Elon Musk discusses the Biden administration's targeting of his businesses. They also talk about Tiger Global's hit piece, BRICS expansion, and the future of energy independence.
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Quick takeaways
Tiger Global addresses fake hit piece by former employee, emphasizing their focus on core business.
BRICS aims to reduce dependence on the US dollar, explore local currency support initiatives, and increase sovereignty.
The expansion of BRICS with six new members signifies increased influence and power, positioning itself as an alternative to G7 and G8 in global affairs.
Deep dives
Tiger Global responds to misinformation attacks
Tiger Global sent a letter to its LPs addressing a document containing misinformation directed towards the firm. They stated that the document was by a former employee and they remain focused on their core business.
BRICS countries aim to reduce dependence on US dollar
BRICS countries, including Brazil, Russia, India, China, and South Africa, are working towards reducing their dependence on the US dollar for global trade. They are exploring local currency support initiatives and aim to enhance policy coordination to increase their sovereignty and independence.
Considerations for long-term energy collaboration among BRICS nations
Fostering collaboration in the energy sector among BRICS nations could be a strategic move towards energy independence and security. Energy initiatives, such as investing in nuclear power plants and supporting clean energy development, have the potential to strengthen the energy infrastructure and reduce dependence on specific energy sources like Russian oil.
Growing Influence and Power of BRICS
BRICS, consisting of Brazil, Russia, India, China, and South Africa, has recently expanded by adding six new members: Saudi Arabia, Iran, Ethiopia, Egypt, Argentina, and the UAE. With this expansion, BRICS now represents almost 50% of the global population and a third of global GDP. This growth signifies a significant increase in influence and power, particularly in crucial sectors like oil and food production. Additionally, BRICS is strategically positioning itself as an alternative to G7 and G8, aiming to have a bigger voice in global affairs.
Desire for De-Dollarization
One of the key motivations behind the growth of BRICS is the desire to de-dollarize and reduce dependency on the US dollar. BRICS members aim to establish local currency settlements for trade among themselves, bypassing the US dollar complex. This move is seen as a way to ensure economic sovereignty and independence from the US's control over global financial systems. By creating an alternative to the US dollar, BRICS seeks to break the petrodollar monopoly and reduce vulnerability to US sanctions and economic policies. The goal is not to replace the US dollar entirely, but rather to have more control and autonomy in conducting trade among BRICS members.