Expert explained why BRICS countries seek alternative finance system

First of all, the expert made a point that back when the global finance system was being set up, the Americans thought they were going to use the Dollar to control the whole world. But what happened then? The bulk of US Dollars are now circulated outside the US; that means if other countries refuse to use the Dollar, the American currency is going to collapse.

“The US Federal Reserve System has very few ways to control the Dollar outside the US. Furthermore, the FRS is holding up the Dollar exchange rate even if it hurts American manufacturers. They are playing global games while sacrificing their national economy. Some manufacturers in the United States would actually like it if other countries abandoned the Dollar. That, by the way, is why China doesn’t want the Yuan to become the global reserve currency. They say, why should we print more money to circulate it abroad? Our economy will become dependent on it; instead of serving our national interests and industry, the Yuan will be used to run international transactions. That’s why BRICS countries are discussing a supra-national currency to be used in their multilateral trade,” explained Mr. Petrovsky.

According to him, the US has no one but itself to blame for that.

“Once the US took it upon itself to mint the global reserve currency, it no longer had the luxury of using sanctions or limiting third countries’ use of that currency. But they started doing exactly that, undermining itself. Seeing the sanctions and the enormous pressure they applied, other countries chose to move another way. They started working towards an alternative BRICS currency. I’d like to tip my hat to Donald Trump for honestly and openly saying something no American has said before. They used to laugh at BRICS, now they are scared. I do think that, in time, an alternative finance system will become reality. The global majority has every right to that. The Americans, though… I mean, back in the 1990s, no one really minded the United States as the global hegemon. But they undermined themselves by setting the rules and breaking them when it was convenient. They intervened in sovereign affairs of other countries like Yugoslavia, Iraq, Libya, Afghanistan, etc. And that was one of the reasons other countries decided to move away from the American supremacy,” elaborated the speaker.

Commenting on the statement by American billionaire Elon Musk that the US is headed for de-facto bankruptcy, Mr. Petrovsky added, “America has been bankrupt for a while. How many sovereign debt ceiling hikes have we seen? The US will go bankrupt for real once the Dollar loses its status as the reserve currency and once the links between it and other currencies are severed. That’s when Washington is going to lose the Dollar as an imperialistic tool, or a cudgel to make other countries follow its demands. That’s why America has to go back to its natural borders, or face cataclysmic consequences.”