Argentina Joins BRICS – Fiscal Policy and The Potential Success or Destruction Of The Growing BRICS Alliance – August 31, 2023
This will be a quick post, as i’m mainly focusing on the growing list of ANTI-AUSTERITY countries joining the BRICS alliance. There are a lot of undeveloped countries, implementing fiscal policies that are anti-growth.
Even if you’re a Socialist or Marxist, at least initially you have to find a way to ATTRACT capital to your country and REMAIN there. One of the major reasons that socialist countries tend to move in the direction of dictatorship is because of natural human behavior which is the complete opposite of what the socialists and Marxist want to accomplish.
In China as an example the Chinese Communist Party has to make sure it implements capital controls over it’s citizens, because the Chinese people are VERY smart and if they had the CHOICE, they’d dump the Renminbi likely for US dollars, Euros, Canadian or Aussie Dollars, Swiss Francs etc.
PRODUCTIVE smart people who demand capital for their ethics, wisdom and hard work when given the choice will always deploy their CAPITAL where it’s being treated best and that’s the main reason why most undeveloped nations remain undeveloped.
The moment a wind fall of cash ends up in say Argentina for example, the multiple SPECIAL INTEREST groups that exist in Argentina, will seek out means to CONFISCATE said wealth and use it for their own purposes.
Now, these special interest groups within Argentina will also use the DEMOCRATIC process to achieve their objectives. What I’m getting at here is that the government is often a reflection of what the people are willing to TOLERATE.
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Most people imagine the government as A conduit for LEGAL plunder of other peoples PROPERTY. This is actually the common thinking on the planet, if you’ve ever listened to African leaders as an example speak, they often refer to Capitalism and Property rights as IMPERIALISM.
This is a huge mistake for Africa, but it appears to be embedded into the thinking of a lot of African nations. In Europe, the name of the game is and will always be mastering the art of SOCIALISM. Europe as we know it today would collapse entirely if it hadn’t trained people to accept the EURO.
The Euro really is a means for the Germans to sell their stuff to other European nations without offering a steep discount. Germany and Switzerland as an example could survive without the Euro, but it’s unlikely that Italy, France, Spain and others would be solvent without the Euro.
Then there’s Asia, most Austrian Economic thinkers are baffled as to why Asian countries even accept this fiat monetary system and they’re often tasked with manufacturing everything the world wants. People also tend to forget that Asians also do the heavy lifting in the Middle East.
What prevents Asia from rising is their governments LACK of respect for Property Rights. In Japan as an example their Federal government refuse to allow zombie companies to die, which is vry sad, because generations of Japanese people are stuck working for these zombie companies, instead of doing what Japanese people do best which is INNOVATE.
In south Asian namely India, they also have property rights problem, in fact property rights problems in India contribute to most Indian people leaving India for western countries bringing their skills along with them. The chinese are run by the Chinese communist party and obviously technocrats will NEVER respect property rights, instead Chinese Communist Party appears content with moving along with their long term agenda in small increments.
What I’m getting at here is that FISCAL POLICY will be the challenge of BRICS. The EU was only created in 1999, and already we’re seeing systematic cracks. Even though a lot of EU member states have shrunk the size of their governments, regressive taxation is still the name of the game within the EU member states and regressive taxation GUARANTEES slow growth.
Argentina often has hyperinflation problems which is another way of saying NEGATIVE growth. In actuality most countries in the world would have to change their fiscal polices if the U.S. dollar ever lost it’s reserve status.
In the above video, we observe overt corruption within the United States Government Leading To More Nations Joining BRICS. Listen to a guilty Joe Biden justify meddling in Ukrainian affairs for what appears to be his personal financial gain, based on the Viktor Shokin interviews. Although some claim this is innocent, others say this is the problem with U.S. foreign policy.
Not only does this sound like bullying, there are claims that say Joe Biden profited PERSONALLY from getting Viktor Shokin fired and installing what Joe Biden claims was “and they put in place someone who was solid, AT THE TIME” notice Joe Biden trying to cover his own tracks, because as we all know Ukraine is a very corrupt country, which is why Joe Biden was taking advantage of the situation.
It’s one thing to this on your personal time, but Joe Biden did this while he was the Vice President, this is only one instance, so you can see why countries are JUSTIFIABLY looking for alternatives to the U.S. Dollar, as at the very least it can be argued that U.S. politician’s are engaging in very questionable behavior, and why should any nation be forced to capitulate to U.S. sanctions when American voters are voting for immoral, unethical politicians to lead them.
With that said in terms of avoiding U.S SANCTIONS I think a HARD BRICS currency would be perfect, especially if it’s backed by commodities. I do think the way we imagine currencies in this era needs to change.
I think all BRICS nations should have their own currency and the BRICS currency should be left for BIG INDUSTRY, which would allow all the member states of BRICS to still pursue their own political agendas but have to be honest when transacting in the BRICS currency. In the EU, there are rules of membership, and personally the flaw I see with the Euro is that some countries got rid of their national currency.
Even if my countries currency was worthless outside of my nation, I’d still keep it and even encourage citizens to transact in it, because if you’re a believer in socialism, the Chinese Yuan, Renminbi system makes a lot of sense.
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Politically for most of these BRICS nations, the people want some sort of social security blanket from their respective governments, well, forcing this countries to transact in a BRICS currency would be disastrous, however, using the BRICS currency for trade amongst BRICS member states, to avoid say U.S. sanctions, that would work.
Interesting times ahead!