From Russia with Love
They are all in agreement on one topic. GOLD IS THE ANTI-DOLLAR
BRICS Summit in Kazan
The annual BRICS summit started yesterday, in Kazan, a southwestern Russian city. This three-day event is being hosted by Russian President Vladimir Putin and is considered the largest gathering of global leaders in Russia in recent years.
Approximately 34 world leaders are participating in the summit, including:
Prime Minister Modi of India
President Xi of China
President Cyril Ramaphosa of South Africa
Iranian President Masoud Pezeshkian
Egyptian President Abdel Fattah al-Sisi
Turkey’s President Recep Tayyip Erdoğan
Leaders from new BRICS members: UAE, Iran, and Ethiopia
The recent expansion of the BRICS group, which now includes major oil-producing countries such as Saudi Arabia, the United Arab Emirates (UAE), and Iran, has significantly altered the global oil landscape.
This expanded BRICS coalition now controls approximately 52% of the world's crude oil supply.
This development underscores the growing influence of BRICS in global energy markets, positioning it as a formidable force in both production and consumption of oil.
The expanded BRICS group now represents about 55% of the global population and 35% of the world's gross domestic product.
But, When you consider that US counts its federal spending projects in its GDP numbers and that the US spends more on Defense than the next 9 countries COMBINED it becomes obvious to anyone paying attention that GDP is a worthless data point.
Suppose the United States decided it needed to dig 1 billion holes for $10 billion, then cycle back the next week to refill them at the same rate of 10 billion dollars. This peculiar economic exercise would indeed be reflected in the USA's GDP calculations, despite its apparent lack of productive value. This is exactly like what we discussed this morning using the Fire Truck metaphor. (Or spend 20 years in Afghanistan refilling the holes with The Taliban)
Jon Little states, “The USA in the last week of 2024, spends $10 billion on digging holes 1 billion holes (Hey that’s only ten bucks each) This would be marked down as government expenditure, a component of GDP. Then the following week, we spend another $10 billion spent on refilling those 1 billion holes (what a deal, only 10 bucks each) This would also be added to GDP. This seemingly pointless activity would contribute a total of $20 billion to the nation's GDP figures.”
Pepe Escobar reported a significant breakthrough on October 22:"BREAKING: India and China SOLVED THEIR BORDER PROBLEMS. Decision taken weeks ago. Xi-Modi bilateral in Kazan will confirm it."
This resolution of border issues between India and China, if confirmed, could have major implications for regional stability and BRICS cooperation.
The core theme uniting BRICS members is their dissatisfaction with Western-led global governance institutions, particularly in economic matters.
De-dollarization Efforts
Escobar has been closely following BRICS' efforts to create alternatives to Western-dominated financial systems. He recently discussed a "Russia-led BRICS payment system that is set to SHOCK the [Western financial system]"
The summit is viewed as a showcase of Russia's international partnerships, countering narratives of its isolation due to Western sanctions.
As Angela Stent, director of the Center for Eurasian, Russian, and East European Studies at Georgetown University, noted: "The summit will showcase that, rather than being isolated, Russia maintains vital partnerships with countries such as India, China, and other emerging powers."
This BRICS summit is taking place against a backdrop of global tensions, including:
Ongoing conflict in Ukraine
Western sanctions against Russia
Shifting global economic power dynamics
the BRICS nations are actively working to reshape the international order, with a focus on economic cooperation and alternative financial systems that could challenge Western dominance.