FMT:
Renowned US economist
Jeffrey Sachs says countries are gravitating towards BRICS in response to the US weaponising the US dollar-based monetary system.
PETALING JAYA: Eminent US economist professor Jeffrey Sachs said the emergence of the BRICS grouping came in response to the United States weaponising the global US dollar-based monetary system to unilaterally sanction countries deemed as its adversaries.
He also criticised the US government for confiscating the reserves of various countries. “The US confiscated the reserves of Iran, Venezuela, North Korea, Afghanistan, and in March 2022, it confiscated US$300 billion (RM1.4 trillion) of Russian assets.
“The BRICS countries said this is ridiculous! Why are we using US banks if they are just going to take our money away?” he said when responding to a question after his lecture on “UN 2.0 for Peace and Financial Market Transformation for Sustainable Development” at Sunway University yesterday.
“If the world was running as it should, we wouldn’t have BRICS, as it is a reaction to the misuse of international payments and finance, and monetary settlements,” he said.
He also questioned why the US should dominate the international financial system if it abuses the privilege of other countries using the US dollar.
“Now, other countries don’t want to be left to the vagaries of US policy. And they want to have good relations with China, India and other BRICS countries.
“So, I can understand why Malaysia and Thailand say they want to join BRICS. In fact, the list comprises about 30 more countries (wanting to join BRICS),” said Sachs, 69, a professor at Columbia University who serves as director of its Center for Sustainable Development.
Prior to that, he was a professor at Harvard University for over 20 years. He also holds the distinction of serving as special adviser to three UN secretaries-general: Kofi Annan, Ban Ki-moon and António Guterres. In addition, Sachs has acted as economic adviser to various governments in Latin America, Europe, Africa, and Asia.
Sachs also said he had reached out to top officials in the US administration over the issue. “I said to my friends in the US government – why are you doing this?
“Who will use the dollar if you keep taking other people’s money? Money is useful if you can use it. It is a store of value, but not if you confiscate it.”
He pointed out that the expanded BRICS grouping has about 36% of the world’s economic output in contrast to 29% for the G7, consisting of the US and its key allies.
“So, BRICS is the larger group, and it has nearly 50% of the world’s population. It’s a very significant grouping,” he added.
BRICS, founded in 2009, comprises Brazil, Russia, India, China and South Africa. It expanded in January 2024, when Iran, the UAE, Egypt, and Ethiopia joined as new members.
Thailand announced in May that it will apply to join the grouping, while Prime Minister Anwar Ibrahim confirmed Malaysia’s intention to join the bloc in an interview with Chinese media outlet Guancha last month.
Malaysia’s decision to join BRICS suggests that Asean nations are hedging their bets to “de-dollarise” given that Washington has weaponised the US dollar through the increasing use of sanctions.
In the interview with Guancha, Anwar backed comments by Brazilian president Luiz Inacio Lula da Silva criticising the dominance of the US dollar in international trade.
Anwar has also said that Malaysia should explore de-dollarisation, and has supported the idea of an Asian Monetary Fund.
Fact Check...
ReplyDeleteThe Wankees NEVER seized the reserves of North Korea...because North Korea has NEVER deposited any money in the US system.
Some Dollars illegally laundered through intended for North Korea got seized..well that's Their problem, not the Wankees perfidy.
The Wankees never seized Afghan funds. The Taliban shot their way into Kabul at the point of RPG-7s, and the Wankees just said we won't let you get your hands on the Afghan National Bank's funds deposited in Washington DC exactly as a safeguard against such an eventuality. ...
Many Developing countries , even today, continue to deposit their funds ( and gold) in the Washington DC Federal Reserve Bank as a safeguard against some Colonel Mugabe or General Ali or Major Ah Chong taking over their country at the point of a gun.
You prefer to deposit it with Putin or Winnie the Pooh ..? Most countries are not that dumb.
Wakakakaka…
DeleteSuch an inconsequential & flatulent know-nothing checks!
How about
1) The US Department of Justice has seized $500,000 (£417,000) worth of Bitcoin from 'suspected North Korean hackers'
Ditto those millions belonging to ex Yankee supported juntas.
Ain't Personal FINANCE assets r SACROSANCT under the western demoNcratic system?
2) Sovereign fund belongs to the citizen of the source country.
Who the f*ck appointed US to be that funds guardian?
3) Many Developing countries , even today, continue to deposit their funds (and gold) in the Washington DC Federal Reserve Bank as a safeguard?
Washington DC Federal Reserve Bank isn't a public commercial bank. It's a consortium of individual private banks serving as the fiscal guardian of the US.
Foreign bank units have been accumulating cash reserves at the Federal Reserve, likely reflecting concerns that a dollar funding crunch could be looming as the U.S. central bank reduces its balance sheet and global economies face recession risks.
While these 'reserves' r usually drawn quarterly for trade rebalancing & impex payments. These temporary cash deposits ain't true reserves!
They have to be deposit in US banks simply bcoz of the dominancy of the US$ in trade transactions.
Definitely nothing with safeguarding against any political changes at home.
When the fall of the US$ becomes a reality in a not too distant future, similar moves will happen to Chinese eminbi
Wakakakaka… what an inconsequential & flatulent know nothing fact check!
ReplyDelete1) (Reuters July 2017) - U.S. authorities have tried to seize millions of dollars associated with several companies that deal with North Korea, including the country's military, from eight large international banks
2) ditto with many millions of the ex Yankee supported NKorea juntas
Ain't individual personal finance assets r SACROSANCT under the jurisdictions of the western demoNcracy?
3) Sovereign funds r belonging to the citizen of the source country.
Who the f*ck appointed the Yank as these funds safekeeping guardian against ANY eventuality?
Federal Reserve Bank isn't a national bank of US. It's a consortium of private banks, nominated to be the fiscal guardian if the US Treasury.
It doesn't take deposit as any commercial bank. Instead it prints tons & tons of greenbacks to buy US government's IOU.
cf: Federal Reserve Board (.gov)
https://www.federalreserve.gov › ...
Table 11 description from Fed's balance sheet
Foreign bank units have been accumulating cash reserves at the Federal Reserve, likely reflecting concerns that a dollar funding crunch could be looming as the U.S. central bank reduces its balance sheet and global economies face recession risks.
These reserves r subjecting to frequently quarterly trade rebalancing, impex payments. None r deposited as a safeguard against any political changes (cf: 3 above).
Why r these monies r deposited in the US banks, simply bcos of the dominance of the US$ in international trade transactions.
When the collapse of US$ as an international trade transaction medium starts, mfer, u would most likely looking towards the Chinese Reminbi as the new international trading safeguarding medium!