“As BRICS, we will also build on our shared commitment to improving the lives and livelihoods of our people, of advancing the interests and developmental goals of the global South, and our founding vision of a more just, equitable and fair global political, economic, and financial landscape with increased representation and voice,” Pandor said.
When unstable systems start to falter, the pace at which they unravel speeds up. Which is why we're bringing back James Rickards to the program today, even though he was last on just a few months ago.
Will a shift away from the dollar in the global oil trade really lead to a big relative decline in the dollar? Probably and eventually. But a number of other dominoes would need to fall first, most especially the domino we call “Eurodollars.”
Change is already afoot. The current account surpluses of China, Russia and Saudi Arabia are at a record. Yet these surpluses are largely not being recycled into traditional reserve assets like Treasuries, which offer negative real returns at current inflation rates. Instead we have seen more demand for gold (see China’s recent purchases), commodities (see Saudi Arabia’s planned investments in mining interests) and geopolitical investments such as funding the BRI and helping allies and neighbours in need, like Turkey, Egypt or Pakistan. Leftover surpluses are held increasingly in bank deposits in liquid form to retain much-needed options in a changing world.
Is that the picture that the market is clinging to when it prices in rate-cuts this year? And if that's true, why did the BLS just report a massive surge in jobs?