved the innumerable problems that the economy has. The country has many arrears," says Lerín.

Yandex Translate from Spanish.

https://noticiaslatam.lat/20241006/en-su-intento-de-socavar-la-economia-de-rusia-la-de-eeuu-vive-un-infierno-1158033053.html

If Russia cut supplies of nickel and titanium the West will just buy these from China instead.

If they do cut supplies to western countries there wont be any added new capacity to the market, so other producers of the materials wont instantly be able to fill the gap.

Of course over time they can buy from Russia and sell it on to the west, but they will want to make a profit on these sales and of course the disruption to the market will have already driven up prices so when they add on their profit margin the west will have to pay rather more than they are used to for the materials they need.

Much the same way the EU cut themselves off from Russian gas assuming the rest of the world could fill the gap, but they couldn't and what ended up happening is that Turkey and India bought extra from Russia and sold it on to the EU, with a profit margin and all the extra costs that involves so the EU ended up still buying Russian gas but for rather a higher price than they were paying before.

I suspect the same will happen with Nickel or Titanium.

With Uranium of course the problem is not lack of the raw material, but the expertise and refined products.

Sanctions are not a good weapon... Russia stopping sales of titanium and nickel and uranium products to the west will cause initial harm and serious problems, but eventually they will achieve alternative solutions... but those solutions are going to be more expensive.

The west didn't buy Russian products because they were expensive... they bought them because they were cheaper and also they could be provided in the volumes required.

Building up their own alternatives is going to be expensive and the final product is going to be more expensive too, and ironically if the west actually apologises and grows up a little bit and agrees to Russias very reasonable terms, these new capacities are going to be the first casualties because no matter how much money is spent on them they wont be competitive with Russian capabilities in that area.

Equally, I think the west is also going to get a bit of a shock if they ever get to return to the Russian market because a lot of their products like aircraft and engines and avionics and other systems and equipment will have been replaced and they might have serious trouble breaking back into that market.

The first time around with food and drinks and other products there probably wasn't a huge local alternative to their products.

For instance Coca cola often buy up local drink making products and add them to their range in that country and sell all those products... here in New Zealand there is a local lemon drink called Lemon & Paeroa... usually abbreviated to L&P... it is a bit like 7up, or Sprite or Lift, so when they entered our market they bought up the company that made L%P and its production facilities, and massively upgraded and expanded them and started making the local product and their own range of products too, and they do that most places they go.

When they come back all the drink companies that replaced them or want to take over their business could simply run adverts showing Coca cola products with the tag line... "Coke... we funded the nazis this time around... hope they didn't kill anyone you knew...".

The clown "analyst" above who thinks the de-dollarization will never happen sums up the rampant ignorance of reality in NATzO west. Wishful thinking and general low IQ.

Russia has demonstrated quite clearly that it can function totally outside the dollar system and the NATzO financial system. It can also experience robust
economic growth while being outside this BS construct. So Russia has already established one of the poles of global trade that can organize activity not dependent
on dollars and SWIFT. The NATzO west will have to sanction and invade every country in the global south to try and stop them from participating. Too bad for NATzO,
but the days of their colonial dominance are over. They may be able to regime change some countries, but they will not be able to stop the trend.

I'm not too convinced that Russia is outside the dollar system. It's not doing barter trade for its goods aside from some of its deals with Iran and North Korea and possibly whatever arrangement they have with India although I think that one has evolved somewhat since.

Yeah there is a lot of talk about how much trade is being done in mutual currencies now but we don't have too many details on that

I suspect the same dollars and euros are being used for most things Russia is buying and selling, just outside Russia, with all these deals being done in China or Kazakhstan or wherever else.

They need to get a move on with the BRICS payment system and Unit and whatever else they've floated.

De-dollarization does not mean zero dollars in international trade. It means that the dollar is not a monopoly trade currency. Countries will be trading with Russia regardless
of what the yanquis want. And Russia will not be trading in dollars and will not be using yanqui controlled banks and SWIFT. This is already happening for 2 years but people
are still fantasizing that Russia is using dollars (and SWIFT?) because those things are magic. Dollars are just scrap pieces of paper. It is thanks to suckers believing them
to be magic that America can export its inflation to these idiots and can print money like Pancho Villa.

There are a few western banks still trading in Russia and Putin and the Russian government have put strict controls on them so if they want to leave it is going to cost them an enormous amount of money.

Those banks essentially allow the trade in Euros and US dollars to continue and allow some Russian companies and individuals to continue to use SWIFT... but they on'y use it because there is no easy sensible alternative.

The new international trading currency for BRICS is going to solve those problems.

Essentially if you compare it to the Euro, instead of all the BRICS countries dropping their current currency and therefore also losing control of their ability to adjust their money to cope with various things like inflation etc, and adopting the new currency as a currency, the idea... it seems to me is that the new currency becomes an agreed to trading currency between the members that is convertable to each members currency.

This way you have a currency you can trade with all your partners in that does not cost extra money for conversion and is not traced by the nosiest people on the planet (ie the US), and you can buy anything from any BRICS member who can then use the BRICS currency to buy from other BRICS members or convert it to a local currency and use the profits locally.

It is essentially an American dollar they have full control over and is fully convertible.

You keep your own currency and in some cases you might want to use your own currency in trade too, so for instance if a Russian company wants a whole lot of ships to be built for commercial jobs, they have an enormous trade surplus with India, so giving an Indian shipyard the contract to build a few hundred large ships would be a good way for a Russian energy company to use the excess rupees they have been earning selling oil and gas to India.

Of course in a few years Russia might get India to pay in BRICS currency and then they could get those ships made in China, or Turkey, or many other countries around the world.

The dollar system will not go away because its a physical manifestation of avarice. Think of it as an agreement among all the scum of the planet - they price land, tangible goods and human labor in useless beads that are manufactured at will - and they have complete access.

Human greed backs the dollar. Not gold, silver, some algorithm and certainly not the ricket, aids-ridden rustbuckets of the USN.

GarryB wrote:The new international trading currency for BRICS is going to solve those problems.

Essentially if you compare it to the Euro, instead of all the BRICS countries dropping their current currency and therefore also losing control of their ability to adjust their money to cope with various things like inflation etc, and adopting the new currency as a currency, the idea... it seems to me is that the new currency becomes an agreed to trading currency between the members that is convertable to each members currency.

The European Economic Community (EEC) also had that. It was called the European Currency Unit (ECU). It is only later that they decided to turn into a federation (European Union) converge the currencies and actually create a common currency called the Euro and abolished the ECU.

The EEC started out settling trade between countries with gold. When that became too restrictive they created the ECU to settle trade between each. Later they decided to have the common currency.

The introduction of the Euro mostly harmed the economies of Southern Europe, when all prices of the latter became aligned with those of the strongest one, i.e. Germany.

Therefore, the general cost of living in Europe increased in all of European countries, except for Germany, but mostly in the so-called PIGS - Portugal, Italy, Greece, Spain (the poorest ones).