To calculate the total M2 BRICS measured in USD, I used this formula. it's about 42 trillion. INM2*INRUSD+BRM2*BRLUSD+CNM2*CNYUSD+ZAM2*ZMWUSD+RUM2*RUBUSD
Taking it a little further, there's roughly 3 billion people in BRICS countries, versus roughly 300 million people in the US. Now we can calculate the relative M2 per person, measured in USD.
20T / 300M = 66666 USD M2 per US citizen average. 42T / 3B = 14000 BRICS M2 USD per BRICS citizen average.
Indeed, in real terms, there's over 400% more "M2 USD value" per citizen in the US on average.
Cheers.
RealMacro
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@fringe_chartist, That's correct. The reason I did not use the $ value is bc they will trade outside of the dollar.
Thus total unit of currency (regardless what each is trading at against the dollar) is what matters.
There are 450 trillion units of currency with BRICS GDP that barely matches the US alone. Versus $20 trillion units.
The BRICS math simply doesn't work. Anyone who claims it does is claiming the US can print an additional $430 trillion units and not have a problem doing so.
This is an incoherent absurd assertion.
I would also point out that the $20 Trillion is for $8 billion people as the US has to import in order to EXPORT sufficient S to the rest of the global economy to keep it running smoothly as a world reserve currency.
Running a net exports economy would remove S from the rest of the world which would collapse the global economy into economic chaos as a currency crisis would quickly unfold.
That is a bad scenario not just for the world (especially BRICS) but for the US as well as it would kill exports as the dollar value would soar.
So all this BRICS nonsense is a fantasy pushed by anti American propaganda rather than real world macro economics.
guillesh
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@fringe_chartist, you should divide by BRLUSD, not multiply! The same with the others. Thats why you get this crazy number, it is a mistake
RealMacro
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@guillesh, It is an addition of all the money supply units of BRIC. there is no multiplication.