Since the last post, the stock moved sideways. It is notable considering how much EEM stocks moved. The main reason is US tariffs. The unintended consequence of US tariff is India concluded its long negotiated deal with EU, and few other smaller deals with nations like NZ and Oman, UAE etc. Also, the rupee has depreciated against USD, unlike other currencies which somewhat appreciated.
For now, my dollar playbook is $EWZ, $FXI and few smaller bets.
So the tariffs are now reduced on a whim. But the damage to the relationship is done. It took 3 administrations 20 years to build a deeper relationship with India. The current administration policy is resulting in âMake America dispensable againâ. Suddenly countries are discovering new alliances, trade deals, diplomatic relationsâŚ
The presidents true legacy is making the world realize, a single nation is having too much power, and unipolar world is not really good.
Yeah, the current administration and its foreign policies are reprehensible. But they are mostly just continuations of those of previous administrations going all the way back to the summer of 1945.
But I, too, was glad to see that the funds that track India were up today. Itâs a market Iâve been in and out of for at least 30 years.
BRICS is not formed to move away from US domination. Rather West dominated financial institutions and it created economic challenges. To address that economic challenges it was created. However, BRICS hardly achieved much success. Even today, what India did is to have a trade deal with UK, EU, NZ. That is western world minus US. Why? We know the reason.
Not true. Since Bush II US had attempted reset with India. Even Biden, who openly detested Indian PM Modi for his friendship with Trump, still maintained the relationship. Trump is a master of burning relationships with allies. While India wants a truce on the trade war, but donât assume this relationship is back to where it was.
Trump cozying up with Pakistani military dictator and the administration trash talking of India is not something that can be forgotten easily. Like I said, the presidentâs true legacy is making the world realize US unipolar world order needs to change.
In what sense is the US and its dollars not âthe Westâ? And BRICS and its partners are hardly âineffectiveâ else the current administration wouldnât be trying to subvert them.
Not sure what you are arguing⌠I have already pointed out that BRICS didnât achieve much success.
If you think the BRICS havenât achieved success, then define âsuccessâ and also explain why a global analyst like Pepe Escobar is wrong.
When BRICS come together to have a charter then we can define success.
Both EU and the U.S. have made deals that increase their access to sales in India through reduced trade barriers. Is that a bad use of tariff policy?
