Today, in place of my usual Monday column on economics and investing, I’d like to briefly delve into some of the implications of the recently announced expansion of the BRICS trading alliance.
The acronym “BRIC” was first coined in 2001 by Terence James O’Neill — then of Goldman Sachs — in describing the fast-growing economies that would dominate the global economy by 2050: Brazil, Russia, India, and China. Over time, South Africa was added to the acronym, making it BRICS. Oddly, O’Neill’s term of art eventually morphed into an actual multi-national organization. In recent years, primarily under mainland Chinese leadership, the BRICS group has worked on developing trade agreements and credit-clearing circles.
I believe that many western economic and political analysts are missing the “Big Picture” of BRICS and the planned BRICS+ expansion. The mass media is presently abuzz about the combined oil production and population figures of the BRICS bloc. Yes, it is more than half of the world’s population. And yes, they collectively produce a quite substantial amount of oil. But what they are missing is that the BRICS alliance is all about gold. In my estimation, it might as well be called The Gold Bricks Alliance. To wit:Continue reading“The BRICS Alliance is All About Gold”


