Chain News Daily Today TheBitTimes.com

BRICS is working towards building a parallel financial system providing an alternative to the US and Western-led global hegemony. The alliance is using local currencies, launching new payment mechanisms, and rewriting trade deals to its benefit. All of these cause harm to the long-term prospects of the US dollar while their economy reduces dependence on the West. Also Read: China–ASEAN Pact Reshapes BRICS Trade as Yuan Hits New Milestone BRICS: Can Their Parallel Financial System Fully Work? Source: Getty Images The short answer is yes, they can build one. BRICS can build a parallel financial system that works. However, building it and replacing the US and West-dominated financial system is challenging. The challenge occurs as the alliance is a diverse bloc having no common ground. Each economy is still developing, while many others remain poor. They need to maintain a balance in developing their own economy and also that of the alliance. This would involve pouring in more time, energy...

Bloomberg Intelligence strategist Mike McGlone has warned that the resilience of Bitcoin (BTC) could be the key factor preventing a U.S. stock market collapse similar to past deflationary downturns.  His Analysis suggests that staying elevated may be the market’s last line of defense against a broader economic correction following the inflationary surge of recent years, McGlone said in an X post on October 19.  “Staying lofty might be a top prerequisite for the US stock market to avoid a typical deflationary downturn following inflation,” McGlone said.  S&P 500 – GDP chart. Source: Bloomberg McGlone pointed to the equity market’s current valuation of about 2.3 times nominal GDP, a level that implies the stock market is the economy.  Historically, such extended valuations tend to revert toward more sustainable levels,  around 1.75 times GDP, which marked the post-2020 equilibrium.  The strategist added that persistent weakn...