|The Rise of BRICS and the End of Pax Americana|
The inclusion of Iran and Argentina as members of the BRICS (Brazil, Russia, India, China and South Africa) – further demonstrates that Russia is not alone in facing unscrupulous Western sanctions. Witnessing the rise of BRICS. Russia's special military operations in Ukraine as well as the West's overreaction to isolate Russia has instead accelerated the collapse of Western hegemony or the Pax Americana era that has been going on since the end of World War II.
The Tehran Trilateral Summit has been Russia's first step in the idea of building a multipolar world order that is more just – not authoritarian and oppressive as the West has been for centuries. Likewise, Saudi Arabia now dares to take a different stance from the US and has begun to make contacts with Iran in recent years mediated by Iraq. Recently, Chinese President Xi Jinping has strongly criticized the West for using the economy as a weapon and invited developing countries to join BRICS, a new, more open economic bloc.
Xi said that the economy as a “double-edged sword” hurts people all over the world. Putin emphasized that BRICS partners are developing reliable alternative mechanisms for international settlements and exploring the possibility of creating an international reserve currency based on the BRICS currency. Yes, BRICS is now the best hope for a new, more just world order. The BRICS countries have a combined population of around 3.2 billion, while the G-7 countries represent only about 777 million. These billions of people do not want to live under the tyranny of the West.
They want to be truly free, to trade freely without oppression. Last year, an Indian think tank reported that China's digital yuan could be an “alternative to a dollar-dominated financial system. In other words, the digital yuan could evade the US dollar in important global financial transactions amid efforts by China, India and Russia to open alternative channels in the US-dominated SWIFT payment mechanism.
Meanwhile Russia itself is making a breakthrough mechanism for Western payments. Central Bank Governor Elvira Nabiullina noted on June 29 that 70 foreign financial organizations from 12 countries had joined Russia's move for the SWIFT financial system.
Although there are still some obstacles in the Russian System for Transfer of Financial Messages (SPFS), Russia is gradually breaking through. The impact of all of this will certainly be dramatic, especially for the US, whose life is largely based on debt supported by high demand for dollars. If the demand for the dollar decreases, it will certainly threaten the collapse of the economy, and mark the end of the Pax Americana era with all its advantages and disadvantages.