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
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
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
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Trump proves that stupidity can be an art.
I don't think it's possible too soon to say amarican dollar still a power
We Need different credit cards beside: Visa, Mastercard, American Express, Discovery card. Basically more options. No more monopoly. Better for the world. NATO, G7, ASEAN were designed to benefit the U.S and the West countries. Asian, South America, Africa, Middle East should form their own organizations to benefit their countries or economy.
Heard that MBRIDGE going to be banned by BIS.. what will be the impact ? Pls explain in your simplified way
I'm really suspicious of these figures coming out of the US , I just don't believe that a service economy has such a high value of over 60% over the rest of the world in stocks and bonds , but one thing I do know is most of us on this planet couldn't give a toss about the stock market , what we need are things like food, healthcare, shelta and clothing and what I see is that the average Joe Blow in the United States is finding these basics harder and harder to obtain , and that my friends is how you really tell the wealth of a country !!!
PUTIN IS USING THEM TO FIGHT AMERICA 😢😮😮😅😅😅😅😅😅😅😅😅😅.
BRICS MEMBERSHIP (9 members + 13 partner countries)
5 original members are Brazil, Russia, India, China, and South Africa.
4 new members officially admitted in January 2024 are Egypt, Ethiopia, Iran, and UAE. (Saudi Arabia has not accepted. Argentina rejected the offer.)
13 "partner countries" are Algeria, Belarus, Bolivia, Cuba, Indonesia, Kazakhstan, Malaysia, Nigeria, Thailand, Türkiye, Uganda, Uzbekistan, and Vietnam.
BRICS is the future ❤❤❤
One thing about Trump you have to remember is, he became a billionaire because he knows business and economics. He's not a dummy when it comes to money.
It's not "anti-SWIFT", it's "replacing SWIFT"
US is reaping what it sowed.
Countries should use SWIFT when it makes sense and BRICS when it makes sense. Have the 2 systems compete and countries take the advantages of both. The "either or" of this video is silly and foolish.
great analysis, as always
🇮🇳
Brics – Yes
Belt & Road – No
Case by Case – Yes
The West preach about freedom, but MONEY IS FREEDOM, healthcare needs money, infrastructure needs money, daily living needs money , etc. More money = more freedom. BRICS must unite to make MONEY
This is the resultant outcome of US over using dollar power and muscle flexing because of having dollar as global currency. And world has taught the US a good lesson.
The U.S. stock market is in A TOTALLY ARTIFICIAL SITUATION
as NO BULL FORCES ARE ALLOWED in order to find out
"THE REAL STATE OF AFFAIRS" as this would "stimulate"
THE INEVITABLE ECONOMIC COLLAPSE OF THE U.S. $
which everyone is NOW EXPECTING. 😀
THE FACT that over HALF THE COUNTRIES are UNDER
U.S. SANCTIONS means the USA DOES NOT BELIEVE
IN THE "OPEN" MARKET SYSTEM, but BRICS does:
THIS IS A MARKED CONTRAST.
TRUMP'S THREAT OF "MORE" IS JUST INSANE!
IT'S PETULANT + CHILDISH + WILL "ENSURE"
A QUICKER DEMISE OF THE U.S. ECONOMY
within THE FRAMEWORK OF A "CLOSED"
ECONOMIC SYSTEM.
TRUMP IS ON HIS WAY OF BECOMING "ANOTHER",
MUCH HATED "MUSSOLINI", THE FORMER
FASCIST LEADER OF ITALY, who was
lynched by the crowd.
https://en.wikipedia.org/wiki/Benito_Mussolini
Ken, Toronto, CANADA
Brics lol
Hey O China Made, why are you people engaged in making China Made Gorkhali Jews who are a group of eight castes who are the real Nepal? Our culture is different, Gorkha Dussehra, Diwali do not celebrate anything, they remain very simple and worship their father. It is said that China has now fought the Bishar War, both the Bishar Wars were fought by the Nepalese.
All this effort to stop Taylor Swift?
Politically it is good news for me. But financially it could be a disaster. I really don't know what will happen to us whose income depends solely on investments, which are in USD.
Before these sanctions I did not know that colonization was still running 100% it just changed to financial and economical colonization. If masters dont allow it nothing happens.
BRICS creating a SWIFT exit out of SWIFT !!!
Dollar is just a tool of extortion.
thievery by usury, the main strategy of the US SWIFT system…at the expense of participating currencies. if this perturbs american leaders, that means that majority of their international earnings is from this kind of thievery and not from their alleged productivity.
China hasn’t opened up its capital account. So any talk of de dollarization is only isolated to trade.
We are done with SWIFT! It became evil and it's time is over.
With all the think-tanks and financial gurus in the US market and the Ivy League universities, are there really no way out to save the US stock market and the financial system from being crippled? Wondering what are those billionaires whose wealth valued in USD planning to do now.
trump telling someone that he is wrong yet he doesnt know how tariffs work the irony lol
The United State should just repudate most of US debt as most US debt is money that was barrowed to give to other countries.
BRICS will simply return trade to a bi-polar world of the cold-war world.
Good it is past time to decouple the economies of China/Russia and the west. I don’t think India is so in the China/Russia orbit as you think. The China/Russia partnership is one of convenience and will not last either. The west needs to restart industrial capacity in earnest and stop helping develop China by our trade relations.
Outpacing the world?? Why would you say that? That is patently false.
BRICS 😂 almost 20 years later still nothing.
USA looks done for. Trumps trade war will probably put the ball rolling downhill….
Dude, you have to counterbalance your argument on tariffs by showing another study opposed to that of Tedeschi. Her credentials are full left-leaning, she’s not gonna publish anything balanced. On top of that, if Academia economists were right, the US economy wouldn’t be in such bad shape.