The BRICs Are Morphing Into An Anti-Dollar Alliance

Tyler Durden's picture

While numerous massively indebted administrations around the world hope to divert the attention of what's left of their struggling middle class away from its daily impoverished existence and distract it with flashing lights and glitzy animations showing another all time market high on a daily basis, a significantly more important shift taking place behind the scenes is appreciated by very few: the ongoing de-dollarization of the world. For the latest example of how increasingly more countries are setting the stage for the final currency war, we go again to Russia where VOR's  Valentin Mândr??escu explains that slowly but surely the BRICS - that proud Goldman acronym which was conceived to perpetuate the great American way of life by releasing trillions in US-denominated debt in heretofore untapped markets - are morphing into an anti-dollar alliance.

BRICS is morphing into an anti-dollar alliance, From VOR

Before the crucial visit to Beijing next week, the governor of the Russian Central Bank, Elvira Nabiullina met Vladimir Putin to report on the progress of the upcoming ruble-yuan swap deal with the People's Bank of China and Kremlin used the meeting to let the world know about the technical details of its international anti-dollar alliance.

On June 10th, Sergey Glaziev, Putin's economy advisor published an article outlining the need to establish an international alliance of countries willing to get rid of the dollar in international trade and refrain from using dollars in their currency reserves. The ultimate goal would be to break the Washington's money printing machine that is feeding its military-industrial complex and giving the US ample possibilities to spread chaos across the globe, fueling the civil wars in Libya, Iraq, Syria and Ukraine. Glaziev's critics believe that such an alliance would be difficult to establish and that creating a non-dollar-based global financial system would be extremely challenging from a technical point of view. However, in her discussion with Vladimir Putin, the head of the Russian central bank unveiled an elegant technical solution for this problem and left a clear hint regarding the members of the anti-dollar alliance that is being created by the efforts of Moscow and Beijing:

“We've done a lot of work on the ruble-yuan swap deal in order to facilitate trade financing. I have a meeting next week in Beijing”, she said casually and then dropped the bomb: “We are discussing with China and our BRICS parters the establishment of a system of multilateral swaps that will allow to transfer resources to one or another country, if needed. A part of the currency reserves can be directed to [the new system].” (Prime news agency)

It seems that Kremlin chose the all-in-one approach for establishing its anti-dollar alliance. Currency swaps between the BRICS central banks will facilitate trade financing while completely bypassing the dollar. At the same time, the new system will also act as a de facto replacement of the IMF, because it will allow the members of the alliance to direct resources to finance the weaker countries. As an important bonus, derived from this “quasi-IMF” system, the BRICS will use a part (most likely the “dollar part”) of their currency reserves to support it, thus drastically reducing the amount of dollar-based instruments bought by some of the biggest foreign creditors of the US.

Skeptics will surely claim that a BRICS-based anti-dollar alliance will not manage to deprive the dollar of its global reserve currency status. Instead of arguing against this line of thought, it is easier to point out that Washington is doing its best to enlarge the ranks of the enemies of the dollar. Asked by the Russia 24 channel to comment on Nabiullina statements, Sergey Kostin, the president of the state-owned VTB bank and one of the staunchest supporters of anti-dollar policies, offered an interesting perspective on the situation in Europe:

“I think the work on ruble-yuan swap line will finalized in the nearest future and the way for ruble-yuan settlement will be open. Moreover, we are not the only ones with such initiatives. We know about the statements made by Mr. Noyer, chairman of the Bank of France. As a retaliation for what Americans have done to BNP Paribas, he opined that the trade with China must be done in yuan or euro.”

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.

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
MEAN BUSINESS's picture

pssst, the 'R' in BRICS stands for Russia... and I'm pretty sure the 'S' is for South Africa.

sessinpo's picture

Welder    The US demographics is rapidly changing. We might see americans leaving the US in the future.

---

Some wealthy Americans that are economically more mobile have done so. For the rest of us, it is unlikely. We are talking about a global reset because the US dollar is the world's currency reserve. Thus, it will have global implications, not just implications to the US.

Add to that the fact that many of those nations that one might go to have stringent immigration policies. A global depression brings nationalism where borders and paranoia are raised. Just look back in history for a guideline. The commoners suffer while the elites go on.

douglas's picture

It´s not as difficult (or especially as dangerous) to relocate overseas as many would believe.  While I am in fairly solid financial shape, I´m by no means a multi-millionaire - and I left over 9 years ago.  American´s tend to harp on the negatives of living overseas, but they dont realize that the positives far outnumber these negatives.  If you do your research and choose well your destination, once acclimated you begin to appreciate the many opportunities and benefits available elsewhere.  Although family commitments require me to visit the US once in a while, more and more during each visit I feel less free and more eagerness to depart the ¨land of the free and the home of the brave¨ for what I now consider my new home.

SunRise's picture

Where did you choose to go?

sessinpo's picture

douglas     It´s not as difficult (or especially as dangerous) to relocate overseas as many would believe.  While I am in fairly solid financial shape, I´m by no means a multi-millionaire - and I left over 9 years ago.  American´s tend to harp on the negatives of living overseas, but they dont realize that the positives far outnumber these negatives.  If you do your research and choose well your destination, once acclimated you begin to appreciate the many opportunities and benefits available elsewhere.  Although family commitments require me to visit the US once in a while, more and more during each visit I feel less free and more eagerness to depart the ¨land of the free and the home of the brave¨ for what I now consider my new home.

---

Whille I appreciate your situation, I am not sure you are in the majority and that is what counts. I am caring for parents in their 70s. In addition to that, while I believe America as it was is lost, I am concerned for youger generations such as my nieces and nephews. I could split but I care more for others to do so.

Farqued Up's picture

I'm 70 and just got a second passport. Don't you think your parents are old enough to take care of themselves? I retract that if they are mentally incompetent or bedridden.

FeralSerf's picture

Medicare keeps many Americans from relocating after they become 65.

Welder's picture

A bit of american nationalism, impenetrable borders and a dash of paranoia might not be such a bad idea , isn't it ? The so-called "elite" is engineering the demographic shift in the Western world as most of ZHers probably know. I wouldn't be surprised to see them benefiting from the abandonment of USD as the world currency. It served their purposes so far and maybe it's time to abandon it in favor of another one, might even be backed by gold...

P.S.

"Elite" used to have such a nice meaning. The same goes for "liberal". In my language and several other latin languages "liber" means "free".

sessinpo's picture

Welder     A bit of american nationalism, impenetrable borders and a dash of paranoia might not be such a bad idea , isn't it ? The so-called "elite" is engineering the demographic shift in the Western world as most of ZHers probably know. I wouldn't be surprised to see them benefiting from the abandonment of USD as the world currency. It served their purposes so far and maybe it's time to abandon it in favor of another one, might even be backed by gold...

P.S.

"Elite" used to have such a nice meaning. The same goes for "liberal". In my language and several other latin languages "liber" means "free".

---

The elite continue no matter what the situation because they have the resources to do so. It baffles me to see those that think a reset will get rid of the oligarchs and elites. It won't.

And the liberals have changed definitions to politically suit their argument. That is why a liberal today is nothing like a liberal of yester year.

Farqued Up's picture

Begin prepping now on a 2nd and possibly a 3rd passport.

Bingo Hammer's picture

Hey DoChen...,

a few of your recent comments seem to indicate you may have misplaced some of you "bearings" or worse still, that you may have caught something viral from MDB

Global Observer's picture

The United States survived a long time before it had its world reserve currency.  We'll survive it again

Of course! The concern is not about whether the US will survive or not, but the disruption caused when the others stop using the US$ for trade not involving the US. The reserve currency status meant the US could write cheques that are never cashed. When that status is lost it is no longer possible to write cheques with the expectation they will never be cashed. Even worse will be, all the uncashed cheques coming for clearance now. Not the end of the world, but a significant change.

Ghordius's picture

correct. it has nothing to do with survival. and way more about how much dominance

Uncle Remus's picture

The down side is that all that "dominance" will be focused inward - the infrastructure is there to continue the downward spiral of the US further into fascism.

Note to Patriots - it's getting very very late. Do you know where your country is?

ThirteenthFloor's picture

DoChen > Your comment reminds me of a marketing study i did back in grad school. GM execs were decide what to do with a little car called the Chevy Vega. At the time it was selling quite well, second to the Ford Pinto. A young guy in the room said "heh what about this Toyota Corolla, it's moved from 10th to 6th, and the CEO responded " don't worry Americans won't buy cars from Japan ".

Or when I asked Grant Tinker who at the time was CEO of NBC, what are you guys doing about cable and HBO. He said "cable is not going anywhere their programming is lousy". Ummmm

When I see false confidence I know the guy's about to get routed.

I think your comment is false confidence.

Took Red Pill's picture

How about Kodak? They invented digital cameras but didn't pursue it. They didn't want to kill their film business. Now the whole company is basically dead. As Kodak goes, so goes America.

Uncle Remus's picture

.

Do we see many US citizens leaving the USA for BRIC-world?  We do not.

 

DCRB, I think this is due more to the perspective of US citizens (and their glorious public school education+exceptionalism) than anything economic. Poverty can trump propaganda.

Uncle Remus's picture

It may be a record, but on the marco view, it doesn't move the needle. I also think DCRB is referring to a reverse illegal alien type scenario of J6P heading south. But, I may be mistaken there.

Still, even if you're paying attention and have considerable net worth, leaving what is perceived to the greatest show, er country on earth to what is perceived as third world can be a tall order.

If I were a coyote, I'd be looking into the logistics of a reverse flow of clients. And not taking $.

fattail's picture

I disagree as well.  There is hardly anyone left alive that has lived in this country when our standard of living wasn't subsidized by our reserve currency status, our war machine, and the petro dollar.  A whole nation built on the one irreducible premise of cheap oil.  While the BRICS have weaknesses, their populations have lived with them their entire lives.  The Brics standard of living are increasing from a very low bar.  The standard of living adjustment that the US will undergo will strain the bonds of civil society.  

Apocalicious's picture

There are levels of survival we are prepared to accept. 

Silky Johnson's picture

Yeah, there is something you can do. Keep buying more of the yellow shit, it will keep save your ass when the green finally sinks.

economics9698's picture

5.56 and 7.62 rounds will work.

BobPaulson's picture

Plus 1. Stick to guns which load the most ubiquitous ammo man. If you mean 7.62x39 agreed. 12 gauge, 9mm, whatever they have the most of on the shelf.

MeMadMax's picture

I'm not buying any guns...

 

Why?

 

I'm not anti-gun, not by a long shot.

First. You make yourself an easy first target for the state.

Second. There will be plenty layin around on the ground when I will need a gun...

 

The End...

BobPaulson's picture

You would be surprised how hard it is to hit something moving the size of a pumpkin, even at 25 ft with a handgun. When you find one laying around, be sure to take some practice shots :)

Urban Redneck's picture

16 inches of 4 inch diameter PVC pipe (moving) is a much more accurate and daunting representation of the kill zone.

h/t a great teacher who will be missed

sessinpo's picture

MeMadMax     I'm not buying any guns...

 Why?

 I'm not anti-gun, not by a long shot.

First. You make yourself an easy first target for the state.

Second. There will be plenty layin around on the ground when I will need a gun...

 The End...

----

You are already an easy target. I have 5 guns but I know realistically, they will do little against a swat team, drone or helicopter. But I may have a better chance against looters and criminals (street thugs).

And you won't get shit looking around for guns and ammo layin on the ground. You are unarmed. The armed people will be taking that ammo and guns on the ground and you won't be able to do a thing about it because you are unarmed.

You are like a place that calls itself gun free. Its the first place that gets attacked.

sessinpo's picture

I want to add that several of my weapons are for hunting and I've stocked ammo. During The Great Depression, deer nearly went extinct here. People hunted for food to stay alive. I expect the same results coming up with severe food supply chains disrupted.

barre-de-rire's picture

all fat mc donald/pizza/crap  drive in eater with guns loaded as full as my ass full of shit when i wake up, you THINK you can SURVIVE, AIM,  PROTECT, SHOOT, KILL, to keep going ?

 

you only think, you try to anticipate, but you are all but effective,   surviving is not about thinking, it is about about instinct,  a man who buy food sat in his car have not a fucking oz of instinct naymore, his stomack has replaced the brain.

 

you are all lost, for at least 97% of population. you will turn canibals, as you are alreay animals. no big difference now.

shovelhead's picture

Keep practicing your English. You're getting better...you only sound semi-retarded now.

Seer's picture

Did you know that not all guns are aimed the same?

Practice, practice, practice... I just wish I had more time to practice...

"You make yourself an easy first target for the state."

Guns don't make you a target.  Guns are used ON targets.  You're a target all by yourself.

Oh!  Do you have a dog?  That's the number one security measure: you have to sleep, and having a dog gives you a bit of time to wake up and try and assess the situation.

FeralSerf's picture

"5.56 and 7.62 rounds will work."

Ask some of your fellow colonists in Canada and Australia how well that's worked out for them.

MEAN BUSINESS's picture

Dear All Of Us,

Thank you for your offer of assistance. In difficult times that have no precedent we appreciate this very much. Please consider that in December 2015 in Paris we are hoping to reach an agreement under the United Nations Framework Convention on Climate Change. We are working diligently with 100 non-aligned countries and are confident a robust agreement can be made. We hope you will support our efforts by carefully watching the proceedings. Be on the look out for the Hillary Clinton/ Barak Obama BULLSHIT that sabotaged the Conference in Copenhagen. Also, beware of shenanigans from UN officials that pull a 'Liz Wahl' as the Paris meeting gets under way.

We hope that like us, you will refuse to do business with those who refuse to sign the Protocol or those who break the agreement. No action will be required by you. All we ask is that you understand that we will do what we feel is necessary and we know that it will cause you to suffer. We will never forget what you did, and will always consider you our brothers and sisters. Our doors are always open, a light kept on at night ; )

Finally, please keep in mind that it is our belief that an agreement signed by all countries, in good faith, will result in healthier economies for all without the need to "crash" any currency, and more importantly, life on Earth.

Sincerely yours.

kchrisc's picture

You can. Just Quit paying on your bankster theft-loan.

 

The most powerful weapon the American people have to use against the DC US tyrants is Rejection.

The system of fraud and theft that has been built up upon the backs of the American people is dependent upon our backs. Withdrew our backs, and the whole thing collapses. This is our greatest weapon.

Quit Paying--put it into food, steel and lead, and precious metals, etc. They stole what ever "debt money" they loaned you in the first place via fraudulent-reserve banking and soon you won't be able to pay them anyways, so just stop now.

Quit Obeying--If they are in violation of the Constitution then they are criminals and not legitimate.

Quit Playing--Quit being a tool for them to use.

The Four Rs
Rejection: Quit paying, quit obeying, quit playing
Revolution: It is inevitable, so prepare, as they are.
Retribution: The guilty must answer for their crimes against the American people and the Constitution.
Restoration: Restore the American people, country and Constitutional republic.

BobPaulson's picture

To be fair, you will need a few key things: 1) A shitload more organization and volunteers from a shitload more outrage. 2) Some big supporters from the military defecting to your cause (more VA outrage needed) 3) A Tunisian Fruit Seller.  I still think its about 10 years away.

kchrisc's picture

"A shitload more organization and volunteers from a shitload more outrage."

Sorry, but this is not a centralized revolution. This is each individual saying "NO," "NO MORE" and standing up for themselves and their neighbor against criminality and tyranny.

"Don't follow me, follow you."

 

sessinpo's picture

kchrisc     Sorry, but this is not a centralized revolution. This is each individual saying "NO," "NO MORE" and standing up for themselves and their neighbor against criminality and tyranny.

"Don't follow me, follow you."

-----

Good luck with that. This is a population that elected Obama twice. Half of America wants socialism and dependency on government. And I'd say about 35% think they are for freedom but are really red pill takers. that leaves about 15% that are demonized.

Thye system will fall on its own. Who takes over then is the big question.

kchrisc's picture

Please go to a mirror and look into it.

The Revolution starts there--with that guy in the mirror.

Where can you start? What can you do? When do you begin?

Don't worry about others. They will come along in their own time.

Freddie's picture

You can't get people to unplug their TVs and Hollywood which is in hyperwarp speed on full on propaganda.  Dum fux with cable. ZH is filled with AH's who still watch TV and crap like CNBC.  Or dumb El See Eye Aye duh movies from hollywood glorifying the police state.  Dumb sheep.

August's picture

I don't know, Freddie.  NBC's Fall line-up looks pretty hot, and the Transformers franchise just keeps going from strength to strength.

goneYonder's picture

I get scared when I think about the movies produced for adults. Transformers...seriously? People are not dumbed down, they're infantilized.

drendebe10's picture

.. all on the watch of the liar in chief too busy living its celebrity grand imperial golf lifestyle too busy to read the writing in the teleprompter. 

..."navy corpse-man..."

Kirk2NCC1701's picture

Dear BRICS, like people all over the world, we love our country but hate and despise the sociopathic parasites and scum who have wormed and weaseled their way into the halls of power of influence.  IOW, we hate our Regime (our hijacked Government) as much as you do, perhaps more, but still feel allegiance to our country.

We can only hope that with the monetary Reset that will come with the demise of the dollars' GRC status, that we can finally get back to Nation Building right here at home.  And let other nations and people do the same in their place.

MEAN BUSINESS's picture

Dear Captain Kirk,

Good luck with your mission at home. Our recent discussions with the 100 non-aligned nations reveals an interest in pursuing happiness without causing misery for the rest of planet Earth. Please join us in Paris if you'd like to learn more.

Thanks.

TheSecondLaw's picture

Dear Captain,  We hear you, feel your pain. The thing is - nothing will change in the USA until enough citizens feel real pain, real depravation.  Now that may very well be coming, but until it does, you will keep being ruled by tyrants because you allow yourself to be so ruled.

IronForge's picture

<Spock Mode>

Captain, 

Have you considered the Logic of your enthusiastic expectations?  You presume that the Monetary Reset caused by the demise of the USD's Status as the Global Reserve Currency will somehow lead to productive Domestice Nation Building.  

With the Global Geopolitics of Petrol and Territorial Domination played by the Anglo American Five-Eyed Hegemony still fueled by Petroleum (7 sisters' Global Ops) and Weapons(Deployed Troops/Mercs and FMS paid in USD), I fail to see how the end of the USD's Reserve Currency Status will change the Foreign/Dominionist Policies of the USA to one focused on Domestic Nation Building.

The MIC can easily resort to rationing and further Conquest - even Conquest/Occupation/PKO of Oil Partners they are protecting...

shovelhead's picture

Well, there is that option to switch from petro-dollars to the petro itself.

Make the whole Middle East into a US protectorate.