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Will BRICS bank break IMF, World Bank monopoly?
Rank: Veteran Joined: 1/4/2010 Posts: 1,668 Location: nairobi
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The formation of a joint development bank operated by the BRICS countries is almost certain to take place at the March 2013 South Africa-hosted annual conference of the five-nation emerging-nation bloc. The possibility of a purely emerging-nation development institution was raised at last year’s gathering when the member nations – Brazil, Russia, India, China and South Africa – examined early proposals to reinforce their alliance with the establishment of a financial structure dedicated to regional development. “The bank would work to mobilise resources for infrastructure and sustainable development projects in BRICS and other emerging economies and developing countries,” noted a statement after the Delhi summit. As good as their word, it now seems that all that remains to bring the new bank to life are the signatures of the BRICS countries’ leaders on the founding documents. http://africanbusinessma...-imf-world-bank-monopolyAs Iron Sharpens Iron, So one Man Sharpens Another.
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Rank: Veteran Joined: 1/4/2010 Posts: 1,668 Location: nairobi
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The bank is also seen as “a declaration of the independence of the emerging community of nations” and a signal of its intention to open new ways of funding and underwriting development in emerging economies. It intends being an alternative to the International Monetary Fund (IMF) and wants to become a strong voice in the lobby for reforms of existing international financial institutions (IFIs). Looks like the era of US and Britain threatening economic sanctions is over. By March this year, there will be new controllers of world fiscal economics.  As Iron Sharpens Iron, So one Man Sharpens Another.
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Rank: Elder Joined: 2/23/2009 Posts: 1,626
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@a4architect - I believe this is an important development to keep on watching. China also wants to ascend its currency to be a reserve currency. This is surely going to change the bretton woods system and their timing couldn't have been better. Uncertainty is certain.Let go
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Rank: Veteran Joined: 1/4/2010 Posts: 1,668 Location: nairobi
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@chessmaster, true. USA and by extension, Britain are powerfull due to their control of the USD. Once they loose this control and another currency such as the Yuan becomes an alternative world reserve, its a spiral all the way to the bottom for their economies. The US and Britain should not be issuing economic threats to any one atthe moment. This is not in 2002 when they could strangle Zimbabwe and Equador through the use of currency. Zimbabwe abd Equador abandoned their currency and till today use the USD. As Iron Sharpens Iron, So one Man Sharpens Another.
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Rank: Elder Joined: 2/23/2009 Posts: 1,626
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I agree.The BRICS are coming in hard,they not only want to challenge them in terms of currency but trade. I have a feeling it will play out to something more than a financial 'bloc'. Uncertainty is certain.Let go
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Rank: Veteran Joined: 1/4/2010 Posts: 1,668 Location: nairobi
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check this article The Media Won't Touch This Story About The End Of The US Dollar Read more: http://articles.business...sanctions#ixzz2KaUYfFnE
It's ironic. The United States fashioned its Iranian sanctions assuming that oil trades occur in US dollars. That assumption – an echo of the more general assumption that the US dollar will continue to dominate international trade – has given countries unfriendly to the US a great reason to continue their moves away from the dollar: if they don't trade in dollars, America's dollar-centric policies carry no weight! It's a classic backfire: sanctions intended in part to illustrate the US's continued world supremacy are in fact encouraging countries disillusioned with that very notion to continue their moves away from the US currency, a slow but steady trend that will eat away at its economic power until there is little left.Read more: http://articles.business...sanctions#ixzz2KaUi7Sx5
The part in red shows exactly what will happen within a Uhuruto government. Other African countries will start replacing the USD with the Yuan over time hence a loss to USA. As Iron Sharpens Iron, So one Man Sharpens Another.
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Rank: Member Joined: 2/20/2009 Posts: 658
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Believe me if US loses their currency to other as reserve currency it instantly becomes bankrupt.
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Rank: Elder Joined: 2/23/2009 Posts: 1,626
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a4architect.com wrote:check this article The Media Won't Touch This Story About The End Of The US Dollar Read more: http://articles.business...sanctions#ixzz2KaUYfFnE
It's ironic. The United States fashioned its Iranian sanctions assuming that oil trades occur in US dollars. That assumption – an echo of the more general assumption that the US dollar will continue to dominate international trade – has given countries unfriendly to the US a great reason to continue their moves away from the dollar: if they don't trade in dollars, America's dollar-centric policies carry no weight! It's a classic backfire: sanctions intended in part to illustrate the US's continued world supremacy are in fact encouraging countries disillusioned with that very notion to continue their moves away from the US currency, a slow but steady trend that will eat away at its economic power until there is little left.Read more: http://articles.business...sanctions#ixzz2KaUi7Sx5
The part in red shows exactly what will happen within a Uhuruto government. Other African countries will start replacing the USD with the Yuan over time hence a loss to USA. I agree completely.Nations are becoming tired of being forced to follow US when it throws sanctions left right and center. @segemia - The US is still has military might.When it losses control of the waters then things will become interesting. Uncertainty is certain.Let go
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Rank: Chief Joined: 1/13/2011 Posts: 5,964
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BRICS already setup currency swaps & ETFs amongst them last year thus, I think this Devt. Bank is a done deal. Let's see. One thing's for certain non-aligned states are dying to be a part of it.
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Rank: Veteran Joined: 1/4/2010 Posts: 1,668 Location: nairobi
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@segemia. very true. The US does not create any wealth. It mainly makes its money coz USD is the world's reserve. If this unique position is eroded, the US economy will cramble like a pack of cards. http://theeconomiccollap...-every-month-since-2001
Any economy that constantly consumes far more wealth than it produces is eventually going to be in for a very hard fall. Many point to relatively stable GDP numbers as evidence that the U.S. economy is doing okay, but the truth is that we have had to borrow increasingly massive amounts of money to keep GDP numbers up at that level. The U.S. government is going to run an all-time record deficit of about 1.65 trillion dollars this year and average household debt in the United States has now reached a level of 136% of average household income. http://www.jimpinto.com/...ngs/creatingwealth.html
Politicians keep insisting that America must get back to creating wealth. But they want to do it by getting Americans to borrow more money to buy more "stuff", most of which is made offshore. As Iron Sharpens Iron, So one Man Sharpens Another.
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Rank: Veteran Joined: 3/26/2012 Posts: 1,182
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Why do i have a feeling the discussion is taking a political dimension. Is it a desperate attempt to get the prince some votes?
Anyway,back to the title of the thread, such a development would be welcome. It would give alternatives where non exist as of now.
However,it gonna take over seven years [very optimistic] from now before we can abandon the dollar/euro/pound for the BRICS currencies. The BRICS economies will have to have grown in size to do what the Eurozone and north america does to the world market today,ie, control the world economy. As it is, the BRICS are all dependent on Eurozone/USA economies. A slow down in Europe and USA ultimately slows everyone,including the BRICS,with some exception to Brazil.
In the best case scenario, 2020 is the year when we in the third world can possibly think of abandoning the USD/Euro/Pound.
What do we export to Brazil,India,China or even South Africa for the inflows? How much do tourists from BRICS spend here?
As it is, can anyone import stuff from Asian countries using the Yuan,apart from China itself? I myself can't, i have to use the USD. Private entities will not jump to using the BRICS currencies just coz some development bank has been set up. It takes more than that.
For gov't to gov't transactions/deals, that could be sooner than the 7 years.
That being the case,the talk of sanctions on a Uhuruto presidency having no effect should not arise. The West still rules the world. If you doubt,try importing/exporting anything,using any of the BRICS currencies.
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Rank: Elder Joined: 2/23/2009 Posts: 1,626
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@mkeiyd - China's middleclass is a gold mine when it comes to tourism. I'm curious what would happen if China stops buying US bonds.Yes the change won't be instant but the BRICS also want to increase trade within themselves and developing countries which will propel the move.For me the underdogs are trying to cut out the US and EU.Thats a very serious intention. Uncertainty is certain.Let go
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Rank: Veteran Joined: 1/4/2010 Posts: 1,668 Location: nairobi
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@mk check here http://www.presstv.ir/de...-to-overtake-us-dollar/
China yuan isolating US dollar as global reserve currency: PIIE Peterson Institute for International Economics predicts that China’s renminbi will become internationalized in 10 to 15 years. Peterson Institute for International Economics predicts that China’s renminbi will become internationalized in 10 to 15 years. Mon Nov 19, 2012 4:47PM GMT 6 China’s official currency yuan is set to rise to the status of an international currency as more nations abandon the US dollar to peg their currency to the Chinese yuan, a new report says. The latest research by the Peterson Institute for International Economics (PIIE) shows that renminbi (the official currency of China whose primary unit is the yuan) will become internationalized in 10 to 15 years if China further liberalizes its financial market. As Iron Sharpens Iron, So one Man Sharpens Another.
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Rank: Member Joined: 7/9/2011 Posts: 730 Location: Nairobi
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anything for the prince goes however far fetched. More credible sources of information usually pass a point faster. our goals are best achieved indirectly
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Rank: Veteran Joined: 3/26/2012 Posts: 1,182
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ChessMaster wrote:@mkeiyd - China's middleclass is a gold mine when it comes to tourism.
I'm curious what would happen if China stops buying US bonds.Yes the change won't be instant but the BRICS also want to increase trade within themselves and developing countries which will propel the move.For me the underdogs are trying to cut out the US and EU.Thats a very serious intention. @Chessmaster, In order for Kenya to survive without USD/Euro/Pound, how much do those Chinese spend at the moment? Going forward,its a goldmine,but we are not there yet. @a4arch, What you link says confirms what i wrote earlier, i said 7 yrs the earliest, they are talking of 10 to 15 yrs. Going forward as i said, a BRICS bank would be the best thing to happen to third world economies. However, before then, we don't need to antagonize our current trade partners unnecessarily.
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Rank: Elder Joined: 2/23/2009 Posts: 1,626
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@mkeiy - True.We are not there yet.What do you mean antagonize our current trade partners unnecessarily. How should we approach this situation? Uncertainty is certain.Let go
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Rank: Elder Joined: 2/26/2012 Posts: 15,980
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mkeiyd wrote:ChessMaster wrote:@mkeiyd - China's middleclass is a gold mine when it comes to tourism.
I'm curious what would happen if China stops buying US bonds.Yes the change won't be instant but the BRICS also want to increase trade within themselves and developing countries which will propel the move.For me the underdogs are trying to cut out the US and EU.Thats a very serious intention. @Chessmaster, In order for Kenya to survive without USD/Euro/Pound, how much do those Chinese spend at the moment? Going forward,its a goldmine,but we are not there yet. @a4arch, What you link says confirms what i wrote earlier, i said 7 yrs the earliest, they are talking of 10 to 15 yrs. Going forward as i said, a BRICS bank would be the best thing to happen to third world economies. However, before then, we don't need to antagonize our current trade partners unnecessarily. @Mkeid are you still dreaming http://www.youtube.com/watch?v=hz_nZYSX0L8"There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
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Rank: Member Joined: 10/19/2009 Posts: 671 Location: Nairobi
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And then the BRICS cable.Interesting video LINK Summary:- a 34 000 km, 2 fibre pair, 12.8 Tbit/s capacity, fibre optic cable system -Links Russia, China, India, South Africa, Brazil – the BRICS economies – and the United States. - Projected ready for service date is mid to second half of 2015.
Life is joy, death is peace, but the transition is very difficult.
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Rank: Veteran Joined: 1/4/2010 Posts: 1,668 Location: nairobi
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BRICS development bank can be ready by 2015 - Russian deputy PM Published time: June 21, 2013 19:31 Get short URL The BRICS development bank could be set up by 2015, Russian Deputy Finance Minister Sergei Storchak told the St. Petersburg forum. Moving away from the dollar and the euro in mutual trade is the key aim of the initiative."I think a guideline for the work [of the BRICS development bank] to start is 2015 - that is entirely sensible," Storchak said when asked how realistic it was for the bank to be set up by the previously announced term. By now the initiative has seen modest progress, with just a political decision having been taken. "…we are at the stage where each country needs to put together national delegations and these delegations will hold full-scale talks on all aspects of the establishment of the new bank," Storchak said. http://rt.com/business/b...lopment-bank-dollar-072/As Iron Sharpens Iron, So one Man Sharpens Another.
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