BRICS establish $100bn bank to cut out Western dominance


B00Mer
#1
BRICS establish $100bn bank to cut out Western dominance



The emerging economies signed a long-anticipated document to create a $100 billion BRICS Development Bank. The institution will counter the influence of Western lending firms as well as the dollar.

The new bank will provide money for infrastructure and development projects in BRICS countries. Each country will send either their finance minister or Central Bank chair to the bank’s board.

Leaders from the five nations - Russia’s President Vladimir Putin, Brazil’s Dilma Rousseff, China’s Xi Jinping, India’s Narenda Modi, and South Africa’s Jacob Zuma, gathered in Brasilia, Brazil. The meeting is the first BRICS summit for India’s newly elected PM Modi, and the 6th overall.

Each BRICS member is expected to put an equal share into establishing the startup capital of $50 billion with a goal to reach $100 billion. The BRICS bank will be headquartered in Shanghai and India will serve as first chair.

The big launch of the BRICS bank is seen as a first step to break the dominance of the US dollar in global trade, as well as dollar-backed institutions such as the International Monetary Fund (IMF) and the World Bank, both US-based institutions BRICS countries have little influence within.

Membership may not just be limited to just BRICS nations, either. Future members could include countries in other emerging markets blocs, such as Mexico, Indonesia, or Argentina, once it sorts out its debt burden.

The group has already created the BRICS Stock Alliance an initiative to cross list derivatives to smooth the path for international investors interested in emerging markets.

BRICS represents 42 percent of the world’s population and roughly 20 percent of the world’s economy based on GDP, and 30 percent of the world’s GDP based on PPP, a more accurate reading of the real economy. Total trade between the countries is $6.14 trillion, or nearly 17 percent of the world’s total.

source: http://rt.com/business/173008-brics-bank-currency-pool/

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I wonder how that will effect the US and Canadian Dollar??

6th BRICS summit - Wikipedia, the free encyclopedia

The 6th BRICS summit will be the sixth annual diplomatic meeting of the BRICS, a grouping of major emerging economies that includes Brazil, Russia, India, China and South Africa.

Iran and many countries wanted to end OIL being traded in US currency.. it'll kill the US economy..

Russia, China sign deal to bypass U.S. dollar | Al Jazeera America
 
BaalsTears
#2
When the dollar loses its status as the world's reserve currency it is going to be really traumatic for the Americans...and the Canadians too.
 
captain morgan
#3
It will be traumatic for anyone that trades in the global markets. But until someone (country) comes forward with enough physical cash and capacity to convince the globe to switch to that as the main global currency, well, the greenback is the only game in town

That in turn will affect the developing nations that have a degree of dependency on those trading nations.
 
darkbeaver
#4
There's a long list of countries dumping the US dollar including France who today announced their intentions.
You should buy some Capt'n

Quote: Originally Posted by BaalsTears View Post

When the dollar loses its status as the world's reserve currency it is going to be really traumatic for the Americans...and the Canadians too.

I am converting all mine into booze and pot before the dollar bottoms.
 
Tonington
#5
Quote: Originally Posted by darkbeaver View Post

I am converting all mine into booze and pot before the dollar bottoms.

It would be sad for someone to destroy their life savings, but based on the commodities you're interested in, I think the posts that follow would be hilarious. I think maybe you should diversify your stas- I mean portfolio.
 
captain morgan
#6
Quote: Originally Posted by darkbeaver View Post

There's a long list of countries dumping the US dollar including France who today announced their intentions.
You should buy some Capt'n

It's all relative me bucko... But quoting the actions of the French whilst they are in a pouty mood is hardly compelling evidence of anything.
 
darkbeaver
#7
Quote: Originally Posted by Tonington View Post

It would be sad for someone to destroy their life savings, but based on the commodities you're interested in, I think the posts that follow would be hilarious. I think maybe you should diversify your stas- I mean portfolio.

My life savings are in solid matter, stone in a quarry that will eventually build my pyramid. The cash element of my estate has been minimized long ago to reflect the unreal condition of financial hedges. You won't survive long with your pockets full of paper. Never the less stash is warmer to me than paper portfolio's stuffed with promises of food and drink and firewood.

Quote: Originally Posted by captain morgan View Post

It's all relative me bucko... But quoting the actions of the French whilst they are in a pouty mood is hardly compelling evidence of anything.

The list I presented is short, however there are about 180 others stampeding slowly away from ground zero dollar. I hadn't taken you as a religious man, your faith is compelling. Let us know when you get that boulder to the top of your hill. good eve sir
 
BaalsTears
+2
#8  Top Rated Post
The US is devaluing the dollar holdings of other countries. It's not surprising that other countries are attempting to protect themselves by preventing the US from playing games with the dollar.
 
bill barilko
#9
Quote: Originally Posted by darkbeaver View Post

I am converting all mine into booze and pot before the dollar bottoms.

I'm So There!

Last count I had $24 US- that should buy me a decent bottle of goof.

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

The Beginning of the End for the $US was when China & Japan decided to make their respective currencies fully convertible thus cutting the yanqui greenback out of the middle altogether.

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

That all being said I doubt the ability of those brick headed countries to do little more than huff & puff & preen.

I remember when some South American countries decided to do something similar but with virtual currency called the Sucre and to date they have traded exactly two truckloads of vegetable oil.

http://www.laht.com/article.asp?Arti...tegoryId=14089
Last edited by bill barilko; Jul 15th, 2014 at 11:49 PM..
 
captain morgan
+1
#10
Quote: Originally Posted by darkbeaver View Post

The list I presented is short, however there are about 180 others stampeding slowly away from ground zero dollar. I hadn't taken you as a religious man, your faith is compelling. Let us know when you get that boulder to the top of your hill. good eve sir

Balls Tears hit the nail on the head... The US is doing the smart thing and paying down their debt with cheap dollars.

When the time comes, they will reign-in their currency float and they will be on top again.

... In the meantime, there is opportunity for even small fish like me to generate some advantage in this strategy, but understanding that the greenback will not ever be worthless (in my lifetime at least) means that you have a natural hedge.

Anywho, back to your preoccupation with France.. Are you aware that Hollande instituted a marginal tax rate of 75% on all income over 1 million Euros?... I would strongly recommend that you engage a program of disposition(s) of any/all French assets you may have... This circumstance in addition to their threat of dropping the greenback will surely vault them into the category of third world nation in need of the IMF's surgical assiatance