Patty

Anti-Dollar Alliance Prepares Launch Of BRICS Bank
Tyler Durden's pictureSubmitted 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.

As AP reports,


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 p**********l 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.

"Eroded" indeed...

* * *

Read more here on the BRICS morphing into an anti-dollar alliance...


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.

rickdri

Another excellent post Patty! I do have a couple of questions though. Do you think that with China being the largest to contribute that they will try to dominate the proceedings? Do you think there will be any controversy over where the bank will be located? Will either of these cause major problems with the development of their central bank? Thanks in advance!

Patty

http://thebricspost.com/shanghai-to-host-brics-bank-putin-aide/#.U8UQz_ldUuE
If you look at this site you will see that they are all making agreements that benefit each other. They were all together in I believe it was June and signed agreements that expressed their main goal as "co operation and e******y"
At the UN conference China focused on hunger and unemployment in their aim,
http://thebricspost.com/china-urges-focus-on-hunger-unemployment-at-un/#.U8URlPldUuE
The changes in China have been so extreme that no one who was ther 10 years ago would recognize it.

rickdri

You have answered my questions really well, thanks once again!

Serenity54321

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Much sooner than we thought indeed. They made the formal announcement today (June 15th). The birthing of a new world bank took place in Shanghai, and Russia is at it's head.

I am amazed no one is talking about this. Two or three people comment on your posts, the rest shrug you off.

Putin threatened to destroy the US dollar. Now he owns the vehicle with the ability and authority to do so. As his last step, all he has to do is "break it in" and get it up and running. Then all he will have to do is sit back and smirk as the west collapses under the weight of its own debt.

Putin is playing chess, and it's nearly check-mate time. But no one else is even paying attention to the game.

It will be interesting to note which countries take which side.

Thanks for keeping us informed.

Patty

If I had to guess I believe that China will cash in on their paper gold from the Comex and cause a default is how the BRICS will trigger the collapse. We will see but it sure keeps me on the edge towards the end of the months when options contracts come due.

rickdri

Frightening isn't it that no one pays attention! There is so much information available about what is happening and no one seems to care! This is why Americans will be caught off guard again when the collapse happens. No one knew anything in 2008 and did not feel the effects. This may be the reason no one is paying attention. They really don't think it will happen since they have never been through it before. I believe they call it the normalcy effect or something like that! This time everyone will feel the effect of the dollar crash! They will wonder what is happening as food, gas and just about everything else explodes in price! Everything seems normal for now but this is something that could happen fairly quickly and very few besides the elite, those that know what is happening, will be ready!

Serenity54321

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It's called normalcy bias, and most people I know are victim to it, including my own husband. He will not make any changes to his life as he knows it.

No, few are paying attention. I turned on CNN briefly tonight and all they were talking about is whether or not if you disagree with Obama does that make you a r****t. I turned it off. Silly talk.

We shall have to see how this all plays out. Relatively shortly I have a feeling.

rickdri

Thanks I couldn't remember what it was called!

Patty

:thumbup: :thumbup: :thumbup:

bucksboy

What can I do as an individual to prepare for the worst? Not into stocking up on gold even if I could.

rickdri

Payoff any credit card balances you can. Try not to use credit if possible. Save as much money as you can. Cut bills as much as you can. Use this money to stock up on food and water. Buy a gun if you feel you need to. Keep friends and relatives close and make amends with family and friends if needed. You will need each other. You said you didn't want to own gold, it seems as if you can not afford it. If you want buy silver instead. It is much cheaper and will increase in value just as gold does. Currently silver is around $21 per ounce. Buy as much as you can if you can. It will come in handy. Folks like to say you can't eat gold and silver. True but you will need something of value to purchase items. You don't want to barter with your food and water. It's possible that things may not get as bad as we suspect. Don't take any unnecessary chances. It could get worse than we think!

Patty

:thumbup: :thumbup: "junk" silver is already being used.