What should the US do about Mexico's BRICS application?

Bill.in.PA · 2023-04-17T22:31:30.369Z

The US supported a 1964 coup in Brazil that overthrew an elected leftist government and installed a military dictatorship that lasted for 20 years.

History shows that US rhetoric about defending democracy and national sovereignty needs to be viewed with a lot of skepticism. It looks like development of alternative financial systems that are free from US sanctions is something that has broad support in Brazil.

Can we expect the US to try a repeat of the 1964 coup?

Or is a color revolution on the horizon?

Ben_Natuf · 2023-04-17T23:13:35.814Z

stupid reason for sanctions.

Gaius · 2023-05-21T09:05:13.967Z

Venezuela stopped publishing its M1 and M2 (money supply) data. From what is available, it appears for a few years, they tried to print their way to prosperity.

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Gaius · 2023-05-21T09:06:41.824Z

Here is how it worked out for them. (Film is def. worth a 20-second look)
I wonder if BRICS countries will avoid printing money.
History shows they are big time money printers.

twitter.com

Steve Burns

@SJosephBurns

You need a wheelbarrow of money to buy a pizza in Venezuela: 🍕🇻🇪 https://t.co/all3XEjwXz

2:47 PM - 20 May 2023 51 6

Rurudyne · 2023-05-21T14:59:29.477Z

Rurudyne · 2023-05-21T15:01:50.563Z

Don’t forget to pay before you eat. Money will be worth less in a half hour.

Gaius · 2023-05-21T15:07:47.946Z

Rurudyne:

Don’t forget to pay before you eat. Money will be worth less in a half hour.

So little has been written on what happens after hyper-inflation that it is difficult to know how VZ can get out of this. Their interest rates are currently in the 55-60%.

But basically
1.) It is no longer a functioning currency. Was has been written about inflation applies to actual currency.
2) 55-60% interest may not do the trick. A quick search reveals these as purportedly their most recent inflation rates. (To bring down high inflation interest must be > inflation.)

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zantax · 2023-05-21T15:50:04.163Z

Generally you have to start over with a new currency, odds are they go with a digital currency to keep everyone in line. Then they can dictate pricing as well as purchases.

Paul_Thomson · 2023-05-21T18:38:18.840Z

Rurudyne:

It would be interesting to know where “cheese eating” as a complaint or insult really came from.

https://www.quora.com/Cheese-eating-surrender-monkeys-was-a-phrase-meant-to-imply-French-cowardice-But-whats-cowardly-about-eating-cheese-A-ripe-Époisse-de-Bourgogne-tastes-delicious-but-if-you-didnt-know-that-it-would-take-courage-to-try-it

“Cheese-eating surrender monkeys” was a line from an episode of the popular and long-running animated series The Simpsons. It was uttered by the chronically ill-tempered school janitor Groundskeeper Willie, who is drawn as a broad stereotype of a Scotsman. As with many other memorable and outre lines from the series, it quickly entered the popular culture, often used as a self-parodying insult. It is most often used when the speaker wants to mock themselves or their statement as coming from an over-the-top misanthrope or crank. It is never intended to be taken literally.”

Bosun · 2023-05-21T18:48:33.827Z

And Saudi Arabia

Modern Diplomacy – 21 May 23

BRICS Membership: A Game-Changer for Saudi Arabia’s Economy?

As Saudi Arabia prepares to potentially join the BRICS, there is much to consider in terms of the impact on the country’s economy. While some may view this as a simple geopolitical move, it could have significant economic implications for the region...

Est. reading time: 3 minutes

BRICS is real and growing membership.

Bosun · 2023-05-21T19:21:45.152Z

A little more about BRICS. Normally Western media and our biden state department/us economic advisors stay away from BRICS because it does not support our western narrative…stand by for heavy rolls.

The Daily Hodl – 21 May 23

13 Countries Formally Request to Join BRICS As Economic Alliance Challenges...

A total of 13 countries have now formally asked to join the global economic alliance known as BRICS. In an interview with TV BRICS, African Ambassador Anil Sooklal says nations from Africa, Latin America and Asia are looking to become new members.

Est. reading time: 1 minute

Rurudyne · 2023-05-21T20:01:53.322Z

Pretty sure I heard it in use, at least here in North Texas, before the Simpsons was on the air.

Gaius · 2023-05-21T22:13:59.239Z

Does not matter.

What matters is the central banks, private banks, and money holders of every sort will hold whichever secure currency pays the most vs. its inflation rate.

It has always been this way.
It will always be that way.

“Follow the money.”

Nemesis · 2023-05-21T23:55:32.174Z

I can see why the United States does not want to see their economic might be challenged but nothing we can do about it. Countries are free to make whatever allegiances, pacts, treaties they want.

Gaius · 2023-05-23T03:13:06.512Z

Nemesis:

Countries are free to make whatever allegiances, pacts, treaties they want.

I do not know of anyone anywhere who has ever said otherwise.
But I if I ever meet than man I will know that you just GOT HIM!!

Gaius · 2023-05-23T03:21:04.216Z

Only 6 times since 1948 has US currency devalued so much, so quickly, that our CPI inflation rate crossed up over 5%.

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.
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I am skeptical that Powell’s approach to containing it will work, but let’s set that aside for the moment.
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Below is a table of recent annual inflation rates in Brazil
(The “B” in "BRICS stands for Brazil.)

Tell me if you see anything interesting.

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macrotrends.net

Brazil Inflation Rate 1981-2023

Inflation as measured by the consumer price index reflects the annual percentage change in the cost to the average consumer of acquiring a basket of goods and services that may be fixed or changed at specified intervals, such as yearly. The Laspeyres...

floydefisher · 2023-05-31T02:27:40.256Z

To pay the US debt he can.

He just can’t do it to pay for anything else.

Ben_Natuf · 2023-05-31T03:58:23.602Z

no, he can’t spend any money the Congress does not allocate

Ben_Natuf · 2023-05-31T22:12:08.161Z

Gaius:

Only 6 times since 1948 has US currency devalued so much, so quickly, that our CPI inflation rate crossed up over 5%.

Not saying its good or bad, but conversly, looking at that chart, since 1948 the CPI inflation rate has only crossed over below 5% 5 times.

Ben_Natuf · 2023-05-31T22:18:00.741Z

Now, about BRIC’s. Supposing of course they create a common BRIC’s currency. What do you suppose will happen? The Euro was supposed to compete with the dollar, for the most part it failed. Think PIIGS. Now think about a whole lot more PIIGS all owing China a lot of money. If China wants its money back and its currency to hold up, its going to have to pour a lot of money into shoring up those PIIGS.