🚨BRICS' WIN IN ASIA: Malaysia & Thailand Apply to Join, While Japan Is Ditching US Treasuries
hello everyone thank you for tuning in there is a massive shift happening in Asia that is not exactly in favor of the United States of course I will primarily focus on economic developments but needless to say geopolitical Trends are driving this truly massive and accelerating power shift in this video I will focus on Japan ditching US debt as well as a growing shift in Asia where countries are expressing interest in joining the bricks block one by one a number of Southeast Asian countries are now moving forward with joining the bricks block this year it is a massive shift and it is a consequential one as more and more States seem to point to the blocks geopolitical and economic potential and Express their interest in joining emerging economies to Signal their desire to cooperate and to realign with their neighbors the main reasons why we see so much going on this year with emerging economies aligning is of course the prospect of cooperation in terms of investments in terms of crossborder trade and their goal to find ways to develop infrastructure which will subsequently allow them to support their expansion of trade and a variety of other economic programs to boost their development in addition to that with the increasing militarism of NATO countries smaller countries are now sort of caught in the middle and they realize that developing and then balancing trade ties with great Powers will increase their chances of being in a position to leverage those relationships I will remind you that the bricks block combined economies are worth north of $30 trillion and they represent nearly 30% of global economy according to the latest IMF forecast Western economies are expected to continue slowing down while the economies of China and India will exceed expectations I covered this uh forecast in detail previously so with that being said nobody really wants to leave money on the table and with the global new development Bank Forum that is coming up in Egypt having access to debt at a lower cost is a win-win it is a no-brainer recently Bloomberg published this article titled see Putin score wins as more Asia leaders aim to join bricks so first they brushed the bricks block off as laughable they didn't take it seriously and they certainly wanted to make sure that you knew that it is not to be taken seriously and now we see that rethoric change now they try to use this propaganda narrative as if the entire bricks block is only about the two adversaries and nothing else there's nothing else for you to see there's there's nothing else for you to understand so the words used and how this is portrayed how the recent developments are portrayed is certainly meant to invoke negative emotions to invoke a negative response resps from Western readers in January Indonesia's foreign minister marsudi said that her country is still studying the benefits that can be gained from joining the bricks block and it will likely move forward Myanmar and Laos expressed similar intentions on June the 20th Thailand announced that the country had submitted a formal request to join the bricks Plus in early June Thailand's decision is somewhat of a La in the face for the United States as it does have active Arrangements in place with the United States with regards to Vietnam it's unclear whether it will apply officially just yet although its representative who attended the brick Summit that was held in N noara just several weeks ago he commented that Vietnam is watching the bricks developments closely with Keen interest that was a direct quote still last week vietn viam and Russia agreed to increase defense and energy corporation so there's certainly considerable progress being made there as well Malaysia that is going to be the focal point of this video Malaysia was the latest country to announce its intent to explore becoming a full member of the Block in a recent interview Malaysia prime minister anoir ibraim shared that his country quote made a decision to join bricks and will be placing the formal procedur soon once they receive formal results from the government in South Africa Malaysia's membership will become the key to the blocks growth in the region Malaysia and China have already strengthened their economic ties recently there is a new five-year Trade Agreement in place Malaysia is extremely supportive of dollarization and so that is going to be a truly massive win for the bricks block once Malaysia joins during a recent trip to China Ibrahim Malaysian prime minister commented last year Malaysia had the highest investment ever but the currency was still attacked and he's of course referring to the dollar while it has eased in the past few weeks but it doesn't make sense it goes against basic economic principles a currency that is completely outside the trade system of the two countries and is irrelevant so he's saying the dollar is irrelevant in terms of economic activities in the country it has become dominant purely because it is used as an international currency it is no coincidence that this past week the southeast Asia welcomed Russian President Vladimir Putin and Chinese Premier leean this is a sign that the region is becoming increasingly in the geopolitical focus of not only the East but also the West with NATO Summit coming up in early July and of course there is a possibility of future escalations Malaysia clearly pursues to balance his relations Malaysian foreign minister clarified some of us including people like myself think that we need to find solutions to the unfair International Financial and economic architecture so bricks would probably be one of the ways to balance some things this sentiment is of course shared by many countries the unfairness of economic structure prompted these very changes and of course this is something that the West clearly brought on itself now there are very important shifts going on even with those countries that typically align with Western policies for example let's take Japan even Japan is now jumping on the dollarization bandwagon similarly to China it has been reported that Japan just offloaded massive $63 billion worth of its us and European bonds and that was through the end of the first quarter of this year and it's interesting to see what's going on in the second quarter once the reports came out this sale represented one six of the Central Bank of Japan's Bond portfolio by the way so quite considerable given the economic situation that Japan has been in holding on to the bonds longer would mean more losses since the FED keeps rates higher for longer the Central Bank of Japan is preparing to report a massive unprecedented net loss of nearly 1.5 trillion with a t Yen and to cut its losses further Japan is now ditching higher risk us treasuries I will remind you that both China and Japan are the top holders of us debt and this move should not be underestimated since now both countries are actively selling their US dollar positions and they're diversifying with lower risk heart assets and corporate Investments there's no doubt that this trend will continue and the only question now is how much will they sell during the second quarter and what will be the response of the United States how will it keep its debt at attractive to investors to foreign investors the Federal Reserve doesn't really have many options other than hiking interest rates to provide a better return to foreign investors but that is of course going to open a brand new Pandora's Box domestically with that being said I want to be as realistic as possible but it is important to mention that there are key countries in Southeast Asia they are not showing uh signs of any interest at this point for example example the Philippines and Singapore are on the sidelines so to speak due to political issues let's just say and it will be really interesting to see how their foreign policy changes in the near future thank you for watching I appreciate 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