According to currency expert Jim Rickards, the recent meeting between Indian Prime Minister Modi and Chinese President Xi, with Russian President Putin in attendance, signals a significant shift in global power dynamics. The BRICS nations are moving toward greater economic independence, reducing reliance on the U.S. dollar. This trend raises questions about the future of international relations and the global economy.

A Historic Meeting

Last week, something unusual happened in the geopolitical world. Prime Minister Modi of India sat down with President Xi of China. It had been about five years since they last met. And who was in the middle of them? President Putin of Russia.

On Monday, Rickards appeared on the WarRoom with Ben Harnwell and noted, "This could be a movement forward for BRICS.” He emphasized that this meeting is more than just a casual gathering; it represents a growing alliance among these countries.

The BRICS Expansion

BRICS, which initially stood for Brazil, Russia, India, China, and South Africa, is expanding. In the past two years, 17 new members have joined, including Egypt, Ethiopia, the UAE, and Iran. Just this year, 13 other countries were added. Rickards pointed out, "Now they’re up to 22.” Countries like Malaysia, Turkey, and Indonesia are becoming key players in this new coalition.

Rickards believes that while the U.S. media is focused on the upcoming elections, the BRICS alliance is quietly becoming crucial for the global economy. He suggests this movement may hold more significance than what’s happening in American politics.

The Shift from the Dollar

One of the most intriguing developments is the creation of a BRICS payment system. This system allows member countries to conduct trade without relying on the U.S. dollar. Rickards explained, "This is a payment balance recording system.” It utilizes blockchain technology, enabling countries to settle transactions and record debts easily.

Rickards added, "If you kick somebody out of the club, they’re going to start their own club.” This illustrates how countries that feel isolated by U.S. sanctions are finding ways to forge their own paths.

The Role of Gold

Rickards also highlighted the increasing interest in gold among BRICS nations. He stated, "This is extremely bullish for gold.” Countries like Russia and China have significantly increased their gold reserves. Turkey has also joined this trend, with central banks across the BRICS nations becoming major buyers of gold.

The potential for these countries to use gold as a form of currency could change the dynamics of international trade. As Rickards put it, "If you have too much of the other guy’s currency, you can just buy some gold.” This approach could help them manage exchange risks effectively.

Turkey’s Strategic Position

Turkey is a critical player in this evolving landscape. It’s applying to join BRICS while being a NATO member. Rickards commented on Turkey’s significance, noting, "Turkey has applied to join, and they are now on track to join very shortly.” Its geographical position gives it control over essential trade routes, making it a powerful player in both Western and Eastern alliances.

The fact that Turkey is turning towards BRICS after being rejected by the EU for decades illustrates a shifting loyalty in international relations.

An Anti-American Coalition?

Rickards pointed out that a common anti-American sentiment unites these diverse nations. He noted, "It’s extremely dangerous.” This alliance isn’t natural. These countries have long-standing rivalries. But the incompetence of the current U.S. regime seems to be pushing them together.

As Rickards put it, "How many times can you hit the punch bag before it walks out of the room?” This overuse of sanctions is creating a backlash, prompting countries to seek alternatives to American influence.

The geopolitical landscape is shifting. The meeting between Modi, Xi, and Putin is pivotal for BRICS. With the growing economic independence from the U.S. dollar and the rise of gold as a key asset, the implications for global relations are profound.

As Rickards concluded, Americans should contemplate these developments seriously. The world is changing, and the consequences could be significant. The rise of BRICS represents a new alliance and a potential challenge to the established order. This is a story worth watching as we move forward.

For more of our coverage of Jim Rickards:

America’s Crossroads with Jim Rickards: ‘Trump is a Ninja and Biden Needs Court Appointed Guardian’

For more context, watch this entire segment featuring Jim Rickards: