Folks, the Brics countries are saying goodbye. USA The China-led Brics countries are working to Dethrone the U.S and rewrite the global hierarchy of power. This morning, it was reported that Bricks Drew membership bids from more than 19 countries in this video I Want to discuss why Bricks is getting a lot more powerful the threat they posed to the U.S and what the ultimate plan here is and before we get into it I Do want to give you a quick heads up? We are going to be uploading a new trade idea at Market open tomorrow morning here on the channel. so if you want to be one of the first to find out about it, make sure to hit that subscribe button and that notification Bell Okay, let's go ahead and get to work.

So right now you have two different parties. You have the current guard led by the U.S and then you have the up and coming want to be guard led by China and they are gaining steam incredibly fast if you look at the growth contribution from Brics Nations Well, Brics countries surpassed G7 countries in 2020 and have continuously diverted and the spread is only expected to get wider and wider. In other words, Brics countries are expected to account for the majority of economic progress and Power in the coming decades. And get this, China's GDP is more than twice the size of all four of the other Brics members combined.

So make no mistake, this is really a China Alliance and a China push for Global dominance. And needless to say, having a robust economy gives you a huge Edge on a global stage. But when you get your country and your alliances into a situation where they are dominating the global economy, well, all of a sudden, you get to write the rules of the global stage. You get to completely Dominate And the US has wielded this power more or less for the last 100 years.

And it's allowed America to write much of the world in its Viewpoint and to its Advantage. It allows the US to get away with exporting its inflation. Since it has a world Reserve currency, it allows the US to borrow for cheap prices from other countries. It allows it to push its diplomatic agendas all across the world, and it allows for a number of many other things that wouldn't be possible if the global economy hadn't been dominated by America.

However, with the China-led bricks and the strengthening of that Alliance, Well, things may be changing real soon and it may not be very pretty. And in fact, not only are these bricks countries working together closer than ever, but they're Fielding more and more countries to join. Bloomberg reports China Initiated the conversation about expansion when it was Brick's chair last year as the world's second biggest economy tries to build diplomatic clout to counter the dominance of developed countries in the United Nations and in early June Brics member countries and some hopefuls are going to be meeting in Cape Town discussing expansion and also discussing a new Brics currency and ways to de-dollarize this upcoming brick. Summit is going to set the stage for what the world is going to look like for the next 30 or 40 years and hopefully the leaders here in America are watching this what will be discussed referring to the summit.

What will be discussed is the expansion of bricks and the modalities of how this will happen. 13 countries have formally asked to join and another six have asked informally. We are getting applications to join every day. So country after country starting to look at the US and think, why do we want to be dependent on them? Why don't we start diverse to find a way and get more allied with China Get more allied with Russia Get more allied with these Brics countries.

And here's the thing that a lot of people don't understand: a lot of these countries are in the situation where they have no other choice but to partner with the Brics. In fact, according to Zero Hedge, 30 percent of world economies are actually sanctioned by the Us-led G7 30 percent. So when you have thirty percent of world economies seeing that the US doesn't want to work with them, well, what do you think that's going to be a market for? Well, that's going to be a market for China to move in and say, hey, we're going to work with you. Just follow our standard, just follow our goals.

just build our mission. Work with us. We have a massive economy. We're growing really really fast.

India Massive economy growing really really fast Russia Not the best economy in the world. not really growing very fast, but you know there's an economy there in Brazil Big economy growing pretty fast. Work with us. We have a lot of incentives for you and make no mistake, once these players go and join this.

Alliance Well, it allows China Russia and the other players to rewrite the narrative. For example, the US and the rest of the West really have a unanimous dance against the invasion in Ukraine. However, in the Brics world, well, you're not even really allowed to talk about it In a Bricks meeting last year, the members touched on a host of issues but didn't even mention didn't even mention the Russian invasion of Ukraine which was clearly the main topic then and is. Now this is how the a new alliance is going to craft the global conversation.

Historically, countries have been checked by whatever the U.S moral code is or whatever the West's moral code is For Better or Worse. Let's be real, but now it's going to be largely China that gets to dictate whether or not something is moral on a global stage and whether or not that's going to result in massive, massive sanctions. We're going to start determining what they consider to be violations of human rights. Violations Of this or that.

Right now, the Us and other Western type councils get to decide that in the future Maybe Not, maybe it's going to be China. Maybe it's going to be close allies of China. This is going to give China the ability to craft the narrative and act without diplomatic repercussion. If Russia can act without diplomatic repercussion from China and other Brics players right now, well, China's going to be able to as well, and all the other players within this Circle are going to be as well.

Next, let's go ahead and talk about how Bricks is going to bring about de-dollarization right now. The USD encompasses The Lion Share of the foreign exchange reserves pool about 58.38 followed by the Euro and a host of other currencies. USD used to be at 70 back in 1999, but it has consistently dwindled decade after decade, and that is going to consistently become a trend as we head into the next couple of decades. But as we stand right now, let's be real: the USD is still King and it's making a lot of people think that all is fine and dandy and that there is no threat to USD dominance.

Well, unfortunately, they are wrong. A lot of people say Bricks has no power, no power at all to Dethrone the dollar and they are very, very wrong. They are very mistaken. They haven't looked at the data.

China alone holds the most foreign exchange reserves in the world by far more than 2x plus the next biggest holder which is Japan China has nearly 3.2 trillion in foreign exchange reserves, and it's likely that about 50 to 60 percent, if not more of that is in USD China Dumping just a fraction of its USD onto the global market, and adopting a new Brics currency would have an incredibly incredibly destabilizing impact on the value of the USD on the global scale. Not to mention half of the other players on this list would be more than down to adopt a Brics currency Saudi Arabia Hong Kong which no longer has much of a bore between Beijing India Brazil Russia You could probably knock off another half plus of the Usd's market share if China and their Brics partners and some of the other people that want to join Brics and don't like the Us so much. Start dumping their USD reserves if Bricks wants to. They could start cutting the plug pretty aggressively by the end of the year and by 2025 and 2030, the USD would be completely evaporating.

Your market share could go from 58 to basically being a little mouse a little sliver. But in order to actually do that, they need an alternative that is attractive and they know they need that. Otherwise, how are they going to get people to jump ship? You see. See, the thing is, the original reason the dollar was the reserve for so many countries was because it was backed by gold and it was backed by The Credibility Of the strongest economy and country on Earth With some of the best institutions, it was the safest place to store your Capital.

However, when Nixon went and yanked it off the gold standard, the only thing that was left was The credibility aspect. And as we've seen over the decade since, well, we've seen U.S monetary and fiscal policy be a complete disaster for the value of the dollar. And so a lot of countries that may even like us are sick of this Fiat BS are sick of holding this Fiat American currency and they want something that is backed by gold. So what bricks can do to really destroy the US dollar is create a currency that the biggest economies with the biggest economic power growing into the next few decades use.

And on top of that, we're gonna back it by gold. If they do that, it's game over for the USD. If they do that, you're going to see a lot of reserves pour out of the USD and it's going to be a self-fulfilling cycle. To the downside, all China needs to do is dump their USD for this new Brics currency.

All the other parties in need to do is start dumping some of their USD for the Brics currency and all of a sudden you're going to have a lot of our close allies in Europe in Asia all over the place start thinking hey, okay, well, maybe we don't want to dump the USD entirely, but we got to start diversifying. So let's go ahead and dump maybe a quarter, maybe half, maybe three quarters of our USD reserves so that we could hedge against the downslide of the US dollar. The US dollar has been a very, very tough currency to have as a world reserve for many decades now, and countries that are given a good alternative will make the switch. An economist contributor to Bloomberg says quote: the Dollar's dominance means the burden of the dollar denominated debt for other nations Rises and falls with the exchange rate, destabilizing their own monetary policy, with the Greenbacks movements ultimately playing a larger role than domestic decisions.

So other countries want to get on a Brics currency or not. The fact of the matter is that countries that are using the USD well, they're giving the Us a lot of their power. A lot of their domestic power is decided by things that happen in Washington 10 that happened at the Federal Reserve that happened all over the place in a completely different country. So more and more countries, even if they don't necessarily want to get on a bricks, well, they definitely want to get on something that's backed by gold.

And if Bricks offers that, that could be a very, very compelling argument. How do I know though, that lots and lots of countries want gold, How do I know that they're sick of the USD as a reserve? Well, just look at the stats. The data clearly shows that central banks are literally buying straight up gold at record rate. and if Brix comes up with a currency that is backed by gold and is backed by some of the biggest economies, it's going to incentivize a mass Exodus over to their currency.

and as a byproduct, facilitate a massive collapse of the U.S currency. Quite frankly, we haven't even seen the collapse of the US currency yet, and you're already starting to see some of our close allies like France say that we got to reduce our dependence on the dollar. Why? Because If you're going to have this war between whatever the Brics currency is or whatever China's relevant currency is going to be, Well, a lot of these countries aren't going to want to be caught up in the middle of it. So they're going to start diversifying.

And by diversifying, what does that mean? Well, that means getting rid of their USD sending it back to the US in exchange for something else and that's going to flood the US with all these new bills and it's going to inflate a lot of the prices here at home. But speaking of the rapid collapse of the USD, do you know what is also rapidly collapsing? Well, the price of Zip Trader you for a limited time if you use coupon code War at checkout, you will get 60 off our one-time fee for the program. You will get access to our step-by-step lessons, our private chat, and our daily morning briefings. And like I explained in yesterday's video, Zip Trader is at War and we must fight aggressively and that's why we have this aggressive 60 off coupon code.

Make sure to give it a look as soon as possible because this is going to be one of the best deals we ever offer. Okay, but back to work. So former White House Economist Joseph Sullivan says that this Brics currency would be a unique threat to the dollar. It'd be like a new Union of up and coming discontents who on the scale of GDP now collectively outweigh not only the reigning the United States, but the entire G7 weight class put together.

He said in a column published on Monday Exactly. This is the problem Sure, the USD Reigns dominant right now and the US economy Reigns dominant right now. But if you put it up against a weight class that controls the growing majority of economic power and influence here on Earth, Well, it starts looking like a much much rougher and dangerous battle. It may not happen today and may not happen tomorrow.

but mark my words, you're going to see this Brics Alliance start chipping slowly and slowly against that USD dominance and against the U.S Led hierarchy. It's not pretty folks and hopefully our leaders are watching this very very closely and plan a strategic counter to this. Because if not, oof, it may be too late, but maybe not. we'll see I'm just telling you like I See it, have a great rest of your day and we will see you in the next video.

Make sure to tune in tomorrow at Market Open for our next trade idea. Have a good one folks and we will see you in the next video.