US to STOP BRICS new Payment System and New Swift: Collapse of IMF?

the recent bricks 2024 Summit concluded with several notable packs and measures one of which emerges as particularly transformative the suggestion for a Consolidated depository and clearing structure exclusively for bricks countries this far-reaching scheme has the capacity to reorganize worldwide trade patterns by permitting participant states to function outside of Western Financial architectures like IMF and World Bank and conduct exchanges within their own framework this proposal gains intensified importance considering Donald Trump's recent return to the US presidency in his earlier tenure Trump had cautioned world leaders about the possible outcomes of trimming their Reliance on the US

dollar such alerts included threats of heavy penalties like tariffs or economic reprisals reaching 100% on exchanged Commodities meant to deter any attempts to bypass the dollar for brics members these shifts highlight the immediate necessity of identifying Financial Frameworks that afford greater fiscal sovereignty the alliance's heads acknowledge the imperative to Shield themselves against the sway imposed by the US due to the Dollar's worldwide Supremacy forming an autonomous Financial construct would enable brick states to curb susceptibilities tied to us monetary policy adjustments while encouraging Commerce and capital flows that remain Less open to abrupt alterations in American

directives or embargos in this video we provide an extensive examination of the Innovative Financial Arrangement devised by bricks analyzing the logic behind it its conceivable repercussions on the US dollar and multi-polar Global Order to thoroughly comprehend the driving forces behind this shift it's crucial to evaluate the historic function of the US dollar as a medium for wielding economic and diplomatic leverage frequently labeled the weaponization of the dollar this tactic uses the currency's global dominance to enforce sanctions and restrict admission to transnational Financial Frameworks for chosen targets the US dollar standing as the planet's main Reserve

currency surfaced after World War I solidified by the Breton Woods Accord of 1944 this system instituted a universal monetary Arrangement where currencies were anchored to the dollar itself guaranteed by gold at a steady rate of $35 per ounce even following the gold standard cessation in 1971 the dollar retained its Central Post in global Commerce and investment granting the US wide ranging sway over International economic Pursuits before World War II the British pound sterling acted as the foremost Reserve currency yet the conflict ravaged European economies leaving the US in a condition of economic Vigor fortified by

large gold Holdings the Breton Woods Conference of 1944 endeavored to stabilize the global monetary stage producing fixed exchange rates and establishing the dollar as the spine of worldwide Finance by the late 1960s escalating inflation and imbalances within the US rais doubts concerning its capacity to maintain the Dollar's gold Redemption this peaked in president Richard Nixon's 1971 pronouncement detaching the Dollar's bond with gold converting to a fiat currency Paradigm where the dollar's worth is governed by market forces despite this modification the dollar persists in controlling Global Finance accounting for about 59% of universal foreign exchange reserves

by 2023 the preeminence of the US dollar within the International Financial architecture furnishes the United States with multiple strategic benefits chiefly it permits the US to underwrite its deficits by issuing dollar labeled bonds that enjoy substantial demand across the globe this interest originates from the Dollar's place as the world's principal Reserve currency forming nearly 58% of Global Forex reserves as of the final quarter of 2022 this favored status empowers the US to procure funds at reduced interest costs relative to other States since foreign investors seek the reliability and fluidity of US Treasury assets thus the

US can maintain Amplified trade shortfalls with postponed economic Fallout a scenario frequently termed the exorbitant privilege Additionally the dollar Supremacy grants the US major influence over World economic proceedings through its monetary strategies because numerous Nations hold large dollar reserves and trade in dollars actions by the US Federal Reserve such as tweaking interest rates s wide-reaching ripples through the global Marketplace for example a hike in US rates can pull in international Capital resulting in a heftier dollar and swaying worldwide trade proportions moreover the Dollar's key part in global Finance enables the US to implement economic sanctions

assertively by curbing entry to the US banking sphere and the dollar the US can impose constraints on countries groups or persons involved in Behavior counter to its aims or accepted Norms this power is Amplified by us super Vision over Global Financial channels like the Swift Network allowing oversight and governance of dollar-based dealings universally the United States capitalizes on the dollars rule using various techniques that broaden its authority over global fiscal structures and international relations economic sanctions the US employs the Dollar's pivotal role in crossb Commerce to deliver economic sanctions barring designated nations from worldwide markets

an illustrative case is the sanctions against Iran substantially hindering its economy by curbing its capacity to engage in foreign trade and secure external currency stockpiles control of financial networks the US exercises power over essential monetary conduits including the society for worldwide interbank Financial telecommunication Swift by coordinating with Associates the US can prompt the ejection of particular States from Swift effectively cutting them off from the International Financial Community this strategy was used against Russia after its deeds in Ukraine drastically limiting its foreign monetary dealings asset freezes the US can immobilize dollar denominated properties of external countries

organizations or persons therefore denying their entry to Capital markets for example following Russia's incursion into Ukraine the US and allies restricted assets of key Russian Financial firms including vtb bank which controls nearly 1 of Russian banking assets this measure prevented these entities from tapping their Holdings in the US monetary system and making dollar trades Gravely affecting Russia's fiscal steadiness the brics alliance increasingly aims for financial self-reliance to lessen dependence on western-led financial regimes this initiative arises from a fusion of geopolitical Economic and technological reasons each underscoring the group's ambition for a fairer and multi-polar monetary

structure sanctions on Russia the adoption of Western sanctions against Russia especially after its Maneuvers in Crimea and Ukraine exposed the Frailty of States relying on Western Financial Avenues these penalties included removing Russian lenders from the Swift system and freezing Russian Central Bank assets such measures highlight the urgency for an autonomous Financial backbone to secure economic freedom Russia has become a vocal proponent inside bricks for new tools to shield from such threats going forward concerns over dollar dominance bricks members mainly China and Russia Russia have long criticized the Dollar's overwhelming clout in worldwide trade and finance

the Dollar's sway enables Washington to exercise profound authority over global monetary dealings and enforce economic sanctions with extensive consequences bodies like the IMF and the World Bank viewed by numerous brics participants as Western influenced intensify this frustration in response bricks states have considered substitutes for instance China's un- centered crossb interbank payment system C IPS to vary financial transaction setups economic scale and trade efficiency comprising over 40% of Earth's populace and a quarter of global GDP bricks wield Hefty economic heft to leverage their scale the block has examined methods for in bricks Commerce including using local

currencies for settlement this method strives to trim conversion fees lessen exposure to currency swings and sidestep Western Financial agents rendering interblock trade smoother and not as reliant on external structures a multi-polar world order the shift towards a multi-polar stage in geopolitics emboldens bricks to confront Western Centric Frameworks and call for changes in Universal governance bodies like the UN and the IMF instituting an independent monetary mechanism is vital to brics's larger pursuit of a multi-polar globe allowing the block to express influence and diminish Western predominance in worldwide fiscal policies technological innovations breakthroughs in Tech chiefly blockchain

and distributed Ledger technology DLT equip bricks with instruments to craft Safe decentralized Systems for transnational transactions these capabilities offer a path to circumvent traditional networks like Swift and develop infrastructures more resistant to external tampering or penalties South South cooperation the pursuit of financial independence by brics aligns with broader Ventures such as China's belt and Road initiative BR targeting stronger political and Commercial bonds among emerging economies by encouraging ing trade and financial Synergy across the global South brics hopes to raise its Collective clout internationally and balance Western dominated Financial models let's take a quick pause if

you've enjoyed the video so far could we ask a small favor hitting the like button helps us reach a broader audience and sharing your thoughts or feedback in the comments makes an even bigger impact thank you for watching now let's dive back in the bricks Financial clearing proposal at the 16th bricks Summit convened in Kazan Russia in October 2024 Russia Advanced the formation of bricks clear a unified clearing Arrangement built to ease Financial exchanges among Brazil Russia India China and South Africa without leaning on Western systems like Euro clear this idea strives to rationalize Securities

deals inside the group strengthening fiscal autonomy and robustness against outer economic constraints the the bricks clear notion involves creating a centralized repository and settlement facility offering a specialized base for crossb trading in local Securities among participant states by reducing dependence on Western monetary facilitators bricks clear intends to lessen susceptibilities linked with possible sanctions or limits enforced by Western Powers an integral element under review for bricks clear is adding distributed Ledger technology commonly identified as blockchain DT presents a centralized model for data handling preserving security and openness through lasting logs preserved by a mesh of participants

this Innovation can permit prompt conclusion of Trades trim operational risks and bolster the clearing system's overall proficiency Russian Finance Minister Anton siluanov underscored that bricks clear would rely on DT accentuating its ability to offer a safe and open framework for monetary operations among brics members the brics clear proposal aligns with other brics moves to establish Sovereign Financial Frameworks matching schemes include bricks pay a payment Network aimed at handling transactions in National units and brics Bridge a clearing Hub supporting direct exchanges between partner countries collectively these actions aspire to pair the blocks Reliance on Western Centric

Financial Frameworks and stimulate economic Synergy in the global South understanding DT and its benefits distributed Ledger technology or DT represents a decentralized technique of logging details across multiple machines removing the necessity for a single Authority in this architecture each node retains a synchronized Ledger copy ensuring all modifications appear consistently network-wide this consistency arises through consensus protocols which authenticate and accept transactions prior to appending them to The Ledger blockchain is the most Renown type of DLT structuring records into unchangeable blocks chained in sequence yet alternative forms exist including directed ayylic graphs which map data in a

chain-free graph potentially accelerating throughput and scalability the merits of DLT Encompass heightened protection as its dispersed formation eliminates single failure points and hampers illicit tampering Clarity is another plus with every participant viewing the same information nurturing confidence among stakeholders also DLT systems exhibit durability their spread out nature assures ongoing function even if some nodes collapse or are breached these qualities position DLT as a Cornerstone in the brics nation's effort to craft Standalone Financial infrastructures less bound to Western platforms DLT uses in bricks Ventures span cryptocurrencies smart contracts and crossb payments for example the proposed bricks

clear platform aims to boost intrablock transfers using DLT offering a reliable see-through alternative to Western clearing services like Euro clear likewise brics pay is imagined as a blockchain driven payment Sol solution enabling fluid transactions within the group thus reducing Reliance on Western intermediaries by weaving DT into their financial ecosystems brick States seek to improve the productivity safety and Independence of their economic dealings aligning with their broader aspiration to foster a multi-polar world financial Arrangement looking ahead opportunities and challenges deliberations among bricks Central Bank Authorities are due to continue in December while total incorporation confronts regulatory

Technical and judicial obstacles partial rollout might notably enhance trade inside the group possibly elevating trade quantities by 5 to 7% the outcome of such a structure will hinge on its blueprint and the Readiness of member countries to put it into practice that's all for this video thank you for watching this video we sincerely appreciate you joining us today if our content resonated with you or sparked inspiration please consider expressing your support by liking it and subscribing to stay connected with our community your support holds immense value for us you can watch another video of our

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