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BRICS Announce $100 Billion Reserve To Bypass Fed, Developed World Central Banks
As we suggested last night, the anti-dollar alliance among the BRICS has successfully created a so-called "mini-IMF" since the BRICS are clearly furious with the IMF as it stands currently: this is what the world's developing nations just said on this topic "We remain disappointed and seriously concerned with the current non-implementation of the 2010 International Monetary Fund (IMF) reforms, which negatively impacts on the IMF’s legitimacy, credibility and effectiveness."
As Putin explains, this is part of "a system of measures that would help prevent the harassment of countries that do not agree with some foreign policy decisions made by the United States and their allies." Initial capital for the BRICS Bank will be $50 Billion - paid in equal share among the 5 members (with a contingent reserve up to $100 Billion) and will see India as the first President. The BRICS Bank will be based in Shanghai and chaired by Russia. Simply put, as Sovereign Man's Simon Black warns, "when you see this happen, you’ll know it’s game over for the dollar.... I give it 2-3 years."
- BRICS MINISTERS SIGN DEVELOPMENT BANK AGREEMENT
- INITIAL SUBSCRIBED CAPITAL OF BRICS BANK IS $50 BLN: STATEMENT
A quick take on existing monetary policy.
- MONETARY POLICY MUST BE CAREFULLY CALIBRATED: BRICS STATEMENT
The punchline, however, is that using bilateral swaps, the BRICS are effectively disintermediating themselves from a Fed and other "developed world" central-bank dominated world and will provide their own funding.
We are pleased to announce the signing of the Treaty for the establishment of the BRICS Contingent Reserve Arrangement (CRA) with an initial size of US$ 100 billion. This arrangement will have a positive precautionary effect, help countries forestall short-term liquidity pressures, promote further BRICS cooperation, strengthen the global financial safety net and complement existing international arrangements.... The Agreement is a framework for the provision of liquidity through currency swaps in response to actual or potential short-term balance of payments pressures.
Incidentally, the role of the dollar in such a world is, well, nil.
For those who have forgotten who the BRICS are, aside from a droll acronym by a former Goldman banker, here is a reminder of the countries that make up 3 billion in population.
Key excerpts from the Full statement:
We remain disappointed and seriously concerned with the current non-implementation of the 2010 International Monetary Fund (IMF) reforms, which negatively impacts on the IMF’s legitimacy, credibility and effectiveness. The IMF reform process is based on high-level commitments, which already strengthened the Fund's resources and must also lead to the modernization of its governance structure so as to better reflect the increasing weight of EMDCs in the world economy. The Fund must remain a quota-based institution. We call on the membership of the IMF to find ways to implement the 14th General Review of Quotas without further delay. We reiterate our call on the IMF to develop options to move ahead with its reform process, with a view to ensuring increased voice and representation of EMDCs, in case the 2010 reforms are not entered into force by the end of the year. We also call on the membership of the IMF to reach a final agreement on a new quota formula together with the 15th General Review of Quotas so as not to further jeopardize the postponed deadline of January 2015.
BRICS, as well as other EMDCs, continue to face significant financing constraints to address infrastructure gaps and sustainable development needs. With this in mind, we are pleased to announce the signing of the Agreement establishing the New Development Bank (NDB), with the purpose of mobilizing resources for infrastructure and sustainable development projects in BRICS and other emerging and developing economies. We appreciate the work undertaken by our Finance Ministers. Based on sound banking principles, the NDB will strengthen the cooperation among our countries and will supplement the efforts of multilateral and regional financial institutions for global development, thus contributing to our collective commitments for achieving the goal of strong, sustainable and balanced growth.
The Bank shall have an initial authorized capital of US$ 100 billion. The initial subscribed capital shall be of US$ 50 billion, equally shared among founding members. The first chair of the Board of Governors shall be from Russia. The first chair of the Board of Directors shall be from Brazil. The first President of the Bank shall be from India. The headquarters of the Bank shall be located in Shanghai. The New Development Bank Africa Regional Center shall be established in South Africa concurrently with the headquarters. We direct our Finance Ministers to work out the modalities for its operationalization.
We are pleased to announce the signing of the Treaty for the establishment of the BRICS Contingent Reserve Arrangement (CRA) with an initial size of US$ 100 billion. This arrangement will have a positive precautionary effect, help countries forestall short-term liquidity pressures, promote further BRICS cooperation, strengthen the global financial safety net and complement existing international arrangements. We appreciate the work undertaken by our Finance Ministers and Central Bank Governors. The Agreement is a framework for the provision of liquidity through currency swaps in response to actual or potential short-term balance of payments pressures.
Goodbye visions of an SDR-world currency. As for the USD...
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Exactly, the de facto and de jure corruption of the principle institution of the society. Self Aggrandizement and lust for control of the people by the Roman appointed Priesthood. See, human nature doesn't change, it's just that sometimes a society will fight back, starting with an individual or two.
I think I've heard that before "Give us Barrabus" I'll take Jesus as my Savior,you better take Him too
Only you can save you, Jesus just offered some guidelines to the people of his time.
http://www.thenazareneway.com/essene_gospel_of_peace_book1.htm
WRONG.
"cristos" is taken from the Greek word for OIL, specifically, OLIVE OIL. In ancient Mediterranean countries, olive oil (cristos) was used to "annoint" onself or another male by massaging the PENIS before sexual intercourse - whether between a male and female; or more often between 2 males. Today, we still have in spuermarkets the brand name "CRISCO" for congealed vegetable oil, used in cooking and baking. Simply put, CRISTOS means OIL.
LOOK IT UP IN ANY DICTIONARY that show the origins of word.
In the Roman Catholic religion (in which I was raised):
1.) a child undergoes BAPTISM with WATER - the coming of life or being born from the water of the womb.
2..) However, when the male child in his his teenage years, he undergoes CINFIRMATION with OIL (on his forehead) - signifying that he is now a MAN (has an adult penis) and therefore a "soldier of Christ" (to kill off non-believers AND to father future children for the Church)
Doesn't ANYBODY do any REAL RESEARCH any more before they spew out their so-called "facts" ????
chalk up another one for willie.
He's been saying it for a couple years it seems to me.
Trouble is, he's been saying my country will take a fall too.
Judging by the latest rhetoric of our 'Dear Leader'
I'm sure Jim is correct.
I keep seeing one world currency, digital USbux, Amero, Bitcoin...It's Ripples, if digital. Note that in Nov '13 they had a Govt meeting on Bitcoin in DC. Go find the releases, see WHO was there to discuss the topic. XRP ripples/Ripplelabs. Just sayin', look into it. I say, believe no one you don't know, not even me, I'm just some script on the interwebs, draw conclusions based on facts.
P.S. JMO
Might work for city folk but I'm not trading
My food production for your frikkin ripple
Whatever that is.
I like beer though, I'll trade a few steaks for some good brew.
http://journal-neo.org/2014/07/03/rus-kry-m-kitaj-i-al-ternativny-e-torg...
Yes! Or they want their piece of the pie?
Hooray, when does the dollar crash and burn? I want to have a ringside seat when the EBT cards are shut off and the cities go beserk. Then I want to play "Mad MAx" on the highways!
It's all fun and games until the C. H. U. D. S. start showing up.
You have to admit, that if you were a country that has been subject to sanctions over the last few decades by the US, would you jump at the chance to get involved in this new alternative? My answer would be yes.
First will be Iran seeking this alternative, then others will follow.
No doubt this is probably one of the most significant shifts this year. The bilateral trades that have been established by China has also dented the trade use of the USD. The issue is no one actually knows what the tipping point is for the USD?
Everyone says that all the USD will go back to its shores and cause hyperinflation, but it may be just another 50% of the trade lost that might cause it, or 30%, who knows what the tipping point is.
If the end game is that the BRICS will be gold backed, then this shit show will be 'managed' until they know every single ounce of gold has been taken from the West. I agree with Jon Kirby on this, is that this whole thing will end when the gold goes dry.
If its not gold, then its the derivatives market, if its not the derivative market then its a World War.
Cuba has been living with the sanctions for 50 years or more.
I hope they get a break. Putin stopped by on his way to South America.
Maybe first customer?
Castro has always been company. You have so much to learn grasshopper.
http://aangirfan.blogspot.nl/2012/12/fidel-castro-of-cia.html
Is that Chung standing there? I thought Jack Bauer killed him last night.
Fuck you! Man, I am only on ep 4
Low Quality Troll Invades ENENEWS
The latest paid troll attack comes from MF or Moe Foe.
Spewing hatred, swearing all the time, ripping people a new one. This self professed seasoned radiation expert apparently doesn't even have a workstation computer or laptop, he just does it all on a phone.
hmmmm......that doesn't seem quite right.
The troll is harping on Conca's latest crime against humanity, hoping to increase radiation by 100 to 200 percent in terms of nuke plant releases. He left this picture at Forbe's Conca post.
http://nukeprofessional.blogspot.com/2014/07/low-quality-troll-invades-e...
He laughs as experiments in which sick people were unwittingly given doses of plutonium to "see what happens", and he exclaims "they didn't die instantly!" therefore Plutonium is not as bad as other things. The arrogance, the pyschopathy.
Been waiting for this, all the love and bullshit will not make it better.
WE'RE FUCKED!
The combined GDP of BRIS is not equal to C (China). So China has huge influence. China wants to stay beneath the radar of unmasked economic confrontation with US, so they have the right point man - Putin. (let's feed his ego).
India can be the spoiler to this contraption if it decides to lean towards US. Not China's ally with lots of mutual distrusts. At best, it may turn out to be BRCS.
This contraception is for them (mainly China) to go and diversify away from holding US$ as a store of value while contibuting to a safety vlave for BRIS. Not a contraception for sharing the spoils.
US$ as a global medium of exchange cannot be rapidly dismantled as the global trade and investment infrastructures need time to be replaced. These will come in the future following this Bank's experiment.
The hand of the of the gradualist long term player for riding to global economic super power status is evident.
Major Beneficiaries: S who find itself in the big boys club. B who will reap from closer integration with C in "win-win" deals (Oh how much C love B and not for soccer).
Potential Losers: EC. Taking on US is a distant game for gradualists while they egg Putin on.
Wrong Picture. Mr. Manmohan did not sign the agreement. New Prime Minister, Mr. Modi represented India. Please update the photo. It is a disgrace to the Indian public as if you dont acknowledge the elected Prime Minister.
gold, silver dollars, rusky bucks or old carpet..either way it is a money thing, the reason most wake up in the mornings.
I am tired of being a slave to money...can we all get along without it?
and if so, how would life be?
ok so in 10 years brics are 50% ppl of planet + india write softwares, + china make ALL on this planet, russia & china = best army of the world.
etc..
if any opec country join the game, that's for sure we are facing a ww3.
winner will be where EU choosen side.
as long EU do not move on ukraine case, nothing to worry for USA imho.
I find it an intriguing move. as was mentioned the division was a result of the fines and flat illegalities that define western world banking at the moment and probably has always been there. Being from the west myself the writing is clearly on the wall. We need much better leaders and our pride back if it is going to change.
When the system is meant to serve a few for their own ends- everyone waits for the alternative.
Now there is Block Called Brics that is taking it on.
Saddam ( switch over to Euros) and Gaddafi ( No debt Libya and the Gold Dinar) are examples of past failures.
The devil is in the details ( of the agreement)
And also the establishment of a new "SWIFT" system outside American control.
No one wishes for their funds to be routed through the American controlled system which is used to launder their own funds.
Most countries are waiting for the alternative
As an American I must say, "It's about fuckin' time!"
The private central banks (Federal Reserve , ECB, Bank of England, BIS, IMF, World Bank, etc.) and their partners-in-crime called the BIG BANKS (JP Morgan, Goldman Sachs, Credit Suisse, Duetche Bank, etc.) have for TOO LONG had a monopoly on money and credit, which the USA and Britain have used to corrupt foreign governments and ensalve their peoples.
If the USA could NOT bribe the leaders (Allende, Saddam Hussein, Gadaffi, Torrijos, etc.) of a country, it then resorted to assassinations and outright WAR! May I suggest that you read the book, "Confessions of an Economic Hitman"? These bankers made even the Sicilian MAFIA look like CUB SCOUTS !!!!
Such a system must be ELIMINATED and never allowed to return. Hooray for the BRICS !!!!
As an American I must say, when it comes down, Americans will take the ass pounding. Think: Capital controls, fixed prices, inflation, etc.
Careful what you wish for. You've got rice and bullets, but all those friends and loved ones calling you batshit now, where are they gonna be knockin?
It will be just as miserable for the farmer without money as the inner city black man. No one's ready. Who's more ready? Odds are, the farmer. But if the black man has really had to be independent, he will thrive among all the trash. I'm just a college boy, and I know this line of thinking is negative psychologically, it's that our below failing grade economics will soon turn us over to those we've exploited the last 500 years.
From the ancient times until the present day, people even in SMALL VILLAGES have been issuing their own forms of CURRENCY for business. In colonial America and the early U.S., states issued their own currencies, as did numerous private banks. (Ben Franklin wrote that the primary reason for the Revolutionary War was because the King had forbidden the issuance of currencies by individual colonies, in particular Pennsylvannia, whose colonial currency was considered the most successful.
In the U.S. toady many TOWNS have created their own currencies in the form of "exchange coupons". In many ITALIAN CITIES local currencies have thrived , despite government attempts to crush them.
When people - even at the local level - need a medium of monetary exchange, they have always simply created it themselves!
From the ancient times until the present day, people even in SMALL VILLAGES have been issuing their own forms of CURRENCY for business. In colonial America and the early U.S., states issued their own currencies, as did numerous private banks. (Ben Franklin wrote that the primary reason for the Revolutionary War was because the King had forbidden the issuance of currencies by individual colonies, in particular Pennsylvania, whose colonial currency was considered the most successful and stable.
In the U.S. toady many TOWNS have created their own currencies in the form of "exchange coupons". In many ITALIAN CITIES local currencies have thrived , despite government attempts to crush them.
When people - even at the local level - need a medium of monetary exchange, they have always simply created it themselves!
They do NOT need a government to do so, much less a monopoly central bank.
China? Over leveraged China? YGBFKM.