Agriculture

The BRICS trading system is already wiping out US farmers, as global price discovery is destroyed



Millions of tons of annual agricultural trade is now being conducted outside the US dollar, and within the new BRICS framework.

This represents a tectonic shift in global finance, as the dominant trading hubs of New York, Chicago, and London are replaced by a multipolar system of bilateral trades using national currencies and non-USD-denominated pricing and contracts.

The already huge volumes of trade in ag, energy, and raw materials are destroying price discovery in global markets. Decisionmakers and executives in Western companies are unable to see markets, nor can they know what parties are driving demand, nor which suppliers are emerging to meet that demand. Our senior-level business managers and planners are flying blind, and only after realizing giant losses we learn that we are now suppliers only of last resort: the BRICS countries and their allied countries across the world are producing and trading at prices far below our cost of production.

Resources and links:

Record U.S. Agricultural Trade Deficit Forecasted to Keep Growing

Why U.S. agricultural exports are down almost 20% from last year

Why is China canceling US wheat shipments?

Bloomberg, China’s Waning Hunger for Grain Spells Trouble for World Market

Visual Capitalist: visualizing the BRICS expansion in 4 charts

Inside China Business, China wrecks wheat markets in US, Europe, and Australia. Should American farmers sell off land?

CME Group futures markets for near-dated contracts

Futures heat map from
www.finviz.com / futures

Closing scene, Dalian, Liaoning province

source

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25 Comments

  1. Does everyone really think the world will be a better place with the BRICS countries running the show??? They will do the same thing the US is doing and probably worse if they gain total control.

  2. The western system is not dead. It is however in serious trouble thanks to the imperialism of the US since 1945. The imperialism that prevented Russia returning to its place as the breadbasket of Europe after 1989. The imperialism that sought to force a Pax Americana upon the world.

    BRICS are an alternative global system. An economic Warsaw Pact. The Sino-Russian alliance created as a bulwark to US hegemony has effective unlimited energy, natural resources, scientific, technological and manufacturing capabilities. Nuclear weapons and a potential market size under BRICS equivalent to 50% of the world's population. Their percieved victory in Ukraine, of blocking western expansion due to Joe Biden's geopolitical strategy failure, has empowered and united them in a way that could have been prevented and now posses a geeat risk of the loss of Taiwan.

    There is a way for the western nations to counter this. But it can only be achieved by the internationalism of sovereign nation states. Not the authoritarian globalism of the Democrat led Euro-American left. BRICS is a reaction to Clintonite "its the economy stupid" interventionism. The solution to BRICS? It's sovereignty stupid. Free speech. Open and responsive democracy. Government of the people, by the people, for the people. Peace, prosperity and personal freedom of conservative Christian and transsexual witch alike.

    The banks and power houses must enpower the people. Set them free from the neo-serfdom of corporate money, influence and political control. Deregulate the market to inspire and prosper creativity within every sector, whilst the state provides state funded none profit defence, security, education, starter level housing, free healthcare, energy distribution, communication and transport infrastructure.

    The states roll should only ever be to protect the people. Not protect the vested interests and profits of banks and business.

    But what will really differentiate between BRICS and the west, is energy provision. BRICS is a fossil fuel and commodities consumption based linear economy. It is destructive and finite.

    It is time for the west to become a circular economy and that means distributed and democratised energy production. A step change away from fossil fuels to wind, biomass, biogas, geothermal, hydrogen and nuclear. But not via an all electric battery powered world requiring the reconstruction of our entire energy infrastructure. But by the reuse, upcycling, and repurpose of existing system through chemical energy based storage of CH4 and H2 generation. The reforestation and smart farming of a cyclical economy.

    We have 90% of the technology we need. We just need to remove the regulations and the power houses preventing their free use and that prevent the development of the 10% of critical H2 energy systems currently being suppressed. Its time to harmonise and let the light shine.

    The western banks and powerhouses have a choice. Get onboard our ship called Lady Liberty and assist the crew, or drown on their island of arrogance as the BRICS tidal wave rolls in.

    A Revolting Peasant

  3. Hé forgot to mention that there is a security behind trading through the SWIFT system.
    The US will not default and not honor the contracts executed.
    But do you trust China ot Brazil not to default in order to avoid a large payment?

    Look who is comprising BRICS: corrupt and unreliable entities.
    Would you give them your money??

  4. When I hear you say, Outside of "OUR" system, over & over again, that just infuriates me.

    Why the hell did these people not do this earlier?

    Who are the others who are still doing business according to "THEIR" (the US) design & why?

  5. I just don’t understand why they don’t want to buy our bio engineered supplies and are hesitant to deal with a politically volatile country who might at any moment sanction them, withhold the product and steal their payment. Our farmers are screwed not by the buyers but by our gov whose job it is to provide a stable environment for our farmers to do business.

  6. I've been hearing this nonsense since I was born in the miserable USSR: America will soon fall apart and the dollar will lose its value. And where are we now? America was and remains the land of opportunity. Russia was and remains impoverished. And we've heard about tofu construction in China. Countries mired in corruption can't do anything stable and working.

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