The US debt is 34 trillion USD, and the federal debt-to-GDP ratio is 122%. Projections say that Biden’s four-year term debt will exceed the total debt accumulated under Trump.

The pace at which countries are moving away from the dollar in their reserves has begun to accelerate. Last year, countries divested from the dollar ten times faster than over the past two decades.

According to former White House economist Joe Sullivan, the dollar could face a growing challenge from BRICS countries, thanks to the bloc's growing size and influence over global trade.

The addition of Egypt, Ethiopia, and Saudi Arabia could give BRICS influence over 12% of all global trade, due to the Suez Canal.

Sullivan noted the bloc also has major sway in commodities markets. Saudi Arabia, Iran, and the United Arab Emirates are among the world's top exporters of fossil fuels. Brazil, China, and Russia, meanwhile, are major exporters of precious metals.

Saudi Arabia owns over $100 billion in US Treasury bonds, which has helped bring BRICS' total holdings in US Treasurys over $1 trillion, Sullivan said. During Q2 2023 to Q2 2024, China decreased its holdings from $849 billion to $775 billion, marking its lowest holdings since 2009.

In addition to China's significant divestment, other nations also reduced their Treasuries holdings in smaller amounts during the last quarter. India sold $1.4 billion, Brazil unloaded $1.2 billion, and Saudi Arabia shed $0.3 billion.

The release of this data coincides with Russia's Foreign Minister Sergei Lavrov's announcement that Russia and China have substantially reduced their reliance on the dollar in mutual trade. Lavrov stated that over 90% of settlements between the two countries are now conducted in their national currencies, despite efforts by Western countries to impede this progress.

Thirty-four countries have submitted an expression of interest in joining the bloc of major emerging economies, South African Foreign Minister Naledi Pandor told reporters, without naming the nations.

The growing membership is widely viewed as a win for China and Russia, which have sought to reshape an international system they see as unfairly dominated by the United States amid growing frictions with Washington and the West.

[RT]

Is Azerbaijani oil delivery through Turkey to Israel likely to continue?

Mr. Erdogan's policies are often duplicitous. He says one thing, but does another. When South Africa first started proceedings at the International Court of Justice, he announced Turkey would, too. Actually, Turkey did nothing. Likewise, Mr. Erdogan's effusive criticism of Israel did not stop Israeli trade with Turkey. Recently, however, he announced a list of products Turkey would no longer sell to Israel. Then, on 2 May 2024 came the announcement that all Turkish trade with Israel was banned.

However, it is not clear when an official government decree announcing a cessation of trade will appear. Also, the news announcement had a big omission. No mention was made of whether the oil transit trade through Turkey between Azerbaijan and Israel would be covered. Was this considered a bilateral Azerbaijani-Israeli matter or was it considered a trilateral Azerbaijani-Israeli-Turkish matter?

Although Turkey collects transit fees and port usage fees, Turkey neither produces the oil, nor consumes it. Whether transit fees make the oil a partially Turkish product is a matter for the courts to decide, and stopping the oil flow would generate many court cases.

[RT]