Norris McDonald | The US ‘Moneytricks’, BRICS and Michael Manley’s vision

AS THE China-Russia-led BRICS bloc expands, a growing concern is emerging in the West: BRICS is challenging the dominance of the US dollar in global trade. This shift – part of a broader ‘de-dollarisation’ movement – has profound implications for global finance and US economic power.

BRICS represents an opportunity for developing nations to break free from the financial stranglehold of the Western-dominated system.

EMERGING TRADE WAR

This expanding economic influence is positioning BRICS as a formidable challenge to the US dollar’s dominance in global trade. The shift toward de-dollarisation is gaining momentum, driven in part by the US’s overuse of economic sanctions.

Financial experts, including those from Bloomberg, have warned that America stands to lose significantly in any new trade war with BRICS nations. We are now seeing a rapidly expanding trade war in which Russia and China have aggressively responding to new rounds of sanctions imposed by the lame-duck ‘Fuzzy Brain’ Joe Biden administration.

China has been steadily reducing American food imports. China has also banned the export of strategic rare earth minerals urgently needed by the America tech industries. Not to be outdone, Russia has banned the export of enriched uranium that is used as fuel by America’s nuclear power plants.

This is a sign of things to come.

DONALD THE KING OF POLITRICKS

The aggressive rhetoric from incoming President ‘Donald the God-King’ Trump – who often portrays himself as a master negotiator – has done little to ease global tensions. His threats of economic retaliation against BRICS nations only underscore America’s waning influence as more countries seek to bypass the US dollar.

‘Donald The God King Trump’ has threatened 100% tariff on countries who dump the dollar. But hasn’t his ‘borrowed brain’ Elon Musk not told him that it is American consumers who will feel this price squeezes?

Oh yea!

No more cheap big screen smart TV from China! Word!

Therefore, no matter how loudly ‘Donald the King-King Trump’ bloviates, or threatens, nothing can halt the seismic shift toward a new global economic framework led by BRICS.

The recent BRICS summit in Kazan, Russia, chaired by President Vladimir Putin, is an aggressive sign their member nations have already planned aggressive counter strikes to anything that Trump may come with.

AMERICAN MONEYTRICKS

Take the issue of the new BRICS trading platform that is set to rival the Chicago Board of Trade. This US entity has long being used to unfairly manipulate international trade in raw materials. By controlling the price setting mechanism, it allows for more American unjust enrichment by low-balling the prices offered for products.

At the same time, higher prices are set for American products such as wheat that is exported to the world.

This is not just a matter of demand and supply as some ‘roast-breadfruit’ supporters of imperialist may say. Indeed, the glamorised Eddie Murphy ‘Trading Places’, takes us into the heart of American corrupt price manipulation.

However, whether real or imagined, the BRICS trading platform now creates more fairness in global commodity trading. Now my friends, it will be much more difficult for unscrupulous American traders to manipulate prices.

Despite the bluster, one can detect a sense of fear and desperation among Western leaders.

THE LIMITS OF US ‘MONEYTRICKS’

Norman Lamont, the former chancellor of the UK, recently raised the alarm that BRICS’ new international payment system poses a “major threat” to the Western-led financial system. In his opinion, it will reduce the Western imperils bloc ability to impose sanctions on other nations whose political system or leaders they dislike.

Venezuela, for example, had billions of dollars seized by the US without being returned. The UK also seized over $1 billion in Venezuelan gold. The seizure of over $350 billion of Russian assets was the final straw. Russia is a world power and one cannot see how they thought the could get away with it.

The BRICS’ payment settlement systems and its broader currency initiatives represent a direct challenge to the financial supremacy of the US dollar. America, by weaponising the dollar ... by blocking countries they dislike, from using it in international trade ... undermined its own currency.

Today, the world is facing a crisis where America has a US$33 trillion debt that it cannot repay through production or economic growth. The so-called ‘political tricks’ and ‘money tricks’ that America has used to weather past storms – including the rise of the petrodollar – are no longer sustainable.

Saudi Arabia, Qatar, Algeria, Venezuela, the UAE, Russia and all major oil and natural gas traders and other major Middle Eastern oil producers no longer peg oil prices to the US dollar, or quote prices in it.

The rise of commodity and currency swap trading is quickly getting rid of the need for currencies to buy American dollars to conduct trade, making every country in the world pay America for the privilege of using its currency.

The West’s fear is palpable, and it’s becoming clear in Trump’s blustering rhetoric.

American global imperialist dominance is ending, my friends. Let them get with the programme.

MANLEY’S VISION: A NEW WORLD ORDER

This shift in global financial power echoes Michael Manley’s vision from 50 years ago when he advocated for a New International Economic Order – one that promotes fairness and equality in global trade.

Manley, among many other leaders of the developing nations, fought against such injustices. He championed a New International Economic Order that sought to end the imperialist exploitation of poorer nations.

My dear friends, I have long championed, in The Gleaner, that Jamaica and the Caribbean seek associate status with BRICS, and I was pleased to hear P.J. Patterson echo this sentiment

BRICS and its new financial initiatives fit neatly into the moral, political, and ideological framework envisioned by Michael Manley.

BRICS is dismantling the imperialist world order dominated by the US. The traditional master-servant relationship, driven by the neocolonial world system, is being challenged and must be supported and embraced by all justice seeking nations and people.

That is the ‘bitta’ truth.

Norris McDonald is an economic journalist, political analyst, and respiratory therapist. Send feedback to columns@gleanerjm.com and miaminorris@yahoo.com.