Global balances shift from BRICS to TRICS

Published 15.12.2018 02:23
Updated 15.12.2018 09:54

The "yellow vests" protests in France offered U.S. President Donald Trump an opportunity to voice his intense criticism of the Paris Agreement and the discussions concerning a European army. However, the issue is not limited to this. The Washington-based International Investigative Journalists Consortium's, close to the U.S. administration and Hungarian-American investor George Soros' Open Society Foundations, operations to uncover cross-border financial and tax transactions of world-renowned people and companies targeted Russian President Vladimir Putin and former British Prime Minister David Cameron, who hates Soros, with the Panama Papers, documents leaked in 2016 that detail financial and attorney-client information for thousands of offshore entities.

Take note that the same leak also revealed Swiss and Luxembourg documents from the Rothschild family's French representative, Baron Elie de Rothschild, the Duchy of Luxembourg (who is close to the family), and from the family's lawyers. This is why the rise of the yellow vests is also regarded as a reflection of the big battle between the Rothschilds, who support French President Emmanuel Macron, and Soros.

Now, let's take a look at Brazil's newly elected president, Jair Bolsonaro. Similar to Britain's Brexit from the EU project, Brazil's "Braxit" from the BRICS, which was founded as an alternative to the Paris-based Organization for Economic Co-operation and Development (OECD), an economic, political and financial think tank of the Atlantic Alliance under the leadership of China and Russia, is being discussed. What a coincidence that Bolsonaro was also a candidate of Pentecostals, conservative Christians who feel close to Israel, like the evangelicals in the United States. This is why, when he was elected president, Israeli Prime Minister Netanyahu enthusiastically celebrated him. Interestingly, Brazilian presidents Luiz Inácio Lula da Silva and Dilma Vana Rousseff's governments advocated that the Palestinians should determine their own destiny.

For this reason, it is being discussed that Bolsonaro, completing the process started by previous President Michel Temer, will take Brazil back to the North-West axis controlled by the U.S. instead of being part of BRICS, which focuses on the South-East axis with two countries coming from communism, China and Russia. China reacted to Bolsonaro's East Asia trip, which included South Korea, Japan and Taiwan.

Add to that China sending a diplomatic note to Canada - meaning that there will be serious consequences - for the arrest of Huawei's heir and the company's CFO, Meng Wanzhou. At the last G20 summit in Argentina, it wasn't very surprising that Turkey was invited to the South-East axis, TRICS, instead of Brazil. To emphasize again, over the next 25 years Turkey and India will shape the global political economy.

Trade wars continue at full speed

In the midst of all this, after Meng's detention on charges of violating sanctions against Iran, she was released on bail of $7.47 million on the condition she wear an electronic monitor and returned to court on Feb. 6. However, the anger in China is not calming down and reactions continue to escalate every day. Shenzhen-based electronic parts manufacturer Menpad decided to fine their staff, equal to the value of their devices, if they continue to use Apple products. The Nanchong Chamber of Commerce in Shanghai has announced that it will end the membership of companies using Apple products. The information technology company RYD in Sichuan indicated that it will provide a 15 percent incentive to its personnel who buy Huawei mobile phones.

On the Atlantic front, on the other hand, the European Court of Justice, the highest judicial body of the European Union, ruled that Britain could unilaterally revoke leaving the EU. This means that Britain can opt out of Brexit as long as negotiations with the EU continue. With this decision, the House of Commons can consider a third option of not leaving the EU on top of the options of contractually and unreservedly separating, following the postponed vote in the U.K. Parliament. Meanwhile, Prime Minister Theresa May pulled through the vote of confidence demanded by the members of Parliament from her party with 200 votes in favor and 117 against. If the result was against her, she would have had to resign.

One last point with regard to the global trade wars I've been discussing in this column is that the European Parliament has ratified a historic and very large-scale free trade agreement between the EU and Japan. We will witness the repercussions of these two strong players signing this comprehensive trade agreement, while the U.S. is cultivating a trade and exchange rate war with strong actors such as the EU, Japan and China.

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