Quote (ofthevoid @ 26 Aug 2023 01:05)

The two themes that struck out to me from article was not rly about the deodorization trend, it's something else.

First, the expansion is basically geared to bring in energy exporters. So you're de-facto seeing BRICS and OPEC merging in a sense. Doesn't bode that well for countries that are heavily reliant on importing energy, particularly ones that aren't part of the club.

The other point is how this severely undermines and in some ways completely defangs US sanction power. Like the article said, Iran will greatly benefit from this. If Iran is able to bring its oil to market to places like India, China, others, and is part of this huge economic bloc, what is the US left with as far as sanctions? It's a pretty powerful signal to the rest of the world, which is you don't have to abide by what the empire says or you'll end up sanctioned to death, there's group of 3.7Bn people in developing economies that will take you in. Sanctions only really work if you have a critical mass willing to enforce them, when half the world isn't...well lol.

Quote (Black XistenZ @ Aug 26 2023 03:13am)

If Iran is able to bring its oil to major markets, this will lead to either a declining global oil price, or to other OPEC members having to cut down their own production. In either case, Iran resuming its oil exports goes directly against the economic interests of Saudi Arabia, Russia or the UAE.

All in all, I'd say this development is sligthly worrying for the West in a geopolitical sense, but it's not a given that this BRICS expansion will actually increase the bloc's clout. This new BRICS+OPEC bloc contains very different societies and economies, so on a ton of issues, it won't be easy to unite all the diverging interests behind one joint course of action.

Quote (RedFromWinter @ 26 Aug 2023 04:32)

Are the BRICS nations prepared and able to secure international shipping lanes? US dollar dominance came with responsibility of ensuring assets moving from A to B..

Quote (ofthevoid @ Aug 26 2023 01:55pm)

Big consumers: China, India
Big producers: SA, Russia, Iran, UAE

It's a match made in heaven. The concern for the west is and should be is if this mostly economic cooperation bloc morphs into a political or military bloc with time similarly how EU-NATO in many ways are basically overlaps. Breaking the power of sanctions is also another big deal.

As far as your point on supply, the world demand for oil keeps rising while ESG actions in the west continue to hamper western output rise to satisfy the needs. These outside producers will only benefit from this long term.

Ethiopia and Egypt are interesting additions too. Egypt has the strongest military in Africa and has control of the Suez canal which is an absolutely critical lane for global trade.

Quote (Prox1m1ty @ Aug 26 2023 12:04pm)

The EU imports about the same amount of oil products as China and India combined.

Quote (ofthevoid @ Aug 26 2023 10:15pm)

Most of which is from the nations on the list. Places like Europe are the biggest loser when entities like OPEC are formed, because it drastically reduces their bargaining power when having to deal with a cartel that dictates prices.

Quote (Prox1m1ty @ Aug 26 2023 05:26pm)

Yeah, OPEC already does that. Are you suggesting BRICS will be like an OPEC inception? :rofl:

Pipedreams are interesting but the dollar to remain king.

Quote (ofthevoid @ Aug 26 2023 11:55pm)

OPEC and BRICS is fusing, not sure where you got lost, its a fairly straightforward argument.


Dollar remains king just less so than 20 years ago and 20 years from now it will be even less so. To expect the dollar to be phased out in a short time span is retarded, who exactly is making that argument?

Quote (Prox1m1ty @ Aug 27 2023 03:55pm)

Interesting video explaining how Argentinas currency is basically fucked and the inflation rates are causing a huge problem for the economy.

https://youtu.be/SLh2gYbf-NM?si=A6Hp2HfPDQ5X2kSE

Also mentions the "blue dollar" which is the term for the blackmarket exchange rate for Argentinian peso to the USD.
As citizens seek to dollarise their pesos as a shield against inflation.

Small irony that countries being invited to BRICS have citizens dollarising their currency.
All the while Putin is beating the drum of de dollarisation.

Kind of shows that being president of the Russian Federation doesn't come with the burden of truth in any vector whatsoever.
It's all about narrative and zero substance.