Can BRICS topple US' economic power?

[avikz]

Day by day, the BRICS' alliance is strengthening itself as new countries become members of the bloc. They've announced their intentions of launching a digital currency of their own, in a bid to challenge the US' hegemony over the global economy. It's rumored that the new currency will be backed by Gold. Recently, Thailand announced its intentions to become a member of BRICS. At the time of this writing, the bloc consists of 9 member states.

What would happen if half of the world (or a sizeable amount) joins the bloc? Would this threaten US' economic power? Or will they eventually fail? With rising geopolitical conflicts, the world will become extremely polarized. This might very well mean the end of the USD's status as the world's reserve currency and the US' status as a global superpower. Am I right?

Your input would be greatly appreciated. Thanks.

Surely BRICS can overtake US economy. It's just a matter of time. Why do you think US is constantly threatening China? Because China is the closest competitor of US in terms of the economy. As per the IMF date, the nominal GDP of US is 28 trillion and for China, it is 18 trillion. No other countries have reached double digital in GDP.

Also recently the petro dollar agreement with the OPEC nations has expired. Saudi said that they are not going to renew the agreement. So a lot of changes are happening at the global front. No one knows what the future holds for the future.

[Fortify]

Day by day, the BRICS' alliance is strengthening itself as new countries become members of the bloc. They've announced their intentions of launching a digital currency of their own, in a bid to challenge the US' hegemony over the global economy. It's rumored that the new currency will be backed by Gold. Recently, Thailand announced its intentions to become a member of BRICS. At the time of this writing, the bloc consists of 9 member states.

What would happen if half of the world (or a sizeable amount) joins the bloc? Would this threaten US' economic power? Or will they eventually fail? With rising geopolitical conflicts, the world will become extremely polarized. This might very well mean the end of the USD's status as the world's reserve currency and the US' status as a global superpower. Am I right?

Your input would be greatly appreciated. Thanks.

Most of the brics countries are dropping like a.. brick. South Africa is a shell of what it used to be thanks to basically anarchy in the country. Brazil is stuttering along at a reasonable pace. Russia is in the middle of a self destructive war. India is doing ok but still a muddle with some very poor and undeveloped parts of the country. China is also huge population wise which means it should overtake the USA but frankly business relies on trust and a massive amount of foundations that the cccp will never be able to offer. Just look at how Xi Jinping has ruined Hong Kong to see how many bad decisions are done at the top of the Chinese government.

[kentrolla]

It would give tough days for USD but i dont think BRICS creating currency and competing with US will be as easy as it looks and we shouldn't forget there are nations like India and China which have already fought wars and also we have seen so many skirmishes in the past. I don't think they will ever get along and eventually BRICS will die down just like Sovie.

[davis196]

They've announced their intentions of launching a digital currency of their own, in a bid to challenge the US' hegemony over the global economy.

Why the rumors about BRICS launching a digital currency keep popping out of nowhere? This is old fake news and it isn't backed by any facts.
The BRICS members will dump the US dollar and replace it with their national currencies, when trading between each other. There's nothing about "a BRICS digital or fiat currency". I've heard rumors about the creation of a BRICS payment infrastructure, which is going to be based on the usage of national currencies.  The name of the platform is supposed to be "M-bridge" or something. I don't remember it correctly.
The members of BRCIS will keep developing their economic and financial relations. The US economic power will be "toppled" by the enormous US national debt and the lesser usage of the US dollar as a global currency.

[TheUltraElite]

Most of the brics countries are dropping like a.. brick.

Something that needs to be addressed. I tried to emphasize this in my last post. These countries like China are from the top tier while others not naming them, are underdeveloped and are going to be overshadowed by the "big name" in the group. I dont think they will be able to shine on their own but the creation of this group was to aid them develop and allow mutual trade.

By all means the dollar might see bad days but then again just another fiat currency will dominate and then it will also go down and another one will come up. Similar to political parties dont you think?

[EarnOnVictor]

I've talked about BRICS many times in the past on this forum and my stance about their dominance will never change as it is a rebellious formation that is not founded on solid ground. Whether those countries joining like it or not, a little disagreement over time will scatter them, and the reason is that the foundation is soft which was built on the vendetta and the power-shifting attempt by China and Russia with the help of India and Brazil that introduced it. However, the conversion of a new nation has been so little judging by its current status of 9 members since 2006 (almost 2 decades) that it was formed. If continued like this tempo, those who formed it would have died and the true intention of forming it might have died with them before it could achieve its aim.

Frankly, I have never seen anything serious about this union, and you can imagine, for it to continue to hold, members like Russia and China are still classifying themselves as developing nations. And truly, they found the right excuses to be termed developing nations despite the reality of what they are. This even got me wondering if there is a true definition that can truly distinguish between developed nations and developing ones. The best classification in my observation can only be a developed and underdeveloped nation to be fair.

They only saw an opportunity and cajoled some countries to join them especially those who also did not like the US or just wanted the US dominance to reduce. Well, there is nothing bad about that, but still, the leadership of the US is what stabilises the world to this level. Let the power shift to the likes of Russia and China and everyone will feel the heat.

[philipma1957]

I've talked about BRICS many times in the past on this forum and my stance about their dominance will never change as it is a rebellious formation that is not founded on solid ground. Whether those countries joining like it or not, a little disagreement over time will scatter them, and the reason is that the foundation is soft which was built on the vendetta and the power-shifting attempt by China and Russia with the help of India and Brazil that introduced it. However, the conversion of a new nation has been so little judging by its current status of 9 members since 2006 (almost 2 decades) that it was formed. If continued like this tempo, those who formed it would have died and the true intention of forming it might have died with them before it could achieve its aim.

Frankly, I have never seen anything serious about this union, and you can imagine, for it to continue to hold, members like Russia and China are still classifying themselves as developing nations. And truly, they found the right excuses to be termed developing nations despite the reality of what they are. This even got me wondering if there is a true definition that can truly distinguish between developed nations and developing ones. The best classification in my observation can only be a developed and underdeveloped nation to be fair.

They only saw an opportunity and cajoled some countries to join them especially those who also did not like the US or just wanted the US dominance to reduce. Well, there is nothing bad about that, but still, the leadership of the US is what stabilizes the world to this level. Let the power shift to the likes of Russia and China and everyone will feel the heat.

Not so sure how stabile the USA is at the moment. So its job of world stabilization may falter a lot in the next few years. Brics or no Brics

[Abiky]

Surely BRICS can overtake US economy. It's just a matter of time. Why do you think US is constantly threatening China? Because China is the closest competitor of US in terms of the economy. As per the IMF date, the nominal GDP of US is 28 trillion and for China, it is 18 trillion. No other countries have reached double digital in GDP.

Also recently the petro dollar agreement with the OPEC nations has expired. Saudi said that they are not going to renew the agreement. So a lot of changes are happening at the global front. No one knows what the future holds for the future.

China could overtake the US as the leading superpower if it continues to grow at an unprecedented rate. It's already the second-largest economy in the world. That's why I believe both China and Russia will be the leading forces of the "New World Order". The US will continue to weaken itself with rising national debt and constant money spending in external wars. And there's nothing the FED will be able to do about it.

American decline will happen whenever we like or not. Things don't last forever. I understand the current situation with oil-producing countries, but that doesn't mean it's the end of the world. Especially when oil is still in high demand these days. As long as gasoline-powered vehicles exist, don't except the oil industry to go anywhere soon. Even lithium-ion batteries have been unable to replace oil as the alternative fuel source. Russia has survived the sanctions because it's been selling oil to its allies (mainly China, and India). The US depends heavily on oil-producing countries to survive (mainly Saudi Arabia). If these countries stop exporting Oil to the US, America will be doomed. Who knows what will happen in the future?

[STT]

Im not yet convinced of an alliance as people state it.  BRICS was originally a label to characterize a type of country that was growing and could be a force to be reckoned with.  Most famously China finally sorted itself out after decades of near famine in some cases and was then able to trade with the world which changed things for them and altered the world forever pretty much.    

One obvious thing to say is the USA is an alliance not in doubt, where as these other countries may or may not be able to work together.  California just by itself is the worlds 4th largest economy, plus the many other states not being inconsiderable either in size nor sophistication.    I do think its the combination which counts alot and is hard to beat, USA has a standing advantage but an excessive cost from politics and the worlds largest military in its cost at least.

The other perspective would be to state the gigantic growth possible outside of the USA.   India has the majority of its 1.4 billion people below age 30 which makes them poised to become able to outproduce most countries.   China is already a large country but with a falling working population, their growth would be via altering their economy towards more profitable business and greater efficiency.   The other BRIC essentially must be able to support those other countries in their 'alliance' but they all have varying currency strength which makes this entire endeavor much harder.

[Minor Miner]

Surely BRICS can overtake US economy. It's just a matter of time. Why do you think US is constantly threatening China? Because China is the closest competitor of US in terms of the economy. As per the IMF date, the nominal GDP of US is 28 trillion and for China, it is 18 trillion. No other countries have reached double digital in GDP.

Also recently the petro dollar agreement with the OPEC nations has expired. Saudi said that they are not going to renew the agreement. So a lot of changes are happening at the global front. No one knows what the future holds for the future.

China could overtake the US as the leading superpower if it continues to grow at an unprecedented rate. It's already the second-largest economy in the world. That's why I believe both China and Russia will be the leading forces of the "New World Order". The US will continue to weaken itself with rising national debt and constant money spending in external wars. And there's nothing the FED will be able to do about it.

American decline will happen whenever we like or not. Things don't last forever. I understand the current situation with oil-producing countries, but that doesn't mean it's the end of the world. Especially when oil is still in high demand these days. As long as gasoline-powered vehicles exist, don't except the oil industry to go anywhere soon. Even lithium-ion batteries have been unable to replace oil as the alternative fuel source. Russia has survived the sanctions because it's been selling oil to its allies (mainly China, and India). The US depends heavily on oil-producing countries to survive (mainly Saudi Arabia). If these countries stop exporting Oil to the US, America will be doomed. Who knows what will happen in the future?

I agree with you that nothing lasts forever and American dominance is no exception. They have ruled the world for over 100 years and based on the same world history as the empires before them, it is time for them to cede the world to a new power. But I think this could be delayed longer than we think because so far they've tried to slow down the growth of their competitors quite successfully. Russia is still immersed in war and has not been able to escape to recover, while China's economy has also been facing many difficulties recently.

The BRICS bloc is still increasingly asserting its strength, but it is clear that they need to make more efforts in de-dollarization. I think it will take some time before we see more pronounced de-dollarization.

[onecall123]

Surely BRICS can overtake US economy. It's just a matter of time. Why do you think US is constantly threatening China? Because China is the closest competitor of US in terms of the economy. As per the IMF date, the nominal GDP of US is 28 trillion and for China, it is 18 trillion. No other countries have reached double digital in GDP.

Also recently the petro dollar agreement with the OPEC nations has expired. Saudi said that they are not going to renew the agreement. So a lot of changes are happening at the global front. No one knows what the future holds for the future.

China could overtake the US as the leading superpower if it continues to grow at an unprecedented rate. It's already the second-largest economy in the world. That's why I believe both China and Russia will be the leading forces of the "New World Order". The US will continue to weaken itself with rising national debt and constant money spending in external wars. And there's nothing the FED will be able to do about it.

American decline will happen whenever we like or not. Things don't last forever. I understand the current situation with oil-producing countries, but that doesn't mean it's the end of the world. Especially when oil is still in high demand these days. As long as gasoline-powered vehicles exist, don't except the oil industry to go anywhere soon. Even lithium-ion batteries have been unable to replace oil as the alternative fuel source. Russia has survived the sanctions because it's been selling oil to its allies (mainly China, and India). The US depends heavily on oil-producing countries to survive (mainly Saudi Arabia). If these countries stop exporting Oil to the US, America will be doomed. Who knows what will happen in the future?

I agree with you that nothing lasts forever and American dominance is no exception. They have ruled the world for over 100 years and based on the same world history as the empires before them, it is time for them to cede the world to a new power. But I think this could be delayed longer than we think because so far they've tried to slow down the growth of their competitors quite successfully. Russia is still immersed in war and has not been able to escape to recover, while China's economy has also been facing many difficulties recently.

The BRICS bloc is still increasingly asserting its strength, but it is clear that they need to make more efforts in de-dollarization. I think it will take some time before we see more pronounced de-dollarization.

It's clear that countries are stepping up their efforts to move away from the dominance of the dollar. Despite facing many challenges, we have seen increased efforts in de-dollarization. The positive sign is that this trend continues, and we might see more countries adopting other alternatives. As you mentioned, the BRICS bloc is becoming more influential, and analysts believe it might grow even stronger in the coming days. This shift could be profitable for these countries but bad news for the US. But will the US just let this happen so easily?

[Abiky]

I agree with you that nothing lasts forever and American dominance is no exception. They have ruled the world for over 100 years and based on the same world history as the empires before them, it is time for them to cede the world to a new power. But I think this could be delayed longer than we think because so far they've tried to slow down the growth of their competitors quite successfully. Russia is still immersed in war and has not been able to escape to recover, while China's economy has also been facing many difficulties recently.

The BRICS bloc is still increasingly asserting its strength, but it is clear that they need to make more efforts in de-dollarization. I think it will take some time before we see more pronounced de-dollarization.

Yes. It's going to take a long time before "de-dollarization" efforts have a negative impact over the American economy. As long as the USD is still "King", don't expect the US to go anywhere soon. Both China and Russia are struggling right now because of the sanctions. Especially Russia with its on-going escalation with Ukraine. This should slow down both countries' ambitions to rule the world for a while.

The US has a "ticking time bomb" that simply can't be defused. National debt will keep rising until it spirals out of control. Once the US defaults, the true era of "de-dollarization" will begin. Just you wait and see. Who knows what surprises we'll find in the future?

[pooya87]

What will ultimately lead America to its demise is the rising national debt. Constant money spending in external conflicts (like the Russo-Ukraine war) will further exaberbate the problem.

Exactly. There are two problems with this debt.
First it is not just the national debt that is usually quoted (almost $35 trillion), there is also debt held by people and intergovernmental debt that if I'm not mistaken puts the total to around $80 trillion!

This is why many have been using the term Ponzi Scheme to describe US economy...

On top of that due to high interest rates and the massive amount of bonds the government has issued, they have to pay trillions in interest every month as well.
The scariest thing about this is the day all these countries that have purchased US debt, stop buying more or worse if they decide to liquidate what they have...

I wonder where the US will be after it loses its superpower status? Will the American Federation dissolve? Hopefully, this doesn't happen during our lifetime.

It is hard to predict specially since the decision makers in Washington seem to have chosen the route of armed conflict as the response to losing power.

Even lithium-ion batteries have been unable to replace oil

Fun fact: Lithium rich countries are either members of BRICS or fall in the blocs that are member or have submitted a request to join.
For example China dominates that market and is a member of BRICS
Chile has a their request in to join.
Iran is another member that has been suddenly finding new reserves (I believe currently sitting on 20% of the world supply) over the past 2 years