http://market-ticker.org/akcs-www?post=219302
http://www.youtube.com/watch?v=2IcVd5tgau8&feature=youtu.be
and.....
http://truthingold.blogspot.com/2013/03/are-brics-dropping-one-through-united.html
The reason why the above quote is important to this post is that it underlies a "tectonic" shift in the global financial landscape going on that is not really being reported by the U.S. media. The BRICS countries (Brazil, Russia, India, China, South Africa) LINK met for a summit in South Africa today. They kicked off the summit by pre-announcing two significant events: 1) a work-in-progress to establish a new development bank that would rival the World Bank/IMF; 2) Significantly, they signed a trade and currency deal in which the BRICS will conduct trade amongst themselves in their own respective currencies, altogether bypassing use of the U.S. dollar: LINK
While both events are significant, the latter is another nail in the dollar's coffin. I wrote about this power shift taking place in an article published by Seeking Alpha: BRICS Game-Changer
While an agreement which would establish the new development could not be formed, the BRICS did establish a $100 billion fund designed to address any financial crises that might occur in developing economies: LINK
I thought it was interesting that while Bloomberg News reported the inability to establish the new bank as a "failure," if you read that last link from an Indian newspaper, it would actually appear that the $100 billion fund that was established is a pre-cursor to eventually getting a new development bank formed in order to by-pass the U.S.-controlled World Bank and IMF.
The writing is on the wall for everyone to see: at some point within the next 3-5 years, most likely, China is going to assert its economic power by rolling out some kind of gold-backed currency that will be used to replace the dollar as the global trade reserve currency. They have been slowly chipping away at the dollar over the last several years, although no one in the west is paying attention. At some point I expect that the new gold-backed currency will also involve a significant upward revaluation of the price of gold. And that will be a game-changer for everyone, especially for those have gold in their possession and, even more so, for those who don't.
As friends and colleagues of mine know, the views I have taken on over the the last 10 years with regard to the U.S. economy, political/banking corruption, housing and precious metals have been accurate (not views unique to me, of course). In terms of my view on an eventual new currency/gold revaluation, I am 100% confident.
http://www.aljazeera.com/news/africa/2013/03/20133268641350653.html
and.....
http://www.bloomberg.com/news/2013-03-25/brics-nations-plan-new-bank-to-bypass-world-bank-imf.html
http://www.youtube.com/watch?v=2IcVd5tgau8&feature=youtu.be
and.....
http://truthingold.blogspot.com/2013/03/are-brics-dropping-one-through-united.html
WEDNESDAY, MARCH 27, 2013
Are The BRICS Tossing One Through The United States' Window?
Clearly we should take notice. If central banks are preparing for a major change in the value of the dollar, shouldn't we? The fact remains that the US dollar cannot and will not survive the ongoing abuse heaped upon it by government planners and federal officials. That not only means the gold price will rise, but that many, if not most currencies, will lose a significant amount of purchasing power. - Jeff Clark, Casey Research - in reference to that fact that eastern hemisphere Central Banks are loading up on gold and Bloomberg News is erroneously reporting China's involvement.If you are at all curious about what is going on globally in terms of gold, the article which is the source of the above quote is a must-read: LINK.
The reason why the above quote is important to this post is that it underlies a "tectonic" shift in the global financial landscape going on that is not really being reported by the U.S. media. The BRICS countries (Brazil, Russia, India, China, South Africa) LINK met for a summit in South Africa today. They kicked off the summit by pre-announcing two significant events: 1) a work-in-progress to establish a new development bank that would rival the World Bank/IMF; 2) Significantly, they signed a trade and currency deal in which the BRICS will conduct trade amongst themselves in their own respective currencies, altogether bypassing use of the U.S. dollar: LINK
While both events are significant, the latter is another nail in the dollar's coffin. I wrote about this power shift taking place in an article published by Seeking Alpha: BRICS Game-Changer
While an agreement which would establish the new development could not be formed, the BRICS did establish a $100 billion fund designed to address any financial crises that might occur in developing economies: LINK
I thought it was interesting that while Bloomberg News reported the inability to establish the new bank as a "failure," if you read that last link from an Indian newspaper, it would actually appear that the $100 billion fund that was established is a pre-cursor to eventually getting a new development bank formed in order to by-pass the U.S.-controlled World Bank and IMF.
The writing is on the wall for everyone to see: at some point within the next 3-5 years, most likely, China is going to assert its economic power by rolling out some kind of gold-backed currency that will be used to replace the dollar as the global trade reserve currency. They have been slowly chipping away at the dollar over the last several years, although no one in the west is paying attention. At some point I expect that the new gold-backed currency will also involve a significant upward revaluation of the price of gold. And that will be a game-changer for everyone, especially for those have gold in their possession and, even more so, for those who don't.
As friends and colleagues of mine know, the views I have taken on over the the last 10 years with regard to the U.S. economy, political/banking corruption, housing and precious metals have been accurate (not views unique to me, of course). In terms of my view on an eventual new currency/gold revaluation, I am 100% confident.
http://www.aljazeera.com/news/africa/2013/03/20133268641350653.html
BRICS reach deal over development bank | |
Deal by emerging nations meeting in South Africa one of several moves to challenge Western-backed monetary institutions.
Last Modified: 26 Mar 2013 21:06
     | |
| The BRICS grouping of emerging powers have reached a deal to establish a development bank that would rival Western-backed institutions. "It's done," South African Finance Minister Pravin Gordhan said after meeting with his counterparts from Brazil, Russia, India and China. "We made very good progress, the leaders will announce the details," he added, just hours before the opening of a BRICS summit in the South African port city of Durban on Tuesday. But Russian Finance Minister Anton Siluanov said that the group's ministers were unable to agree on some of the details of the project. "A decision on the location of the bank and funding still needs to be made," he told reporters in Durban, adding that further steps would be required before the BRICS development bank could be created.
But members say institutions such as the World Bank, the International Monetary Fund and the UN Security Council are not changing fast enough to reflect their new-found clout. Disputes remain over what the new bank will do, with all sides trying to mould the institution to their own foreign or domestic policy goals, and with each looking for assurances of an equitable return on their initial investment of about $10bn. China and Brazil also signed an agreement at Tuesday's meeting to do billions of dollars of trade in their local currencies, as the BRICS nations work to lessen their dependence on the US dollar and euro. Finance ministers Lou Jiwei of China and Guido Mantega of Brazil signed the deal, amid the continuing euro crisis and little signs of growth in the West. 'Positive headway' Xi Jinping, who has underscored the growing importance of the group by making Durban his first summit as China's president, had earlier expressed hopes for "positive headway" in establishing the bank. South African President Jacob Zuma has lauded the summit as a means of addressing his country's chronic economic problems, including high unemployment. "BRICS provides an opportunity for South Africa to promote its competitiveness," Zuma said in a speech on the eve of the summit. "It is an opportunity to move further in our drive to promote economic growth and confront the challenge of poverty, inequality and unemployment that afflicts our country." In a keynote speech in Tanzania on Monday, Xi pledged Beijing's "sincere friendship" with the continent, and a relationship that respects Africa's "dignity and independence". If initiatives such as the bank succeed it would send a loud message to the US and European nations that the current global balance of power is unworkable. | |
and.....
http://www.bloomberg.com/news/2013-03-25/brics-nations-plan-new-bank-to-bypass-world-bank-imf.html
BRICS Nations Plan New Bank to Bypass World Bank, IMF
By Mike Cohen & Ilya Arkhipov - Mar 26, 2013 9:36 AM ET
Tomohiro Ohsumi/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 starts today in the eastern South African city of Durban.
The biggest emerging markets are uniting to tackle under-development and currency volatility with plans to set up institutions that encroach on the roles of the World Bankand International Monetary Fund.
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. Photographer: Tomohiro Ohsumi/Bloomberg
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
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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. andEurope.
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 Minister Guido 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 Inflows
Goldman Sachs Asset Management Chairman Jim O’Neillcoined 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 Pool
While 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.
Russia favors capping each side’s initial contribution at $10 billion, Mikhail Margelov, President Vladimir Putin’s envoy to Africa he said in a March 15 interview in Moscow.
“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 Leaders
Brazil’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.
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