- Thread starter businessdr
- Start date
Will Dominican Republic Join The Bricks
BRICS, Brazil Russia India China and South Africa. There isn't a K. And no I don't think DR will, it's far too influenced by the US to do that.
No. DR is too intertwined and controlled. The politicians also have zero interest in doing so as they have business interests tied to the US. The BRICS countries have a business interest in the US as it's a large market but the US has an issue with understanding that you can't show you can unilaterally seize a foreign country's assets without other countries starting to get nervous. The condition for seizing the assets is unfortunately not bending to US will and interests, which often require sacrificing your own country to do so. That's a pretty bad position to be in and the primary motivator. I feel there is a lack of honest discussion as to what the core issue is and most people think it's about rebelling against the dollar when it's more about keeping your transactions out of a system that is high-risk. There's also the simple matter of sovereign privacy, when you use a currency on a large enough scale, whoever issues that currency has visibility as part of your transactions have to go through them.
The Don ain't having it. Countries who refuse to continue using the greenback as their global reserve currency will get hit with 100% tariffs.
Yeah but he's not being truthful as to why they want to do it in the first place. I'm going to be very wary of having you hold/have access to my money if you can just decide to keep it if you woke up this morning and want me to do something I can't do, or just plain want to seize my money to score political points. It's like giving that guy you know doesn't like you and is probably, definitely going to blackmail you at some point a bagful of cash.
Trust me. I get it.
Not to go off-topic but this is the main reason the price of gold is going to continue rising regardless of all other factors. Countries like China are stock piling massive amounts of gold for this very same reason. It's sanctions proof.
I think it was under Leonel the DR joined (either as an observer or full member) the Pacific Alliance or something like that. Until the DR joined, all countries in that alliance were Latin American ones with a coast on the Pacific Ocean.
Watch what they do…..not what they say.
The larger BRIC countries while talking about diversifying away from the dollar, still hold massive amounts of US treasuries. They reduce or add to those positions depending upon global economic duress. US Treasuries are the safest and most liquid asset in the world.
Unless you are an Iran, Russia, North Korea, or one of the other sanctioned countries your risk is negligible.
As to the DR joining the BRIC alliance, I do not see it happening as long as Abinader or Trump are in office. The future beyond that being unwritten.
Respectfully,
Playacaribe2
You can hold a position while not having your liquid assets and daily transactions going through the same system. So you can keep the bonds and sell them off or buy more if you need to while making your transactions more point-to-point so I can't take your cash and your gambling money (tanking or freezing treasury transactions for governments/persons we deem undesirable) and throwing a very large wrench into your business dealings (sanctions). I don't think they are that worried about the value of the dollar, more about being able to keep their money regardless of whether their politics align with what the US wants. I mean it's not even the US, it's not like we get asked what we as individuals want and then that gets done. And I don't think that they actually want to do it, I think they're thinking about it because they can't really count on continuity in agreements or at least status quo from one administration to the other.
What system of payments will they use? And what currency will they use to settle accounts?
The BRICS are a long long way from dollar independence. Think about this for a moment, 40% of the worlds capital comes from the US. Apple computers value is greater than the value of the entire Russian stock market.
Upending the dollar is a long long way from reality and countries like the DR are smart enough to recognize that fact.
Remember when OPEC and the much ballyhooed petrodollar were going to rearrange the worlds financial order.
Lastly, and another reason the DR will likely not abandon the dollar in favor of joining a so-called BRICS alliance, currency, and or payment system are remittance dollars from the US, which form one leg of the three legged stool that keeps the DR economy solvent.
Respectfully,
Playacaribe2
What would it benefit the DR to do this? It would be economic suicide to even discuss it.
China manipulates its currency for trade issues so much it's in constant flux.
The DR should stick to it's peso or switch to the Canadian Loonie
China manipulates its currency for trade issues so much it's in constant flux.
The DR should stick to it's peso or switch to the Canadian Loonie
Not short term.
However, given that Chinise products get even more cheaper compared to western products and China takes the lead in innovations (AI, robots, semiconductors, cars) trade volume will shift more and more.
Using the new BRICS currency and accepting import taxes for U.S. products might be more profitable at one point in time.
With Trump the end of the dollar as world reserve currency is delayed, but the process of BRICS to implement their own billing system even Trump can not stop.
BRICS expands to 54.6% of world population by adding Nigeria, Africa's most populous country - Geopolitical Economy Report
BRICS added new partner Nigeria, Africa's most populous country, 6th-biggest on Earth. BRICS+ has 10 members and 9 partners: 54.6% of world population, 42.2% of global GDP (PPP).
geopoliticaleconomy.com
Short answer: not today, but uninvitable long term.
Alexander
Not short term.
However, given that Chinise products get even more cheaper compared to western products and China takes the lead in innovations (AI, robots, semiconductors, cars) trade volume will shift more and more.
Using the new BRICS currency and accepting import taxes for U.S. products might be more profitable at one point in time.
With Trump the end of the dollar as world reserve currency is delayed, but the process of BRICS to implement their own billing system even Trump can not stop.
BRICS expands to 54.6% of world population by adding Nigeria, Africa's most populous country - Geopolitical Economy Report
BRICS added new partner Nigeria, Africa's most populous country, 6th-biggest on Earth. BRICS+ has 10 members and 9 partners: 54.6% of world population, 42.2% of global GDP (PPP).
Short answer: not today, but uninvitable long term.
Alexander
Actually, the BRICS countries currently want to avoid the dollar payment system and trade in their own local currencies.
Looking at the list of countries one finds many that have had a “Baninter” banking crisis moment. And to where did the people of the those countries including the DR turn to in those turbulent times……the dollar.
And where did those countries look to have their banking system saved? The answer is the IMF. And who supplies the bulk of resources to the IMF?
For lots of political, economic, and cultural reasons, the DR is not likely to join BRICS.
Finally, the use of the statistic cited in that leftist anti-American geopoliticaleconomy.com, while accurate, trying mightily to suggest some turning of the tide, belies the fact of how many of those countries have large percentages of their people in poverty due to local mismanagement and corruption.
Respectfully,
Playacaribe2