BRICS Pay....coming soon. The alternative financial system.

[Alonzo]

Trump threatens 100% tariff on the BRIC bloc of nations if they act to undermine US dollar

 

[Martin Everson]

Trump threatens 100% tariff on the BRIC bloc of nations if they act to undermine US dollar

He said similar before the election. The death rattles of a failing empire.

--- quote start

Trump, in a Truth Social post, said: “We require a commitment from these Countries that they will neither create a new BRICS Currency, nor back any other Currency to replace the mighty U.S. Dollar or, they will face 100% Tariffs, and should expect to say goodbye to selling into the wonderful U.S. Economy.”

--- quote end

Why doesn't anyone tell Trump the truth? Firstly China is a major trading partner to over 140 countries and is the worlds factory as China accounts for 31% of global manufacturing alone.

Secondly China is way bigger economy than US when GDP is measured by PPP [true measure of GDP]. Ask the CIA:

Real GDP (purchasing power parity)​

https://www.cia.gov/the-world-factbook/field/real-gdp-purchasing-power-parity/country-comparison/

Lastly trading in local currencies in bilateral trade relations are not the business of the US. It is not gonna go well for Trump in confronting and demonizing China. Ask Javier Milei who had to go begging to China after his election rhetoric when reality set in...lol.

Retaliation by China is gonna be ugly for i.e US farmers. Right now the U.S needs wisdom as their standing in world is being eroded from their own actions. If he wants to see how high inflation can go in U.S let him follow the path he is taking....lol. An alternate method of payment outside the dollar and SWIFT is inevitable long term although some weaker countries may give into his demands in the near term to avoid a shock to their economies.

 

[Martin Everson]

China Bans Rare Mineral Exports to the U.S.​

https://www.nytimes.com/2024/12/03/world/asia/china-minerals-semiconductors.html

--- quote start

China produces nearly all the world’s supply of critical minerals needed to make advanced technologies such as semiconductors. Beijing has been tightening its grip on the materials to retaliate for clampdowns on American technology exports to China over the past two years.

--- quote end

Yeah seems China has already started.

I think Trump may do something crazy when he enters office like sanction Chinese Banks or prevent them from using the dollar . Problem is the three biggest banks on the plant are all Chinese so impact will be substantial. This could harm China in short term but harm longterm the dollar usefulness and hasten a global south [global majority] payment network. Basically most banks have signed up to China's CIPS network as direct participants and many more as indirect participants or could get access. If Trump does ask countries to choose either China or US it could get interesting.

P.S Lets hope Trump has a Javier Milei moment of clarity when it comes to relations with China and instead asks China to build factories in U.S which is a win win.