Connect with us

AMERICA

The rise of BRICS: The end of dollar dominance in global economic arena

Published

on

In the current changing world, the BRICS group has emerged as a new player in the global political and economic arena. The key players in this group are Brazil, Russia, India, China, and South Africa, and other countries have recently joined this group, including Saudi Arabia, Egypt, Iran, the United Arab Emirates, and Ethiopia.

This variety of countries has increased the strength of this group in terms of politics, economy and geography. These countries, which account for more than 45pc of the world’s population and 26.98pc of the world’s gross domestic product, play an important role in global political and economic developments. In this sense, BRICS is considered as an influential factor in economic and political developments.

The tendency of new countries to join this platform shows their desire to reduce their dependence on the US dollar and western markets. Thus, BRICS seeks to create a common currency to strengthen economic cooperation and facilitate trade between member countries, which can replace the dollar in economic exchanges in the future.

Reducing dependence on the dollar:

The dominance of the US dollar over the world economy began after the end of World War II and the establishment of the Bretton Woods system in 1944, in which the dollar was introduced as the main currency for international trade, but this dominance ended with the abandonment of the gold standard in 1971.

Therefore, one of the main goals of the BRICS countries to create a common currency is to reduce dependence on the US dollar as a global currency and its dominance in international trade. BRICS member countries seek to remain immune from currency fluctuations and US economic sanctions.

The strength of economic cooperation: 

The creation of a common currency can help facilitate trade between BRICS countries and prevent additional costs related to currency conversion.

This issue can increase the competitiveness of the goods and services of member countries in domestic and foreign markets and promote regional trade in a faster and cheaper way. Increasing trade between member countries directly contributes to economic growth.

Strengthening the political position:

The BRICS countries seek to strengthen their position in the international arena and reduce the influence of Western powers and challenge the dominance of the dollar. A common currency can help strengthen international cooperation and representation of these countries in the global financial system. Building stronger ties between member states can also help strengthen them on the world stage.

Attracting and facilitating investment:

By creating a common currency and ensuring financial stability, the attraction of foreign investment will be boosted. Foreign investors can easily cooperate in many projects both independently and jointly because challenges related to costs and other currency conversion problems have been resolved, this will help facilitate trade and investment for BRICS members.

An introduction to the prerequisites for creating a new currency for BRICS members

Creating a common currency for BRICS members can help strengthen economic cooperation and reduce dependence on traditional currencies such as the US dollar.

However, certain prerequisites are necessary for this initiative to succeed. These prerequisites include strong economic cooperation among the member countries, political stability, creating a coherent financial system and suitable legal arrangements for the diverse economy of the members.

Providing these above conditions can pave the way for the adoption and effective use of the new currency and help to strengthen the position of BRICS in the global financial system.

Prerequisites:

To create a common currency, the BRICS countries need certain conditions, including providing a suitable platform for strong economic cooperation among the member countries, economic diversity, cohesion to create a financial system, and political stability, which is the most important pillar of this prerequisite. In order for the new currency to be implemented, the member countries must reach full economic convergence. This convergence includes common understanding and agreement on financial, commercial and economic policies.

Political support:

Creating a common currency requires strong political support from the BRICS leaders. Despite the symbolic support for the new currency at the meeting of the BRICS members in Russia, the members of the group must remain steadfast on the political support of this issue, otherwise it can cause difficulties in the process of this joint project.

Challenges: Major differences in size and economic structure

One of the main challenges in creating a BRICS common currency is the economic and financial differences between member countries.

BRICS countries have different economic structures and these differences can lead to conflicts in financial and currency policies.

For example, China and India as larger and faster growing economies in BRICS will have a high capacity to influence common policies, while the economies of Russia, Saudi Arabia and Iran are dependent on natural gas and oil resources.

Brazil and South Africa both have smaller economies and are relatively dependent on certain industries such as agriculture, mining and raw materials.

Ethiopia is a country that has one of the highest economic growth rates in Africa, and agriculture plays an important role in the Ethiopian economy, and this country is recently trying to become a commercial and industrial center in East Africa.

As the second largest economy in the world, China is considered the largest and most industrialized economy and the driving force of BRICS, which undoubtedly plays a dominant role in the economy of this group.

This situation can lead to more dependence of member countries on China and economic differences between members; Because smaller countries may not be able to keep up with the speed of growth and economic complexity of China.

AMERICA

Donald Trump taps Marco Rubio as his Secretary of State and Mike Waltz as National Security Advisor

Published

on

President-elect Donald Trump continues to assemble his cabinet, recently filling two critical posts: Secretary of State and National Security Advisor.

Florida Senator Marco Rubio has been appointed U.S. Secretary of State. Known for his tough stance on China, Iran, Cuba, and Venezuela and as a staunch supporter of Israel, Rubio’s appointment highlights a foreign policy direction aligned with Trump’s hardline approach on international issues.

Rubio, who has previously questioned U.S. aid to Ukraine, recently suggested that the war has reached a stalemate and should be “brought to an end”:

“I think the Ukrainians have been incredibly brave and strong in standing up to Russia, but at the end of the day, what we’re funding here is a stalemated war, and it needs to be brought to a conclusion. I think there should be some common sense here,” he added.

Rubio also argued that “you don’t have to be a fan of Vladimir Putin to end the war,” indicating a pragmatic view of the Ukraine-Russia conflict.

Rubio’s ‘axis of evil’: China, Iran, Cuba, Venezuela

Rubio, a prominent China hawk sanctioned by Beijing in 2020 for his stance on Hong Kong protests, has consistently advocated for a firm U.S. stance against Chinese influence. In 2019, he called on the Treasury Department to launch a national security review of TikTok’s acquisition of Musical.ly, leading to an investigation and eventual divestment order.

As the ranking Republican member of the Senate Intelligence Committee, Rubio has also pressured the administration on Huawei, calling for a complete sales block after the sanctioned Chinese tech giant released a new laptop powered by Intel’s AI processor chip.

Waltz: A decorated Green Beret advocating for strong U.S. global role

Mike Waltz, a decorated Green Beret and Army veteran, brings extensive experience to his role as National Security Advisor. Waltz’s military service and work at the Pentagon are detailed in his book, The Warrior Diplomat: The Wars of a Green Beret from Washington to Afghanistan.

Since his election to Congress in 2018, Waltz has served on Armed Services, Foreign Relations, and Intelligence Committees. His views on U.S. national security and foreign policy align with Republican perspectives, affirming the key role of the United States in global affairs.

While Waltz has encouraged NATO allies to increase defense spending, he has refrained from endorsing Trump’s occasional calls for the U.S. to withdraw from NATO. “Look, we can be allies and friends and have tough negotiations,” he stated recently.

Waltz: China hawk and advocate for stronger sanctions on Russia

Waltz believes the U.S. should continue supporting Ukraine, though he recently recommended a reassessment of financial support. Known for his tough stance on China, he has argued that the U.S. should prepare for potential conflict in the Pacific and sponsored legislation to reduce dependence on critical minerals from China and protect American universities from Chinese espionage.

Following the U.S. withdrawal from Afghanistan in 2021, Waltz frequently criticized President Joe Biden and the White House. In a recent NPR interview, he argued that it is “perfectly reasonable” to seek a diplomatic resolution to the war in Ukraine.

Waltz suggested that the U.S. could gain leverage over Russian President Vladimir Putin by imposing energy sanctions on Russia and increasing U.S. energy exports. “His economy and his war machine will dry up very quickly. I think that would bring Putin to the table,” he remarked, hinting that long-range weapons supplied to Ukraine could be used for strikes deeper into Russian territory.

Waltz: Bridging the gap between the Pentagon and Silicon Valley

Waltz’s new role as National Security Advisor could lead to stronger collaborations between the Pentagon and Silicon Valley. He advocates for a cultural shift in defense procurement and innovation, saying, “There are a lot of new technologies coming out of Silicon Valley and elsewhere that are really itching to help with our defense and security problems, and they can’t get through the bureaucracy.”

He concluded, “New leadership is essential, and a cultural change is needed.”

Continue Reading

AMERICA

New trade wars on the horizon: Trump signals return of ‘isolationist’ Lighthizer

Published

on

Robert Lighthizer, who served as U.S. Trade Representative (USTR) during Donald Trump’s first term and was instrumental in initiating the U.S.-China trade war, has been offered a return to the same role.

Sources familiar with Trump’s transition team discussions told Financial Times (FT) that Lighthizer has been asked to resume the USTR position, despite his interest in other posts, including a possible role at the Department of Commerce.

Lighthizer has also expressed interest in the Treasury Secretary position, though this role is expected to go to a financial sector expert, with candidates including hedge fund managers Scott Bessent and John Paulson.

Given Lighthizer’s influence in shaping trade policy during Trump’s first term, particularly with his “isolationist” stance, his potential reappointment could raise concerns in Beijing and among U.S. allies. Trump has previously pledged to impose high tariffs on imported goods, especially those from China.

Although Trump considered Lighthizer for Commerce Secretary, insiders suggest he is more likely to offer this position to Linda McMahon, the billionaire co-chair of Trump’s presidential transition team.

Democrats support Lighthizer’s appointment

Representative Brendan Boyle of Philadelphia, the ranking Democrat on the House Ways and Means Committee—which oversees trade—expressed support for Lighthizer’s appointment. “I worked with Bob Lighthizer on the US-Mexico-Canada Agreement (USMCA) during his tenure as USTR. He was bipartisan in his approach and respected across the political aisle,” Boyle commented.

With three decades at Wall Street firm Skadden Arps, Lighthizer fought for U.S. steel interests against imports from China, representing companies like U.S. Steel. In a recent book, he even praised aspects of Biden’s trade policies, noting, “Our success explains why the Biden administration has continued many of the U.S. trade policy changes that President Trump, and I initiated.”

The ‘missile man’ who faced Japan

Lighthizer was also instrumental in the U.S.-Japan trade war of the 1980s, earning the nickname ‘Missile Man’ for his aggressive negotiation style. During heated talks, he famously folded one of Japan’s proposals into a paper airplane and launched it back at the Japanese delegation. Appointed Deputy USTR in 1983, Lighthizer played a critical role in pressuring Japan to limit exports of steel, cars, and other goods—a strategy he later adapted for renegotiating NAFTA and other trade agreements.

Criticism of free trade and industrial job losses

In the early 2000s, Lighthizer advocated for tariffs on steel imports to protect U.S. industries. Shortly before the recent U.S. election, he wrote an opinion piece in Financial Times blaming free trade for manufacturing job losses and describing the U.S. trade deficit as “alarming.” “Facing a system that is fundamentally failing our country, Trump has resolved to take decisive action,” Lighthizer wrote.

Continue Reading

AMERICA

Susie Wiles appointed as Trump’s chief of staff

Published

on

Following Donald Trump’s election as President of the United States, he began appointing key figures to new positions within his administration.

For the first time, a woman has been appointed as White House Chief of Staff. Susie Wiles, a prominent figure in Florida politics, rose from her role as Trump’s 2016 Florida campaign director to becoming a senior advisor for his 2024 candidacy.

According to Politico, Wiles was instrumental in helping Trump secure the presidency by running a disciplined and professional campaign operation. Wiles demonstrated a unique ability to manage Trump’s impulses, an accomplishment few others have achieved. In a statement, Trump described Wiles as “tough, smart, innovative, and universally admired and respected.”

One of Wiles’ defining characteristics, as noted by Politico, is her preference for working behind the scenes rather than making public speeches. She has a history with major lobbying firms, previously managing Florida Governor Ron DeSantis’ campaign and working with Republicans such as Mitt Romney and Rick Scott.

Wiles’ role in Trump’s campaign strategy

Politico highlighted Wiles’ impact on transforming Trump’s once-chaotic political landscape into a more organized operation. This reorganization was particularly critical after Trump’s 2020 loss and the numerous legal challenges he faced in 2021. With Wiles’ involvement, Trump re-emerged as a presidential contender.

In addition to her work on Trump’s campaign, Wiles also lobbied for tobacco company Swisher International. She currently heads Mercury, a major lobbying firm whose clients include SpaceX, AT&T, and the Embassy of Qatar. However, Wiles herself is not registered as a lobbyist for these clients.

Since joining Trump’s campaign in 2022, Wiles has lobbied Congress on FDA regulations from 2023 to early 2024. Public disclosures indicate that Mercury received $120,000 for its work with Swisher International during this time, although Mercury ended its relationship with Swisher earlier this year.

Mercury CEO Kieran Mahoney congratulated Wiles on her appointment, stating, “This is great news for the country. Susie has been a valued colleague. We are all proud of her and wish her well.”

Trump’s 75-day transition team

Continue Reading

MOST READ

Turkey