The battle between the West and BRICS today is fought around the rating agencies. The danger these agencies pose was first responded to by China with the establishment of its own rating agency, the Dagong in 1994. Yes I know dear reader, it may be the first time you hear about the Dagong Global Credit Rating Co. but I do hope you know that China has been the best-performing economy for the longest time and its credit rating is not dependent on the “Big Three” rating agencies. Since the formation of BRICS, there have been talks of establishing a BRICS rating agency. Russia and Brazil, who are key BRICS countries, have already been hit with junk status ratings by the big three family.
They hit Russia in January 2015, not because of its economic situation, but because of the political questions related to the Ukraine. At the time, Russia was not doing well economically because of the global slump in the price of oil (surely you can’t downgrade a country due to external issues of commodity markets). Russia was downgraded despite the fact that it had one of the lowest ratios of debt to GDP, standing at only 19%. One must compare this to the USA debt to GDP ratio – up to 104.5%.
As expected Russia responded maximally. In December 2015 it announced its own rating agency the Analytical Credit Rating Agency (ACRA). The most interesting thing is that Russia after only 12 months of being rated a junk status its forecast is positive for next year, a forecast of growth confirmed even by the hostile pro-Western rating agencies the World Bank. There is it, the sky won’t fall if the triple devils leave!
The story of Brazil is of course different. There the rating agencies synchronized their assault on the economy in tandem with the opposition parties. When they had brought the economy down with the junk status and inflation running amok, they went for the kill.
They got the USA sponsored “civil society organisations” to start the narrative of the President is corrupt, they mobilized on the streets and then linked up the right-wing opposition parties whose leaders are amongst some of the most corrupt individuals in Brazil.
They then laid siege of the parliament and corrupted members of parliament who could be bought and then used the legislature to effect a coup against a democratically elected president. This is the option being tested also for South Africa. The rating agencies brought Brazil to its knees and then the opposition parties finished it off.
We shall never know why the Workers Party of Brazil didn’t follow the Putin method in the same way we watch Zuma and his pro-BRICS faction looking on helplessly as the rating agencies raid our national sovereignty.