In economics, BRIC is a grouping acronym that refers to the countries of Brazil, Russia, India and China, which are all deemed to be at a similar stage of newly advanced economic development. It is typically rendered as "the BRICs" or "the BRIC countries" or "the BRIC economies" or alternatively as the "Big Four".
The acronym was coined by Jim O'Neill in a 2001 paper entitled "Building Better Global Economic BRICs". The acronym has come into widespread use as a symbol of the shift in global economic power away from the developed G7 economies towards the developing world. It is estimated that BRIC economies will overtake G7 economies by 2027.
According to a paper published in 2005, Mexico and South Korea were the only other countries comparable to the BRICs, but their economies were excluded initially because they were considered already more developed, as they were already members of the OECD.
The same creator of the term "BRICS" coined the term MIKT, that includes Mexico and (South) Korea.
Several of the more developed of the N-11 countries, in particular Turkey, Mexico, Indonesia and Nigeria, are seen as the most likely contenders to the BRICs. Some other developing countries that have not yet reached the N-11 economic level, such as South Africa, aspire to BRIC status.
Economists at the Reuters 2011 Investment Outlook Summit, held on 6–7 December 2010, dismissed the notion of South Africa joining BRIC.
Jim O'Neill told the summit that he was constantly being lobbied about BRIC status by various countries. He said that South Africa, at a population of under 50 million people, was just too small an economy to join the BRIC ranks.
However, after the BRIC countries formed a political organization among themselves, they later expanded to include South Africa, becoming the BRICS.
Goldman Sachs has argued that, since the four BRIC countries are developing rapidly, by 2050 their combined economies could eclipse the combined economies of the current richest countries of the world. These four countries, combined, currently account for more than a quarter of the world's land area and more than 40% of the world's population.
Goldman Sachs did not argue that the BRICs would organize themselves into an economic bloc, or a formal trading association, as theEuropean Union has done.
However, there are some indications that the "four BRIC countries have been seeking to form a 'political club' or 'alliance'", and thereby converting "their growing economic power into greater geopolitical clout".
On June 16, 2009, the leaders of the BRIC countries held their first summit in Yekaterinburg, and issued a declaration calling for the establishment of an equitable, democratic and multipolar world order. Since then they have met in Brasília in 2010, met in Sanya in 2011 and in New Delhi, India in 2012.
In recent years, the BRICs have received increasing scholarly attention. Brazilian political economist Marcos Troyjo and French investment banker Christian Déséglise founded the BRIC Lab at Columbia University, a Forum examining the strategic, political and economic consequences of the rise of BRIC countries, especially by analyzing their projects for power, prosperity and prestige through graduate courses, special sessions with guest speakers, Executive Education programs, and annual conferences for policymakers, business and academic leaders, and students. MORE
Bye Bye Banksters – Hello BRIC - by Preston James
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There’s a New kid on the block and his name is BRIC. Not Rick, but BRIC (1).
Yes, it looks like it could be a permanent good-bye to the City of London Bankster’s worldwide web-of-debt, a system using the hijacked US Petro Dollar as the world’s exchange medium.
The demise of this system has been long predicted and BRIC is just one of many new trade systems now arising all over the world which directly oppose it.
And despite all the Banksters hard core corrective actions to hang on to what they acquired through many years of covert warfare against America and many of the people of the world through their worldwide web-of-debt, their evil rule is being eroded by the day and their system is being replaced one brick at a time (pun intended).
- What exactly is the US Petro Dollar and how did it emerge as the World’s Reserve Currency? HERE
- YouTube - Veterans Today – The US Petro Dollar has been the World’s Exchange Currency, in essence a money-monopoly for the City of London Banksters, but this appears to be rapidly changing. HERE
- YouTube - Veterans Today –Is there a major global power shift occurring now based on new economic alliances? HERE
It now appears that the US Military and American Intel have been hijacked by the City of London Banksters and deployed as an enforcer (2) all around the world to protect the Banksters’ illegal narcotics trade for a cut, and to protect the US Petro Dollar which is actually the building block of the City Of London’s worldwide web-of-debt Bankster system.
It certainly looks like the US Military and American Intel were deployed to Iraq and then Afghanistan as an enforcement arm of the City of London Banksters because both countries expressed intentions to dump the US Petro Dollar as a basis for oil sales. As incredulous this seems at first consideration, that is what actually appears to have happened.
Al Cia Duh and US mercenaries (special operators/privateers) were allegedly deployed to Libya because Gaddafi was planning on setting up a new African monetary system based on precious metals.
These forces have allegedly now been deployed in Syria and numerous African nations in additional illegal wars of aggression which have not been declared, are not Constitutional and appear to be blatant war crimes and crimes against humanity. And certainly Iran has been in the sights of the City of London banksters and their cutouts in the USG and Israeli Government.
But even these drastic enforcement actions that have spilled a lot of American blood and the blood of civilian non-combatants too, has not been enough to sustain the City of London web-of-debt system. And the obvious reason is that this system was designed by the “string pullers”, the Third Force (3) to run out of control and self-destruct as it reached it apex. This web-of-debt system was designed as a means to force a rearrangement of the pieces on the geopolitical chessboard as the “system of greed” ran out to its mathematical/Ponzi limits.
Obviously the USG greatly fears the American Veteran, especially the returning vets and has instituted covert means using the VA to take their gun rights. This gross disrespect of the American Soldiers who have loyally served their country is actually a very stupid move which could create huge blowback in the long run and is just another example of the obviously faulty thinking of those who run the USG. Making seasoned Vets accross America furious at their Government is a very stupid and extremely short-sighted move.
Most USG cutouts for the City of London banksters probably do not understand they are being used as disposable cutouts.
And it is likely that the stateside cutouts deploying this system of the US Petro Dollar on behalf of the City of London Banksters had no idea they were taking their nation into the world’s biggest financial trap designed to destroy America and take down most of the world with it.
And the final goal of all this planned destruction?
Apparently the reason was taken right out of the “order ab chaos” rulebook, to create world wide financial destruction (chaos) from which the Phoenix of a NWO Globalist monetary system could arise without America or the City of London Banksters dominating it.
Yes, cutouts are always used up and tossed on the trash heap of history and the usually never see it coming.
Despite all the emergency actions, the Tarps, the Quantitative Easings, the Band-Aids, the Petro Dollar system of the City of London Banksters is crashing. Once Humpty Dumpty falls he could break into so many pieces he cannot be put together again.
The Banksters have bailed themselves out numerous times, starting with the Tarp actions and then continuing to the now monthly Quantitative Easings.
And it appears that little of this money has gone to the American taxpayer who is expected to repay it (money for nothing) but instead went to the major banks (many offshore based) to pad them for major losses expected to come from a collapse of the derivatives bubble.
Perhaps it’s time for Americans to wake up and take back their monetary production and distribution system and set up fair trade instead of free trade and start restricting the unchecked power of the offshore corporate network that has been asset stripping American for years. Drastic actions like this are required to stop this downward spiral which has set upon America as the web-of-debt Petro Dollar system appears to be imploding.
The Banksters have been going for broke at the expense of the American Economy and the welfare of American military and its Soldiers who should be protected from these Bankster wars of acquisition.
The Banksters have been going for broke at the American taxpayer’s expense and in the process have nearly destroyed the American economy, created massive unemployment and grossly misused the American military to defend the US Petro dollar.
They have waged illegal, unprovoked, pre-emptive, unconstitutional wars against Iraq, Afghanistan, Syria and numerous Africa nations using regular military, special ops and a large percentage of private mercenary “operators” as well as “al CIA Duh” who have at times fired upon and killed American soldiers (can you say “Treason” applies to those American officials ordering and arranging such staged terror and sniping).
Certainly it is reasonable to wonder who has been pulling the strings of the USG and sent it down this treacherous course which has deeply undermined the financial strength and independence of America. And it is no coincidence the controlled American major mass media
(three of which are owned by large International defense contractors and the remaining three are run by “members of the power control group” that runs America).
Certainly those in the USG that are deploying troops in these wars and ordering the associated drone strikes against innocent civilians have committed serious war crimes and crimes against humanity. The Nuremberg Trials demonstrated that these acts are clearly criminal and anti-human.
So it appears that the London Banksters US Petro dollar and Usury based web-of-debt is in the process of collapsing like the house of cards that it has truly become.
The Decline of the US Petro Dollar seems to be accompanying the Death Throes of World Zionism.
As Gordon Duff described in an Article, “Zionism Going Through Death Throes” (4), it appears that World Zionism has begun its final descent as a pugilistic/acquisition ideology of conquest which has facilitated major aggression all over the world, especially in the Mideast and Palestine.
- Has World Zionism been used as the main “police state” ideology used to enforce the US Petro Dollar through fomenting aggression and war all over the world as it was in Bolshevik and Communist Russia?
- What entity has been the power base which has empowered this ideology or World Zionism and set up Israel to serve as its guard dog in the Mideast anyhow?
Yes, it all seems to go back to the City of London Banksters who themselves have been the main cutouts for the Third Force.
And now it has been suggested that the seizure of a significant and growing portion of bank balances in Cyprus will become the new norm in World Banking.
Stephen Lendmen has described this apparent new Bankster correction as the new normal and calls it “Depositor Haircuts” (5).
The Emergence of BRIC appears to signal the eventual demise of the US Petro Dollar and the City of London Bankster System.
Soon everyone will understand who BRIC is, but they may not understand why his sudden rise is being accompanied by a rapid descent and demise of the western Bankster’s System run out of the City of London Financial District.
What BRIC seems to means in real terms is that there is a coming demise of the US Petro Dollar system which has been the reserve currency of the world since the Bretton Woods Agreement and has become the main tool of world control by the City of London Banksters.
And BRIC is likely to be only be the first of many new trading blocks to emerge with their own units of exchange and they won’t be based on the US Petro dollar anymore.Now it has been reported that China and Saudi Arabia are teaming up to build a giant oil refinery (6).
In 2005, Iran announced it would build its own oil bourse which would not be based on US Petro Dollars and its first phase opened in 2008 (7).
The City of London World Banksters have always been Cutouts for the Third Force.
There is a powerful Third Force that has been covertly managing world affairs behind the scenes for many generations and this force is now making another big move to re-arrange the geopolitical forces that have controlled the world since the New Deal, when the British Banksters went covert used America became their engine of world dominance and war-making power through the US Petro Dollar.
It seems as if the Third Force and its NWO “old black nobility” Globalist minions in Europe have decided to cut-loose their main Cutouts the City of London Banksters and their American cutouts by taking down the US Petro Dollar and while building up China and other BRIC nations to be their newest primary Cutouts. This appears to have been a long term Third Force strategy which was sold to the American leaders as the argument that Free Trade would make the American economy strong and secure.
Free Trade with its Nafta and Cafta was just another big lie accepted and promoted by the dupes and cutouts within the USG. It certainly appears that at Bretton Woods, America unknowingly walked into a covert system of debt-slavery based on the US Petro Dollar which when would assure the destruction of America when it reached its apex or saturation point. What goes up must eventually come down, and long term there is no free lunch.
And hard to believe but true, the USG paid for many large corporations to export their factories off shore and become wealthy multinational corporations with no allegiance to Americans at all anymore. That’s like buying one’s own rope for his own hanging, as Stalin used to say the West would do.
Fair trade could have worked had tariffs been assessed and managed properly, but the passage of Nafta, Cafta, Gatt, and WTO appear to have created a fatal wound to the US economy.
During WW2 America was mobilized by the Banksters to crush Nazi Germany.
During WW2, America was mobilized by the Banksters with Russia to crush Germany, after Germany was manipulated into attacking Russia. Both America and Russia were sleeping giants, but especially America.
When America became fully awakened and industrialized as the foremost war machine that it was during WW2, it was utilized by the City of London Banksters as an economic engine to entrap the whole world in a web-of-debt and commerce based on the US Petro dollar.Is America is now being Transformed into the New Nazi Germany to be crushed by the newly awakening giant China and Russia, which has been “playing possum”?
Now, under the covert direction of the Third Force and probably unbeknownst to almost all of the Banksters, America is being transformed into the New Nazi Germany and China and Russia are being built up to wage war against it and destroy it.
This warfare may be economic, military or both. That is the likely reason we see the Nazi type laws such as Patriot Acts, NDAA 2013 and such RICO criminal organizations like Homeland Security (the New American Gestapo) and Northcom being constructed. And of course the recent maximum efforts of the DC politicians to disarm Americans has been taken directly out of the Nazi playbook.
The cover story for this clear Nazification of America is certainly the claim that it will be necessary to maintain social order as the standard of living subsides under Agenda 21 and other globalist agendas that American politicians have been manipulated into supporting. The real reason is that the American politician cutouts and the British Banksters are scared to death that the populace will become so angry at the declining economy that they will revolt. And of course their draconian measures to Nazify have created far more resistance and awakening of the American Spirit than would otherwise have occurred.
After Brettons Woods in 1944, and WW2, America became the main engine of power, war making, commerce and world finance for the British Banksters. And it has gone on to engage in perpetual unprovoked and now pre-emptive wars, and served to envelope much of the world in a web of debt on behalf of the City of London Banksters, who are the true but well hidden worldwide web-of-debt creditors.
Now as America has just about completed its transformation into the world’s greatest enemy, a terrorist and aggressor nation with a recent history or numerous war crimes including pre-emptive war on a non-aggressor, mass murder of innocent civilians including use of drone strikes, one certainly wonders how this could have happened and what is the source of this sick, degenerate evil policy.
The answer lies in history and involves and inter-generational force, some call the Third Force.
The British Empire has been an extension of the old Roman EmpireEngland evolved to become a naval based world empire rivaling Imperial Rome and was really an extension of Rome. As its power waned due to its Colonies desiring freedom and independence, the British powers that be centered in the City of London (Financial/Banking District) devised a very crafty scheme to institute a covert worldwide network of inter-related central banking structures that would comprise a covert world empire.
In a sense then the Sun would never set on the British Empire at all even though they would lose many of their colonies, but most common folks would never realize it while they would become debt-slaves to this new worldwide system, a true web-of-debt.
The British monarchy and Banking system was hijacked by the Rothschilds, very crafty bankers (moneychangers/lenders of Kings) with deep alleged occult ties.
The City of London Banksters have allegedly been running a huge International Crime Syndicate using Zionism as an Operational Ideology to con its top cutouts.
This Banking System which evolved under the Rothchilds’ direction has been reputed to have been based on the “Teutonic Zionism” that is, German Zionism and it has evolved into the world’s largest crime syndicate allegedly based on the massive trafficking of illegal narcotics and weapons, and the deployment of pedophile human compromise honey trap operations as well as massive human sex trafficking operations. It is a system alleged to have occult, luciferian, death-cult roots and those who have left it and talked about it to friends have remarked how deeply evil and perverted it is.
This British banking System evolved into what is now called by many, an International Crime Syndicate run out of the City of London Financial District, is referred to as the Banksters, and has been considered a plague of the human race since its origin after the demise of Napoleon in 1815.
It has been characterized by massive drug and weapons trafficking, hijacking of the monetary production and distribution systems, creation of a worldwide web-of-debt by deployment of “Babylonian Money Magick” and systemic bribing of almost all politicians and officials. It is considered to be responsible for almost all major wars and international geopolitical conflicts and specializes in the highly sophisticated use of cutouts to maintain its deniability.
The Banksters accrued all their wealth and massive world power through the usury and fiat currency trickery known As Babylonian Money-Magick
Most VT readers are well informed and understand that Western central Banking has all been organized and tied together as the illegitimate stepchild of the City of London Banksters and that it is all based on the secret Babylonian Art of Fiat-Usury, making money from nothing, lending it to a captive nation and accruing huge profits to bring a nation and world into debt-slavery.
When you can print or issue all the money you need and want, it’s fairly easy to buy up and gain control over almost all the government officials and politicians. This is exactly what has been done in America and only a few Congress Folks are not owned or controlled by the Bankster’s money power, a true monopoly.
The amount of money funneled by PACS and K Street lobbyists is incredible and along with revolving door top corporate jobs offered to congress-critters, few are able to function independently to serve their constituents who elected them. And if this wasn’t enough there are experts who have come forth and stated that between 35-70% of all USG officials and politicians have been compromised in sexual honey traps, many of them pedophile based (8).The operational ideology of the City of London Banksters appears to be Teutonic ZionismSince many Jews are Not Banksters and want nothing to do with Zionist Babylonian Talmudists, one must be careful not to blame any single individual who is of the Jewish faith for the evil perpetrated by the City of London Banksters and their cutouts. If you want to place blame project it on those actual individuals, groups and PACS who are known and can be shown to be working directly against the interests of America.
Zionists have hijacked America by use of NeoCons, dual citizens and NGO organizations which also appear to be cutouts of the City of London Banksters, and these include Israeli lobbying groups and intel front groups.
A fair number of those Zionists deeply involved in the hijacking of America for their own un-American interests which just happen to coincide with the Banksters, appear to be NeoCons and the American/Israeli dual citizens, as well as some hate groups which serve as their intel operatives which are themselves guilty of almost everything they accuse others of.
These alleged groups are the ADL and the SPLC and the like including various Jewish lobbying groups like AIPAC.
Sadly almost all American politicians and officials are owned by the Banksters and controlled by their Zionist or NeoCon cutouts, so they are quite easily manipulated into deploying American Soldiers into others people’s wars such as the various illegal Mideast wars including Iraq and Afghanistan.
Usury is a grave evil and leads to complete debt-slavery and asset stripping of the common man.
This Babylonian Money Magic of the Banksters and its associated usury (money from nothing) has been regarded by some astute researchers as the greatest trick in history.
And as many realize, usury is strictly forbidden in the Islamic Faith and used to be highly condemned in the Catholic Faith as one of the greatest sins.
Uncontrolled, unbridled usury creates an insurmountable web-of-debt and debt slaves whose assets have been stripped and robbed by the Banksters who hold the paper. All the massive debt the USG and other governments in the Banksters web-of-debt are of course imaginary and must be cancelled immediately.
It is absolute complete fraud to create money from nothing and lend it to the people at interest who are supposed to own in themselves in the first place.
True world power remains in the hands of the Third Force, and this entity has apparently decided it’s time to rearrange the pieces on the World Chess Board.
Yes, the best evidence suggests that the City of London Banksters and most of those in their worldwide network have been Zionists with a fairly large portion of their cutouts, especially in America, serve as the cutouts of those who sit at the nexus of world power, the folks directly controlled by the Third Force.
Some experts refer to these folks as “Old Black Nobility”.And now it appears that the Third Force has decided to re-arrange the pieces on the chess board.
The City of London Banksters were selected to serve as cutouts by the Third Force who allegedly sit at the top of the “pyramid of world power and control” which is alleged to have been located in Europe and considered by many experts to be the “old Black Nobility”, or the folks with roots going all the way back to Venice, Rome and ancient Babylonia. These folks specialize in remaining hidden in the background and operate through well selected cutouts whom they reward richly for doing their dirty work.
The Third Force prefers Totalitarianism and has viewed America as a temporary “bump in the road” to their planned NWO Globalism which will not include the World Banksters who are cutouts just about used up and ready to be thrown on the trash-heap of history.The Third Force loves to install dictators and fascist or other types of totalitarian regimes in power because they exercise complete control over the populace in most cases and make it much easier to implement their grand geopolitical games of the world’s chess board.
These grand games are designed to industrialize the world and elicit the highest levels of technological development necessary which is required for their overall goal which is to create an all knowing, omniscient, all-controlling big-brother surveillance world system.The Succesful establishment of a Total Surveillance Society is dependent on selling the people on the convenience of self-administered high tech spy gear without their realization is is mostly about spying on them.The Third force has been well aware that in order to fully implement a total surveillance society based on direct subject interface spying mechanisms, the public would have to accept such devices as necessary communication conveniences. And so far this is what has happened, the public has been willing to carry direct access, real time surveillance devices on or near their person in exchange for communication effectiveness and numerous conveniences not otherwise possible.The Third Force appears to be inter-generational, spanning hundreds of years and carries no loyalties. When it is done with a country or a set of cutouts, it tosses them on the junk pile of history.
- This is the fate awaiting all cutouts of the City of London Banksters as well as their whole worldwide web-of-debt system.
- And unless reversed it looks like the American economy will be completely trashed in the process.
- It Is Not Too Late To Stop the Nazification of America and the Planned Destruction of America
It will however require a real awakening and a strong re-emergence of the American Spirit, the same Spirit that led to the revolutionary War and the successful independence of the Colonies from King George and England. Numerous attempts were made by the British to take America back and it was only successful by hijacking America’s monetary production and distribution system in 1913-14.
In order to prevent the complete collapse of America and its demise as a nation state, Americans must wake up and take back their own monetary production and distribution system.
This is what JFK did on June 4, 1963 when he signed Executive Order 11110 and started printing greenbacks or real US Dollars not bank-notes (loans) which would have to be repaid.These US greenbacks were different than the debt-based fiat type Federal Reserve notes which when issued and used, Americans were in essence actually borrowing money from themselves but paying interest to someone else, the City of London Banksters in dress of the Federal Reserve private bank.
Although the US Petro Dollar has been remarkably resistant over decades, it certainly appears that it’s only a matter of time and it will continue to erode and finally fail, despite the herculean efforts to maintain it at the world’s reserve currency.There are alternative views on the resiliency of the US Petro Dollar. Some believe that it is remarkably insensitive to excessive issuing of US dollars (9).The US Petro Dollar is going down and any reasonable person who examines the evidence can see the handwriting is on the wall. It’s only a matter of time. America’s war machine cannot hold off the rest of the world forever. And there is always the possibility of a nuclear war comprised of a limited exchange or an all-out doomsday revenge marathon.And if our Congress folks who has so far betrayed their constituents and violated the US Constitution and Bill of Rights in spades by passing the Patriot Act and NDAA 2013, do not wake up and start turning this around America will fall and will cease to exist as a nation state.It is likely that numerous American Wall Street Bankers have figured out the US Petro Dollar is now doomed and have decided to take as many large bonuses as possible in order to re-establish themselves in another country with a new currency. This strategy may or may not work depending on whether or not they are viewed as having committed crimes against humanity by their alleged acts of extreme financial fraud and theft from the American taxpayer.
And nobody knows for sure which currencies will survive if any when the Petro Dollar crashes and takes the Euro with kit.Some have reported that Iran is attempting to set up an oil bourse based on the Euro as the new Oil currency (10).In 2003, Iran started accepting Euros from European and Asian customers and is allegedly planning on expanding it oil trade in Euros only.Some experts believe that Germany is the only European country that will survive and come out in a strong economic position if the Euro fails which seems fairly likely at this point in time.
And of course it is known that Saddam Hussein switched his oil sales from dollars to euros in 2000.
It is fairly easy to connect the dots and see that US Military might has been deployed in hard core attempts to save the US Petro Dollar and in the meantime has severely depleted the US economy, led to high unemployment realistically estimated at 24%, and continued daily dispensed lies and propaganda by the American Major Mass media about the true issues related to the failing US Petro Dollar.At this time it is unknown if the Third Force will save the Euro and establish it as the new world Petro Dollar, or maintain it as a basket of several.It is always possible, although it doesn’t seem too likely, the Third Force could resurrect the Euro and protect it from demise, creating the European Union as the new center of the world instead of America. However, at this time the Euro seems to be quite unstable and also linked to the US Dollar.
And if a nuclear WW3 emerges in some form this could be a big game changer. It is also likely that the New BRIC union could gain in strength and China could become the next world economic engine like America used to be.The American Spirit is now awakening and rising all over America for the first time in many years.
The tough economy, extremely high unemployment and now the stark efforts of beltway politicians to gun-grab have certainly elicited a great resurgence of the American Spirit which has been in hibernation for many years.
The NWO Globalists have thought it was dead, but they are in for a big surprise.
The American Spirit is rising in strength everyday as many Americans have stopped listening to the Big Government Lies dispensed by the major mass media and instead are turning to the alternative media on the worldwide Internet for their news.
Once this dependence on the major mass media is completely broken (which won’t be long) the American Spirit will rise like an Eagle and Americans will take their country back from the Banksters that hijacked it in 1913-14.References:
(1) HERE (2) John Perkins, Confessions of An Economic Hitman, HERE (3) HERE (4) HERE (5) HERE (6) HERE (7) HERE (8) Joyce Riley Show, The Power Hour, GCN, with Det. James Rothstein (NYCPD ret.) and Robert Merrick (CI) HERE (9) HERE(10) William Clark, Petro Dollar Warfare, available at Amazon.com HERE
— with Urban Elementz Johnsonville
Monday, April 1, 2013
The U.S Dollar is quickly losing its status as the world reserve currency. Five of the top ten economies in the world, plus a few others, no longer use the dollar as an intermediary currency for trade. This trend poses a huge risk to the dollar and the United States along with it.
ZeroHedge points out today that Australia, the world's 12th-ranked economy, has now joined a growing list of nations that have agreed to bypass the dollar in bilateral trade with China. China, ranked 2nd behind the U.S., also has similar agreements with Japan (3rd), Brazil (6th), India (9th), and Russia (10th).
Although unilateral agreements have been in place for some time between China and the countries listed above, last week the BRICS (Brazil, Russia, India, China and South Africa) agreed to set up a development bank to compete with the IMF, indicating it's gearing up to compete in a post-dollar world.
Additionally, Brazil, who agreed in principle to drop the dollar with bilateral trade with China some time ago, just made it official with $30 billion in annual currency swaps which will facilitate around 50% of all trade between them.
Besides those agreements with China, some of these nations have made other similar agreements with each other. India and Japan began swapping $15 billion in each other's currency in 2011 to handle their bilateral trade. And the sanctions against Iran haven't stopped them from trading oil with China, Russia, and India in anything but the dollar.
Here's how the current reign of the US dollar compares to previous world reserve currency:It appears that the dollar is certainly nearing the end of its reign, which could lead to severe economic hardship for the United States.
Dave Hodges writes:The United States’ good economic fortune is due solely to the fact that world must use the dollar, the Petrodollar if you will, in order to make their nation’s individual oil purchases; this provides the only source of backing for the U.S. dollar that the Federal Reserve requires in order to somewhat sustain our back-breaking debt that the banker-occupied United States government has passed along to the American taxpayer in the form of bailouts.And Marin Katusa of Casey Research writes:If the US dollar loses its position as the global reserve currency, the consequences for America are dire. A major portion of the dollar's valuation stems from its lock on the oil industry – if that monopoly fades, so too will the value of the dollar. Such a major transition in global fiat currency relationships will bode well for some currencies and not so well for others, and the outcomes will be challenging to predict. But there is one outcome that we foresee with certainty: Gold will rise. Uncertainty around paper money always bodes well for gold, and these are uncertain days indeed.
America's imperialism, combined with its ultra-fiat status of unending debt creation, appears to have created a final downward spiral that has caused many of the top economies to abandon a sinking ship. It might not be too much longer before the rest follow suit. Now might be a great time to consider diversifying into other currencies, and even digital currencies, to mitigate growing losses in the U.S. dollar.
Mar 26, 2013 8:36 PM GMT+0700
BRICS Nations Plan New Bank to Bypass World Bank, IMF
By Mike Cohen & Ilya Arkhipov
The leaders of the so-called BRICS nations -- Brazil, Russia, India, China and South Africa -- are set to approve the establishment of a new development bank during an annual summit that starts today in the eastern South African city of Durban.
March 22 (Bloomberg) -- South African Trade Minister Rob Davies discusses the likelihood of starting a foreign-currency pool with Brazil, Russia, China and India, and the establishment of a BRICS Business Council. He spoke with Bloomberg's Mike Cohen in Cape Town. (Source: Bloomberg)
March 26 (Bloomberg) -- Stephen Roach, a senior fellow at Yale University and former non-executive chairman for Morgan Stanley in Asia, talks about Cyprus's bailout and the outlook for the European debt crisis. Roach also discusses Japan's central bank monetary policy, and China's new leadership and economic growth. He speaks from Beijing with Susan Li on Bloomberg Television's "First Up." (Source: Bloomberg)
While BRICS leaders may approve the creation of a development bank in principle at the summit, there’s still disagreement on how it should be funded and operated.
A security guard stands in front of a floral arrangement ahead of the BRICS Summit in Sanya, Hainan Province on April 12, 2011. The BRICS nations have combined foreign-currency reserves of $4.4 trillion and account for 43 percent of the world’s population. Photographer: Qilai Shen/Bloomberg
The leaders of the so-called BRICS nations -- Brazil, Russia,India, China and South Africa -- are set to approve the establishment of a new development bank during an annual summit that began today in the eastern South African city of Durban, officials from all five nations say. They will also discuss pooling foreign-currency reserves to ward off balance of payments or currency crises.
“The deepest rationale for the BRICS is almost certainly the creation of new Bretton Woods-type institutions that are inclined toward the developing world,” Martyn Davies, chief executive officer of Johannesburg-based Frontier Advisory, which provides research on emerging markets, said in a phone interview. “There’s a shift in power from the traditional to the emerging world. There is a lot of geo-political concern about this shift in the western world.”
The BRICS nations, which have combined foreign-currency reserves of $4.4 trillion and account for 43 percent of the world’s population, are seeking greater sway in global finance to match their rising economic power. They have called for an overhaul of management of the World Bank and IMF, which were created in Bretton Woods, New Hampshire, in 1944, and oppose the practice of their respective presidents being drawn from the U.S. and Europe.
Reform Needed“We need to change the way business is conducted in the international financial institutions,” South African International Relations Minister Maite Nkoana-Mashabane said in a March 15 speech in Johannesburg. “They need to be reformed.”
The U.S. has failed to ratify a 2010 agreement to give more sway to emerging markets at the IMF, while it secured Jim Yong Kim, an American, as head of the World Bank last year over candidates from Nigeria and Colombia.
Finance ministers and central bank governors from the BRICS nations, who met in Durban today, agreed to set up currency crisis fund of about $100 billion, Brazilian Finance MinisterGuido Mantega told reporters today. He didn’t give details of proposed funding for the new bank, which Brazil wants established by 2014. The nation’s leaders are due to sign a final accord tomorrow.
FDI InflowsGoldman Sachs Asset Management Chairman Jim O’Neill coined the BRIC term in 2001 to describe the four emerging powers he estimated would equal the U.S. in joint economic output by 2020. Brazil, Russia, India and China held their first summit four years ago and invited South Africa to join their ranks in December 2010.
Trade within the group surged to $282 billion last year from $27 billion in 2002 and may reach $500 billion by 2015, according to data from Brazil’s government. Foreign direct invesment into BRICS nations reached $263 billion last year, accounting for 20 percent of global FDI flows, up from 6 percent in 2000, the United Nations Conference on Trade and Development said on its website yesterday.
“If they announce a BRICS bank it will be quite something,” O’Neill said in an e-mailed reply to questions on March 15. “At a minimum it symbolizes they can achieve something as political group and means lots of other things could follow in the future. It also means that they will have their own kind of special World Bank, which may aid infrastructure and trade projects.”
Currency PoolWhile BRICS leaders may approve the creation of a development bank in principle at the summit, details on funding and operations may take longer to finalize.
“It will be some time before it will be feasible for this bank to start financing say, a railway project,” Simon Freemantle, an analyst at Standard Bank Group Ltd., Africa’s biggest lender, told reporters in Durban yesterday. “That is some way out.”
Interest rates near zero in the U.S., Japan and Europe have fueled foreign investors’ appetite for higher-yielding assets, driving up currencies from Brazil to Turkey. Brazil has warned of a global currency war as nations take reciprocal action to weaken their currencies and protect export industries.
African LeadersBrazil’s real has gained 1.9 percent against the dollar since the beginning of the year, while South Africa’s rand has dropped 8.7 percent in the period.
For South Africa, which makes up just 2.5 percent of total gross domestic product in BRICS, the summit is a way to showcase its role as an investment gateway to Africa. President Jacob Zuma has invited 15 African heads of state, including Egypt’s Mohamed Mursi and Ethiopia’s Hailemariam Desalegn, for talks with the BRICS leaders at the summit. For most of the BRICS leaders, it’s also the first opportunity to meet Chinese President Xi Jinping after his appointment on March 17.
“We will discuss ways to revive global growth and ensure macroeconomic stability, as well as mechanisms and measures to promote investment in infrastructure and sustainable development,” Indian Prime Minister Manmohan Singh said in a statement yesterday.