BRICS coalition falling apart as Brazil now in worst recession ever and South Africa moving towards land confiscation
In the past six months, three of the five BRICS nations have not only seen their place in the economy of the world’s best emerging markets decline, but in some cases get shattered by political and monetary programs that have rendered them to the back burner as players on the global financial stage.
Starting in November of last year, India announced a sudden repatriation of their two largest currency notes, and imposed massive capital controls which cut off much of the people’s supply of physical rupees. ¬†And according to 4th quarter reports on the nation’s GDP, they experienced a decline of .6% from what was a 7.6% rise over the prior three quarters.
Now in early March of 2017 two other BRICS countries have begun to breakdown as Brazil is reporting that they are in their worst recession in recorded history, and South African President Jacob Zuma is attempting to commit economic suicide by putting forth a bill to confiscate land owned by white citizens and giving it away to impoverished blacks.
Latin America‚Äôs largest economy Brazil has contracted by 3.6 percent in 2016, shrinking for the second year in a row; statistics agency IBGE said on Tuesday. It confirmed the country is facing its longest and deepest recession in recorded history.
Data shows¬†gross domestic product (GDP) fell for the eighth straight quarter in the three months to December, down 0.9 percent from the previous quarter. The figure was worse than the 0.5 percent decline economists had forecast and left the country‚Äôs overall GDP down 3.6 percent for the full year following a 3.8 percent drop in 2015.
‚ÄúIn real terms, GDP is now nine percent below its pre-recession peak,‚ÄĚ¬†Neil Shearing, chief emerging markets economist at Capital Economics, told the Financial Times.
‚ÄúThis is comfortably the worst recession in recorded history,‚ÄĚ¬†he added. – Russia Today
Brazil’s economic woes have accelerated since their former leader Dilma Rouseff was ousted in a coup which saw her impeached for false accusations planted by Western covert operatives. ¬†This then saw the placement of a pro-Western head of the Brazilian government who himself had been under fire for previous fraud and corruption.
Over in South Africa, the politics of racism by President Zuma is leading the government to try to follow the same dark path that Zimbabwe’s Robert Mugabe did when he stole (confiscated) land from white owners, and gave it to blacks under the guise of de-colonization. ¬†And history has shown that in just a few years of doing this the economy of what was once the bread basket of Africa soared into hyper-inflation, and the eventual cry from Mugabe to beg the former white landowners to come back and save the country.
After South Africa’s embattled president Jacob Zuma pledged, in a surprising address to parliament one month ago, to break up white ownership of business and land to reduce inequality (in a State of the Nation address which was disrupted by a fistfight), it now appears that Zuma’s intentions to convert what was until recently Africa’s most prosperous economy into a new Zimbabwe were all too real, and as the Telegraph reports, the South African president officially called on parliament to change South Africa‚Äôs constitution to allow the expropriation of white owned land without compensation.
Zuma, 74, who made the remarks in a speech on Friday morning, said he wanted to establish a ‚Äúpre-colonial land audit of land use and occupation patterns‚ÄĚ before changing the law. – Zerohedge
Just as the false narrative of economic sanctions against Russia by the U.S. was meant to keep the emerging superpower from competing against dollar hegemony, the dedicated programs to break up the BRICS nations by the West have succeeded with at least two of the five members. ¬†And while it is yet to be seen what the end results will be for Prime Minister Modi’s trek towards a cashless society will be for their economy, the potential of a BRICS breakup is possible now more than ever, leaving Russia and China to potentially go it alone in trying to forge the next financial system to replace that of Bretton Woods.
Kenneth Schortgen Jr¬†is¬†a writer for The Daily Economist, Secretsofthefed.com,¬†Roguemoney.net, and Viral Liberty, and hosts¬†the popular youtube podcast on Mondays, Wednesdays and Fridays.¬†Ken can also¬†be heard Wednesday afternoons giving an weekly economic report on the¬†Angel Clark radio show.