BRIC is the nickname for an economic alliance between Brazil, Russia, India and China. China and Russia are allies because both are communist nations (with a brand of capitalism, as well).
Brazil is China's main supplier of raw materials, and thus an important partner.
India and China are the two most populous nations on Earth, and set to become the 2 powerhouses of the 21st century.
If the BRIC alliance decides to dump the dollar - say at November's G-20 meeting - then the dollar's status as world reserve currency will be over.
Hints
Notwithstanding the current rising value of the dollar, there are numerous hints that the dollar will not remain the world's reserve currency for long:
- Iran is bartering oil for Thai rice, as a way to stay out of the dollar in its trades
- Russia's Putin is suggesting that Russia and China ditch the dollar and use their own currencies in trade deals
- Thailand's Deputy Prime Minister, Olarn Chaipravat, told Bloomberg News:
"The message of this initiative is for China to consider whether or not China would open up its banking system and allow the strongest currency in the world, which is the Chinese yuan, to be the rightful and anointed convertible currency of the world."
- The Wall Street Journal writes that China is being asked to play America's role of being at the center of the world financial system
- Many countries have already stopped using the dollar as their reserve currency or have dropped their currency's peg against the dollar
Throwing A BRIC Through the Window
Thailand, Argentina and other nations have some say in what happens. But it is the BRIC nations - along with America's biggest creditor, Japan - which will decide whether the dollar remains king.
Japan is likely to go along with whatever the U.S. wants. And Professor Chossudovsky persuasively argues that both Brazil and India are run by American allies who will try to protect the U.S. and the "Washington consensus".
On the other hand, China and Russia have already made noises about getting away from the dollar.
So will the BRIC countries and Japan demand a shift away from the dollar at the G-20 summit later this month?
My prediction is that at the G-20 this month, Japan, Brazil and India will drag their feet, and that China and Russia won't turn their bark into a bite.
However, I predict that America's economic meltdown will occur so quickly that the BRIC countries and Japan will force a change in the world reserve currency within the next year.
China and Russia are allies because both are communist nations (with a brand of capitalism, as well).
ReplyDeleteFor someone who allegedly attempts -- well that was my give-you-the-benefit-of-the-doubt opinion, that your blog was an attempt at honest communication and education -- it appears you are incredibly (along with others) brainwashed.
Your 'communist/capitalist' little paradigm is an ILLUSION!!!
Capitalism does NOT bail out it's largest inneficient corporations, to create MONOPOLIES!!
Capitalism does not subsidize corporate welfare; the richest of the rich, at the expense of the poor!!
Capitalism is about equal opportunity! Capitalism provides for an economic system, where skills, love of nation, and commitment to your own people, from the poorest to the richest, can become the President!
There is no such economic system in America!!
That hasn't happened in how many years?
Was Putin born to the Russian Aristocracy? What about Hu Jin Tau?
It's absolutely hilarious -- not to mention pathetic -- to see 'Americans' so obsessed with alleged 'communism'. May I suggest the real 'George Washington' was a far more intelligent and wise man..
No wonder some who are not brain dead, think that: RAND Lobbies Pentagon :: “A Second 9/11: Start War: Need allot of dead people to wake America Up!″ :: US Military Doctrine.
Obviously you have never read THE FINAL WARNING: The History of the New World Order.
If you had, you would know, and not only know -- but educate your readers (should you have one braincell dedicated to restoring George Washingtons Republic), that:
"No matter which way you *try* to slice it, no matter which way you try and argue otherwise, this *IS* how the world is run.
THE FINAL WARNING: is definitive proof that political ideologies are nothing more than smoke and mirrors to occupy and distract the masses, while the "elite" follow the pure and undiluted ideology of pure money. Read this and forget Left, Right or Centre in any political considerations, and see how society has been hijacked to such an extent that the only possible solution is to dismantle the system and start all over again - if only that were possible.
Perhaps you would prefer the system to remain as is??????
Or maybe you are just too plain stupid and brainwashed to know how to make a contribution to education on breaking it down?
JMCSwan
Do not confuse capitalism with free enterprise capitalism.
ReplyDeleteCapitalism exists in every society even if government controlled. Hitler learned early that capitalism had to have much freedom to grow, even tho he dictated.
When socialism takes over. Weather social programs for the people or for business. The funds are drained and every society of socialism finally falls from greed of governments wants.
Charleydan,
ReplyDeleteThanks for not reading or enquiring into my comment... and for confusing yourself about the concept of abstract concepts, which due to their being abstract have multiple -- often contradictory -- definitions and accordingly interpretations....
And accordingly TPTB have an excellent resource for CONFUSING the idiots: They use the abstract labels -- whether it be capitalism, or communism or nazi or kaffir, etc.. etc.. -- like the smell of a bitch or cow on heat; and the ignoramus morons without a critical thinking braincell roaming the slave and cannon fodder breeding being, march off to drink the kool-aid and behave like good little intellectual prostitutes...
But, if that makes you happy...... at your level of happyness... than I am happy for you!
And I have little doubt that TPTB who continue to jerk your 'capitalism/communism' chains with their doublethink crimethought and newspeak language, and their capitalism vs. communism two minute hate shows... ain't got any complaints their little politically correct brainwashed docile submissive debt slaves are behaving exactly as programmed...
As Harriet Tubman said, "I freed a thousand slaves; I could have freed a thousand more; if only they knew they were slaves".
JMCSwan
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