A threat that cannot be underestimated

What Putin called yesterday is a serious threat to what he means, but it is not easy to achieve. He said that the BRICS countries (Brazil, Russia, India, China and South Africa) should “melt” their currencies and release a new currency to represent them. It would be a viable and dangerous alternative to the dollar. A console (ab to a euro) is worth what the currencies that make it up are worth, of course with different weights.

It took Europe thirty years to form a common currency. And some prominent economists, such as Milton Friedman, criticized her even after her birth. The countries that adopt it are very different, and have very different histories, economic policies, interest rates, and savings. And we talked about Europe. Think a little about how you can bring China and India, or Russia and South Africa together. But this is the technical point of view.

The dangerous part of Putin’s threat, as mentioned, is what lies behind it. The five BRICS countries account for a fifth of global wealth and roughly the same share of international trade. So they are a much richer club than the Euro, despite the latter being made up of 27 countries. They, especially in agriculture and raw materials, have an oligopolistic leadership position in the world. They don’t have a great common history, but three billion people live under their stars: just under half of the world’s population. While the old continent emptied of the population.

It’s hard for them to agree. China is the undisputed dominant: its GDP is forty times higher than that of South Africa. India has a share of wealth four times less than that of Beijing, but it will soon surpass it in terms of population. It is hard to think that Moscow would voluntarily submit to Beijing’s arrogant economic power.

In short, if the BRICS nations, rather than a single currency, agreed by somehow coordinating their economies and actions, they would be a mass of giants compared to European pygmies. This is the message Putin is referring to when he talks about the single currency. What’s more, it does so by taking the American ticket as a reference point: the European carrier doesn’t even consider it.

The parrot repeats that this is a good reason for the unification of Europe.

Yes, of course. But what do you do? If consensus is used to kill our most advanced industry on competitive terms in the world, that is, the automobile industry or to wipe out our culture and traditions, numbers and dimensions will lead to the deterioration of the old continent, which will not be slow and merciless. , but quickly even if it can be avoided.

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