Much anticipated 15th BRICS meeting August 22-24.

 AGENDA DEALS WITH NEW MEMBERS AND CURRENCY

MAY DEFINE THE FUTURE OF GLOBAL TRADE

The 15th meeting of the BRICS group will convene in South Africa on August 22. It is a much anticipated meeting and will be hosted by the leaders of China, Brazil, India, South AFrica and Putin of Russia will attend virtually. There are 67 leaders of other countries planning on attending. It is expected that the BRICS group will be expanded and the official applicants so far are  Saudi Arabia, Egypt, Iran, Algeria, Argentina, Bangladesh and Ethiopia. There are at least 40 other countries considering joining the group.

It is planned that solid rules for meeting the requirements for joining are to be designed at this meeting. China wants anyone who is willing to be able to join. India has had reservations about countries that are not considered democratic, joining. We can expect that there has been pressure being placed on some members to assist in dividing this group at the insistence of the U.S. and G7, but it is likely this group will strengthen and expand.

The other big item on the agenda is the development of a new trading currency or the ability to trade in each nations currency. It is an attempt to replace the Dollar as the world's trading currency or at least provide an alternative. Actually it is an attempt to provide an alternative duel trading method. Much of this has become iminent due to the huge debt and deficits of the United States and the use of sanctions by the U.S. to interfere with the economies of other countries. 

While many have speculated that it is an attempt to use the Quan as a new reserve currency, actually that is not the case. One idea is to allow nations to trade in their own currencies and then every quarter settle their deficit with an actual transfer of gold. The other idea is to peg all the currencies of the member countries to a weight of gold and then accept those currencies at that rate between members, this seems to be the favored method so far, as all member nations could trade with each other in any members currency. The rate to gold could be set at the time of settlement. India could sell rice to members in their currency and Russia or China would accept those currencies received for oil or other goods.

The present population of the members is approaching half the worlds population, it can grow to be a huge trading group that will not be asking to eliminate or sanction others for political or social issues. It will be focused on business without prejudice or bias. A tall order in todays political climate.

While many feel that it is an attack on the U.S. and dollar hegemony, it is in reality the effects of fiscal mismanagement and the abuse of the worlds reserve currency by the Unite States for political purposes. It is more of providing an alternative rather than a complete replacement method. In actuality it may be just what is needed to force fiscal restraint and an end to the policy hat they can force political and social change by threats of economic destruction.