Description on X here. (It's nothing like the cheerleaders have been projecting.)
BRICS Chairmanship Research
Improvement Of The International Monetary And Financial System
The Ministry Of Finance Of The Russian Federation, Bank of Russia, Yakov and Partners
The Ministry Of Finance Of The Russian Federation, Bank of Russia, Yakov and Partners
5 comments:
They need an alternative to SWIFT. That being said, the effectiveness of sanctions has declined over the decades.
Do they all want to net export to each other? How does that work?
What are the trade numbers for BRICS and the rest of the world?
The BRICS report is also a sales pitch to Eurozone countries. Which is a brilliant geopolitical strategy. That is the pragmatism of China and Russia on full show here.
Why is that ?
If every country started off with 10 gold bricks if one country net exported more they would have more gold bricks. Thus an advantage.
The country that ended up with less gold bricks would have to impose austerity on their domestic sector. Meaning imports to their country would drop. Imports improve the standard of living of that country.
In Turn that would effect countries who previously exported to that country. Now they have to impose austerity on their domestic sector to make the adjustment.
The gold bricks are never evenly shared somebody always has an advantage and somebody a disadvantage. That's exactly how the Eurozone has been set up. With gold standard, fixed exchange rate ideology. Countries can't issue their own coin that has been monopolised by the ECB.
A race to the bottom and begger thy neighbour tax policies. Austerity will be imposed if you are at a disadvantage. See PIGS and The periphery of the Eurozone for details.
The BRICS report is saying, hey Eurozone countries it doesn't need to be like that.
Go back to using your own currencies and trade with us. Look at our report - Independence –a solution that will perform based on mutual-reliance thus preventing any single party from establishing an overarching control.
Cross-border investments – an increasingly seamless environment that allows for efficient and sustainable capital allocation that does not hinge on a single-currency
centric infrastructure.
Reserves – sovereign reserve system that is supported by diversification across currencies, commodities and alternatives; protected from any outside will.
Sustainability – the solution must be designed with a long-term view and remain adaptable to the changing economic environment (e.g., shifting balances of payment,
new models of financing etc.), thus retaining its participants within the system and allowing it to achieve a network effect.
Come and join us...leave the EU.
It is genius :)
The first part of section 1.5 is about replacing the swift payment system and future proofing it.
The second part of Section 1.5 is about protecting savings after net exporting.
That's what was frozen, stolen via sanctions and that's all that matters really.
What you save in is what matters, what it is priced in is just a numerier.
If you net export to China you save in Yaun, to India save in Rupees, to Russia Roubles. If you net export to staples you save in paper clips.
What you want to save in and protecting what you save in is what The second part of Section 1.5.
Wouldn't surprise me if they created a BRICS bond it is how central bankers think. How historically central banks have allowed countries to save.
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