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Anti-Dollar Alliance Prepares Launch Of BRICS Bank

Tyler Durden's picture


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 presidential 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:


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.


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Mon, 07/14/2014 - 23:05 | 4957887 The Most Intere...
The Most Interesting Frog in the World's picture

When Bush was president I thought we didn't care what everybody else thought of US. Now we do?

Mon, 07/14/2014 - 23:07 | 4957899 Pladizow
Pladizow's picture

Let's see how the bully reacts?

Mon, 07/14/2014 - 23:12 | 4957917 CCanuck
CCanuck's picture

After he gets his panties untied..he's gonna...he's...He will draw a RED LINE! there..nananabooboo

Mon, 07/14/2014 - 23:16 | 4957926 Pladizow
Pladizow's picture

Tough talk from the BRICS, but why are contributions still valued in dollars?????

Mon, 07/14/2014 - 23:25 | 4957947 CCanuck
CCanuck's picture

Just until there not.

Mon, 07/14/2014 - 23:31 | 4957963 Pladizow
Pladizow's picture

Canadian Krugman?

Mon, 07/14/2014 - 23:42 | 4957986 CCanuck
CCanuck's picture

Yaaaaaa Kruggie Rules... really I'd like to see him and his kind first in line at the guillotine parties.

Just stating a fact, the denomination printed in the article is for your consumption, do you believe they are going to use the dollar when operating?


Mon, 07/14/2014 - 23:45 | 4957991 Keyser
Keyser's picture

The western banking cabals must be buying nail guns by the gross in preparation for all the suicides about to take place... 

Tue, 07/15/2014 - 05:39 | 4958299 COSMOS
COSMOS's picture

I am sure each is putting in its currency, the article translated it to dollars via exchange rates.  Its a basket of currency your loan will be in.  If you want to buy hairdriers, stereos, etc you use the chinese currency, soybean and a nice vacation use the real, nice military equipment and oil and gas use the ruble, but your loan being a basket you can convert your rubles say to all brazilian reals if you want only soybeans with your loan.  They are all convertible amongst each other and do not have to even mention the dollar in their offices.

Tue, 07/15/2014 - 06:15 | 4958339 negative rates
negative rates's picture

That's quite a chunk of change there.

Tue, 07/15/2014 - 06:20 | 4958344 BaghdadBob
BaghdadBob's picture

Yes & No. Each currency in the basket will be backed by gold.

Tue, 07/15/2014 - 09:00 | 4958596 Global Observer
Global Observer's picture

I don't think so. However, the currency to be issued by the bank may be backed by gold and the initial capital has probably been used to buy gold in the market. If they had already been buying gold at market rates, they would have approximately 2500 metric tonnes of gold to back the new currency to be used exclusively for settling trade balances. Their respective domestic currencies can be left purely fiat as they are now, without any fear for the others of losing the value of their savings, which would be denominated in the new currency.

Tue, 07/15/2014 - 07:29 | 4958414 Squid-puppets a...
Squid-puppets a-go-go's picture

if thats how its gunna work then its just a staging for one colossal arb opp

Tue, 07/15/2014 - 08:39 | 4958532 Tekrunner
Tekrunner's picture

Yeah, that is most likely not how that's going to work, at least at first. It'll be either a bunch of FX swap agreements, or the bank funds will be in dollars or in a basket of currencies that are actually international (unlike, well, any BRIC currency for now).

Eventually they may agree to use some kind of new international reserve currency, but that doesn't really seem to be the immediate goal, and it wouldn't really make sense. Say Brazil gets in trouble and needs money from the not-IMF to deal with a liquidity crisis: how would it help them to get a bunch of rubles and rupees when they have to pay off their dollar-denominated debt (especially given how when one BRIC gets in trouble, other BRIC currencies tend to get hammered as well)?

This is certainly a step against the dollar hegemony, but we won't do away with the dollar so fast. Well, unless we do away with the entire financial system.

Tue, 07/15/2014 - 08:59 | 4958594 COSMOS
COSMOS's picture

Or we go to war.

Tue, 07/15/2014 - 09:19 | 4958652 Grinder74
Grinder74's picture

And if you want bad BO covered by tons of curry, use rupees; and if you want bad foreign policy and curly hair, use rands.

/rim shot/

Tue, 07/15/2014 - 02:11 | 4958155 Liberal
Liberal's picture

What will this mean for my EBT card? I'm still getting a free ride, right?

Tue, 07/15/2014 - 07:13 | 4958403 Escrava Isaura
Escrava Isaura's picture

I wish we, as Zero Hedge readers, would have learned it by now.

Obviously, at least to me, as I read some of the comments, many of you have NOT.

Mon, 07/14/2014 - 23:50 | 4958002 DoChenRollingBearing
DoChenRollingBearing's picture

The BRICS do not scare me at all.  Let them set up their bank.  Let's then see who abuses it the most, who is the most corrupt among that group of five loser countries.

Still waiting on someone who knows Russia well so I can do my article on the BRICS (and will fill me in to make it better) .  Still waiting...  Well, who can tell me something good about Russia and their financial system and their openness to capital investment?  Tick tock.

Mon, 07/14/2014 - 23:59 | 4958020 CCanuck
CCanuck's picture

Hey DCRB....

You might want to try using some coke & hookers as bait if you are looking for insider.

Tue, 07/15/2014 - 00:09 | 4958030 post turtle saver
post turtle saver's picture

that only works on Western bankers... he's looking for information on *Russian* banking...

Tue, 07/15/2014 - 00:24 | 4958052 CCanuck
CCanuck's picture

How'bout vodka and a it Russians or Ukrainians that like to get drunk and pay women to kick them in face?

Tue, 07/15/2014 - 01:03 | 4958103 post turtle saver
post turtle saver's picture

my understanding is Russian and Ukrainian is supposed to be one and the same these days, so I think you're covered

Tue, 07/15/2014 - 00:05 | 4958024 disabledvet
disabledvet's picture

Absolutely. "Enter more show horses." The EU is of no consequence to either the World Bank or IMF now anyways...other than being in constant need of, pardon me "bail ins."

All eyes on the Canadian dollar. If that thing gets clobbered ($1.40) the financing for all these mega resource plays will drop like a brick.

"All eyes on Space X" et al. One meteor brought back to
Earth could crash the price of copper to pennies a pound.

Be interesting to see just how secure the Putin regime really is as well. "That's an awful big piece of real estate for one guy to run" and "German/Russian cooperation" goes over in that part of the world lead ballon.

Tue, 07/15/2014 - 00:54 | 4958088 Rock On Roger
Rock On Roger's picture

Canadian labour is paid in canadian dollars.

Your dollar would buy $1.40 of Canadian services.

The financing for these mega resources plays is American dollars.

Why would the financing drop like a brick when it buys more than it once did?



Did you recieve a head injury?

Tue, 07/15/2014 - 05:05 | 4958269 Tall Tom
Tall Tom's picture

Currently One US Dollar woll buy roughly $1.07 Canadian in Goods and Services.


There has not been that much disparity in the Canadian Dollar to the US Dollar in many, many years. The two currencies have been approaching Parity for quite awhile.


So...with that...


Did you receive a head injury?

Tue, 07/15/2014 - 06:06 | 4958330 Tall Tom
Tall Tom's picture

At 6 AM EST on July 15, 2014 the Canadian Dollar is at $1.0731 USD.


It is really neat that all of the FX Data is right there at my disposal on the following website's frontpage...


So you can Downarrow me all that you want...BUT IT WILL NOT CHANGE THE FACTS.


LMAO at your fucking stupidity. (It is not ignorance but stupidity as the data is set right before your very eyes.)

Tue, 07/15/2014 - 06:28 | 4958359 mvsjcl
mvsjcl's picture

Yeah. I don't get that either.

Tue, 07/15/2014 - 09:03 | 4958603 COSMOS
COSMOS's picture

Its the Canucks down arrowing you, see they dont like getting less than 1.40 for their canadian dollar, they know the currency markets are manipulated and that they are americas biatch.  They dont like it so they down arrow lol.

Tue, 07/15/2014 - 09:08 | 4958621 Tall Tom
Tall Tom's picture

That just adds iciing to the cake. KITCO is headquartered in...CANADA



Tue, 07/15/2014 - 09:04 | 4958606 Tall Tom
Tall Tom's picture

They are being jerks because I hit them with the facts (the Foreign Exchange is publically posted) and can back up what I write,


I am actually getting a good laugh.

Tue, 07/15/2014 - 06:30 | 4958360 mvsjcl
mvsjcl's picture


Wed, 07/16/2014 - 01:14 | 4961744 Rock On Roger
Rock On Roger's picture

I know perfectly well how much the Canadian dollar is valued against the american paper.


I was using dis a bled vet's number since I was replying to him.


So perhaps you see why dis a bled vet is thinking wrong. If canadian $ goes to $1.40 would not the american $ buy more tar?

Tue, 07/15/2014 - 07:06 | 4958399 digitalindustry
digitalindustry's picture

my answer is "head injury"


Plus the sweet IMF is only talking about the EU lately like they have a hard-on about them, particulary the "deflation" issue -  let me think ...

could that have anything to do with leaning on those idiots because in essence the "USD unlimited" credit line is out and they know the next result is :


"SRD's save the european union"


new debt for old, same debt, same owners.

Tue, 07/15/2014 - 00:06 | 4958026 lasvegaspersona
lasvegaspersona's picture

Not sure how a development bank interacts with world trade.

Could be just a way to opt out of World Bank mischief.

Tue, 07/15/2014 - 00:11 | 4958034 hobopants
hobopants's picture

I dunno, I think if they come out with a Gold backed currency it will be game over for the dollar. IMF has the SDR backed by nothing, why can't the BRICS produce something akin to that, but gold backed to inspire confidence?

Tue, 07/15/2014 - 00:21 | 4958048 Circle of DNA
Circle of DNA's picture

"Still waiting on someone who knows Russia well so I can do my article on the BRICS (and will fill me in to make it better) .  Still waiting...  Well, who can tell me something good about Russia and their financial system and their openness to capital investment?  Tick tock."


If you don't know it yourself then you're certainly not fit to right any kind of articles.


Why anyone should tell you anything? Your ignorance is your own business.

Tue, 07/15/2014 - 01:05 | 4958107 DoChenRollingBearing
DoChenRollingBearing's picture

I intend to lessen my own relative ignorance of Russia's economy.  I have already started work to learn more.  I had hoped I could get some insight from professionals.

Nonetheless, I am doing the research necessary to write on why a BRICS bank (or the BRICS in general) need not inspire fear among us (or even Europe or Japan).


Speaking of ignorance (and in your own words), perhaps you mean "to write"?

"If you don't know it yourself then you're certainly not fit to right any kind of articles."


Also, following your own logic then, reporters, bloggers, Congressional researchers, misc. analysts, etc. who are not experts are not fit to research and write upon topics they choose to look into?

If no one chooses to pass along their experiences to me, then I will research where I can to get a good overview of how Russia fits into the picture.

Tue, 07/15/2014 - 02:44 | 4958176 fxrxexexdxoxmx
fxrxexexdxoxmx's picture

DCRB...You do your thing and I will tell that MF'r messing with you to go suck Putins cock. He is an idiot. Those of us who have been reading your posts and contributions to ZH are aware of your abilities.

Tue, 07/15/2014 - 11:50 | 4958618 COSMOS
COSMOS's picture

Dochen, seriously dont write the article about Russia's economy.  Its obvious you dont have any knowledge or experience with it.  You sell Chinese bearings, you have been to China and dealt with them, you know Chinese ball bearings well so write about that.  Its like you haven't gone to medical school but you will start treating people and writing about medicine.  Do you think someone will let you operate on them if you havent been to medical school and gone through residency training?

Seriously dude write about what you have FIRST HAND experience with, otherwise its trash.

Tue, 07/15/2014 - 03:21 | 4958205 Ghordius
Ghordius's picture

"Nonetheless, I am doing the research necessary to write on why a BRICS bank (or the BRICS in general) need not inspire fear among us (or even Europe or Japan)."

DoChen, so you already decided that there is nothing to fear about and you want to research for facts that serve as evidence for your previously taken judgment?

Tue, 07/15/2014 - 03:39 | 4958226 highly debtful
highly debtful's picture

Ah, Ghordius, when the time comes please remind me never to start an argument with you. That is a battle I will not likely be able to win.  

Tue, 07/15/2014 - 04:34 | 4958258 Ghordius
Ghordius's picture

in my view, the very best arguments I had were those I lost. so I do hope we have an argument where I learn something new and get rid of a couple of my countless faulty reasonings and preconceptions

and this is my view of the "Fight Club ethos". it's not about winning. it starts with fighting, and for me it follows with hopefully losing, and improving by it

Tue, 07/15/2014 - 05:24 | 4958284 SunRise
SunRise's picture

So if it's not about winning, why do you want to improve?

Tue, 07/15/2014 - 05:28 | 4958285 SunRise
SunRise's picture

It is true that failure is on the path to success, but success is always the goal - if not this time then eventually.

Tue, 07/15/2014 - 06:02 | 4958318 highly debtful
highly debtful's picture

Agreed. Well said. Counterarguments often do bring new wisdom.

Tue, 07/15/2014 - 06:05 | 4958324 smacker
smacker's picture

"the very best arguments I had were those I lost"


{eyes rolling in "can't resist" mode}

You must enjoy the arguments you have with me ;-)

{/eyes rolling in "can't resist" mode}

Tue, 07/15/2014 - 06:27 | 4958357 Ghordius
Ghordius's picture

is that the quintessential British "get off your high horse" argument towards the quintessential Continental pompousness? guilty as charged, btw

meanwhile, to get back to the article's theme, the (Dollar Alliance's) US DoJ is busy in a big probe in London's megabank FX traders, and offering immunity deals to junior traders for information that leads to charges for FX manipulators

which leads me again to say: I'm thankful for the EUR. the 18 "ingredient" currencies could have been manipulated for a decade, without it...

unleash your "eyes rolling" to this ;-)

Tue, 07/15/2014 - 09:52 | 4958737 BobPaulson
BobPaulson's picture

Somewhat off topic, but humour isn't funny if you have to label it. It's actually more funny when you know people with no sense of subtlety don't get it.

Tue, 07/15/2014 - 00:58 | 4958099 stoneworker
stoneworker's picture

The Russian government is virtually not in debt. They have had a budget surplus for a long time. Putin has a high approval rating without borrowing from future generations....I could go on, but perhaps you should try and write something you don't like....and don't see that they hate us for our freedoms....

Tue, 07/15/2014 - 01:11 | 4958116 DoChenRollingBearing
DoChenRollingBearing's picture

At least some of what you write is true.  My research is not done.  

I have not written that anyone "hates us for our freedoms."  And that is not the topic I am addressing.


Tue, 07/15/2014 - 01:25 | 4958125 Bingo Hammer
Bingo Hammer's picture

Somethings got into you lately DCRB....a very different slant than I remember...oh well, whatever

Tue, 07/15/2014 - 02:19 | 4958160 hobopants
hobopants's picture

There is a tendency on here among some to romanticize the opposition to the cartel, particularly Russia. It can be frustrating, I respect Putin but I think it's important to ask hard questions about everything and everyone in power, especially if they are likable/charismatic.

People get into this cheerleading mode where they just want the team they have picked to win, and that is fine with football or whatever, but it is such a naive and dangerous way of thinking when it comes to geopolitics. I can sympathize with Russia/the BRICS/Putin, but I still want to know what the potential consequences could be if they are to be the ones ushering in the new era. In order to do that I have to look at both the good and bad, and not just see what I want to see. 

Tue, 07/15/2014 - 02:47 | 4958177 fxrxexexdxoxmx
fxrxexexdxoxmx's picture

President for Life Putin. That is all you need to know about him to understand who he really is.

Tue, 07/15/2014 - 05:44 | 4958301 COSMOS
COSMOS's picture

And who has America in a choke hold as far as monetary and foreign policy goes for more than a few Presidential Terms.  At least Putin acts in the interests of Russia.

Tue, 07/15/2014 - 08:44 | 4958545 Peanut Butter E...
Peanut Butter Engineer's picture

Putin acts in the interests of Russians' people.
Chinese president [insert name] acts in interest of Chinese people.
Obama acts in interest of his overlord and it's certainly not the people.

We got fuck up priority.

Tue, 07/15/2014 - 03:31 | 4958219 highly debtful
highly debtful's picture

Hear, hear. Can't believe I'm the first to give you a green arrow, Hobopants.

And another thing: Russia is a two trillion dollar economy - comparable to that of Italy - with a lot of oil, lousy demographics, an important nuclear arsenal and a rather mediocre reputation for research, development and the strict application of the rule of law. So as far as I know it's not like it's the new China or Japan in economic terms or the next beacon of freedom in a darkening world. I have nothing against the Russians or their leadership per se (although I tend to be very cautious about Putin) but we should try to keep things in perspective here. 

Tue, 07/15/2014 - 10:07 | 4958802 Ragneur
Ragneur's picture

'Russia sit on $75 dolllars of untapped resources spazmaster.

Tue, 07/15/2014 - 04:01 | 4958242 Eirik Magnus Larssen
Eirik Magnus Larssen's picture

This anti-dollar alliance, as they put it, definitely seems to be of growing significance.

Tue, 07/15/2014 - 03:21 | 4958203 barre-de-rire
barre-de-rire's picture

grow up kid, zh is not for you, calling russia a looser tend to prove you never been school, no sense of history. at all.



Tue, 07/15/2014 - 05:13 | 4958278 Offthebeach
Offthebeach's picture

BRIC bankers will be better bankers.

Ah, yeah. Shure.

Tue, 07/15/2014 - 07:57 | 4958451 Offthebeach
Offthebeach's picture

Hey, go right ahead. So the Gambino Famile were rough on yous. The Bonano Famile will be so much easier.
For the BRIC sheeple it will be another layer of hacks to carry.

Tue, 07/15/2014 - 05:57 | 4958314 smacker
smacker's picture

"Still waiting on someone who knows Russia well"

Boris is da man (!)

Tue, 07/15/2014 - 11:13 | 4959096 gatorboat
gatorboat's picture

"Let's then see who abuses it the most, who is the most corrupt among that group of five loser countries."

... who have 40,000 tons of gold to back their new pan-asian currency.

Their currencies might be losers now, but it will all change in a heartbeat when gold backing goes live and knocks USD out of reserve currency status.

That's all anyone needs to know.

Tue, 07/15/2014 - 00:48 | 4958080 F0ster
F0ster's picture

Exactly. All the BRICS bank needs to do to end the USD is issue a gold backed trade currency or trade settlement. That would come last and be huge.

Tue, 07/15/2014 - 01:47 | 4958143 The Wedge
The Wedge's picture

If everything goes well they'll trade amongst themselves in one currency or a basket and then when it's stable they will begin to demand other than dollar payment for goods. It will have to be well coordinated with unity.
But considering some hold more US paper than others, it could be a source of friction. And of course do not forget the US military. Threats could possibly derail their solidarity. Simply put, I would expect push back from the fed and US government in some form or another.

It's possible that Americans could face the choice of supporting a military action to force dollar acceptance, overtly or not, or painful financial ruin. Of course we will choose war, of course we will.

But there are many possibilities. Some of you believe this is all planned and it very we'll could be, even likely, but the outcome is not certain.

Watch to see the Feds action as events develope. If there is push back, we will know. If not to much resistance, we may get an orderly reset. And orderly is a relative term.

Logically, these organizations should move fairly quick if they're to cast off the dollar. The more protracted this becomes the less likely it will work without sending the entire world into utter chaos.

But logic is not a good predictor of outcomes.

Tue, 07/15/2014 - 03:28 | 4958213 Ghordius
Ghordius's picture

"It's possible that Americans could face the choice of supporting a military action to force dollar acceptance, overtly or not, or painful financial ruin. Of course we will choose war, of course we will."

there are quite a lot of people that argue this has alread happened. they point to Saddam's Iraq trading oil in EUR, for example. or Ghaddaffi's Lybia dabbling in gold

imo it's difficult to disentangle all reasons for war, yet your conviction of the US always choosing war is... depressing. not necessarily wrong, yet still depressing

Tue, 07/15/2014 - 06:21 | 4958347 fonzannoon
fonzannoon's picture

Ghordius don't forget we also went to war because Iraq clearly possessed weapons of mass destruction. We just forgot where they were when we went there. It happens. Also we went to war because two ships were blown up in th gulf of tonkin. But great news btw when the war was over we found out they were not blown up! We also went to war because.......

Tue, 07/15/2014 - 06:30 | 4958363 Ghordius
Ghordius's picture

...war is a racket and a business. yes, as I wrote, many reasons, difficult to judge which ones are more relevant, imo

Tue, 07/15/2014 - 06:42 | 4958373 fonzannoon
fonzannoon's picture

Nice job btw, you did dcrb a favor. I like him and his posts. He seems like a genuine good dude. However sometimes it's good to get your bell rung. Keeps you balanced.

Tue, 07/15/2014 - 08:27 | 4958497 shovelhead
shovelhead's picture

Highly doubtful that any military action by the US could be considered.

3 of the 5 have nukes. No winners.

Tue, 07/15/2014 - 08:49 | 4958558 MK ultra
MK ultra's picture



Their, I fixed it for ya

Tue, 07/15/2014 - 03:36 | 4958225 AnAnonymous
AnAnonymous's picture

Because they have not yet started to monetize the resources of some other countries. 'Americans' are going to strive this never happens. As they can no longer bamboozle people in accepting their terms, violence is the only means for 'americans' now.

The private and public sector of army have a brilliant future in this 'american' world.

Tue, 07/15/2014 - 07:28 | 4958412 Urban Redneck
Urban Redneck's picture

They're expressing the contributions of their respective printing presses in USD so the dim witted can understand the amount, but they're not paying the contributions in USD.

Tue, 07/15/2014 - 08:57 | 4958589 tmosley
tmosley's picture

In England, they're valued in Pounds.  In Europe, they're valued in Euros.  In China, they're valued in Yuan.

You can always convert the value of currencies.

Mon, 07/14/2014 - 23:30 | 4957961 Cast Iron Skillet
Cast Iron Skillet's picture

he'll go golfin'

Mon, 07/14/2014 - 23:44 | 4957989 brockhardman
brockhardman's picture

There will be war.  A big one.  And if Obama won't start it, then the bankers will.  Germany, I wouldn't expect to get any of your gold back.  Unless you like worthless paper.

Mon, 07/14/2014 - 23:50 | 4958004 Keyser
Keyser's picture

The rest of the world has figured out that waging war is for neanderthals, i.e. the US... The new trend is to win the battles economically... China has been contributing to the coffers of dozens of countries to gain favorable trade status, while the US threatens sanctions and invasion for non-compliance... The BRICS will isolate and go around the IMF / WB and they will collapse, along with the US and any other nation that does not embrace the new paradigm... The US will not have a direct enemy to attack, although it will not matter due to the decimation of the US military by it's own government... All according to plan... North American Union here we come... 


Tue, 07/15/2014 - 01:07 | 4958109 post turtle saver
post turtle saver's picture

I read that as, "the rest of the world has figured out that going to war with the US is a great way to get its ass kicked up to its throat", which is why it won't happen

Tue, 07/15/2014 - 01:29 | 4958129 F0ster
F0ster's picture

The enemy will be the US citizens aka Domestic Terrorists

Tue, 07/15/2014 - 08:36 | 4958523 shovelhead
shovelhead's picture

Holder has the dubious distinction of the face I would most like to punch into jello.

I see a picture of that race-baiting weaselly criminal and my veins pop.


Tue, 07/15/2014 - 01:36 | 4958134 El Vaquero
El Vaquero's picture

Currency wars -> trade wars -> shooting wars.  The first two stages can have some overlap, but once the shooting starts...  Humanity has done this before, just not on this scale. 

Mon, 07/14/2014 - 23:32 | 4957966 Tasty Sandwich
Tasty Sandwich's picture

If they ever actually do this on a large scale (especially if it's fairly sudden), World War III will be imminent.

The US would have nothing to lose.

Can't really imagine Obama (or anyone really) addressing the nation and trying to explain why prices are doubling and tripling and there are shortages at Wal-Mart.

Tue, 07/15/2014 - 03:44 | 4958232 AnAnonymous
AnAnonymous's picture

Of course, 'americans' have no other choice than violence.

This BRICS thing could happen if trade was left to operate alone but in this case, 'americans' are going to be everywhere, ensuring that violence enforces their domination.

The culture of death is deep among 'americans', they are hooked to power up to a point they cant afford a minimal loss in their grip.

Reshaping the world, bringing up new entities is part of the plan: these new entities will allow a virtual fresh start, to be once again saddled with new 'american' debt.

As to escalation to WW3, 'americans' are going to do everything possible to avoid since through USD monetization, they own the world. It would go against their own property.

Expect more low scale wars, involved people with less and less means, and everything that goes with that when asymetrical warfare is to be expected.

Welcome to an 'american' world, it is a cosy place to live in, you'll see.

Tue, 07/15/2014 - 05:32 | 4958293 SunRise
SunRise's picture

Is why the Article states: "Brazil and Russia also signed bilateral accords on air defense"?

Tue, 07/15/2014 - 05:53 | 4958310 tumblemore
tumblemore's picture

The US would have a lot to lose. It's the banking mafia who wouldn't.

Mon, 07/14/2014 - 23:39 | 4957980 The Most Intere...
The Most Interesting Frog in the World's picture

He'll be like, "Hey, I've arranged for my CEO and Union boss buddies to shoot you in the head for 50% off!" And then just watch all the mother fuckers run for their discount... LOL

Tue, 07/15/2014 - 06:45 | 4958376 AnAnonymous
AnAnonymous's picture

Let's see how the bully reacts?


Reacts? 'Americans' are not surprised by the move, 'americans' think long term and they've been expecting the move for decades. People in power, especially 'americans', must deal in reality and the servants to the 'american' middle class (like politicians, corporations etc) are fully aware of the nature of their business.

'Americans' have been acting for some time now to diminish the chances of success of the BRICS trying to insulate themselves from the 'american' blood sucking consumption act.

For example, who would guys like Saddam "the mad man from the desert" Hussein, "mad dog" Guaddafi etc side with if they were still around? Would they try and support the attempt or what? Well, that uncertainty was removed by 'americans'.

'Americans' have been acting for sometime now, the 'american' world order is a pyramidal order and pyramids always collapse by the bottom.
When you run a business of extorting the weak, farming the poor, the last thing you want is that the extorted and the farmed knock at the door and wave goodbye. Or that the competition snatchs from you your poor and your extorted.

That is the way it works in an 'american' world.

Mon, 07/14/2014 - 23:25 | 4957944 goldpercent
goldpercent's picture

Nobody worth their salt thinks the Red/Blue Left/Right destraction matters.  So FFS pull your head out of your ass or STFU.

Mon, 07/14/2014 - 23:36 | 4957975 The Most Intere...
The Most Interesting Frog in the World's picture

That was the purpose of the comment.  I don't think red/blue matters.  Obviously other people are hypocrits.

Mon, 07/14/2014 - 23:45 | 4957988 goldpercent
goldpercent's picture

It did not read that way, so sorry if my comment was unwarranted.

Thu, 07/17/2014 - 21:58 | 4971573 The Most Intere...
The Most Interesting Frog in the World's picture

It's all good!

Tue, 07/15/2014 - 00:58 | 4958097 post turtle saver
post turtle saver's picture

alright, let me get this straight...

this is supposed to be the grand challenger to the IMF and World Bank... again, the IMF and the World mafuckin' Bank bitchez... both based in Washington, D.C., USA...

the war chest / contingent reserve arrangement is kicking off with a grand total of (pinky finger to corner of mouth) $100 beeeelion dollars... but wait, that's $2 billion per year per member over 7 years with the remainder of that amount to be paid upon request... how much QE was the Fed spitting out per month over the last couple of years again? you go after the IMF and World Bank it's the big leagues, comrades... you gotta show up with more scratch than that, you're not even past the cover charge yet....

oh my how will the IMF and World Bank ever hope to cope against a bold initiative such as this...

and the guest list is a who's who of punk ass commie / fascist / drug lord rejects from South America... it's like Brazil promised to invite all its buck toothed cousins to stuff the room so the party pictures would look good... don't mind that Monroe guy in the corner getting a copy of the guest list, dumbasses...

so the answer here is, only RThedge would give a flying fuck about this grand Potemkin Bank that's being built up to look tough to their home constituency... yet another goddamned Russian news source that gets puffed up as earth shaking when a gnat fart makes more noise... ankle biting rejects, one and all...


Tue, 07/15/2014 - 01:27 | 4958128 DoChenRollingBearing
DoChenRollingBearing's picture


That's good, + 1

ZH-ers are looking at this from a very narrow perspective.  

Sure, I look forward to the BRICS Bank having all this success that the naifs here believe they will have.  Sure.  I too am curious to see which members will put up the $2 billion per year (each) plus whatever balance to be paid upon request.

Tue, 07/15/2014 - 03:33 | 4958222 AnAnonymous
AnAnonymous's picture

I too am curious to see which members will put up the $2 billion per year (each) plus whatever balance to be paid upon request.

'Americans' blind themselves as usual: if they want to carry out their plan, it is not to have that $2 billions per year requirement, but a something billions per year requirement. Their guarantees will no longer be denominated in USD.

They are going on the same ground as 'americans': the end goal will be monetization of other people's resources. The world is still much abundant that the requirements are on the principles, not a big deal.

The 'american' world is built on a pyramidal order. These countries that are in the middle of it, are going to try to snatch the bottom for themselves.

There are much, much more than billions to extract from the bottom at the moment. 'Americans' are extremelly fast at consuming but not that fast.

As it stands though, for 'americans', globalization is nearing its end, they are closing to the full monetization of resources on the global scale in USD.
The few pockets left are actually within the influence of those BRICS.

For 'americans', that story means that the building of that central bank is going against them. It is a zero sum game. As it is, as these BRICs are going to monetize the resources of countries at the bottom of the pyramidal 'american' order, it will takes from 'americans' and reduce the superficy of the USD, which might be in the end be confined to the sole US and EU and UK. Which would trigger immediately a Zimbabwean scenario.

Tue, 07/15/2014 - 05:55 | 4958311 tumblemore
tumblemore's picture

a triiiiiiiiiiiiillion dollars that is only valued at a biiiiiiiiillion dollars is only a biiiiiiiiiillion dollars

Tue, 07/15/2014 - 07:05 | 4958396 Winston Churchill
Winston Churchill's picture

You forget who is funding the IMF right now.It sure isn't the USA or Europe.

Guess what the BRICS next step is after setting up their own version ?

Tue, 07/15/2014 - 08:51 | 4958564 shovelhead
shovelhead's picture


Now back the BRICS bank reserves with a basket of commodities and gold and watch the dollar values soar.

Theres a few more dollars floating around the world than there are rubles.

That Triffin problem becomes acute when gold no longer is subject to paper manipulation.

Tue, 07/15/2014 - 02:24 | 4958163 Clowns on Acid
Clowns on Acid's picture

My my .. you are a stupid fuck.

Tue, 07/15/2014 - 05:21 | 4958281 Tall Tom
Tall Tom's picture

I agree that The Most UNIntere... is a stupid fuck.


We did care what America did during the Bush Administration. We do care what America does during the Obama Administration.


If we did not and had not then we would not be here posting. But, evidentially...


The only criticism which I have is that you did not Ctrl-C and then Ctrl-V his initial post in your response.


It took some time to figure out to who you were responding.


And yes he is a stupid fuck.

Thu, 07/17/2014 - 22:09 | 4971616 The Most Intere...
The Most Interesting Frog in the World's picture

Bush sold us out to the right, Obama sells us out to the left.  My only point was tired of hypocrites backing one or the other.  They are both part of the problem.  I think we actually agree on that, but maybe I didn't word it properly.  We live under a Communist goverment and the entire infrastructure must be taken out for any real hope and change to occur.

Thu, 07/17/2014 - 22:04 | 4971601 The Most Intere...
The Most Interesting Frog in the World's picture

Thanks for the well thought out response...  But, seriously, I am not a red or blue man.  Have not voted since Bush II went left of Marx.  I'm an Alt party solution seeker.  The entire government must be replaced, period.

Tue, 07/15/2014 - 06:02 | 4958320 nailgunnin4you
nailgunnin4you's picture

Be afraid jews!


Mon, 07/14/2014 - 23:05 | 4957888 Trogdor
Trogdor's picture

More power to 'em.  The sooner they can scrape off the parasites at the IMF, the better. 

I'm sure a lot of other countries would like to have an alternative to the IMaFia.  Competition is a good thing (contrary to what the douchebag Rockefeller had to say about it....)

Mon, 07/14/2014 - 23:23 | 4957942 CCanuck
CCanuck's picture

A very wise old friend used to say "Competition drives Evolution"

Its no wonder we seem to be in devolution.

Its for the kids ya know, no scoring, non-competitive championship tournments for youth in most Southern Ontario school boards.

Competition hurts little Jonny's self esteem when he does not win, and that is not fair.


Mon, 07/14/2014 - 23:35 | 4957972 bunnyswanson
bunnyswanson's picture

The new world wants mediocrity...i.e., no competition for ~them.~  Seals the deal that they heirs will carry the torch that destroyed billions of dreams.

Mon, 07/14/2014 - 23:28 | 4957952 UselessEater
UselessEater's picture

More sanctioned power to them hastening a planned reset and end to the USD...and why would parasitic behaviour change? Recall China seeking Zim gold as collateral, and there are hints a lot more is being sought - red team, blue victory for sovereignty of a local person or their nation

He notes that Brics is a member of the World Bank and the International Monetary Fund (IMF) and therefore its initiatives would not make a huge difference because they are all governed by the world’s financial system and must, therefore, conform to the rules.

World Bank communication officer Loy Nabeta says the bank welcomes the establishment of a Brics development bank and is ready to work closely with it to end poverty and build shared prosperity throughout the developing world....“We anticipate that the new Brics bank will be an invaluable partner in this effort. Clearly, the Brics countries have a key role to play in helping promote global growth,” she said.

Tue, 07/15/2014 - 09:02 | 4958602 shovelhead
shovelhead's picture

they are all governed by the world’s financial system and must, therefore, conform to the rules.

Those rules are: The US prints up as many dollars as they want and you have to borrow them at interest. Then the US multinats build those projects and take those dollars and when you are broke from the phony revenue projections never being realized, we take your shit.

All for the cost of some paper and ink.

Mon, 07/14/2014 - 23:05 | 4957891 The man with po...
The man with pointy horns's picture

Progress. The West has hoarded everything for itself long enough. The reversion to the mean is well overdue.

Mon, 07/14/2014 - 23:17 | 4957933 813kml
813kml's picture

Times are gettin' tough, maybe the US can qualify for a loan.

Mon, 07/14/2014 - 23:40 | 4957982 The man with po...
The man with pointy horns's picture

And then we be the master!


Mon, 07/14/2014 - 23:06 | 4957894 world_debt_slave
world_debt_slave's picture

another BRIC in the wall

Mon, 07/14/2014 - 23:45 | 4957993 The man with po...
The man with pointy horns's picture

God I love Pink Floyd.

Mon, 07/14/2014 - 23:59 | 4958019 Keyser
Keyser's picture

What god wants, god gets...


Mon, 07/14/2014 - 23:06 | 4957897 Al Huxley
Al Huxley's picture

Wait a second - surely it must be against the law to create a competitive alternative to the IMF?  How will the IMF continue their benevolent assistance to the third world if they have to compete with these local upstarts.  It looks to me like somebody needs a big ass injection of freedom and democracy...

Mon, 07/14/2014 - 23:16 | 4957931 litemine
litemine's picture

The IMF and Benevolent should not be used in the same sentence...............They rob the means of the poor Countries.....force GMO on others.......get you head out of your A$$.

Mon, 07/14/2014 - 23:28 | 4957955 Al Huxley
Al Huxley's picture

What part of Germany are you from?

Tue, 07/15/2014 - 00:14 | 4958039 bonin006
bonin006's picture

I'm 1/2 german, yet my sarc detector is operational.

Tue, 07/15/2014 - 01:31 | 4958131 Tinky
Tinky's picture

Sarkasmus-freie Dorf, presumably.

Tue, 07/15/2014 - 01:52 | 4958147 walküre
walküre's picture

Ah, it's from the part where they don't get sarcasm .. Nordfriesland

Tue, 07/15/2014 - 09:06 | 4958613 shovelhead
shovelhead's picture

Gotta be close those Danish folks.

Tue, 07/15/2014 - 02:31 | 4958166 Seeking Aphids
Seeking Aphids's picture

Normally in such cases sarc is not necessary...but in your case we will make an exception...that was sarcasm buddy.

Mon, 07/14/2014 - 23:48 | 4957985 Wild Theories
Wild Theories's picture

You mean like this piece of freedom and democracy injection -  Assistant Secretary of State for Democracy, Human Rights and Labor Tom Malinowski that was just ordered to leave the country in Bahrain last week?

news from yahoo

(the story's actually AFP and reuters, if yahoo turns you off)

Mon, 07/14/2014 - 23:08 | 4957901 infiniti
infiniti's picture

This article is almost as bad as the one posted a few days ago, where the author prognosticated the end of the US dollar within 5 years and then urged people to subscribe to their newsletter; payment terms were USD Visa, AMEX, Paypal, or Mastercard.


Mon, 07/14/2014 - 23:09 | 4957904 SillySalesmanQu...
SillySalesmanQuestion's picture

Bye, bye Miss American petrodollar... See ya on the flip side.

Mon, 07/14/2014 - 23:51 | 4958005 The man with po...
The man with pointy horns's picture

And may the hounds of inflationary hell descend upon your rotten beach whale-sized corpse.

Mon, 07/14/2014 - 23:10 | 4957906 Skateboarder
Skateboarder's picture

Fucking finally. If they have any sense, they'll have a gold-backed standard for their union, instead of dollar-equivalents. Keep relative conversions out of this shit - stick with a set amount of physical everyone brings to the table. Wait, that might actually benefit the people. Can't have that...

Mon, 07/14/2014 - 23:10 | 4957908 CCanuck
CCanuck's picture

Grand opening will be the official kick-off for WWIII

Tue, 07/15/2014 - 00:08 | 4957916 813kml
813kml's picture

Free AK-47 upon opening of personal checking account, Yakhont cruise missiles for business account.

Mon, 07/14/2014 - 23:13 | 4957919 litemine
litemine's picture

Mr.Harper........wake up........Join this instead of the Pacific Trade Pact......Go back to having money backed by Value instead of Debt  ............ Goverment Transparency and ......oh Ya     Quit Lying.

 You are a Public Servant . We are not to here to  Serve You........("Hitler's Clone")

Mon, 07/14/2014 - 23:33 | 4957970 CCanuck
CCanuck's picture

Mr.Harper is a cumbag for NATO,IMF,UN....and a very special recepticle for Barry & Friends.

Sorry litemine don't hold your breath waiting for this cocksucker to make a decision that benefits the people he pretends to serve...a low-life sell-out just like all the other cumbag politicians in Canada.

Mon, 07/14/2014 - 23:54 | 4958009 Global Hunter
Global Hunter's picture

Harper is a corrupt, war hungry, violent man.  He in no way acts in the interests of Canadians or Canada.  He is beyond hope or redemption.

Tue, 07/15/2014 - 02:19 | 4958159 dumbStruck
dumbStruck's picture

I just wish Harper wasn't so in Canada's face about having Bibi's penis deep in his mouth, it reflects badly on normal Canadians that we've got such a cocksucker ruining our country.

Tue, 07/15/2014 - 06:09 | 4958326 tumblemore
tumblemore's picture

if the political elite weren't rent-boys for the banking mafia they would never have got to that position...


however being a rent-boy for the banking mafia and betraying your own people means they are pretty much all sociopaths...


(except for the ones too stupid or greedy to notice what's going on)


and if the top level are all sociopaths they'll be quite capable of betraying the banking mafia en masse if they think the tide has turned.


Tue, 07/15/2014 - 06:09 | 4958327 tumblemore
tumblemore's picture

double post

Mon, 07/14/2014 - 23:13 | 4957922 markar
markar's picture

Jim Willie has been right about this all along.

Mon, 07/14/2014 - 23:19 | 4957939 Skateboarder
Skateboarder's picture

Because he thinks before he {speaks,writes}, and applies proper logic in his analysis. Always trust a good logician.

Mon, 07/14/2014 - 23:29 | 4957958 Postal
Postal's picture

Thinking and logic do not win elections...

Mon, 07/14/2014 - 23:36 | 4957973 Skateboarder
Skateboarder's picture

That they do not, but a gay black dude can, with the help of a teleprompter, the entire media industry, and a master group of reptilian overlords.

Mon, 07/14/2014 - 23:47 | 4957997 CCanuck
CCanuck's picture

Hey Boarder....

+1 But ya gotta give some credit to the Wookie, what a performance he has put on.

Tue, 07/15/2014 - 05:30 | 4958292 Tall Tom
Tall Tom's picture

Isn't that laughable? Instead of First "Lady" he should have been an actor. He missed his calling. Michael Obama has played a convincing role.

Tue, 07/15/2014 - 05:27 | 4958288 Tall Tom
Tall Tom's picture

Thinking and logic do not win elections...


Jim Willie is not a politician running for office.


Check out

Tue, 07/15/2014 - 01:05 | 4958102 hobopants
hobopants's picture

Jim Willie sounds crazy when you first hear him, but then that crazy shit starts to come true...I still think he is nuts, but in a good/prophetic way.

Tue, 07/15/2014 - 05:39 | 4958300 Tall Tom
Tall Tom's picture

He is not nuts. The system is nuts.


Congrayulations on waking up. Normalcy is that which is the craziness. The "nuts" have been correct all along. As you shed your vestigal programming the picture of reality will claify itself and come into focus.


You must still be under some delusion that what you once thought was normal has no basis in any reality as it is all fake. Do not concern yourself as that symptom will soon abate.


That is what you get for taking the Red Pill. There is no turning back now.

Mon, 07/14/2014 - 23:15 | 4957928 Jungle Jim
Jungle Jim's picture

I kind of skimmed over it. Did they mention how soon this is going to happen? I mean, when will it actually be up and running?

Mon, 07/14/2014 - 23:23 | 4957945 Skateboarder
Skateboarder's picture

No mention from ZH's side, but Jesus, it's a fucking Yahoo article. I feel dirty.

Tue, 07/15/2014 - 00:11 | 4958036 disabledvet
disabledvet's picture

In the year...2525
If Man is alive...
If woman can survive...

They may fiiiiiiiiiiind........

Tue, 07/15/2014 - 07:00 | 4958392 turbochef69
turbochef69's picture

Zager & Evans

Do NOT follow this link or you will be banned from the site!