The spectacular rise of BRICS since the 70s underscores the growing influence of this intergovernmental organisation in geopolitics, global economics and global security.

BRICS is an acronym for Brazil, Russia, India, China, and South Africa

But behind the playful acronym lies perhaps the most profound challenge to US hegemony since the rise of the USA as a global power.

Rise Of BRICS
BRICS Expansion

“The spectacular rise of BRICS since the 70s underscores the growing influence of this intergovernmental organisation”

WEALTH TRAINING COMPANY

The rise of BRICS is already changing the dynamics of global economics, global finance and geopolitics

For the first time since post-World War 2, the rise of BRICS provides an alternative to a US-centric unipolar world outside the US dollar. 

The Cold War era, 1947 to 1989, was no challenge to US global economic and financial power.

But the rise of BRICS is different

Paradoxically, China and Russia somehow retooled capitalism, adapted it to their system and are now beating the West, through BRICS, at its own game.

By the end of the decade, China and India will be the world’s largest economies, with the US falling into third place. 

In 2050 BRICS members will have more than half the world’s economy within their domain outside a US-centric sphere of influence. 

Independent international trade rules where transactions settled outside the USD dollar.

China GDP

“Paradoxically, China and Russia somehow retooled capitalism, adapted it to their system and are now beating the West, through BRICS, at its own game”

WEALTH TRAINING COMPANY

The rise of BRICS means a new world order and the end of the dollar as a world reserve currency. 

BRICS are creating an economic, political, military and financial union that could make the current hegemon look like a fallen Rome within decades.  

The rise of BRICS has been spectacular

In the 70s, 85% of global trade flowed through G7 countries, western Europe and the US. 

Today, BRICS has 45% of the global population generating 30% of global GDP

But the rise of BRICS is not a temporary blip on the radar, being the geopolitical macro trend of the century. 

China and India are forecasted to maintain relatively high growth rates, in 2024 at 4.6% and 6.8%
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The widening GDP growth gap between G7 and rising BRICS members

The Global economy is forecasted to remain at 3.2% of GDP in 2024, with a recession worse felt in the G7. 

But when the GDP growth of G7 and BRICS are compared, a divergence in economic performance emerges.  

Various nations are seeing declines forecast, with most of those declines in the G7s, is the takeaway from a recent International Monetary Fund (IMF) report. 

Global economic growth in 2024 will be weaker than in 2023. 

The majority of G7 and BRICS countries are forecast to underperform this year, compared with 2023, but BRICS is likely to weather the global economic stagnation better. 

Three BRICS-invited or member countries, Saudi Arabia, the UAE, and South Africa, have higher projected GDP growth rates in 2024 than last year. 

China and India are forecasted to maintain relatively high growth rates, in 2024 at 4.6% and 6.8%. 

Compared to the previous year, China is growing 0.6 percentage points slower, while India is an entire percentage point slower.

The IMF report noted four G7 nations could grow faster than last year, which includes Germany recovering from its negative real GDP growth of -0.3% in 2023.

But the IMF Report on Germany, making a comeback in 2024, contradicts a combined report from leading economic think tanks in Germany, which have revised 2024 growth forecasts from 1.2% down to 0.1%. 

Energy-poor Germany is de-industrializing as its pipeline to energy-rich Russia has shut down.   

So, the IMF reporting could be biased as it underplays the G7 decline plagued with debts, rising energy, and food costs as many households struggle to make ends meet.   

Nevertheless, the IMF report underscores the rise of BRICS forecast to continue growing faster than G7 nations.  BRICS nations still have a significantly higher average growth forecast at 3.6% compared to the G7 average of 1%, according to the report. 

The G7 countries, combined GDP is around $15 trillion greater than the BRICS nations, with continued higher growth rates and the potential to add more members. The IMF report notes that if the rise of the BRICS trajectory continues, it could overtake the G7 in economic size within two decades.

Foreign policy is strategic, and nations do what is in their interest” – Wealth Training Company

Rise of BRICS and declining living standards of people in G7s

In the 70s images of China show hundreds of people cycling on the roads. People were too poor to buy autos. 

Today, China represents the largest auto market in the world, leading in the mass electrification of vehicle production and technology.

In 2024 most G7 millennials will be too broke to buy an auto, and many who did on credit are now defaulting on their auto loans. 

The rise of BRICs outside a US-centric world will accelerate the de-dollarization trends as more of the world population is trading and storing wealth outside the US dollar; its status as a reserve currency could fade away. 

The current cost of living crisis is a currency crisis.  Buoyant household demand is not causing prices to rise, bearing in mind a tsunami of loan defaulting is about to trigger another 2024 banking crisis.

Treasury Bond yields are rising because global demand for treasury bonds is falling.

Investors could be rejecting the US paper, which is an early warning of currency collapse and hyperinflation. Investors are losing confidence in policymakers. The 34 trillion dollar deficit costs over one trillion dollars in interest payments yearly alone at the current interest rate.

100 billion USD in war aid approved, with more than half of it going to Ukraine for war materials, which gets destroyed as soon as it crosses the border.  Deadend policies are already debasing the currency and creating household and banking stress.

Why are policymakers destroying the dollar? 

With the rise of BRICS, everyone loves a winner

Foreign policy is strategic, and nations do what is in their interest.

As the rise of BRICS looks more attractive than the debt-laden collapse of the G7, more countries could jump ship, abandon the US-centric world and align with BRICS.

What happens if the EU dissolves with powerful countries in Europe joining BRICS?

Would the Brexitier anglophiles prefer to see continental Europe a bartered no-go warzone?  

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