ollie989898
Member
To add to this and not anything to do with the political wishful thinking of Net Zero but the practicalities of needing fossil fuels for decades to come, I watched a youtube vid of austrailan academic Simon Michaux (based in Finland) and he had something interesting to say about BRICS:
He said the BRICS, being the raw materials suppliers of our western energy needs, are starting to tie their respective currencies to their commodities. So, since the Ukrainian invasion and sanctions, Russia is only accepting payment in rubles for its oil and China aren't accepting payments in petro-dollars but their own currency because of the US interest in Taiwan.
China's current deflation worries and Russia's losses in the war mean this is much bigger than just politics.
He contrasted this with the West's QE-boosted fiat currencies that have no material backing and how it wont be good for us little people in the West.
He seemed serious so I'll make light of it and ask is it time to start stocking on bog roll again?
Russia and China can do whatever they want- ultimately the value of their currencies are subject to the same factors any other currency is and they are not the only game in town.
Everyone seems to think China is all powerful. They are a developed country now and are no longer the cheapest place to have something made. They have the same problems that face any developed country, a standard of living to maintain, a populace to manage and diplomatic ties to think about. They can bluster and bump gums all they want about the South China sea, it's not theirs and neither is Taiwan. It's tough luck. The biggest threat to both China and Russia is one posed by simple democracy and the rise of an effective opposition or even a separatist movement.