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.

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ZH Snob's picture

unfortunately, americans, one and all, will continue to pay for this banker fiasco.  who else will they dump the tsunami of foreign-held dollars on once the BRICS release the dollar's stranglehold on the world? 

but as painful as I suspect it will be it is still preferable to living off the sweat and blood of the rest of the world.

caShOnlY's picture

I think in honor of our leaders, when the American ONE TRILLION DOLLAR BILL is produced it should have BERNANKE'S picture on it.

FeralSerf's picture

On the reverse side will be a picture of the twin WTC towers.

MFL8240's picture

And the US goverment is concerned about how to allow a bunch of uneducated, illiterate people into a sytem on the brink of collapse!

knukles's picture

At this rate it won't be long before the people in the Third World Countries are sending a part of their earnings to their relatives in America


"It's What the Doctor Ordered!"

conscious being's picture

Uneducated is not exactly right.  They know how to plant corn, beans and squash and how to keep the plants alive.  These could be valuable skills indeed in post-petro$ America.

BobPaulson's picture

Bingo. I would be careful about pot/kettle issues when comparing populations. Ever talk to the average guy on the street in Cuba?

Took Red Pill's picture

Cubans survived lost access to Soviet oil in the 1990's. Americans are too dependent on the system. We've lost our basic survival skills. 

Crawdaddy's picture

I once lost a bet to one of those "dumb" illegals. He bet me a dollar his .22 could shoot a bullet two miles. I laughed, knowing the box of shells said "range of up to one mile" and took the bet. He turned the gun to the sky and fired. He looked at me and said "one mile up, one mile down".

Today that dummy owns a pipe yard in new mexico and owns more land (free and clear) than the farmer he worked for as a young man. I helped him get legal in 86. He calls me every year with an invite to go hunting. Every year we laugh about that bet.

I still feel good about losing that bet.

TheObsoleteMan's picture

NO ONE "OWNS LAND FREE AND CLEAR" IN THE US of A. Supreme Court ruling in 2005 proved that.

Crawdaddy's picture

Good point - free and clear except for property taxes.

ThirteenthFloor's picture

Conscious being > Or a bartable skill, such as auto repair or carpentry.

WillyGroper's picture

it'd help if they could spell it.

How to Give a Prostrate Self Exam

Read more :

knukles's picture


Prostrate is to lie still on the ground, as in passed out face down in your own puke.
Prostate is the wall nut shaped thingamajig between your bladder and ding-a-ling that is felt by the doc by sticking their arm up yer Yahtzee

WillyGroper's picture

"wall nut"

I see what you did there. Don't fall far from the ceiling do they? ;0

conscious being's picture

I'm sorry.  Wiley Groper going on about prostate exams is quite the juxtaposition.

MeMadMax's picture


No need to make shit all childish here...


You can say "When the doctor shoves his fist up your ass to examine your prostate"...



BringOnTheAsteroid's picture

I got reading and sort of forgot where I was. Have I got some explaining to do to my collegues.

shovelhead's picture

Jeez Knucks...

What if I hit a g-spot or something. That kinda shit would shift yer foundations all to hell.

economics9698's picture

Election year bull shit. Everyone thinks its Cloward and Piven but it is Saul Alinsky. Get people pissed off and watch them look like idiots.

shovelhead's picture

You're way off base.

It's really Dr.Howard, Dr.Fine, Dr.Howard.

Welder's picture

No, the US govt. needs the iiliterates, the uneducated in the US. Same thing is happening in Western Europe. They will be used against an ever weaker, aging middle class. They ARE used.  Demographic is a bitch.

ThirteenthFloor's picture

MFL8240 > and the difference between current Obama supporters and illegals is ?

US collapsed in 2008 we just haven't hit the ground yet. The market euphoria is the feeling of free fall. Illegals just brought the ground closer.

stinkhammer's picture

fna thanks brics

Mentalic's picture

So, all this money that they are printing will eventually come back to the US...Great !....Gives a whole new meaning to the word "Greenback" !

SofaPapa's picture

The majority of the population of the US has no idea this is going on, and the surprise is going to be epic when this tips over and the resulting effects arrive in the domestic market.  But of course: "No one could have seen it coming..."

Dublinmick's picture

Michael J. Fox says give me another aspartame diet cola., give my Hollyweird money to med america, it is going to help me doncha know. Hell Tracy and I did not know about aluminium cookware, teflon, vaccines, fluoride etc. But hey I gave what money I had left to Isreal, they are going to find a cure and make me good as new.

conscious being's picture

Somebody here was reccomending galvanized drinking water buckets for wells the other day!  

stoneworker's picture

Yeah when that moment comes the champagne corks are going to be popping here....I got mine ready.

Eireann go Brach's picture

The BRICS and the rest of the world is fucking morphing into a "We hate the US and Obama alliance".

Nobody Important's picture

Can you blame them? They are tired of being bullied by the US and see a chance to get even.

Kprime's picture

that includes no small number of americans

screw face's picture


Dublinmick's picture

No kidding you must be funning me

pachanguero's picture

I live in Thailand and speak Spanish and portuguese.  And I can tell you that Brazil has huge probllems.   There are huge numbers of poor people there. As the riots have shown there's an underclass it's very aggressive.  Never forget thet Brazil was originally a huge left-wing utopian concept state.  It's very bureaucratic and top-heavy.

The heavy hand of the state exists in all countries.  Here in Thailand there the verge of Civil War. But the party goes on. Nothing s going to stop the drugs and hookers . Why? because the vaunted military involved in it  


oh wait! I'm talking about my country of origin America also!


SF beatnik's picture

Not to worry. Brazil's favella denizens are welcome, here, in the USA. We need to enlarge the favellas in L.A.  

conscious being's picture

I hope you are not the wingman SFbeatnick.  You're drawing some sideways glances.

conscious being's picture

Total BS about Thailand on the verge of civil war.  

The farmers have gotten paid, the killings have stopped and forensic accountants are going over how and where the money went.  

Its only you, Robert Amsterdam and your CFR Land Destroyer pals still dreaming about how you might profit from same.  So a take it the real scoop in Brasil is that things aren't so bad after all.

I'm immensely proud of the Thai people that had the courage necessary to save their country from a terrible fate.

Three down arrows?!  Is that you Robert Amsterdam?  Maybe Robert Kagan, PNAC author, his wife Vicky is busy over throwing Ukraine and also part of CFR.  Here improve your understanding

Or ... explain yourself.


The_Prisoner's picture

Land Destroyer is a great blog for SE Asia geopolitics, especially Thailand.

The globalists of Those-who-shall-not-be-named persuasion and their puppets have been sharpening their claws at ushering entire SE Asia into debt servitude and as a fulcrum of military opposition to China.

conscious being's picture

Exactly.  The people here have just dodged a bullet.  Throughout their history, they have proven to be good at it.

The_Prisoner's picture

Good collective karma I suppose.


OMFG, the *C* word on ZH with "good" as the adjective. 

The_Prisoner's picture

ha-ha-ha! Being the case with Karma, the fundamental currency, you do not have to take from someone else in order to increase your lot.


unless you find yourself short on Karma but well endowed with 'USD', then it's irresistible. Hence C O R U P T I O N  so we lie and shout that because of our USDs we own Karma. Of course that ain't true so we double down and double down and double down... till we go insane and drag as many and as much down with us as we can???

Isn't it best for the collective that something comes along, before it's too late, and stops the insanity that threatens us all?

Paris is that thing. It's all "good".

conscious being's picture

Re. Good collective karma

I certainly hope so. Wonderful place with wonderful people.

Not everybody agrees though.  Some people come here and wonder aloud about stuff like 'why can' t things be more like in The West!?!'

But hey The_Prisoner, you put up some great posts and the TV show was terrific.

shovelhead's picture

The problem with Karma is that you have to be dead to get it and then you won't know about it anyway, so when you come back as a garden slug you'll just say "Cool, whats to eat around here."

Karma is highly overrated.

conscious being's picture

 Check The Tibetan Book of the Dead.  Carl Jung has a great  comentary on same.  Reading the comentary, you can see how the break with Freud came about.  Cheers

pachanguero's picture

Are you living here for years like me? Or are you commenting from your moms basement ?

There is a great divide here. Isan, Chang Rai and Chang Mai are all red shirt. And they speak Isan and think much differant than the yellows. This place is very divided by the rich and poor.

The King and the Army are holding this place together.

Add that to a HUGE bubble in real estate.

When the good king passes. All bets are off and watch out for black swans