• BRICS adds six new members, including Saudi Arabia…
• BRICS nations now command some of the world’s most critical chokepoints…
• Why BRICS is about far more than creating a new currency…
The conclusion of the BRICS Leader's Summit on August 24 marked a significant moment in the group's history, as they made the historic decision to broaden their membership, a move unprecedented since 2010.
Effective January 1, 2024, the BRICS welcomed Saudi Arabia, the United Arab Emirates, Egypt, Argentina, Ethiopia, and Iran as new members, although Brazil and India harbored reservations initially.
Ultimately, Russia and China exerted their influence to secure approval for these additions, despite some objections.
This transformation has turned the BRICS into BRICS+, comprising eleven full members, as they embark on a trajectory toward greater political influence and the establishment of a new currency union. This development, though momentous, will require time for its full implications to emerge.
The expanded BRICS membership signifies the imminent emergence of a new currency, a response to concerns shared by existing and prospective BRICS members, as well as the entire Global South.
They fear the weaponization of the U.S. dollar, exemplified by recent actions taken against Russia.
Their solution is to establish a new currency union capable of providing a wide range of goods, services, and eventually bonds, circumventing the dollar's dominance.
Key Geopolitical Shifts…
With the inclusion of Saudi Arabia, Iran, and the UAE, the BRICS now effectively encircle the Persian Gulf.
Additionally, Egypt and Saudi Arabia's membership grants the BRICS control over the Red Sea and the Suez Canal.
Argentina's inclusion further expands BRICS influence to the Straits of Magellan, a vital transit point between the Atlantic and Pacific Oceans.
The BRICS are consolidating their physical control over critical geopolitical regions, both on land and at sea.
Expanded BRICS membership also signals the beginning of the end for the petrodollar era, with Saudi Arabia's membership being a significant step in that direction. This transition and the launch of a new currency are closely interconnected, with expanded membership enhancing the feasibility of the new currency.
These developments are unfolding largely unnoticed by U.S. policymakers, who seem unaware of historical and current geopolitical shifts.
Beyond Currency…
The BRICS nations aim to reshape the global power structure in areas such as finance, trade, military influence, and more. One of the crucial aspects of this transformation is the geopolitics surrounding energy and international oil trade.
This shift has profound implications for the value of the U.S. dollar and related issues like inflation.
Al Jazeera encapsulates the core theme of the BRICS' actions as an effort to create a multipolar world order, placing the voices of the Global South at the forefront of global governance.
In essence, the BRICS and other nations worldwide are pushing back against U.S.-led global governance and monetary dominance, challenging long-standing systems such as the U.S. dollar's reserve currency status and the pricing of global oil in dollars.
The BRICS-OPEC alliance, with key players like Saudi Arabia, Russia, and Brazil, holds tremendous influence in the oil sector.
China and India, two top oil importers, further accentuate the BRICS' significance.
This shift away from petrodollars in the world oil trade has already begun, as China has started purchasing oil using yuan.
Expect to see more oil traded in yuan, rupees, Russian rubles, and possibly other non-dollar currencies post-BRICS expansion.
Reduced reliance on the U.S. dollar in global trade can lead to a surplus of overseas dollars returning to the U.S., potentially contributing to domestic inflation.
Furthermore, Egypt's impending BRICS membership carries strategic implications due to its control over the Suez Canal, a critical trade route for oil and liquefied natural gas (LNG).
Egypt's coastline positions it strategically in the Eastern Mediterranean Sea and the Red Sea.
Moving south to Ethiopia, its location at the southern end of the Red Sea holds significance for controlling sea traffic. Ethiopia also serves as a gateway to the heart of Africa, rich in minerals and agricultural potential.
Argentina, at the southern tip of South America, boasts abundant agriculture and critical minerals like copper and lithium. Argentina's control of strategic sea routes around South America is also noteworthy.
South Africa, an existing BRICS member, controls the southern tip of Africa, influencing sea routes in the region. South Africa and Argentina could potentially play vital roles in future Antarctic exploration and development.
The bottom line is that the geopolitical landscape is rapidly evolving, challenging Western dominance in ways not seen in centuries. The rising BRICS-OPEC alliance and its control over energy, minerals, and trade have far-reaching consequences.
While many of these developments may seem beyond our control, safeguarding personal wealth through investments in assets like precious metals, hard minerals, and energy sources becomes increasingly important in this evolving world.
Stay alert, stay informed.
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