None of the BRICS nations like one another and carry a list of grievances. And besides China and Russia, who have terrible demographics and rising costs of capital, none of them wants a new BRICS currency. All the BRICS speak different languages and share no common culture. None of them are relevant in Forex and never will be. 4/5 current BRICS country leaders will be past the statistical age of death at the start of next decade. The entire concept of globalization is based on the American security order. And that oil thing...
The whole purpose of the US dumping gold was that the petrodollar was a much better commodity-vehicle for monetary expansion. Any expansion of energy was necessarily an expansion of the USD. For over 50 years the US enjoyed this and its tiered benefits with few negative effects. The problem however, is that this requires oil and fossil fuels to be the fastest expanding forms of energy in peacetime, if it's going to benefit your currency, economy, bond market, deficits. Green energy is now the fastest expanding form of energy in peacetime, and the petrodollar is dying.
Bitcoin uses electricity.
So for the BRICS to try playing this petrol game this late, is folly. On the issue of a gold-tied or gold-pegged currency, it'll never happen. If BRICS are that stupid, they'll get destroyed by the US and its colluding Allies who set up a London Gold Pool 2.0 and wreck the monetary premium. Too, if the market cap of gold gets flipped by the market cap of bitcoin, they'll have a weaker commodity and weaker money tied into a declining form of energy. The BTC/USD pair isn't something they can compete with. The petrodollar's death is dangerous for theocratic monarchies of the middle-east who are afraid their security guarantor (the US) will leave. That's what their casual BRICS membership is about, but even they know it won't work.
- Russia will go hyper-inflationary and implode this decade.
- China will implode by next decade.
- South Africa is irrelevant and doesn't need BRICS, they need water.
- Brazil's GDP has been declining steadily since 2011, and they've never traded with any BRICS nation other than exports to China.
- India is a classic non-aligned power and couldn't care less who they trade with.
If the BRICS do expand their membership, it'll ensure they never accomplish anything.
Twitterverse and podcasts are really running with this BRICS bullshit. I wanted to proffer a Stacker News contrarian take. Will BRICS last longer than League of Nations did?