BRICS, BRICS, BRICS! WHAT THE HECK IS BRICS?

But what is BRICS actually? We are hearing the name BRICS, BRICS, BRICS every day! What the puck is BRICS?

(Photo by Grok/xAI)

So, in one minute, and in my own way, here is what I think BRICS is trying to achieve. This explanation, with only the strictly necessary economics terms, contains everything that I suspect even the most genuinely clueless person could require so as to understand BRICS' intentions once and for all rather than him/her ignoring its motivation here today because the explanation is "too long", and then utter nonsense tomorrow on this very subject like a confident idiot whose head contains an actual brick when it comes to this simple but globally relevant geopolitical topic.

Firstly, in my humble understanding, BRICS is an economic group, not a political or military organization like NATO, and Brazil is holding the presidency of BRICS for 2025 after Russia last year.

Secondly, Brazil, Russia, India, China and South Africa, the five countries for which the name BRICS stands for, well, after originally creating the group as an international development vehicle, they found a simple common economic strategy which they are currently focusing on since 2022, and that is international trade. This has been brought about by the weaponization of both the US Dollar and the SWIFT money transfer system: They therefore agreed that when countries conduct international trade in their own currency, they have more control and thus gain more by having less long term economic uncertainties.

So they are putting in place their own new international payment system called BRICS Pay, which is simply a way to move money around for international trade payments amongst BRICS partner states without depending on the dollar or the SWIFT system.

Behind BRICS Pay, there is some economic development strategy as well. Let's say any trading partner/client is coming from abroad to purchase goods or services from you. They will have to purchase from you in your own local currency, and when you go to purchase abroad from a member state, you will make your purchase in their currency.

BRICS Pay makes all that happen seemlessly without any headaches, without extra effort, and without Uncle Sam's interference.

But to understand the macroeconomic benefits, let's put aside BRICS Pay, get back to the medieval way of trading, and say, for example, I want to go and buy oil from Saudi Arabia. The BRICS strategy is that I will purchase Saudi oil in Saudi Riyals (that's the Saudi currency). Now, the advantage of this to the Saudi economy is that it maintains the value of the Saudi Riyal since many people from around the world will be looking for Saudi Riyals so as to purchase their oil, and therefore the value of the Saudi Riyal stays strong and stable, and no inflation!

Secondly, these many people might come with Dollars that they will have to change locally so as to get the Saudi Riyal. Which means that they will come and exchange their foreign currency through the Forex counters of the Saudi banking industry. Therefore, the local Saudi economy will still get the dollars.

There are several things here:

1 - They still get the inflow of cheaper US Dollars,

2- They maintain a stable value of their local currency even in the free forex market,

3 - They are trading and thus doing business and making profits, and

4 - They are growing their economy without having to pay any fee to America just for using a US currency that nobody can explain why it has brought itself in my deal with Saudi Arabia or even with China for example.

That is what Russia has done, particularly since 2022, and you can see their economy and their urban populations thriving.

But they had to implement this smart economic policy quickly and under tremendous duress in light of all the sanctions, and also to stabilize their currency immediately before their economy collapsed, while simultaneously ensuring continued production and economic growth in all sectors, and also still receiving billions of US Dollars from those looking for the Russian currency to purchase oil or gas or any other resources in the country.

Now, even with BRICS Pay, any country would still have to have a solid enterprising base to develop more great goods and services to trade in. But imagine country's that are not under all those sanctions, and they decide to use BRICS Pay today, basically trading in their local currency. Surely, they would find this policy to be a new golden key for accelerated development, particularly for the countries in the Global South that have been forced to dollarize their trade yet dollarization is actually a danger to their economic prosperity. Just ask Zimbabwe, South Sudan, DR Congo and even Argentina.

Any economy that has sunk to operating in the US dollar for local purchases of goods and services can be sure of suffering galloping inflation and endless free fall of the value of their national currencies value, thus economic collapse. I wonder why Africa's development partners for example are not recognizing this economic danger publicly. That in itself is suspicious as to their true intentions against Africas development.

BRICS Pay indirectly fights inflation and economic recession. Therefore, it is the best tool for international trade, and even for fighting poverty more efficiently while uplifting the standard of living of an entire population.

As a student of economics, I can state right now that the idea behind BRICS is possibly the smartest economics theory in the world in this 21st century, and it came from neither the World Bank nor the IMF.

I actually just call it Wagner economics!

Meanwhile, let's be clear that BRICS is establishing:

a) Economic Security,

b) Accelerated Development, and

c) Economic Freedom.

A system that leads Africa and the world away from a dangerously weaponized US dollar and a weaponized SWIFT banking system. Remember that the dollar has been imposed on everyone like an unsollicited middle man whom we are also forced to pay for no reason whenever we transact in international trade, and this is to Americas own benefit while being at our own cost. Yet the dollar was being used by the Biden administration to threaten us with crippling sanctions against entire economies at any time if any dumb US administration wished. But his sanctions also backfired against Western economies, especially the EU's persisting cost of living crisis which has led to European governments being voted out of office one after another across Europe, and clearly now also the US, because of the rising cost of essentials at the grocery store.

However, BRICS is saying we need to stop being used to build other countries' currencies for free and at our own sweat, and start building our own currencies and economies for ourselves and for our own people instead. Because the existing international trade system since the end of World War II is actually a form of international economic slavery designed to serve Western economies, not ours, and they want to stay on top by deliberately keeping others down and poor rather than competing in a free market.

That is why sanctions and tarriffs are now how they block strong competitors and coerce others to follow their geopolitical whims.

It's actually corruption!

They sanction anyone who is doing better than them rather than compete fairly. China and Russia are the biggest victims of this 'sour loosers mentality' that tries to mercilessly undermine other countries' success unless it is to their benefit. Even doing the same to the poorest of countries. That mentality is what is being emasculated under a multilateral world order, and if you still do not understand this, then just ask ChatGPT, "How did Russia benefit from implementing an economic policy where their oil & gas and other rich mineral resources are traded exclusively in their own currency?"

Then together, we will all understand a clear 21st century international relations reality: BRICS IS THE NEW FREEDOM!

Signed: Mr. Lumumba Amin

Friday 17th January, 2025.

Uganda 🇺🇬 East Africa.