As BRICS Confirms Anti-SWIFT Financial System, Major Bank Declares US Stocks Are Done #Finance

all right guys so let’s talk about breaks today the Summit is in full swing and it’s Russia’s Big Show to snap the West that Putin isn’t isolated and the global South stands with Russia now there are lot of interesting side events that happened prior to the summit

and during the event Modi hued Putin and reaffirmed Russia India strategic partnership now just in trade alone it makes sense India has saved billions of dollars buying cheap crude from mosow now what’s interesting is China and India resolving the Border dispute and this is bad news for the

US which likes to pit India against China it’s however great news for bricks it shows that the two biggest economies in bricks can indeed work together very soon we’ll see more economic movement and eventually even the beltro initiative could be welcomed by India in the 2024 Summit

Russia’s agenda is focused on financial sovereignty how to make bricks an independent block that can function without the Western system and let’s focus on what Putin said to reporters just before the summit he reminded the world that theorization is actively happening 95% of

Russia’s foreign trade with his Partners is being carried out in National currencies 95% of our trade with China is in rubo and Yuan we also use the yuan in settlements with third countries this is the first point settlements in National currencies bypassing the dollar in transactions is

really a big deal countries are no longer constrained by the amount of dollar reserves they need they have to conduct trade so even if the Federal Reserve they raise Interest Rates there won’t be a sudden rush to acquire dollars for trade you avoid a currency crisis where

domestic Inflation SS to the Moon we just need to look at Chinese trade Bing is the biggest exporter to the world and they manufacture essentially everything countries are big beginning to realize why do I need to use dollars to buy and sell stuff with China in the first eight

months of this year China’s total crossb payments in R&B have increased by 21% the majority of China’s trade settlements are done in the local currency this is something we mentioned before the first and easiest Domino to fall will be countries deiz their trade with China it’s

a big reason why Beijing has to keep their exports High despite being a hes of overc capacity in the financing of global trade China has detron other popular currencies the dollar still King with nearly 84% market share but the Chinese yuan is around 6% beting the Euro and even the Japanese Yen for

Russia they happy to elevate China’s currency as long as it weakens the dollar now the second objective is to establish a payment system is completely different from theorization and we must understand the difference to PR prevent any confusion during the interview Putin mentioned how bricks

they are working to create a platform for financial information exchange it’s a mechanism that’s an alternative to the Western Swift system the Swift system today is a western control architecture it has been around for over 50 years and it Powers Global Financial transactions when

Russia was banned from it in the short term it caused quite a bit of chaos your bank Stock Exchanges corporations and Pension funds they all requires Swift to do business so if you transfer funds from the US to Hong Kong or Dubai it has to go through the system the challenge bricks

faces is how International payments are being controlled by commercial correspondent Banks and the biggest ones are either us or EU commercial Banks so if Yen tells them to ban transactions with Russia they have to enforce the ban or face us sanctions themselves let’s say there was a widget

maker in the US and they want to send money to a supplier in Russia the us company has account in JP Morgan for example and they want to wire $1,000 to their vendor in Moscow they will have to go to a correspondent bank BMP baraba in France for example BMP will then convert the dollars into rubles

and send the money to the Russian Bank located in Moscow but thanks to G7 sanctions Russia can’t use the Swift system anymore they are multiple identity checks on both the center Bank JP Morgan in this case as well as the corresp respondent bank which is BMP located in Paris they cross check

the information on the Swift registry and they block any transfer to Russia this is the threat of financial sanctions because the entire network especially the banks is almost completely Western any country can get cut off and that’s why Russia and China they building an alternative system in

February Russia unveiled the platform they building it’s called The Bricks Bridge system it will be power by blockchain technology and that’ss essentially translate the entire framework into a black box that sanction proof instead of commercial banks in the middle the system will use

central banks they will be at the center of crossborder transactions so instead of going to a G7 correspondent bank the transactions will be from Central Bank to Central Bank for example the bank of Russia to China’s pboc or India’s RBI directly no intermediary is necess necessary all

currency exchange and transactions will be done and cleared through the blockchain network so countries like China they can still use the dollar Surplus for trade while the bricks are changing the world order we have quite a stunning report from a major US Bank the US

href="https://cashnews.co/markets" style="font-weight: bold; color: #1a73e8; text-decoration: none;">Markets might be in serious trouble according to Goldman the decade of big S&P gains is over we can expect annualized nominal returns of 3% for the next 10 years as an investor this is very

very concerning the US market has been so overpriced that going forward it will hardly outpace Inflation the last decade for US Stocks could be coming soon now since 2015 US Stocks have been on a tear yes returned 133% a year in the last decade and if we compare it to the rest of

the world the US market has been outperforming everything in 2023 and 2024 the US outperformed the World by over 10% in 2021 it was up by 21% versus the global average but let’s remember how ridiculous Valuations are US stocks are expensive because of a few things now firstly

the US still holds the reserve currency and when the world holds dollars the Stock Market is one Avenue where Money PS in second let’s not forget the AI hype we have records amount of money piling into the Magnificent 7 and this is inflating the bubble making us stocks very

overvalued relative to the world and here’s how ridiculous things are over the last 40 years the US economy share of global GDP has been declining from 40% in the 1980s down to 26% today the EU and Japan’s economies have also been falling conversely China’s economy has been rising

up from under 5% to nearly 177% in the same period but the global Stock Market is dominated by the us over 60% of the total global market cap belongs to us companies Gman is sounding the alarm bells on this the amount of risk in the US Equity

href="https://cashnews.co/markets" style="font-weight: bold; color: #1a73e8; text-decoration: none;">Markets is enormous now we’re not saying that US Stocks will crash tomorrow but Valuations are so high that we shouldn’t be surprised if we get an under performance

for the next decade just take a look at historical PE ratios we are at 36 PRS to earnings today and that’s higher than the Great Depression crash and just below the Doom collapse in 2000 just before the big correction in 2022 PE ratios were around 38 now can this continue to climb sure but it

would mean the US government spending a ton of money to prop things up but as we know the world order is getting flipped as bricks Rises and tricks amongst themselves this isn’t good for the US economy if less trade flows to us companies correspondingly earnings will come down and that puts

enormous pressure on us stock prices it will collapse the fun mentals and let’s not forget what’s coming in 2025 Trump’s trade war is coming you also talking about 10 20% tariffs on the rest of the world that is going to have a serious effect on the overall economy and yes

you’re going to find some people who would gain from Individual tariffs the overall effect could be massive terree I agree it’s going to have a massive effect positive effect it’s going to be a positive not a negative just let me just no no let me I know how committed you are to

this and it must be hard for you to you know spend 25 years talking about tariffs as being negative and then have somebody explain to you that you’re totally wrong it’ll have a NE it will have I’ll go step further 40 million million president 40 million 40 million jobs is a lot of

jobs to rely on TR they’re all coming back now Trump’s tariffs won’t be good for the US economy countries around the world especially China would retaliate back while it’s true that tariffs can raise Revenue it could also collapse US GDP at the same time the

problem with restoring production back to the US is the amount of pain this will cause prices will rise in the United States consumers could face price hikes of up to 5% and that’s over two years of nominal Inflation hitting your budget all at once for the average household

their purchasing power is going to decrease they will lose up to $7,600 a year if consumers spend less company earnings are going to come down and that will obviously impact the US Stock Market making stuff back in the US well it sounds really great but it will likely become a

closed economy especially when the world retaliates with their own version of tariffs the tax Foundation has revealed some shocking estimates Trump’s proposed tariffs could reduce GDP by almost a full percentage point in addition almost 700,000 jobs could be lost and when people lose their

job spending is definitely going to create these numbers don’t even factor in retaliation from China and even the EU if we get a global trade War it won’t just be consumption in the US that will drop Global consumption of us Goods will also collapse countries like China will push their

people to buy locally made products there’s simply no way to restore production without Conjuring up an economic crisis it’s not a surprise why US Stocks could underperform in 2025 or even collapse should the tariffs happen the retaliation from the world could be enormous now what if

the US borrows even more money to prop up the economy this is one big question that everyone can ask well that’s definitely possible but it would push us to the bring of a Debt crisis the interest payments on the Debt is equivalent to 18% of federal

Income for every dollar the US government brings in 18 cents goes off to paying off just the interest on the Debt if it’s unsustainable if Trump wants to resore production without getting into recession he will have to increase the fiscal Firepower then this

number could fly up to 20% or even 30% when all said and done now I know that I sound like Dr Doom but there are very few options for Happy Ending either the US have a very big slowdown in 2025 or maybe even a recession all we crank up the borrowing and get an enormous melt up it’s important

we understand how China Russia and breaks all fits into this mess as the global South grows as they build their own Financial system more trade will be done outside of dollars foreign governments today own around $8 trillion in US Bonds and that’s 23% of total outstanding

Debt but just two decades ago it was over 50% foreign demand has been falling for very long time is just more obvious today especially after the sanctions on Russia so we got to watch carefully what China and Russia do the bricks payment system is just the start more transactions

will be done outside the reserve currency and if Trump really hammers the world with tariffs then it’s game over but let me know what you think can bricks replace Swift with a new Financial system and can the US economy continue outpacing the world forever let me know in the comments below

stay safe be sure to smash the like button and subscribe as we get through these crazy times