Obviously these nations are certainly working toward establishing a global reserve basket to oust the USA Dollar which would hugely curb political recklessness which we have actually seen far too much of.
this is hardly the first time either. The closest we come to a real competitor is the Euro.
right now half of all that trade is in oil. that can end. and the real problem is that just who wants to own China's debt, Russia's debt, Brazil's debt or India's Debt for that matter. Most of that debt lacks a creditable internal legal system to support any of that debt except india.
Reserve currency means you buy those sovereign bonds. This exposes you to devaluations which can be a financial disaster.
today we are supposedly looking at a weakened USA, except it has now abandoned foreign wars\and can readily become self sufficient in oil anytime it wants and do not forget additional Canadian oil coming on stream any damn time.
No one today wants to invest directly in Russia. when China actually crumbles expect expropiation of foreign assets. The only likely winner will be India and it may well become a global reserve currency, but only after it has surpassed china in real wealth.
An expanded currency block is indicated then to include all SE Asia and ultimately a much chastened China...
BRICS Future
This will be the world's new reserve currency, and probably end the U.S. dollar forever. Have you heard about BRICS? Well if not, you'll likely be hearing a lot more about them in the near future.
BRICS stands for Brazil, Russia, India, China, and South Africa, and is an economic alliance of nations designed to be a direct competitor to the G7. Comprising the world's most powerful developing economies, BRICS is currently making some big moves to create a new form of money, which is likely designed to topple the US dollar from its spot.
Economics and finance are complicated subjects. However, it's clear to see from these early pros and cons just how powerful a BRICS currency would be. And how likely, it could easily remove the economic superiority of the United States, and the West as a whole.
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