BRIC stands for Brazil, Russia, India and China and if I had a dollar every time Kiwi’s thought that those countries would take over when the West collapses I would not have worry in the world but will they?
Thing is all these countries thrived for a number of reasons but they foremost thrived because they sold stuff to the US and Europe. The US spend about $ 7 trillion a year on cheap junk from China, Beef, oil and wood from Brazil and cheap outsourced labour from India and Russia sold its oil, gas and other resources to China and the West but who are they going to sell to if that system collapses?
Signs are that they like the West are keeping their economies from collapsing through bubbles such as building cities nobody can afford to live in such as in China and Saudi Arabia as this graph shows:
That however is only part of the picture. For more graphs and information go here.
Another sign of economic distress is the fact that Chinese buyers default en mass on orders for commodities as the prices for these commodities such as coal and oil are tumbling even as these orders are in transit.
These are all indications that the BRICS are not going to be our saviour when we try to flog our overpriced dairy and meat overseas as farmers all over New Zealand have been finding out the last few days.