The BRICS Alliance and the Shift in Global Economic Order Amid Western Economic Aggression Against Russia
The Russian President, Vladimir Putin, has sent a clear message that Russia is not trying to play by the US rules and must be ready to face Western economic aggression. Despite the aggressive economic policies implemented by Western countries and society over the past year, Russia has been able to focus on its local economy and its allies, which has led to the creation of a strong BRICS union that includes top oil exporters.
The BRICS countries have taken an ambitious step by buying large amounts of gold to topple the US dollar, which has changed the US’s role in the global market, particularly in China. This union’s impact is significant, as the US is currently focusing on the corporate learning week, which will determine the next interest rate hike.
Wall Street climbed higher in Friday’s trading session in response to this economic aggression. The S&P 500 benchmark rose by 0.59%, while the Nasdaq was up by 0.28%. The Dow Jones Average industry increased by 0.52%. The gains were primarily due to the better-than-expected earnings report from Exxon Mobil Corp., which rose by roughly 2.4%. Chipmaker Intel Corp.’s gross margin rose by a factor of 1.6%, which caused a 1.6% increase in its share price. However, Amazon’s shares declined by more than 4%.
Till the end of this week, the corporate quarterly earnings report has been up to market expectations. This, in turn, will only encourage policymakers to stay consistent with their tightening monetary policy.
The current economic situation in Russia can be traced back to the Western countries’ sanctions imposed on Russia since the Ukrainian crisis in 2022. These sanctions, along with mixed oil prices, have put a strain on Russia’s economy. However, instead of bowing down to the pressure, Russia has responded by focusing on its local economy and its allies.
In response to the economic aggression, the BRICS countries, which include Brazil, Russia, India, China, and South Africa, have taken a bold step by buying large amounts of gold to topple the US dollar. This move is significant as it shows the BRICS countries’ determination to create a new global economic order that is not dominated by the West.
China’s role in the BRICS union is particularly significant, as it is the world’s largest oil importer and has the largest foreign exchange reserves. China has been able to leverage its economic power to become a key player in the global market, challenging the dominance of the US dollar. This has led to a shift in the global economic order, where the US is no longer the sole superpower and other countries are gaining economic influence.
The economic aggression against Russia and its BRICS allies has also led to a shift in the global market, where the US’s role is changing. The US’s focus is currently on the corporate learning week, which will determine the next interest rate hike. However, this move is insignificant in the face of the BRICS union’s determination to create a new global economic order.
Between economic aggressions and economic challenges, Russia and its BRICS allies have led to a shift in the global market. The BRICS union’s determination to create a new global economic order that is not dominated by the West is significant, and the US’s role in the global market is being challenged. This shift in the global economic order has significant implications for the future of the global economy, and it remains to be seen how this will play out in the coming years.