One thing about the debate is that it is assumed one of the systems has to prevail. Why should one system prevail? Why can't they both exist in parallel?
I don't believe for a second the BRICS are seeking total domination of their system. China has never sought to be the reserve currency of the world, and within the BRICS system, it does not seek that. How do I know? Because as Russia wanted to declare a gold peg at the last BRICS summit, both China and India turned it down. They want the dollar to play it's role, but not as a weapon. The US political class thinks otherwise and this is where the problem starts.
What is clear is that the BRICS side have decided that thanks to Russia's Syrian and Ukraine campaigns, it has the military power to state and implement it's mission statement without fear. It is basically a defensive move to protect its sovereignty and independence. To succeed, it needs the military power and a certain level of critical mass from the member states. This is what is being built right now.
There are a large number of junior BRICS countries ar thinking as Russia and China did 15-20 years ago. They don't have the military power today, but Russia is promising protection in the same spirit as NATO promises to protect its allies. They realise they would be crushed if they displayed dissent without the protection of Russia and China.
For Brent and his supporters, this is very much a zero sum game and it shows in his arguments. For the BRICS, I don't believe it is a zero sum game. It is simply demanding the right to formulate one's own future and in the interests of the nation state. Today they think they can.
What a pity that for humankind, the base layer of the social structure is violence, usually wielded by the status quo. Once this element starts to shift change happens, mostly in violentl fashion and very rarely, as with the British empire, by agreement.
if you look at the past few years, Brent has moved his position as the situation has dictated, not hypocritically mind you. i think people push him so much, hes kind of stuck with this idea being his whole personna.. the eurodollar part of his theory is VERY solid and still solid.. but its being eroded now, and as a result his ideas are weakening, but not "wrong"
I recall that he almost gave up on the idea and once he had stated it publicly, the strong dollar theory started to materialise. I think assigning his theory to a catchword like "milkshake" is responsible for shaping his persona around the prediction. But it was good marketing. I would never gave known who Brent Johnson was without the milkshake analogy. I'm also not clear why you say his eurodollar theory is eroding... obviously I'm missing some detail on this.
the eurodollar is key.. and since the market is now pegged to SOFR as opposed to LIBOR and demand is dropping somewhat, that hurts its effect in a deflationary destructive moment.. BUT.. it is still very powerful.. VERY
One thing about the debate is that it is assumed one of the systems has to prevail. Why should one system prevail? Why can't they both exist in parallel?
I don't believe for a second the BRICS are seeking total domination of their system. China has never sought to be the reserve currency of the world, and within the BRICS system, it does not seek that. How do I know? Because as Russia wanted to declare a gold peg at the last BRICS summit, both China and India turned it down. They want the dollar to play it's role, but not as a weapon. The US political class thinks otherwise and this is where the problem starts.
What is clear is that the BRICS side have decided that thanks to Russia's Syrian and Ukraine campaigns, it has the military power to state and implement it's mission statement without fear. It is basically a defensive move to protect its sovereignty and independence. To succeed, it needs the military power and a certain level of critical mass from the member states. This is what is being built right now.
There are a large number of junior BRICS countries ar thinking as Russia and China did 15-20 years ago. They don't have the military power today, but Russia is promising protection in the same spirit as NATO promises to protect its allies. They realise they would be crushed if they displayed dissent without the protection of Russia and China.
For Brent and his supporters, this is very much a zero sum game and it shows in his arguments. For the BRICS, I don't believe it is a zero sum game. It is simply demanding the right to formulate one's own future and in the interests of the nation state. Today they think they can.
What a pity that for humankind, the base layer of the social structure is violence, usually wielded by the status quo. Once this element starts to shift change happens, mostly in violentl fashion and very rarely, as with the British empire, by agreement.
if you look at the past few years, Brent has moved his position as the situation has dictated, not hypocritically mind you. i think people push him so much, hes kind of stuck with this idea being his whole personna.. the eurodollar part of his theory is VERY solid and still solid.. but its being eroded now, and as a result his ideas are weakening, but not "wrong"
What a pity that for humankind, the base layer of the social structure is violence....
I recall that he almost gave up on the idea and once he had stated it publicly, the strong dollar theory started to materialise. I think assigning his theory to a catchword like "milkshake" is responsible for shaping his persona around the prediction. But it was good marketing. I would never gave known who Brent Johnson was without the milkshake analogy. I'm also not clear why you say his eurodollar theory is eroding... obviously I'm missing some detail on this.
It’s like William shatner becoming famous for Star Trek.
For a while he hated it.
the eurodollar is key.. and since the market is now pegged to SOFR as opposed to LIBOR and demand is dropping somewhat, that hurts its effect in a deflationary destructive moment.. BUT.. it is still very powerful.. VERY
OK now I understand, thanks.
This is awesome.. trying to set this up for the entire day 😉 time to Focus 😁..
Tks Professor Vinny