The game is afoot.....
BRICS Announce $100 Billion Reserve To Bypass Fed, Developed World Central Banks
Anti-Dollar Alliance Prepares Launch Of BRICS Bank
Submitted by Tyler Durden on 07/14/2014 22:58 -0400
Three months ago we discussed in detail the growing anti-dollar hegemony alliances that were building across the BRICS countries(Brazil, Russia, India, China and South Africa). Their efforts at the time, to create a structure that would serve as an alternative to the IMF and the World Bank (which are dominated by the U.S. and the EU), appear to be nearing completion. As AP reports, Brazil's President Dilma Rousseff and Russia's Vladimir Putin have discussed the creation of a development bank to promote growth across the BRICS and hope to produce an agreement on the proposed institution at this week's BRICS Summit.
Brazil's President Dilma Rousseff and Russia's Vladimir Putin have discussed the creation of a development bank to promote growth in Brazil, India, China, Russia and South Africa.Rousseff received Putin in the presidential palace in Brasilia on Monday, a day before leaders of the five emerging BRICS nations meet in the northeastern city of Fortaleza.Rousseff told reporters the bank would top the summit's agenda, adding she hoped the event would produce an agreement on the proposed institution.She said the five countries "are among the largest in the world and cannot content themselves in the middle of the 21st century with any kind of dependency."Brazil and Russia also signed bilateral accords on air defense, gas and education
The leaders who will be present (not so many big fans of the US there)...
They seem serious:
- *BRICS DEVELOPMENT BANK KEY TO FOSTER GROWTH IN GROUP: BORGES
- *BRICS BANK AT 1ST TO FINANCE EXCLUSIVELY INFRASTRUCTURE:BORGES
- *RUSSIA'S PUTIN SAYS COOPERATION WITH CHINA IS GROWING
- *PUTIN SAYS RUSSIA TO PROMOTE CURRENCY SWAP WITH CHINA: XINHUA
As we concluded previously, as RBTH reports, it seems the BRICS are not slowing down efforts to create their own IMF-alternative...
The BRICS countries (Brazil, Russia, India, China and South Africa) have made significant progress in setting up structures that would serve as an alternative to the International Monetary Fund and the World Bank, which are dominated by the U.S. and the EU. A currency reserve pool, as a replacement for the IMF, and a BRICS development bank, as a replacement for the World Bank, will begin operating as soon as in 2015, Russian Ambassador at Large Vadim Lukov has said.Brazil has already drafted a charter for the BRICS Development Bank, while Russia is drawing up intergovernmental agreements on setting the bank up, he added.In addition, the BRICS countries have already agreed on the amount of authorized capital for the new institutions: $100 billion each. "Talks are under way on the distribution of the initial capital of $50 billion between the partners and on the location for the headquarters of the bank. Each of the BRICS countries has expressed a considerable interest in having the headquarters on its territory," Lukov said.It is expected that contributions to the currency reserve pool will be as follows: China, $41 billion; Brazil, India, and Russia, $18 billion each; and South Africa, $5 billion. The amount of the contributions reflects the size of the countries' economies....The creation of the BRICS Development Bank has a political significance too, since it allows its member states to promote their interests abroad. "It is a political move that can highlight the strengthening positions of countries whose opinion is frequently ignored by their developed American and European colleagues. The stronger this union and its positions on the world arena are, the easier it will be for its members to protect their own interests," points out Natalya Samoilova, head of research at the investment company Golden Hills-Kapital AM.
Perhaps the following sums it all up perfectly...
Economists warn the IMF's legitimacy is at stake, and they say U.S. standing abroad is being eroded.
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If the current trend continues, soon the dollar will be abandoned by most of the significant global economies and it will be kicked out of the global trade finance.Washington's bullying will make even former American allies choose the anti-dollar alliance instead of the existing dollar-based monetary system. The point of no return for the dollar may be much closer than it is generally thought. In fact, the greenback may have already past its point of no return on its way to irrelevance.
Putin: No plans for BRICS military, political alliance
Published time: July 15, 2014 02:38
The BRICS countries want to challenge the international financial system’s dependency on US policies and strengthen the rule of international law, Vladimir Putin said. He stressed, however, that there are no plans for a military or political alliance.
“In the BRICS case we see a whole set of coinciding strategic interests,” Russia’s President Vladimir Putin said in an exclusive interview with Itar-Tass.
“First of all, this is the common intention to reform the international monetary and financial system. In the present form it is unjust to the BRICS countries and to new economies in general. We should take a more active part in the IMF and the World Bank's decision-making system. The international monetary system itself depends a lot on the US dollar, or, to be precise, on the monetary and financial policy of the US authorities. The BRICS countries want to change this,”Putin said.
In the modern world, the factor of common borders does not play a defining role; global processes encourage countries to join efforts as challenges and problems become shared, he said.
“Another long-term common interest of the association’s members is strengthening the rule of international law and the UN’s leading role in the international system,” the president added. “To be honest, without Russia’s and China's principled position on Syria in the Security Council the events in that country would have followed the Libyan and Iraqi scenario.”
It is clear that all the BRICS economies need serious infrastructure modernization, Putin said.“Our initiative to establish the Development Bank is aimed at expanding cooperation in this sphere.”
“Another important initiative that is underway is creating a BRICS pool of foreign currency reserves. It will become a safety net to help us form a joint response to economic challenges.”
Putin emphasized that both the Development Bank and the foreign currency reserves pool are practical steps for the BRICS countries, intended to strengthen international financial architecture and make it more balanced and just.
“It is in our common interest to use the complementarity of national economies to the maximum. Cooperation opportunities are great indeed. This is the market with almost three billion consumers. The BRICS countries have unique natural resources and a substantial technological, financial and industrial potential.”
Another important question that BRICS nations are going to raise at the summit is the increasing cases of unilateral sanctions.
“Recently Russia has been exposed to a sanction attack from the United States and its allies. We are grateful to our BRICS partners who have criticised such practices in different forms,” Putin said.
“Together we should think about a system of measures that would help prevent the harassment of countries that do not agree with some foreign policy decisions made by the United States and their allies, but would promote a civilised dialogue on all points at issue based on mutual respect.”
Cooperation in setting rules of responsible behavior in the global information space is another important issue, the Russian president said.
“Such rules must be based on the principles of respect for a country's sovereignty, non-interference in domestic affairs, observance of human rights and freedoms, as well as equal rights for all countries to participate in Internet management. I think our joint efforts will ensure that the BRICS countries hold a leading position in strengthening international information security.”
“We are planning to shape a joint information policy in the international arena to support BRICS’ activity and to present a more unbiased picture of the world.”
“I believe it is time to raise the BRICS' role to a new level and to make our association an unalienable part of the global management system for sustainable development.”