by Philip Giraldi, Global Research:
August 23rd was a big news day all over the world. The western media’s focus on the events of that day was solidly on the unproven claims that Russian President Vladimir Putin was behind the sabotage or shooting down of an executive jet that killed his former associate Yevgeny Prigozhin.
In reality, however, there was a far more important story that was coming out of South Africa. In fact, Putin had a far more important job to do on that day due to his desire to make progress in stripping the United States of its dollar hegemony.
Putin was engaged by videolink in the discussions taking place in Johannesburg regarding expanding the so-called BRICS monetary union, in part to include measures that would diminish the dominance of the dollar in the world economy.
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That objective would have been damaged severely if Putin had been implicated in the spectacular public assassination of a rival on the same day as the BRICS meeting that would have been not only an embarrassment but also very damaging vis-a-vis his credibility as a statesman.
If Putin had really wanted to kill Prigozhin, there were less politically damaging ways to do so and as of this writing the cause of the airplane crash remains unknow. By one theory, the death of Prigozhin was carried out by an airplane bomb planted by US or British intelligence working with Ukrainian agents inside Russia to discredit the Russian leader, knowing that even if he were innocent he would be blamed for the killing, which is precisely how the story has been developing in the US and Europe.
The name BRICS comes from an acronym for Brazil, Russia, India, China, and South Africa. Goldman Sachs economist Jim O’Neill reportedly coined the term BRIC (without South Africa) in 2001 and the group was set up a few years later using the acronym.
Recently, the drive to expand BRICS has gained momentum as a result of the completely avoidable Ukraine war. The venerable status quo for international finance was developed in the wake of the Second World War at Bretton-Woods, where the instruments of the World Bank and the International Monetary Fund (IMF) were created, to include endorsing the dollar as the de facto world reserve currency for many transactions. The entire structure is, by design, managed by a transatlantic capitalist cabal based in Washington.
There is currently only limited competition to the IMF and World Bank in the global marketplace for credit, loans, issuance of money and capital, the power to grow and develop economies, project finance, and to stay competitive with the influx of much needed capital to house, clothe, educate, or feed the people of the world. And the United States knows that and uses its control over the financial system to keep countries in line politically.
The BRICS banking model, based as it is on a multipolar world with multiple currencies and lending arrangements, has offered an alternative to this out-of-control monster of a global banking monopoly maintained by the IMF.
This is why 132 nations, which had been calling on the UN for a new financial model, immediately saw hope in the BRICS alternative banking and financing initiatives which began to take shape in 2015. Within the first year, 57 countries formally joined the China-led Asian Infrastructure Investment Bank (AIIB),[entirely dollarized] constituting the first total break from the Western Bretton Woods institutions, with initial capitalization of the BRICS New Development Bank stated to be $100 billion.
So BRICS has been around in its current form for about eight years, but interest in it exploded with events surrounding the start of the Ukraine War.
A little over a year and a half ago, the US responded to the Russian intervention in Ukraine by using its control over the international banking system to slap sanctions on Moscow’s financial assets around the world, including freezing billions of dollars in banks in New York.
By one estimate, $1 trillion in Russian assets were frozen and Russian banks were also denied access to the SWIFT global messaging service that connects financial institutions and facilitates rapid and secure payments.
Washington subsequently announced that the frozen money would not be returned and would be instead used for Ukraine’s reconstruction.
That set off warning lights all around the world, though there had already been similar behavior on the part of the US in relation to Iranian and Venezuelan assets. Many were asking the question “If they can do it to a great power like Russia they can also do it to me to punish me? What should I do?” Of course the simple answer is to get out of dollars as a reserve currency, though that was something difficult to do as most energy sales and purchases continue to be, by arrangement, denominated in dollars. Hence the transition to BRICS away from dollars, permitting financial transactions in a range of currencies.
The annual meeting of BRICS Partner Countries Business Forum, as they refer to themselves, took place in Johannesburg South Africa over August 21st-24th. Meeting host South African President Cyril Ramaphosa announced that Argentina, Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates will formally join the BRICS group of nations as their candidacies had been approved by leaders of the current member states. The six newcomers will become full-fledged BRICS club members starting in January 2024. The club, which is the inner circle of the banking system, currently consists of the founders Brazil, Russia, India, China, and South Africa though there are many other non-members who enjoy limited banking privileges, including Britain, France, Germany, Italy, New Zealand and Australia. The desirability of BRICS expansion topped the agenda of the summit in Johannesburg all week. Russian President Vladimir Putin, whose nation will take up the rotating BRICS presidency next year, spoke to the attendees via videolink and thanked the host of the summit for his hospitality and contribution to the successful outcome.
