Congratulations to Pascal for inviting you, Dr. Yan Liang, and well said. I hope that a lot of TH-camrs who discuss geopolitics, BRICS, and economics but have little understanding of economic science will watch this video. I am also an economics professor in the EU. As with the still-existing World Order that established it, the current global financial system is actually a colonial institution that has no interest in the global community's progress.
Yes, and unlike you, a good number of folks are raking in huge gains even in this downtrend, but such strategies are mostly successfully done by experts.
That is exactly the reason I stopped trusting the financial advice of TH-camrs; in the long run, I only end up with a jumbled collection of stocks and bonds. Whereas all I needed to earn over $350k in less than two years was guidance from a true market expert.
Yeah, I think the market is just adjusting to the new reality. It's always a good time to diversify your portfolio. How can one reach out to this FA that manage your portfolio?
‘Sharon Ann Meny’ is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
Thanks for sharing, I just looked her up on the web and I would say she really has an impressive background in investing. I will write her an e-mail shortly.
Well said Dr. Yan Liang and congratulations to Pascal for inviting you. I am also an economics professor in the EU and I hope that many TH-camrs who debate geopolitics, BRICS and economics, with little knowledge of economic science, will watch this video. The truth is that the current global financial system is a colonial system like the yet current World Order that created it and is not interested in the development of the entire world. And everything got worse with the emergence of neoliberalism in the last 50 years and the deregulation of financial markets by Bill Clinton, as the current almost feudal and inevitable concentration of wealth proves. And with most nation states becoming poorer and poorer. And I also agree that the BRICS Development Bank is a fundamental step towards a new, fairer multipolar world and economic Order. Thanks and Congratulations.
@@SharkOrDie Cheers. This is the real fight we are witnessing. The famous richest 1% against state sovereignty. And I'm not a nationalist but the territorial unit we know as nation states have already proven to be the form of territorial organization that best distributes wealth among all citizens. As long as it is truly independent and has the necessary macroeconomic tools. And several regional states working together to develop their region are even stronger. We have to end the dictatorship of the financial markets. Today, only 10% of all financial transactions in the world relate to global trade from which we all benefit. 90% is financial speculation. Neoliberalism is the quickest path to feudalism.
use following books in your courses to explain power relations inside countries and between them including the tax haven system: 1. "superimperialism" by hudson; 2. "currency wars" by rickards 3. "predator state" by galbraith 4. "international debt crisis" by lissakers
I agree with your view that a new fairer multipolar world and economic Order will provide the new monetary order for international trade. I would go one step further that in order for the new system to function, it should be a larger version of the barter trading of pervious years. Barter trading then was basically between two countries. But today, with the international criss crossing of trades and the multiplicity of raw materials, technologies etc. I am thinking that today's high technology will be necessary to create a monetary unit of exchange based on each country's real financial worth and not based on unrelenting printing of paper currencies like what the US has been doing post World War 2. Today's AI advancement is the answer to level the playing field where no one country dominates (ala US). Bottomline is what our parents teach us, "Let him who not work, not eat." Time for bully nations to be told that those days are over.
@@johntan9151The problem today goes beyond the economy. It's moral and financial. It is easy to see that everything the US has done in the last 30 years has seriously harmed the US. Almost 40 T of debt. And the EU was taken over during the 2008 crash. In Europe there is also only debt to manage. The average wealth of Western nation states after WWII was about 30% of GDP. Today is zero! Before we think about macroeconomics, new global financial system and a New Economic Order, we have to re-regulate the financial markets that have taken over the US and Europe. And we also have to regulate big tech. The other owners of the world besides the financial oligarchy.
my god, this fool is still cutting and pasting his old comments. If anyone simply goes to his page you will see this account simply reposts the same 2 or 3 verbatim comments. totally fake
So basically use the 'Unit' ONLY as a replacement to the 'dollar' for clearing trade deficits between nations and NOT use it/have it tied to the local economy of each member country. And also IMPORTANTLY devise a methodology whereby member countries DO NOT STOCKPILE the UNIT (itself) so as not to artificially affect the natural supply&demand balance = emulating the problems with the current petrodollar system.
they are going to introduce a system, and everyone has to agree to play by the rules, it is communistic and dictatorial and they will force people to wear a mark, but it is for your own good and benefit, " oh really" now where have I heard that before, oh thats right I've heard it 666 times before.........
If any country borrows for real infrastructure, the positive growth of the real economy will make it easy to repay the loan. IMF dollar loans usually end up stashed in the London offshore accounts of oligarchs, leaving the people with unrepayable loans & in debt peonage.
@@Aramsa-Khan What fall. ? There is no accountability to anyone in those offshore accounts, that enrich the British banks & bankers, and also corrupt country heads who steal & hide the ciuntrys INF koans. Pure abuse and piracy by British bankers, with no accountability. It encourages theft .
@@qjtvaddict London is necessary for dollar hegemony. US prints dollars, bribes leaders with piles of $100 shrinked wrapped bills, London provides all that is necessary to launder the cash into offshore accounts..
All money in the world is debt, all money you hold is other people's debt, this all is supposed to return to zero as all loans should. As all money is taxed out again, be design, the public are not supposed to hold dollars, the fluidity of money must mean that it always flows, if it flows into property it does not mean the money exists to buy it.
This is what I've been writing about BRICs for years. Good to have Prof Liang on the show. She's a better communicator and working class champion than Stephanie Kelton. Prof. Liang, Yeva Nersisyan and Pavlina Tcherneva are imho three of the most brilliant economists in the world right now, top 10 easily. (And they make Michael Hudson sound like a confused old man who cannot talk straight. Has to be said.) Not because they have genius IQ or that sort of thing, but because they are honest, speak truth to power, and seem to have their hearts in the right place. Macroeconomics is all about spiritual and moral economy, and very few academics but these three realize this.
On one hand, it sounds promising, especially the idea of moving away from the dollar as the world’s primary currency. It could give more power to emerging markets and break the dollar’s dominance. But on the other hand, the complexity of building such a system from scratch is mind boggling.
Can the Brics nations really create a decentralized financial system that works for countries with such diverse economic policies and currencies? I’m skeptical, to be honest.
It’s a bold move, but there are so many risks. I mean, look at what happened with the Eurozone. Even with relatively similar economies, they’ve had issues with coordination.
I think it could work, but not without some major growing pains. The decentralization aspect is key, though. If they succeed in making it more flexible than the Euro or the Western banking system, it could be a game changer. But as you said, it’s a high risk situation, and having the right financial guidance is going to be critical. Honestly, this is where working with an analyst becomes invaluable
That’s what I was thinking too. This new BRICS system, if it really happens, will shake up the global financial landscape. I’ve been talking to my CFA, NORA JEAN ERICKSON, about it, and she’s been really helpful in breaking it all down. She’s told me that while it’s still too early to make any concrete investment moves, staying informed and understanding how this shift could affect currencies, commodities, and global trade is crucial.
What Prof Liang is saying is what I have conceptualised for BRICS Main Currency. A BRICS currency would sit at the top which can be exchanged by the buyer, within or outwith BRICS, to pay the seller.
Actually all that glitters may not be gold. BRICS supports “global governance” and “the central role of the United Nations in the international system,” BRICS supports the leading role of the IMF in global finance, BRICS supports the UN’s 2030 Agenda for Sustainable Development, BRICS supports public-private partnerships to help nations achieve their Sustainable Development Goals (SDGs), BRICS supports the reduction and removal of greenhouse gases to combat climate change, BRICS supports the creation of carbon markets, BRICS supports the World Health Organization (WHO) and its “central coordinating role” in strengthening “the international pandemic prevention, preparedness and response system,” BRICS supports the development of “safe & effective vaccines,” BRICS supports “digital transformation” using 5G and other “emerging technologies,” and BRICS supports the goal of “Strengthening Multilateralism for Just Global Development and Security” instead of the goal of “Building a Just World and a Sustainable Planet.” - Peter Koenig and David Skripac, Nov. 2/24 (BRICS’ 16th Summit in Kazan Revisited)
Keynes had proposed a system so that certain countries will not have an incentive to stockpile the Bancor (this is how he called the unit) but his recommendations was unfortunately dismissed from USA who was following its own interests.Lets hope we will finally see a Keynes like system internationally...
Prof. Yan is absolutely spot on with her assessment that the problem within the BRICS system is how to mitigate surpluses that accrue to China, India, Russia while at the same time having other member nations develop without amassing staggering trade deficits. She is correct that trade surpluses in large amounts is ultimately deflationary and leads to a beggar thy neighbor trade policies---------which it appears is happening.
Americans. Like the one ring in the _Lord Of The Rings_ it was designed to lock in the countries of Europe and destroy their sovereignty. How can you be sovereign if you can't even issue your own currency! It also props up the US dollar as the Euro is linked to it and is not allowed to compete with it.
The Euro. European Single Currency. Britain was a member of the European Union. Britain did not embrace the Euro. Numerous countries in the EU are still using their old national currencies. There are no EU regulations to enable aspiring members to adopt the Euro on Day One.
The ICU is a numeraire. Money has two functions: token of exchange and store of value. The numeraire is a token of exchange - a numerical reference point. What does it buy us ? Well, if all participating national currencies have a conversion rate to the ICU, it eliminates cyclical inconsistencies between currencies. It still doesn't store value. It disappears after use. Why would we want it to store value ? A: because of time lags inherent in the nature of production. A farmer must rent land, buy fertilizer, seed, rent machinery, buy fuel, etc. before planting and well before harvest. The process is not instantaneous.
Finally someone talked about the praxis. Saying the is not nice to use as a store of value and "stock pille it" is cool and all but in the practical situation it got store at least some value over time otherwise will fall in unuseness because of the calculational power to use being too high. And people using dollar because it easier.
@qualquer1177 correct but computing power, data about money flows (available from digital currencies) and algorithms may make a numeraire feasible. Soviet central planning failed due to a lack of data, computing power and algorithms. It might be doable, though never done before in human history: economic balance
The problem with the common clearing unit is that countries like China and Russia, which can offer more goods to sell than they need to buy from other countries, will be forced to import things which they don't really need or things they can produce themselves thus discouraging their own domestic businesses.
Keep raising educational level, and spreading market access information, and improving worldwide communication & logistics infrastructure, and promoting open trades, ... then more and more entrepreneurs in the other 192 UN member countries, can discover that they can produce something that would be desired by someone in Russia and China, if not somewhere else. It's paramount to share information and promote overall global trades, for there will always be people everywhere who will seize opportunities to improve their livelihoods through endeavours and ventures.
So, the issue is not about money. It's wether Uganda has the capacity to manufacture what it needs. As long as Uganda is not an industrial nation, it can't escape debt prison. So, money is not the issue. The issue is the structure of the Ugandan economy and how to transform it given the global legal structure that prevents such transformation of the Ugandan economy
I came across your channel through this video- case studies are incredibly valuable, and I'm eager to see more in the future! Building wealth involves establishing routines, like consistently setting aside funds at regular intervals for smart investments.
You're correct. I think the smartest way to go is to spread out your investments. By putting your money into different asset classes like bonds, real estate, and stocks from other countries, you can lower the risk if one part of the market goes bad.
That sounds like a good plan. In the past two years, working closely with a financial market specialist, I've built a six-figure diversified stock portfolio. Now, I aim to diversify even more this year.
I'm a newbie talking about a financial market specialist, do you consider anyone worthy of recommendations? I have about 10Ok to test the waters now that large cap stocks are at a discount
The tariff action now being proposed by the US and , frankly, the threats of the US to use it's monetary stranglehold via the USD, will accelerate the Global South to another financial exchange system. The inability of the old western structures of the IMF and World Bank to assist developing countries to 'mature' has also turned developing countries away from Global North western promises of real developmental aid. EU's recent follow on with tariffs will only add weight to western protectionism and echoes of an imperial past. There is some naivete that the age of western imperialism is lost in the memories of past colonies. As well, the pre cursor to regime change, the thought that there is a natural privilege position for western capitalist civilisation. History records cycles over all of recorded history, it is cyclical. Regimes are accidentally triggered by a 'perfect Storm' eg. leadership, technology, war and disease and erode with the false belief that the privilege position was self made or of superiority.
BRICS seeks to create a new currency, considering gold's historical role as a store of value and medium of exchange. However, the functionality and acceptance of a gold-backed currency in the current global financial system are uncertain. Creating a new currency requires careful consideration of economic, political, and logistical factors.
The discussions and proposals surrounding BRICS nations' potential use of gold are intriguing. People choose to buy gold for various reasons, such as its historical role as a store of value and medium of exchange, its potential as a hedge against inflation or currency devaluation, and its relative scarcity compared to other commodities. Gold also offers diversification benefits to investment portfolios due to its low correlation with stocks and bonds. However, investing in gold carries risks and may not be suitable for everyone. Investors should carefully evaluate their objectives, risk tolerance, and financial situation before deciding.
I find gold investment reliable and aim to buy more to recover losses. Silver is also a good investment but differs from my collectibles. Clear investment goals and education are crucial. I work with Carol Vivian Constable, a SEC-regulated financial consultant. Starting with modest investments, I accumulated nearly $799k over time.
The best course of action if you lack market knowledge is to ask a consultant or investing coach for guidance or assistance. Speaking with a consultant helped me stay afloat in the market and grow my portfolio to about 65% since January, even though I know it sounds obvious or generic. I believe that is the most effective way to enter the business at the moment.
'Carol Vivian Constable, a highly respected figure in her field. I suggest delving deeper into her credentials, as she possesses extensive experience and serves as a valuable resource for individuals seeking guidance in navigating the financial market.
Yes. Very true. BRICS are not looking at creating their own currency, not for now but could be in the future. They are looking at payments and clearing using own local currencies.
I really appreciate this video as it has helped reconcile two ideas that I thought might be mutually exclusive: MMT and international currency. But Dr. Liang beautifully described how these can co-exist. She is a very good conceptual communicator. Also "It's not going to be a common currency to replace a national currency. Please don't do that, right. The Euro lesson should well learned." Sick burn! 🤣
Global south countries cannot force their fiat currency to be valuable. The US is loosing that very ability right now. It would benefit BRICS to pay attention and learn the lesson before they experience the same disfunction caused by a Cantillon effect run amuck. It is good that they are acknowledging and addressing the 'beggar they neighbor' principal and the fact that circulation and clearing become impossible with excessive hoarding of the medium.
It’s really heartbreaking to see how inflation and recession impact low-income families. The cost of living keeps rising, and many struggle just to meet basic needs, let alone save or invest. It’s a reminder of the importance of finding ways to create financial opportunities. You've helped me a lot sir Brian! Imagine i invested $50,000 and received $190,500 after 14 days
Some persons think inves'tin is all about buying stocks; I think going into the stock market without a good experience is a big risk, that's why I'm lucky to have seen someone like mr Brian C Nelson.
Time limit the clearing currency so no nation can hoard it. Have maximum levels of reserves broadly based on population of the nations involved and make sure the clearing currency has movement around several nations to avoid being cancelled. These would reduce the gamification of the currency and would allow some stability for nations without allowing anyone or group of nations to control it. The problem at the moment with currencies is that they are controlled world wide by a small group of individuals for their own benefit, while being created out of thin air. To have freedom for all currency must die as a never ending entity which can be hoarded by some to control others over generations. Unless I’m an economic genius I don’t understand why no one seems to see this problem. It has happened countless of times throughout history until the currency collapse so why do we repeat this system over and over again? Currencies die just like everything else in the universe so why don’t we control its death in a manageable way to benefit everyone instead of keeping it on life support until war destroys it?
Outstanding, WOW, she is so articualte and sensible, much more so than most ivory tower economist. A new force and class of young progressive economist to save the world.
Good discussion. Problem: if you have a system that punishes holding too much ICU, a net exporting country can use their excess ICU to buy a different asset that they CAN hoard, like gold.
So leave Australia out who now is equal first in the world for gas exports? Ignore the trade in iron ore? Australia is a country of 25 million that is a big supplier to those G7, UK for example 9% is electric heating, the rest is gas, now that the west is trading amongst themselves with gas with them blowing up pipelines and trade for some of these countries, Japan won't exist as well without coal from Au. To say the west isn't the whole west seems as like you are diminishing the whole.
It's about the group of (1) people rule countries vs (2) junta ruled countries. In the former group, (1) the people are the jury and can speak openly. In the latter group, (2) the people are penalised if they voice their own thoughts, and the juntas are the juries of themselves. BRICS have both types as members.
I think I understand this system. I used to work for an importing company that purchased Forward Bills of Trading (nominating specific days, ie: 180 days etc) and depended upon the exchange rates. But if there could be a central authority that controlled/monitored the ICU's, I think that would be fairer. No country being allowed to stock pile. If one country wants to buy an item from another, then it is worth a set amount of unit, then the other country purchases it, at that unit, and pays it off, within an agreed time frame, and the exchange rate doesn't effect it. That way all parties now there cost's. Good idea. :)
Dr. Yan Liang reiterates economic points that many economists have promoted, but haven’t been adopted because the concentration of power to enforce has been perverted in the past. The mechanism is the detail.
Mobilising domestic resources is easier said than done, even in the global north. Prime example, Canada. Our misguided desire to "save the planet" prevents the extraction of many local resources.
As long as consumption behaviour doesn't change, isn't "save the planet" a lie/excuse, when the same resources, extracted elsewhere, are consumed anyway?
I agree with the Prof, but I wish to postulate another way of looking at this. The USD was the simplest "Fiat Technology" that could be distributed and made accessible to everyone, at that time. But it had one huge drawback. The US could print it and caused chaos both to the climate, read excessive greed, and humanity, read wars and sanctions. Reason. The US solely owned the "Technology". But now Technology has advanced enough to create a standalone Fiat that is accessible to everyone in the same way that the USD was, but without the unfair risks. Effectively,, the USD must be regarded in this light as outdated Technology So a proper Fiat Technology is globally owned, and like the weather, it is not influenced by anyone. The rules of acquiring this unit must be clear, the rules for losing the unit must be clear, but it can only be transferred from one country to the other in a Distributed Ledger Blockchain like system were all participating central banks are the local node. The local node uses local currency for its citizens but uses the Global Unit in the ledger to deal with foreign countries
We had a clearing unit before we went over the cliff and implemented the EURO. It was the ECU and we had it for decades before and it was what Yan Liang describes or at least that‘s what I understood. It was fine.
I live long enough to remember the soviet Comecon and the surreal exchange rate of something called "transfer rubel”. The existence of transfer ruble resulted in different pathologies in trade relations, hindered integration and influenced growing internal and external imbalance of Comecon states.
Not only that. These countries need to get their act together, stop ruining their own economies, and increase their gold and bitcoin reserves to protect themselves.
The problem with the accumulation and retention of currency can be relatively easily addressed in digital currency by monitoring the in and out flow and if the difference is big automatically apply a proportionately increasing localised loss ov value. In a balanced flow, there is to be no loss of value
It needs a bridge currency/ neutral currency that is not dominated by any country. And it should be liquid enough to facilitate all transactions needed, fast and efficient.
Tremendously interesting (and useful) podcast/lecture - especially for professional Macroeconomists, working in "Money and Banking" field, though and to other economists it's really interesting. Sincere thank you, guys!
I think the professor is proposing a de-nationalized reserve currency, which sounds like a good idea, but the prospective reserve currency must interface with national currencies to have value. This means highly productive economies like China's will accumulate this prospective currency whether they like it or not, and forcing by one means or another countries to divest themselves of this prospective reserve currency risks devaluing it and would discourage its use.
The ideal situation is that which ever country is not expected to horde a lot of this and you are expected to ensure that this unit remain more or less balanced within a certain limit. How they are going to design such a system and still ensure the individual governments act fiscally and monetary responsibility i do not know.
Brics is not like anything we've seen before-it's nothing! LOL, this is a joke. Even the member countries said there are no plans for a currency. Kill that noise.
The real question is whether cooperation or exploitation benefits the rest of the developing world. If the developing world decides fair exchange is no robbery and has leaders who put their people's needs before personal enrichment or bribery BRICS system could absolutely work it will take time and struggle but the payoff could be tremendous.
The most important quality of a currency is its stability in value. You may create any currency, if your new currency loses its value quicker than the old US dollar, your new creation will be rejected by users. Also, if there is a currency more stable than the US dollar, you just move to it and save the trouble to create a new one.
Back to Keynes' BANCOR proposal. How not to accumulate monetary claims on trade surpluses? Run trade deficits whenever that happens. It's a win-win proposition for everybody.
The Unit should have an expiry date. Once reached, it’ll be traded in all the other Brics members currencies with percentages of each that doesn’t affect their current values and the country who owned the expired Units will have those currencies.
Fantastic video🔥🔥! I have incurred so much losses trading on my own....I trade well on demo but I think the real market is manipulated.... Can anyone help me out or at least tell me what I'm doing wrong??
Trading on a demo account can definitely feel similar to the real market, but there are some differences. It's important to remember that trading involves risks and it's normal to face looses sometimes. One piece of advice is to start small and gradually increase your investments as you gain more experience and confidence. It might also be helpful to seek guidance from experienced traders or do some research on different trading strategies.
If you are trading without a professional guide... Ah, I laugh, because you will stay where you are or even suffer huge losses that will prevent you from trading, this has been one of the biggest problems for new traders.
when the BRICS summit was last held in Russia, Russia told all of the participants, don't bring credit cards, Russia is under stanchions. Bring hard currency: US or EU. Have a laugh at that!! Nobody is in a position to do anything to the dollar or euro for at least a decade or more. See Peter Zeihan
*Part-3.* The macroeconomic policy target should be full employment. You also desire price stability. So "borrowing" is completely stupid. You *_never_* need to borrow (if you are a currency issuer). The government Tsy bond is an interest rate maintenance operation not a financing operation --- provided the currency is on a float, not a fixed exchange rate (so 1st get off the fixed exchange rate). But then to issue bonds is just idiotic, it serves no public purpose and is pro-inflationary (the interest rate is the own price of the currency). It is even worse: a positive interest rate policy is _basic income but _*_only for people who already have money_*_ and in proportion to how much money they already have._
For this reason local government councils also never need to (be forced to) borrow. The central government can give them an overdraft facility. Sort out how the budget was abused at the end of the year and slap a few knuckles.
@Achrononmaster "The macroeconomic policy target should be full employment." Why? For me, that is capitalist ideology. I think a capitalist economy is not a free market economy. The target should be ENOUGH employment. And employment is not an end-in-itself, it is a means to an end, which is ENOUGH PRODUCTS.
Part 3 can clarify purpose of clearing unit? Past determining a particular exchange rate on an immutable DAG (blockchain) it could be tethered to conditional layers… so un- to automated ‘clearing measures’ (like smart contracts)? Then these measures can be un- to automatically negotiated, litigated, etc.
Prof Michael Hudson says the BRICS members have yet to embrace and fully understand classical economics..that they’re trying to reinvent the wheel when this was done 200 years ago by a full understanding of Marx who, contrary to popular surface belief was not against the free market or individualism.
It doesn't make sense to not borrow foreign currency as an exchange for foreign infrastructure investment, because if you did it in local currency, you simply print the money, and therefore it's basically a free loan, Professor..
Not sure why a country should be punished for having surplus. That’s completely unfair. For countries whose trade is more through private corporations, it makes little sense at all.
To build bridge you need materials (stone, send, cement, steel), technology and tools, operators (workers and manager), most of country have most of it. Maybe in developing countries they don't have good managet to manage the Project in efisien ways if you countries have all of them no money need to build bridge. So basically foreign currency they borrow for the project mostly for ineffective management or corruption.
the common bridge currency is called XRP. no matter the price it yet provides a level playing field for all countries, banks and financial institutions and their currencies. no country has jurisdiction... listening as i talk and the exact resolution is XRP
a digital currency backed by and convertible in physical assets (precious metals like gold and silver) and a basket of commodities (oil, LNG, foodstuffs, rare earth minerals, etc).
People are all very excited to see the Indian Rupee becoming the trading currency. In fact, Bank Negara is ready to dump all its USD holdings to INR. Hooooray
I think the current system is a good lesson what not to do. This system gives one country too much control. Hopefully BRICS will not fall into the trap of allowing one control to have too much influence.
A wise economist once said - “ don’t do as bankers say , do as bankers do “ Central bankers globally are presently stockpiling physical gold . President Putin just went on the world stage and stated that he wants physical silver in Russian vaults .
It may be a good option to move the needed amount of Gold from BRICS and those they want to deal with each other in BRICS terms to move the amount from one account to other. this way will no need any currency.
Yes... Development of your own economy and production first. And keep them. America has failed in this with their sending manufacturing off shore. It destroyed America's economy.
A currency unit backed by nothing? Isn't that the dollar system. There is no way that some countries would not build surpluses in any unit of exchange. This narrative pre-supposes that all countries are equal or can be made equal. The issue is the means of balancing transfers between surplus and deficient countries as performed by exchange rates. As Yan Liang tells it she advocates a system where countries with surplus holdings of a settlement unit are 'wiped out' or equalised with those with deficient holdings. No surplus country would subscribe to this state of affairs because it would be subscribing to underwriting the consumption of deficient countries without realising any real gains, i.e. the current dollar system with the US as the deficient consuming country and everyone else as surplus countries. Even the dollar system has mechanisms that reward surplus countries in the form of the yield on their US treasury holdings, albeit that these yields are not market competitive; in that holders of dollar surpluses cannot invest anywhere (without US regulatory oversight - CFIUS) in the US economy to maximise the returns on their holdings. Thus ensuring the role of financial middlemen like hedge funds and private equity that can arbitrage differences in financial instrument rates by collateralising treasury assets to buy riskier returns boosting assets such as stocks - carry trade. Another issue, is the deriding of the Euro experiment as a failure. This is a profound misconception, as the institutional process, mechanisms and pathways to the establishment of the common currency delivered on their particular objective of a common currency. It is like describing a struggling post-graduate student as a failure even though he excelled at High School and undergraduate studies. A better analysis would be a consideration of the factors that enabled such a student to gain entry to post-graduate studies against his current hindrances. A further example is Russia, under a common capital transfer system (fiscal union) in the Soviet Union that placed Russia as the primary source for transfers to deficient undercapitalised Warsaw pact countries - the Soviet Union collapsed under the financial strain. While today's Russia has shown considerable resilience in the face of western sanctions. The current US system is backed by implicit coercive military power, in this way the US secures for itself cheap raw material inputs and the notion as a 'safe haven' for global capital. This allows the US to dictate the cost of global capital to its own advantage. If the dollar where to behave in the manner of Yan liang's settlement unit, to my understanding it would mean the treasury holdings of surplus exporters would be 'wiped out', while the debts of consuming countries (like Argentina) would be written off. This is in fact similar to the situation faced by the EU. They were unable to conceive a system that accounted for transfers between surplus savers (Germany) and deficient countries (Greece) within a single currency unit without the mutualisation of debts. They did place fiscal constraints on member countries hoping this would signal confidence to the dollar competitive capital markets; enabling the private sector to act in part as part of a settlement balancing scheme. In her conception, Yan Liang forgoes this latter confidence bolstering role of the private sector, calling instead for a detached intra-central bank scheme with no relation to market realities. I find myself suspicious of Yan Liang's contribution to this issue. Firstly, she advocates underpinning a settlement currency with nothing but words, then she says 'allow that currency to make non-market financial transfers between surplus and deficient members', without elaborating on who would bear the cost or benefit. Her contribution remains half-baked without accepting the inevitability of imbalances in trade, and an institutional market-based means to address and price the settlement of such imbalances. In conclusion, there is the need to accept that there is no perfect economic model, whether the dollar system, the gold standard or the eurozone. None can operate as a perpetual motion machine without a patchwork of regulatory and financial adjustments acting as inputs to correct deviations away from ideal paths.
@@oki148 Any country or organism that consumes more than it produces (from and for another) is in a beneficial relationship. The term is a parasitic relationship.
AT PRESENT DOLLAR HAS BECOME AN EXPLOSIVE AND BEING USED AS A PROXY AGAINST THE OPPONENT NATIONS AND COUNTRIES INSTEAD OF AN INTERNATIOMAL CURRENVY . IT MAY AGAIN BE BROUHT BACK AS AN INTERNATIONAL CURRENCY ONLY .
Did she really say that the Brenton Woods institutions need to be reformed? How would that work? In the US we have a lot of people who think the democratic party can be reformed. BW institutions were designed to consolidate power and that is what they are attepting to do and to me they are unlikely to change.
It'as flawed from the beginning. In any case, it has become "obsolete", and if it won't reform itself, then well, it will naturally, eventually, get replaced.😅
@@btgan3838 That is my feeling as well... Bernie try and reform the democratic party with no results... The 'progresives' get co-opted by the democrats... I take that as an object lessen in how bureaucracyof how intrenchedies can/cant change... I was in Eugene where the Professor lives.
This exchange idea is completely ridiculous, it is not going to work if the currencies are not properly tie to the common element. How is a country going to acquire some of that common element if their currency is useless. How are other countries suppose to trust that particular country is it is able to create as much of his currency as he please without consequences.
My idea is that BRICS need a neutral, gold backed stable coin. Peg it to 1 coin equal to 100000th of an ounce of gold. Not too strong, not too weak. Suitable for everyday transactions that everyone can use. A currency for everyone. Very difficult to speculate against as well. You want to sanction my country? Foreigners can buy directly in gold.
In my view, trade is a dinamic process; not a static thing but a flux. If two countries trade with each other it is not a once time event; but, usually, a process that will continue for years out of mutual needs. So, taking into account that the current transactions will be followed the next period by others, any problem arousing by any disagreement over local currency values may be settled in a clearing house that would act to compensate any imbalance. Something the NDB is doing now. What I think is urgent is to establish a unit for accounting. For measuring, like the meter or kilogram. More easily achievable in phiysics than in economics. And the US dollar is no longer a reliable one (stretching and contracting). Regarding investment and debt, the foreseeable future may be more important than reserves; in dollars or gold or whatever. This is an ongoing process; and the results are in the making; the problem with it is that the institutionalization of it may be flexible enough to deal with everyone's needs. A complex, difficult and long lasting process that is going on at a speed I didn't anticipate. Thanks for the conversation.
Pascal has very good questions that are dytill lingering and we all still looking for practical answers. We shall see. * Also why are Central banks been cumulating gold like crazy?
There was not any meaningful pushback or Devil's advocate Really, she just stated her opinion and made a large number of assertions There was no pushback on the fundamentals of her position regarding MMT and how inflation affects everyday people within a country, esp relative to asset holders in said country She just said "the price you pay is inflation" and seemed to downplay what that means for the average person She states "XYZ must be debunked" multiple times without meaningfully explaining why (nor doing so herself)
Having minimal experience in Brics and universal currency arrangements, gold is the recognized commodity to retain value. Emeritus Arabian nation retains enough gold to finance Brics for a significant time period thru oversight of a neutral financial institution such as Switzerland in retaining designated identity Numerical assignments known only to current representives of trading countries,a GNP with other variables to be determined may extrapolate a fair and equivalent evaluation of import/export activities. An independent depository based in Switzerland may also be adhered to as many other countries are already inplace.
It would be short sighted to try and keep every country’s currency. While the euro and the U.S. dollars have their flaws , it’s through lessons learned from allowing every U.S. state to have their own currency that it wasn’t efficient, was too cumbersome and crazy accounting. BRICS will not always be a closed system. It must be prepared to deal in the future with nonBRICS countries at some point. BRICS will need to consider scale-bility from the start for at least a 30 year first run. The only way it can is to allow countries within BRICS to bank and exchange in BRICS currency banks and once those funds are settled . The BRICS BANK note can trade on the open market (SWIFT) on a Dollar to Dollar basis irregardless of what the originating country converted their currency for BRICS dollars. This allows the BRICS BANK SYSTEM to exponentially grow and create a strong reserve thereby offering the BRICS countries to sell their goods at a higher and more equal exchange rate outside of BRICS as the system scales up.
My credit card pays reward units when I spend. They just expire progressively after 12 months. This would be better for the BRICS Unit rather than Austrian inflation since the Unit value would be preserved or even increase.
Many people are philosophically illiterate. Why does anything have value? What was the value of gold before it had modern industrial and technological use? What backed gold's value? Consent and consensus is the basis of power. Money simply facilitates the exchange of supply and demand. A fiat currency totally works in a healthy way if the printing and mechanics are kept healthy. You could keep the mechanics healthy with immutable code.
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Congratulations to Pascal for inviting you, Dr. Yan Liang, and well said. I hope that a lot of TH-camrs who discuss geopolitics, BRICS, and economics but have little understanding of economic science will watch this video. I am also an economics professor in the EU. As with the still-existing World Order that established it, the current global financial system is actually a colonial institution that has no interest in the global community's progress.
Yes, and unlike you, a good number of folks are raking in huge gains even in this downtrend, but such strategies are mostly successfully done by experts.
That is exactly the reason I stopped trusting the financial advice of TH-camrs; in the long run, I only end up with a jumbled collection of stocks and bonds. Whereas all I needed to earn over $350k in less than two years was guidance from a true market expert.
Yeah, I think the market is just adjusting to the new reality. It's always a good time to diversify your portfolio. How can one reach out to this FA that manage your portfolio?
‘Sharon Ann Meny’ is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
Thanks for sharing, I just looked her up on the web and I would say she really has an impressive background in investing. I will write her an e-mail shortly.
She is an excellent communicator, as is Pascal, for regular people. I also appreciate people who are honest and not selling something. Thank you both.
I like the way she speaks... Confident without being too emphatic.
"She is an excellent communicator" Nope. She's not.
@@borisnegrarosa9113 She sounds great to me.
excellant propagandist
@@standingbear998 There are many meanings of 'propogandist' If I ever see her she will get a hug and perhaps become confused.
Well said Dr. Yan Liang and congratulations to Pascal for inviting you. I am also an economics professor in the EU and I hope that many TH-camrs who debate geopolitics, BRICS and economics, with little knowledge of economic science, will watch this video. The truth is that the current global financial system is a colonial system like the yet current World Order that created it and is not interested in the development of the entire world.
And everything got worse with the emergence of neoliberalism in the last 50 years and the deregulation of financial markets by Bill Clinton, as the current almost feudal and inevitable concentration of wealth proves. And with most nation states becoming poorer and poorer. And I also agree that the BRICS Development Bank is a fundamental step towards a new, fairer multipolar world and economic Order. Thanks and Congratulations.
Excellent comment!
@@SharkOrDie Cheers. This is the real fight we are witnessing. The famous richest 1% against state sovereignty. And I'm not a nationalist but the territorial unit we know as nation states have already proven to be the form of territorial organization that best distributes wealth among all citizens. As long as it is truly independent and has the necessary macroeconomic tools. And several regional states working together to develop their region are even stronger. We have to end the dictatorship of the financial markets. Today, only 10% of all financial transactions in the world relate to global trade from which we all benefit. 90% is financial speculation. Neoliberalism is the quickest path to feudalism.
use following books in your courses to explain power relations inside countries and between them including the tax haven system: 1. "superimperialism" by hudson; 2. "currency wars" by rickards 3. "predator state" by galbraith 4. "international debt crisis" by lissakers
I agree with your view that a new fairer multipolar world and economic Order will provide the new monetary order for international trade. I would go one step further that in order for the new system to function, it should be a larger version of the barter trading of pervious years. Barter trading then was basically between two countries. But today, with the international criss crossing of trades and the multiplicity of raw materials, technologies etc. I am thinking that today's high technology will be necessary to create a monetary unit of exchange based on each country's real financial worth and not based on unrelenting printing of paper currencies like what the US has been doing post World War 2.
Today's AI advancement is the answer to level the playing field where no one country dominates (ala US).
Bottomline is what our parents teach us, "Let him who not work, not eat." Time for bully nations to be told that those days are over.
@@johntan9151The problem today goes beyond the economy. It's moral and financial. It is easy to see that everything the US has done in the last 30 years has seriously harmed the US. Almost 40 T of debt. And the EU was taken over during the 2008 crash. In Europe there is also only debt to manage. The average wealth of Western nation states after WWII was about 30% of GDP. Today is zero!
Before we think about macroeconomics, new global financial system and a New Economic Order, we have to re-regulate the financial markets that have taken over the US and Europe. And we also have to regulate big tech. The other owners of the world besides the financial oligarchy.
US wanted to make a fool out of Russia and China. But instead, the US made a fool of itself. Let that be a lesson.
U.S is still standing strong.
my god, this fool is still cutting and pasting his old comments. If anyone simply goes to his page you will see this account simply reposts the same 2 or 3 verbatim comments. totally fake
@@colberthunter12 won't stand for long 😂😂
@@manivannana3317 если они исчезнут, то все вздохнут с большим облегчением.😀😀
@@manivannana3317 what's going to knock us down?
Excellent. Hope you can get Prof Yan on yr show more often Pascal.
So basically use the 'Unit' ONLY as a replacement to the 'dollar' for clearing trade deficits between nations and NOT use it/have it tied to the local economy of each member country. And also IMPORTANTLY devise a methodology whereby member countries DO NOT STOCKPILE the UNIT (itself) so as not to artificially affect the natural supply&demand balance = emulating the problems with the current petrodollar system.
As soon as any system is devised you can be sure there will be people working to 'game' it.
The problem is what would the point be not to, in effect, stockpile?
they are going to introduce a system, and everyone has to agree to play by the rules, it is communistic and dictatorial and they will force people to wear a mark, but it is for your own good and benefit, " oh really" now where have I heard that before, oh thats right I've heard it 666 times before.........
They would be exchanging national currencies against the unit of account.
If any country borrows for real infrastructure, the positive growth of the real economy will make it easy to repay the loan.
IMF dollar loans usually end up stashed in the London offshore accounts of oligarchs, leaving the people with unrepayable loans & in debt peonage.
The British empire didn’t truly fall it evolved
A fall is a fall, whether evolve or revolve or collapse or becoming weak or becoming stupid 🤔
@@Aramsa-Khan What fall. ? There is no accountability to anyone in those offshore accounts, that enrich the British banks & bankers, and also corrupt country heads who steal & hide the ciuntrys INF koans.
Pure abuse and piracy by British bankers, with no accountability. It encourages theft .
@@qjtvaddict London is necessary for dollar hegemony. US prints dollars, bribes leaders with piles of $100 shrinked wrapped bills, London provides all that is necessary to launder the cash into offshore accounts..
All money in the world is debt, all money you hold is other people's debt, this all is supposed to return to zero as all loans should. As all money is taxed out again, be design, the public are not supposed to hold dollars, the fluidity of money must mean that it always flows, if it flows into property it does not mean the money exists to buy it.
What we need is governments that practices transparency and allows for the public to have a voice.
This is what I've been writing about BRICs for years. Good to have Prof Liang on the show. She's a better communicator and working class champion than Stephanie Kelton. Prof. Liang, Yeva Nersisyan and Pavlina Tcherneva are imho three of the most brilliant economists in the world right now, top 10 easily. (And they make Michael Hudson sound like a confused old man who cannot talk straight. Has to be said.) Not because they have genius IQ or that sort of thing, but because they are honest, speak truth to power, and seem to have their hearts in the right place. Macroeconomics is all about spiritual and moral economy, and very few academics but these three realize this.
@achrononmaster Thanks for this information. Especially your last phrase is food for thought for me. Thx again.
hahahahahahahahahahahahahaha
Don’t know what a spiritual economy is.
Hahahahaha 😂
@@Soul-zl6bbpure ideology. Understand how the world works not how you want it to work.
Agree, there should not be any common currency the likes of Euro. That should be avoided at all cost.
Absolutely no euro bis.
There should only be one currency, based on the carbon value of the product.
@@antonyjh1234Liberal value 😅 dies hard
@@seanzhang5554 Not sure what that means, its intention seems to denigrate, was that your intention? What do you mean by this comment?
No dollars😂😂😂
On one hand, it sounds promising, especially the idea of moving away from the dollar as the world’s primary currency. It could give more power to emerging markets and break the dollar’s dominance. But on the other hand, the complexity of building such a system from scratch is mind boggling.
Can they really pull it off without the whole thing collapsing under its own weight?
Can the Brics nations really create a decentralized financial system that works for countries with such diverse economic policies and currencies? I’m skeptical, to be honest.
It’s a bold move, but there are so many risks. I mean, look at what happened with the Eurozone. Even with relatively similar economies, they’ve had issues with coordination.
I think it could work, but not without some major growing pains. The decentralization aspect is key, though. If they succeed in making it more flexible than the Euro or the Western banking system, it could be a game changer. But as you said, it’s a high risk situation, and having the right financial guidance is going to be critical. Honestly, this is where working with an analyst becomes invaluable
That’s what I was thinking too. This new BRICS system, if it really happens, will shake up the global financial landscape. I’ve been talking to my CFA, NORA JEAN ERICKSON, about it, and she’s been really helpful in breaking it all down. She’s told me that while it’s still too early to make any concrete investment moves, staying informed and understanding how this shift could affect currencies, commodities, and global trade is crucial.
Yan lang is brilliant , Pascal you must get her back again .
What Prof Liang is saying is what I have conceptualised for BRICS Main Currency. A BRICS currency would sit at the top which can be exchanged by the buyer, within or outwith BRICS, to pay the seller.
What about counterfeiting problems?
?
BRICS+ is a golden opportunity to unite. Mutually beneficial cooperation, respect, equality and a shared vision. 🇧🇷🤝🇷🇺🤝🇮🇳🤝🇨🇳🤝🇿🇦+
United States empire will always conquer
Actually all that glitters may not be gold.
BRICS supports “global governance” and “the central role of the United Nations in the international system,”
BRICS supports the leading role of the IMF in global finance,
BRICS supports the UN’s 2030 Agenda for Sustainable Development,
BRICS supports public-private partnerships to help nations achieve their Sustainable Development Goals (SDGs),
BRICS supports the reduction and removal of greenhouse gases to combat climate change,
BRICS supports the creation of carbon markets,
BRICS supports the World Health Organization (WHO) and its “central coordinating role” in strengthening “the international pandemic prevention, preparedness and response system,”
BRICS supports the development of “safe & effective vaccines,”
BRICS supports “digital transformation” using 5G and other “emerging technologies,” and
BRICS supports the goal of “Strengthening Multilateralism for Just Global Development and Security” instead of the goal of “Building a Just World and a Sustainable Planet.”
- Peter Koenig and David Skripac, Nov. 2/24 (BRICS’ 16th Summit in Kazan Revisited)
It only took 80 years, but John Maynard Keynes was proven right. Should have just went with his Bancor plan from the beginning.
Brics may not be what we may wish it to be.... be cautious and dig deep.
@@lagringa7518 Doesn't matter, if it turns against their principals, they would have the same fate as the current system.
Keynes had proposed a system so that certain countries will not have an incentive to stockpile the Bancor (this is how he called the unit) but his recommendations was unfortunately dismissed from USA who was following its own interests.Lets hope we will finally see a Keynes like system internationally...
Prof. Yan is absolutely spot on with her assessment that the problem within the BRICS system is how to mitigate surpluses that accrue to China, India, Russia while at the same time having other member nations develop without amassing staggering trade deficits. She is correct that trade surpluses in large amounts is ultimately deflationary and leads to a beggar thy neighbor trade policies---------which it appears is happening.
The architects of the Euro were definitely not economists. It was doomed to fail from the start.
Americans. Like the one ring in the _Lord Of The Rings_ it was designed to lock in the countries of Europe and destroy their sovereignty. How can you be sovereign if you can't even issue your own currency! It also props up the US dollar as the Euro is linked to it and is not allowed to compete with it.
The Euro. European Single Currency. Britain was a member of the European Union. Britain did not embrace the Euro. Numerous countries in the EU are still using their old national currencies. There are no EU regulations to enable aspiring members to adopt the Euro on Day One.
Some have said it was intentionally created to subjugate its users to a "country with military bases all over the continent"
They were bankers from that private system community.
The ICU is a numeraire. Money has two functions: token of exchange and store of value. The numeraire is a token of exchange - a numerical reference point. What does it buy us ? Well, if all participating national currencies have a conversion rate to the ICU, it eliminates cyclical inconsistencies between currencies. It still doesn't store value. It disappears after use. Why would we want it to store value ? A: because of time lags inherent in the nature of production. A farmer must rent land, buy fertilizer, seed, rent machinery, buy fuel, etc. before planting and well before harvest. The process is not instantaneous.
Finally someone talked about the praxis. Saying the is not nice to use as a store of value and "stock pille it" is cool and all but in the practical situation it got store at least some value over time otherwise will fall in unuseness because of the calculational power to use being too high. And people using dollar because it easier.
@qualquer1177 correct but computing power, data about money flows (available from digital currencies) and algorithms may make a numeraire feasible. Soviet central planning failed due to a lack of data, computing power and algorithms. It might be doable, though never done before in human history: economic balance
@qualquer1177 dollar's problem is weaponization makes it unreliable. In God we do not trust. Lol.
Thank you, Professor Liang! That's what I'm saying, the global banking needs an overhaul.
The problem with the common clearing unit is that countries like China and Russia, which can offer more goods to sell than they need to buy from other countries, will be forced to import things which they don't really need or things they can produce themselves thus discouraging their own domestic businesses.
Keep raising educational level, and spreading market access information, and improving worldwide communication & logistics infrastructure, and promoting open trades, ... then more and more entrepreneurs in the other 192 UN member countries, can discover that they can produce something that would be desired by someone in Russia and China, if not somewhere else. It's paramount to share information and promote overall global trades, for there will always be people everywhere who will seize opportunities to improve their livelihoods through endeavours and ventures.
Why are they forced to? What is the mechanism to draw that conclusion. I'm not an economist so I'm genuinely asking. Thanks
So, the issue is not about money. It's wether Uganda has the capacity to manufacture what it needs. As long as Uganda is not an industrial nation, it can't escape debt prison. So, money is not the issue. The issue is the structure of the Ugandan economy and how to transform it given the global legal structure that prevents such transformation of the Ugandan economy
I came across your channel through this video-
case studies are incredibly valuable, and I'm eager
to see more in the future! Building wealth involves
establishing routines, like consistently setting aside
funds at regular intervals for smart investments.
You're correct. I think the smartest way to go is
to spread out your investments. By putting
your money into different asset classes like
bonds, real estate, and stocks from other
countries, you can lower the risk if one part of
the market goes bad.
That sounds like a good plan. In the past two
years, working closely with a financial market
specialist, I've built a six-figure diversified
stock portfolio. Now, I aim to diversify even
more this year.
I'm a newbie talking about a financial market specialist, do
you consider anyone worthy of
recommendations? I have about 10Ok to test
the waters now that large cap stocks are at a
discount
Ms Martha Ann Hammerton was my hope during the
'bear summer last year . I did so many
mistakes but also learned so much from it
I was skeptical at first till I decided to try. Its huge returns is awesome.
Also, I too was very impressed with Prof. Yan Liang if developing countries have someone like her advising them they will do just fine.
The tariff action now being proposed by the US and , frankly, the threats of the US to use it's monetary stranglehold via the USD, will accelerate the Global South to another financial exchange system. The inability of the old western structures of the IMF and World Bank to assist developing countries to 'mature' has also turned developing countries away from Global North western promises of real developmental aid. EU's recent follow on with tariffs will only add weight to western protectionism and echoes of an imperial past. There is some naivete that the age of western imperialism is lost in the memories of past colonies. As well, the pre cursor to regime change, the thought that there is a natural privilege position for western capitalist civilisation. History records cycles over all of recorded history, it is cyclical. Regimes are accidentally triggered by a 'perfect Storm' eg. leadership, technology, war and disease and erode with the false belief that the privilege position was self made or of superiority.
She is amazing. US can't stop paying for the countries they do not like?
A proper system that will liberate humanity
BRICS seeks to create a new currency, considering gold's historical role as a store of value and medium of exchange. However, the functionality and acceptance of a gold-backed currency in the current global financial system are uncertain. Creating a new currency requires careful consideration of economic, political, and logistical factors.
The discussions and proposals surrounding BRICS nations' potential use of gold are intriguing. People choose to buy gold for various reasons, such as its historical role as a store of value and medium of exchange, its potential as a hedge against inflation or currency devaluation, and its relative scarcity compared to other commodities. Gold also offers diversification benefits to investment portfolios due to its low correlation with stocks and bonds. However, investing in gold carries risks and may not be suitable for everyone. Investors should carefully evaluate their objectives, risk tolerance, and financial situation before deciding.
I find gold investment reliable and aim to buy more to recover losses. Silver is also a good investment but differs from my collectibles. Clear investment goals and education are crucial. I work with Carol Vivian Constable, a SEC-regulated financial consultant. Starting with modest investments, I accumulated nearly $799k over time.
The best course of action if you lack market knowledge is to ask a consultant or investing coach for guidance or assistance. Speaking with a consultant helped me stay afloat in the market and grow my portfolio to about 65% since January, even though I know it sounds obvious or generic. I believe that is the most effective way to enter the business at the moment.
please who is the consultant that assist you with your investment and if you don't mind, how do I get in touch with them?
'Carol Vivian Constable, a highly respected figure in her field. I suggest delving deeper into her credentials, as she possesses extensive experience and serves as a valuable resource for individuals seeking guidance in navigating the financial market.
Yes. Very true. BRICS are not looking at creating their own currency, not for now but could be in the future. They are looking at payments and clearing using own local currencies.
bitcoin
They are feudal lords looking for peasants.
@@2livenoobbetter to be your own feudal lord. Cut away at the US middleman
I really appreciate this video as it has helped reconcile two ideas that I thought might be mutually exclusive: MMT and international currency. But Dr. Liang beautifully described how these can co-exist. She is a very good conceptual communicator.
Also "It's not going to be a common currency to replace a national currency. Please don't do that, right. The Euro lesson should well learned." Sick burn! 🤣
Pascal doesn't let anything get past him.
Global south countries cannot force their fiat currency to be valuable. The US is loosing that very ability right now. It would benefit BRICS to pay attention and learn the lesson before they experience the same disfunction caused by a Cantillon effect run amuck.
It is good that they are acknowledging and addressing the 'beggar they neighbor' principal and the fact that circulation and clearing become impossible with excessive hoarding of the medium.
I am here for more Prof. Yan Liang
She is sharp
Don't simply retire from something; have something to retire to. Start saving, keep saving, and stick to investments
It’s really heartbreaking to see how inflation and recession impact low-income families. The cost of living keeps rising, and many struggle just to meet basic needs, let alone save or invest. It’s a reminder of the importance of finding ways to create financial opportunities. You've helped me a lot sir Brian! Imagine i invested $50,000 and received $190,500 after 14 days
Absolutely! Profits are possible, especially now, but complex transactions should be handled by experienced market professionals.
Some persons think inves'tin is all about buying stocks; I think going into the stock market without a good experience is a big risk, that's why I'm lucky to have seen someone like mr Brian C Nelson.
Finding yourself a good broker is as same as finding a good wife, which you go less stress, you get just enough with so much little effort at things
Brian demonstrates an excellent understanding of market trends, making well informed decisions that leads to consistent profit
“Gold is money, everything else is credit.”
Thank you both. Great discussion.
Time limit the clearing currency so no nation can hoard it. Have maximum levels of reserves broadly based on population of the nations involved and make sure the clearing currency has movement around several nations to avoid being cancelled.
These would reduce the gamification of the currency and would allow some stability for nations without allowing anyone or group of nations to control it.
The problem at the moment with currencies is that they are controlled world wide by a small group of individuals for their own benefit, while being created out of thin air. To have freedom for all currency must die as a never ending entity which can be hoarded by some to control others over generations. Unless I’m an economic genius I don’t understand why no one seems to see this problem. It has happened countless of times throughout history until the currency collapse so why do we repeat this system over and over again? Currencies die just like everything else in the universe so why don’t we control its death in a manageable way to benefit everyone instead of keeping it on life support until war destroys it?
Agreed the two great evils are inheritance and compound interest 👍.
Outstanding, WOW, she is so articualte and sensible, much more so than most ivory tower economist. A new force and class of young progressive economist to save the world.
Good discussion. Problem: if you have a system that punishes holding too much ICU, a net exporting country can use their excess ICU to buy a different asset that they CAN hoard, like gold.
More content from Prof. Yan Liang please. It's highly interesting to learn about, how a more just financial system can be built.
Nice content
The term "the West" is pretty obsolete too. It's actually the G7 we are talking about.
G7: Gang of 7
The G7 is literary the Gang of Seven. Period.
Kólönïser 7
So leave Australia out who now is equal first in the world for gas exports? Ignore the trade in iron ore? Australia is a country of 25 million that is a big supplier to those G7, UK for example 9% is electric heating, the rest is gas, now that the west is trading amongst themselves with gas with them blowing up pipelines and trade for some of these countries, Japan won't exist as well without coal from Au.
To say the west isn't the whole west seems as like you are diminishing the whole.
It's about the group of (1) people rule countries vs (2) junta ruled countries. In the former group, (1) the people are the jury and can speak openly. In the latter group, (2) the people are penalised if they voice their own thoughts, and the juntas are the juries of themselves.
BRICS have both types as members.
Greetings from Australia
The global south.
I think I understand this system. I used to work for an importing company that purchased Forward Bills of Trading (nominating specific days, ie: 180 days etc) and depended upon the exchange rates. But if there could be a central authority that controlled/monitored the ICU's, I think that would be fairer. No country being allowed to stock pile. If one country wants to buy an item from another, then it is worth a set amount of unit, then the other country purchases it, at that unit, and pays it off, within an agreed time frame, and the exchange rate doesn't effect it. That way all parties now there cost's. Good idea. :)
Dr. Yan Liang reiterates economic points that many economists have promoted, but haven’t been adopted because the concentration of power to enforce has been perverted in the past. The mechanism is the detail.
Mobilising domestic resources is easier said than done, even in the global north. Prime example, Canada. Our misguided desire to "save the planet" prevents the extraction of many local resources.
As long as consumption behaviour doesn't change, isn't "save the planet" a lie/excuse, when the same resources, extracted elsewhere, are consumed anyway?
Those resources in the ground are part of a much longer game.
All of 159 nations should adopt BRICS Chain as national currency including BRICS member nations ❤❤❤❤❤
no, only bitcoin matter
I agree with the Prof, but I wish to postulate another way of looking at this.
The USD was the simplest "Fiat Technology" that could be distributed and made accessible to everyone, at that time.
But it had one huge drawback. The US could print it and caused chaos both to the climate, read excessive greed, and humanity, read wars and sanctions.
Reason. The US solely owned the "Technology".
But now Technology has advanced enough to create a standalone Fiat that is accessible to everyone in the same way that the USD was, but without the unfair risks. Effectively,, the USD must be regarded in this light as outdated Technology
So a proper Fiat Technology is globally owned, and like the weather, it is not influenced by anyone.
The rules of acquiring this unit must be clear, the rules for losing the unit must be clear, but it can only be transferred from one country to the other in a Distributed Ledger Blockchain like system were all participating central banks are the local node.
The local node uses local currency for its citizens but uses the Global Unit in the ledger to deal with foreign countries
Banks will never give up their control and CBDCs are the pinnacle of control over the people.and they've been cloudseeding for years LOL
We had a clearing unit before we went over the cliff and implemented the EURO. It was the ECU and we had it for decades before and it was what Yan Liang describes or at least that‘s what I understood. It was fine.
Great video as usual, thank you. It was very informative.
GOLD>>>🥉
I live long enough to remember the soviet Comecon and the surreal exchange rate of something called "transfer rubel”. The existence of transfer ruble resulted in different pathologies in trade relations, hindered integration and influenced growing internal and external imbalance of Comecon states.
Not only that. These countries need to get their act together, stop ruining their own economies, and increase their gold and bitcoin reserves to protect themselves.
The problem with the accumulation and retention of currency can be relatively easily addressed in digital currency by monitoring the in and out flow and if the difference is big automatically apply a proportionately increasing localised loss ov value. In a balanced flow, there is to be no loss of value
It needs a bridge currency/ neutral currency that is not dominated by any country. And it should be liquid enough to facilitate all transactions needed, fast and efficient.
Tremendously interesting (and useful) podcast/lecture - especially for professional Macroeconomists, working in "Money and Banking" field, though and to other economists it's really interesting. Sincere thank you, guys!
*Cannot hold US Dollars anymore it's become no value anymore, US Dollars to down & down & down values*
I think the professor is proposing a de-nationalized reserve currency, which sounds like a good idea, but the prospective reserve currency must interface with national currencies to have value. This means highly productive economies like China's will accumulate this prospective currency whether they like it or not, and forcing by one means or another countries to divest themselves of this prospective reserve currency risks devaluing it and would discourage its use.
The ideal situation is that which ever country is not expected to horde a lot of this and you are expected to ensure that this unit remain more or less balanced within a certain limit. How they are going to design such a system and still ensure the individual governments act fiscally and monetary responsibility i do not know.
Excellent interview.
Brics is not like anything we've seen before-it's nothing! LOL, this is a joke. Even the member countries said there are no plans for a currency. Kill that noise.
The real question is whether cooperation or exploitation benefits the rest of the developing world. If the developing world decides fair exchange is no robbery and has leaders who put their people's needs before personal enrichment or bribery BRICS system could absolutely work it will take time and struggle but the payoff could be tremendous.
The most important quality of a currency is its stability in value. You may create any currency, if your new currency loses its value quicker than the old US dollar, your new creation will be rejected by users. Also, if there is a currency more stable than the US dollar, you just move to it and save the trouble to create a new one.
Great talk thank you so much it really thought me a lot
Back to Keynes' BANCOR proposal. How not to accumulate monetary claims on trade surpluses? Run trade deficits whenever that happens. It's a win-win proposition for everybody.
The Unit should have an expiry date. Once reached, it’ll be traded in all the other Brics members currencies with percentages of each that doesn’t affect their current values and the country who owned the expired Units will have those currencies.
Fantastic video🔥🔥! I have incurred so much losses trading on my own....I trade well on demo but I think the real market is manipulated.... Can anyone help me out or at least tell me what I'm doing wrong??
Trading on a demo account can definitely feel similar to the real market, but there are some differences. It's important to remember that trading involves risks and it's normal to face looses sometimes. One piece of advice is to start small and gradually increase your investments as you gain more experience and confidence. It might also be helpful to seek guidance from experienced traders or do some research on different trading strategies.
If you are trading without a professional guide... Ah, I laugh, because you will stay where you are or even suffer huge losses that will prevent you from trading, this has been one of the biggest problems for new traders.
I think l'm blessed if not I have met someone who is as spectacular as expert mrs Fenella..
Highly recommended🙌
Wow, I'm surprised to see Fenella mentioned here as well. I didn't know she had been kind to so many people
I'm also a huge beneficiary of her..
I thought myself and my family were
the only ones enjoying Fenella
trade benefits...
when the BRICS summit was last held in Russia, Russia told all of the participants, don't bring credit cards, Russia is under stanchions. Bring hard currency: US or EU. Have a laugh at that!! Nobody is in a position to do anything to the dollar or euro for at least a decade or more. See Peter Zeihan
*Part-3.* The macroeconomic policy target should be full employment. You also desire price stability. So "borrowing" is completely stupid. You *_never_* need to borrow (if you are a currency issuer). The government Tsy bond is an interest rate maintenance operation not a financing operation --- provided the currency is on a float, not a fixed exchange rate (so 1st get off the fixed exchange rate). But then to issue bonds is just idiotic, it serves no public purpose and is pro-inflationary (the interest rate is the own price of the currency). It is even worse: a positive interest rate policy is _basic income but _*_only for people who already have money_*_ and in proportion to how much money they already have._
For this reason local government councils also never need to (be forced to) borrow. The central government can give them an overdraft facility. Sort out how the budget was abused at the end of the year and slap a few knuckles.
@Achrononmaster "The macroeconomic policy target should be full employment." Why? For me, that is capitalist ideology. I think a capitalist economy is not a free market economy. The target should be ENOUGH employment. And employment is not an end-in-itself, it is a means to an end, which is ENOUGH PRODUCTS.
Part 3 can clarify purpose of clearing unit? Past determining a particular exchange rate on an immutable DAG (blockchain) it could be tethered to conditional layers… so un- to automated ‘clearing measures’ (like smart contracts)? Then these measures can be un- to automatically negotiated, litigated, etc.
Prof Michael Hudson says the BRICS members have yet to embrace and fully understand classical economics..that they’re trying to reinvent the wheel when this was done 200 years ago by a full understanding of Marx who, contrary to popular surface belief was not against the free market or individualism.
It doesn't make sense to not borrow foreign currency as an exchange for foreign infrastructure investment, because if you did it in local currency, you simply print the money, and therefore it's basically a free loan, Professor..
Not sure why a country should be punished for having surplus. That’s completely unfair. For countries whose trade is more through private corporations, it makes little sense at all.
Can any of these private corporations make their trade without all the "public goods" provided by the country? 🤔
To build bridge you need materials (stone, send, cement, steel), technology and tools, operators (workers and manager), most of country have most of it. Maybe in developing countries they don't have good managet to manage the Project in efisien ways if you countries have all of them no money need to build bridge. So basically foreign currency they borrow for the project mostly for ineffective management or corruption.
the common bridge currency is called XRP. no matter the price it yet provides a level playing field for all countries, banks and financial institutions and their currencies. no country has jurisdiction... listening as i talk and the exact resolution is XRP
Bingo!
a digital currency backed by and convertible in physical assets (precious metals like gold and silver) and a basket of commodities (oil, LNG, foodstuffs, rare earth minerals, etc).
Brilliant discussion. Thanks.
If its pure fiat, it will be a failure off the bat.
People are all very excited to see the Indian Rupee becoming the trading currency. In fact, Bank Negara is ready to dump all its USD holdings to INR. Hooooray
I think the current system is a good lesson what not to do. This system gives one country too much control. Hopefully BRICS will not fall into the trap of allowing one control to have too much influence.
A wise economist once said -
“ don’t do as bankers say , do as bankers do “ Central bankers globally are presently stockpiling physical gold . President Putin just went on the world stage and stated that he wants physical silver in Russian vaults .
It may be a good option to move the needed amount of Gold from BRICS and those they want to deal with each other in BRICS terms to move the amount from one account to other. this way will no need any currency.
Yes... Development of your own economy and production first. And keep them. America has failed in this with their sending manufacturing off shore. It destroyed America's economy.
A currency unit backed by nothing? Isn't that the dollar system.
There is no way that some countries would not build surpluses in any unit of exchange. This narrative pre-supposes that all countries are equal or can be made equal. The issue is the means of balancing transfers between surplus and deficient countries as performed by exchange rates.
As Yan Liang tells it she advocates a system where countries with surplus holdings of a settlement unit are 'wiped out' or equalised with those with deficient holdings. No surplus country would subscribe to this state of affairs because it would be subscribing to underwriting the consumption of deficient countries without realising any real gains, i.e. the current dollar system with the US as the deficient consuming country and everyone else as surplus countries.
Even the dollar system has mechanisms that reward surplus countries in the form of the yield on their US treasury holdings, albeit that these yields are not market competitive; in that holders of dollar surpluses cannot invest anywhere (without US regulatory oversight - CFIUS) in the US economy to maximise the returns on their holdings. Thus ensuring the role of financial middlemen like hedge funds and private equity that can arbitrage differences in financial instrument rates by collateralising treasury assets to buy riskier returns boosting assets such as stocks - carry trade.
Another issue, is the deriding of the Euro experiment as a failure. This is a profound misconception, as the institutional process, mechanisms and pathways to the establishment of the common currency delivered on their particular objective of a common currency. It is like describing a struggling post-graduate student as a failure even though he excelled at High School and undergraduate studies. A better analysis would be a consideration of the factors that enabled such a student to gain entry to post-graduate studies against his current hindrances.
A further example is Russia, under a common capital transfer system (fiscal union) in the Soviet Union that placed Russia as the primary source for transfers to deficient undercapitalised Warsaw pact countries - the Soviet Union collapsed under the financial strain. While today's Russia has shown considerable resilience in the face of western sanctions.
The current US system is backed by implicit coercive military power, in this way the US secures for itself cheap raw material inputs and the notion as a 'safe haven' for global capital. This allows the US to dictate the cost of global capital to its own advantage. If the dollar where to behave in the manner of Yan liang's settlement unit, to my understanding it would mean the treasury holdings of surplus exporters would be 'wiped out', while the debts of consuming countries (like Argentina) would be written off.
This is in fact similar to the situation faced by the EU. They were unable to conceive a system that accounted for transfers between surplus savers (Germany) and deficient countries (Greece) within a single currency unit without the mutualisation of debts. They did place fiscal constraints on member countries hoping this would signal confidence to the dollar competitive capital markets; enabling the private sector to act in part as part of a settlement balancing scheme. In her conception, Yan Liang forgoes this latter confidence bolstering role of the private sector, calling instead for a detached intra-central bank scheme with no relation to market realities.
I find myself suspicious of Yan Liang's contribution to this issue. Firstly, she advocates underpinning a settlement currency with nothing but words, then she says 'allow that currency to make non-market financial transfers between surplus and deficient members', without elaborating on who would bear the cost or benefit.
Her contribution remains half-baked without accepting the inevitability of imbalances in trade, and an institutional market-based means to address and price the settlement of such imbalances.
In conclusion, there is the need to accept that there is no perfect economic model, whether the dollar system, the gold standard or the eurozone. None can operate as a perpetual motion machine without a patchwork of regulatory and financial adjustments acting as inputs to correct deviations away from ideal paths.
except it doesn't benefit the US, but all the individual countries.
@@oki148 Any country or organism that consumes more than it produces (from and for another) is in a beneficial relationship. The term is a parasitic relationship.
😢🤔Excellent Conversation ✊🏿💔
All commodities prices to back a currency must be over a 1 year average to prevent speculation to manipulate prices.
AT PRESENT DOLLAR HAS BECOME AN EXPLOSIVE AND BEING USED AS A PROXY AGAINST THE OPPONENT NATIONS AND COUNTRIES INSTEAD OF AN INTERNATIOMAL CURRENVY . IT MAY AGAIN BE BROUHT BACK AS AN INTERNATIONAL CURRENCY ONLY .
Did she really say that the Brenton Woods institutions need to be reformed? How would that work? In the US we have a lot of people who think the democratic party can be reformed. BW institutions were designed to consolidate power and that is what they are attepting to do and to me they are unlikely to change.
It'as flawed from the beginning. In any case, it has become "obsolete", and if it won't reform itself, then well, it will naturally, eventually, get replaced.😅
@@btgan3838 That is my feeling as well... Bernie try and reform the democratic party with no results... The 'progresives' get co-opted by the democrats... I take that as an object lessen in how bureaucracyof how intrenchedies can/cant change... I was in Eugene where the Professor lives.
@@btgan3838 Economy is about military power, not currency or GDP.
All fiat currency returns to its intrinsic value. 0. Voltaire. We shouldn't be using any fiat currency
And India took the smart move to attain peace with China on the Himalayas so that both countries can join forces to promote the new money system.
This exchange idea is completely ridiculous, it is not going to work if the currencies are not properly tie to the common element. How is a country going to acquire some of that common element if their currency is useless. How are other countries suppose to trust that particular country is it is able to create as much of his currency as he please without consequences.
My idea is that BRICS need a neutral, gold backed stable coin. Peg it to 1 coin equal to 100000th of an ounce of gold. Not too strong, not too weak. Suitable for everyday transactions that everyone can use. A currency for everyone. Very difficult to speculate against as well. You want to sanction my country? Foreigners can buy directly in gold.
In my view, trade is a dinamic process; not a static thing but a flux. If two countries trade with each other it is not a once time event; but, usually, a process that will continue for years out of mutual needs. So, taking into account that the current transactions will be followed the next period by others, any problem arousing by any disagreement over local currency values may be settled in a clearing house that would act to compensate any imbalance. Something the NDB is doing now. What I think is urgent is to establish a unit for accounting. For measuring, like the meter or kilogram. More easily achievable in phiysics than in economics. And the US dollar is no longer a reliable one (stretching and contracting). Regarding investment and debt, the foreseeable future may be more important than reserves; in dollars or gold or whatever. This is an ongoing process; and the results are in the making; the problem with it is that the institutionalization of it may be flexible enough to deal with everyone's needs. A complex, difficult and long lasting process that is going on at a speed I didn't anticipate. Thanks for the conversation.
Pascal has very good questions that are dytill lingering and we all still looking for practical answers. We shall see. * Also why are Central banks been cumulating gold like crazy?
There was not any meaningful pushback or Devil's advocate
Really, she just stated her opinion and made a large number of assertions
There was no pushback on the fundamentals of her position regarding MMT and how inflation affects everyday people within a country, esp relative to asset holders in said country
She just said "the price you pay is inflation" and seemed to downplay what that means for the average person
She states "XYZ must be debunked" multiple times without meaningfully explaining why (nor doing so herself)
Having minimal experience in Brics and universal currency arrangements, gold is the recognized commodity to retain value. Emeritus Arabian nation retains enough gold to finance Brics for a significant time period thru oversight of a neutral financial institution such as Switzerland in retaining designated identity Numerical assignments known only to current representives of trading countries,a GNP with other variables to be determined may extrapolate a fair and equivalent evaluation of import/export activities. An independent depository based in Switzerland may also be adhered to as many other countries are already inplace.
Sentence content and structure C+
It would be short sighted to try and keep every country’s currency. While the euro and the U.S. dollars have their flaws , it’s through lessons learned from allowing every U.S. state to have their own currency that it wasn’t efficient, was too cumbersome and crazy accounting. BRICS will not always be a closed system. It must be prepared to deal in the future with nonBRICS countries at some point. BRICS will need to consider scale-bility from the start for at least a 30 year first run. The only way it can is to allow countries within BRICS to bank and exchange in BRICS currency banks and once those funds are settled . The BRICS BANK note can trade on the open market (SWIFT) on a Dollar to Dollar basis irregardless of what the originating country converted their currency for BRICS dollars.
This allows the BRICS BANK SYSTEM to exponentially grow and create a strong reserve thereby offering the BRICS countries to sell their goods at a higher and more equal exchange rate outside of BRICS as the system scales up.
Good morning Prof Yan and Dr Pascal ❤️ASEAN🇨🇭🦾😇🌹👋
Very informative.
Settlement account an be gold TODAY. For any country. Why would any responsible nation keep reserves in fiat
My credit card pays reward units when I spend. They just expire progressively after 12 months.
This would be better for the BRICS Unit rather than Austrian inflation since the Unit value would be preserved or even increase.
Many people are philosophically illiterate. Why does anything have value?
What was the value of gold before it had modern industrial and technological use? What backed gold's value?
Consent and consensus is the basis of power. Money simply facilitates the exchange of supply and demand.
A fiat currency totally works in a healthy way if the printing and mechanics are kept healthy. You could keep the mechanics healthy with immutable code.
Seems going in the right direction. 1 currency to inter change and as many currencies as there are economies.