BRICS Plan To Become "Political Alliance" To Reform The International Financial System

Tyler Durden's picture




 

As the world slowly turns against US Dollar hegemony, it appears the BRICS are pressing to fill any gaps. Having created the BRICS Bank "alternate to The West-controlled IMF or World Bank," Xinhua reports that Russian Foreign Minister Sergei Lavrov believes the BRICS mechanism has been fully developed and can now transform into a political alliance to "reform the international financial system."

 

As Xinhua reports,

The BRICS mechanism has been fully developed and can transform into a political alliance, Russian Foreign Minister Sergei Lavrov said Friday.

 

"BRICS grows and matures in all directions," the diplomat told state-run Rossiya 24 TV channel.

 

Lavrov said the "qualitative" growth of the mechanism to a degree made it possible to transform into a political alliance, which is especially noticeable in its work within the Group of 20 (G-20) on global economic and financial affairs.

 

BRICS that groups Brazil, Russia, India, China and South Africa has many allies in the G-20, the minister noted, naming Argentina, Mexico and Indonesia in particular.

 

"They speak in the common voice with BRICS in the G-20 on the reform of international financial system," the diplomat said.

*  *  *

 

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.

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Sat, 07/19/2014 - 16:09 | 4977760 gh0atrider
gh0atrider's picture

Countdown to magik number 7?

Sat, 07/19/2014 - 16:14 | 4977768 ZerOhead
ZerOhead's picture

Because Obama

"Yes they can..."

Sat, 07/19/2014 - 16:21 | 4977799 Keyser
Keyser's picture

With a shrinking military, the US will have to be selective in naming the next nation on their 'Axis of evil' list... 

Sat, 07/19/2014 - 16:26 | 4977811 ZerOhead
ZerOhead's picture

Maybe they could economize with a rotating "Enemy of the Month" program...

Sat, 07/19/2014 - 16:36 | 4977835 BaBaBouy
BaBaBouy's picture

There Exists Only 3 Basic Components To A Solid, Fair, Honest, And Bulletproof International
Financial/Banking System:

Physical GOLD, Physical GOLD And Physical GOLD...

Sat, 07/19/2014 - 16:49 | 4977871 DoChenRollingBearing
DoChenRollingBearing's picture

And while most of the BRICS have a pretty hefty chunk of physical gold holdings, it is hard for me to see how Russia and China cooperate in the longer term.

Poutine is China's bitch?  :p

Sat, 07/19/2014 - 17:17 | 4977935 ZerOhead
ZerOhead's picture

That's just missile envy speaking...

Sat, 07/19/2014 - 17:20 | 4977940 Urban Redneck
Urban Redneck's picture

Replace the guy in the middle with this brown bear...

Sat, 07/19/2014 - 17:23 | 4977950 SafelyGraze
SafelyGraze's picture

hear hear!

both an economic union *AND* a political union!

with a president elected by a commission!

hugs,
nigel farage

 

Sat, 07/19/2014 - 18:06 | 4978066 Elvis the Pelvis
Elvis the Pelvis's picture

The BRICs are screwed.  America is running this ship, bitchez.

Sat, 07/19/2014 - 18:15 | 4978093 quasimodo
quasimodo's picture

Sure, and that ship's props are sticking high up in the air, about ready to plunge to the bottom of lake gitchiegoomie. They might be running it alright, but it's going the wrong fucking direction.

Sat, 07/19/2014 - 21:00 | 4978578 The Alarmist
The Alarmist's picture

The fly in the ointment is where the oligarchs can stick their money in "flight to safety" moments.  The BRICS have a reason to do what they are doing, but do they have a means of preserving wealth and making it somewhat more secure than what might be achieved by parking wealth in USD-denominated assets?

Sat, 07/19/2014 - 22:04 | 4978774 chumbawamba
chumbawamba's picture

They look like a super hero squadron: The Flying Heads of State.

-Chumblerz.

Sun, 07/20/2014 - 00:35 | 4979031 CheapBastard
CheapBastard's picture

People will shit a BRIC when they wake up one day and may find their paper dollars are devalued 40%-60%.

Sun, 07/20/2014 - 07:02 | 4979225 GetZeeGold
GetZeeGold's picture

 

 

To Reform The International Financial System

 

Gonna stick your ass in the reform school with Rolling Bearing....you're all on notice bitchez!

 

 

Sun, 07/20/2014 - 09:46 | 4979439 Oh regional Indian
Oh regional Indian's picture

Old picture, India has a new man at the helm. This spineless example of "leadership" is now on the dung-heap.

 

That said, just look at how awkwardly the ex Indian PM is holding "hands" with Dilma and the Bear.

Kind of speaks for India's position in the BRICS, totally weak. 

But wake up calls are coming everywhere...let us see what happens in India next.

For now, unless a magic cure or a desu ex machina appears patient is terminal...

ori

Sun, 07/20/2014 - 04:39 | 4979174 Squid-puppets a...
Squid-puppets a-go-go's picture

To answer your Alarmist question (see what i did there?) - Yes they do have a means of preserving wealth. Suprize surprize, its called physical gold. (With india's exception) they are all stacking it and/or mining it, and with the alternative exchanges they have set up, they at very, very short notice can flip the switch on the west and declare their BRICS bank to be supported by golden BRICS

And at least half of the oligarchs of the west would abandon the wests banking system in a second - indeed, it looks like they have been positioning themselves to jump ship for the last 2 decades

Sun, 07/20/2014 - 07:06 | 4979228 GetZeeGold
GetZeeGold's picture

 

Crap.....it's Willie!

 

Fear and loathing from Costa Rica!

 

Sure wish Hunter S was still around at this juncture.

Sun, 07/20/2014 - 07:47 | 4979265 Zwelgje
Zwelgje's picture

Or Bill Hicks.

Sun, 07/20/2014 - 07:08 | 4979229 AlmostUncirculated
AlmostUncirculated's picture

Yup, Jim Willie is reaching quite alot of people and I like the style and manner of his Youtube interviews.

Sun, 07/20/2014 - 13:31 | 4980174 matrix2012
matrix2012's picture

http://www.storyleak.com/obamas-ukraine-fiasco-will-trigger-us-eu-econom...

DEAD LINK

"this website is not available"

 

just like Asia Times Online - atimes.com was not accessible shortly after MH17 was shot down!

 

EDIT:

Read it here... article is alive

 

Obama's Ukraine Fiasco Imperils Economy | Alternative News & Commentary

http://stateofthenation2012.com/?p=4614

Sun, 07/20/2014 - 08:30 | 4979306 chubbar
chubbar's picture

His thesis that US/UK are in cahoots appears correct with this mornings report that Cameron is scolding the other EU nations for not moving fast enough to sanction Russia over the shoot down of MH17, as if all the facts are known and it is a foregone conclusion that Russia is actually responsible. Looks pretty clear to me that the US/UK desparately need to pin this on Russia in an attempt to slow or stop the BRICs move towards another trade/currency/political union that pulls in the rest of the EU.

Sun, 07/20/2014 - 10:46 | 4979599 ThirteenthFloor
ThirteenthFloor's picture

If you follow you history, you will note the Rome Empire moved to Venice, then to the UK.  You will also note the Financial Center of world is based in UK.  Note LIBOR...Rothchild's Inter-Alpha banking et. al. You will also see a lot of connections....Sir John Hocker that invented war bonds in proviences of Italy (from UK).  John Law that destroyed France was a Scots man.  The hits on Lincoln and Hamilton was funded from the UK.  Most of the serious bad dudes in recent years connect back to UK. I hear the missing 28 pages from the 9/11 report involves BAE/Saudi arrangements.

The spying on US citizens started in UK to avoid US law, and the spying on UK citizens was done by the US to avoid UK law.

Who was it that openly called Putin "Hitler" last month...it was the "Monarchy".  

http://www.theguardian.com/world/2014/may/22/prince-charles-putin-hitler...

Sun, 07/20/2014 - 10:19 | 4979533 ThirteenthFloor
ThirteenthFloor's picture

If you were in a room and two sides were starting to form for a tug-a-war, and you saw the big bad bully boss-man go to one side, you hate him because he takes ten percent of all your earnings and stands over your shoulder in every thing you do, and threatens you and starts RUMORS about you all the time, oh yes he is a coke head and....

Then you saw two, then three medium size guys, who rarely bother you, but one has a lot of resources and the the other makes a lot of stuff, and you make your stuff and you USE the resources of one guy and some of the other guys STUFF too, you TAKE the side of the medium sized guys and go for the WIN.

Elimination of the the big bad boss man, what else would you do ?

Sat, 07/19/2014 - 20:37 | 4978518 MontgomeryScott
MontgomeryScott's picture

Let me add a little to the comment that you made.

MOST will not be familiar with the wreck of the ship called 'Edmund Fitzgerald' (either the event, or the song that memorialized it, sung by Gordon Lightfoot).

http://www.youtube.com/watch?v=9vST6hVRj2A

ROCK WAR?: ON!

The legend lives on from the "Chippewa" on down,

To the big lake they call "Gitche Gumee".

SUPERIOR, they said, never gives up her dead

When the gales of November come early!

(Correction to posted 'lyrics' on this P.C version of Youtube. 'Say' is not correct. 'SAID' is correct.)

 

Here is a documentary by the Smithsonian that details this event:

http://www.youtube.com/watch?v=YVU_bcPo7mc

"They might be running it alright, but it's going the wrong fucking direction."

The propellers were designed to take a bite out of WATER, not AIR. They were turning correctly; but the weight of added cargo in the form of water caused the props to become INEFFECTIVE by raising them out of this liquid that they were designed to operate in. OF COURSE it is 'going in the wrong direction'.

People try to make it complicated, and fail to realize the fact that the ship is sinking.

 

Sat, 07/19/2014 - 21:20 | 4978634 Ralph Spoilsport
Ralph Spoilsport's picture

Thanks for the link on the documentary.

BTW, Lightfoot's song received heavy airplay on FM radio when it came out in 1976 and is still popular as a golden oldie. A lot of us boomers are very familiar with the song and the story of the lake freighter's sinking.

Sun, 07/20/2014 - 03:01 | 4979126 Rock On Roger
Rock On Roger's picture

Yup, play it on my guitar.

A haunting ballad...

Sun, 07/20/2014 - 11:13 | 4979670 ThirteenthFloor
ThirteenthFloor's picture

> Engineer Scott

That song is a classic.  However I see it more like Pete Townsend "Punk Meets the Godfather"  http://www.youtube.com/watch?v=ZHtVaSmK38s

PUNK = "You declared you would be three inches taller, you only became what we made you, thought you were chasing a destiny calling...you fell and cried as our people were starving, now you know we blame you."

GODFATHER = "I'm the guy in the sky flying high, flashing eyes, no surprise I told lies.  I'm the new president and I grew and I bent"

PUNK = "Your axe belongs to a dying nation, we're the slaves to a phony leader"

GODFATHER = "The bloody faces slowly pass, The numbered seats in the empty rows, it all belongs to me you know."

We are live watching the 'clash of titans" in our own time.

Sat, 07/19/2014 - 21:40 | 4978697 TheFourthStooge-ing
TheFourthStooge-ing's picture

.

Sure, and that ship's props are sticking high up in the air, about ready to plunge to the bottom of lake gitchiegoomie.

It tends to remind me that the mighty and fearsome battleship Bismarck was crippled and left to her fate by a dog-slow biplane torpedo bomber.

Sat, 07/19/2014 - 19:21 | 4978293 Tall Tom
Tall Tom's picture

Yeah. Captain Yellen of the Titanic says damn that iceberg of Debt ($17 Trillion above the Water with the remaining $170 Trillion in Unfunded Liabilities below the water and unseen.). Keep sailing (printing).

 

Unfortunately the damage caused by striking that iceberg has been fatal. While the leaks in the hull may be small the pumps cannot keep up And the compartments are flooding in liquid(ity). The scramble for the Lifeboats is happening as the First Class is launched away from the sinking ship with partially filled Lifeboats with amenities.

 

The Steerage Class is kept from the truth by the stewards, people like you, and prevented from venturing up to the top decks. Meanwhile they are drowning in an Ocean of Debt, barely able to keep their heads above water, as the price inflation drowns them.

 

The Second Class passengers (the Working Class) are scrambling for the lifeboats but the stewards are restricting access only to women (EOE laws) and Children (AFDC welfare laws) while their men are sentenced to an early death through drowning in the Ocean of Debt. They built the ship through their labor and contribution only to let an incompetent Captain wreck it through insane orders.

 

Some are still in denial, seeking to play Musical Deck Chairs, and seeking to become First Class . There is now some room as some of the First Class has already left. But Lifeboat access is denied to these new players.

 

THE PROBLEM WITH PEOPLE LIKE YOU IS THAT YOU LACK, TOTALLY LACK, THE ABILITY FOR ANY COMPASSION. SOMEHOW YOU WERE NOT ENDOWED WITH A HEART.

 

I can write that and you will not feel any remorse whatsoever. That is what is truly sad.

Sat, 07/19/2014 - 20:09 | 4978443 MontgomeryScott
MontgomeryScott's picture

UM,

.

(See avatar picture for eludication)

 

Sun, 07/20/2014 - 00:52 | 4979042 Tall Tom
Tall Tom's picture

For clarification the comment was directed at Elvis the Pelvis...

 

Look at the time stamps.

 

But I agree that your avatar is quite poignant and applicable.

 

OT...Did you read my response to you the other night about which God that I worship?

 

Always enjoy your thoughtful responses...

Sun, 07/20/2014 - 04:52 | 4979177 TREE MAN
TREE MAN's picture

Brilliant comment...one for future economic text books

Sun, 07/20/2014 - 12:24 | 4979997 Hongcha
Hongcha's picture

Nice metaphor Tall Tom.

Sun, 07/20/2014 - 13:54 | 4980299 Plato's Law
Plato's Law's picture

Interesting post.

I've not read all the books on the sinking, but I can not imagine a better book to read than the Congressional Testimony, all first hand reports, no, "I heard someone say..." 

As is often the case with major accidents with large numbers of lives lost, multiple errors contributed to the Titanic tragedy.  The following come to mind but I likely forgot several:

White Star Lines managers selected Captain Smith (his final voyage before retiring IIRC) because he had a stellar 30+ year career with no major accidents.  With perfect hindsight, we see several items occurred that would likely not if someone with more experience of the dangers involved was Captain.  For instance:

The man in charge of the bridge while Smith slept that night was too junior in rank.  Immediately upon hearing report from the Crow's Nest of the oncoming iceberg, he ordered full stop motor and hard rudder away from the ice.  The latter order was good.  The former order was fatal, because it increased turning radius.  A ship's turning radius decreases with forward propulsion, and increases without.  The order violated rules learned in Sailing 101, probably the first day.

Speaking of steering: the ship's rudder was far too small for the ship's size.  

The ship was no speedster, and there is every reason to believe Titanic would never attempt to establish new speed record for it's course.  IOW, it was not "speeding" when it struck the ice berg.

Smith cancelled the "mandatory" Sunday life boat drill because he was having so much fun signing autographs after Protestant Sunday Service.  This was an indirect fatal error: the Irish ship builders constructed the largest ever life boats, and personally filled each seat with a strapping ship builder in testing.  When stewards started filling the boats after the iceberg hit, the stewards had never seen such large life boats.  The stewards having no sense of the ability of the boats to hold so many persons (no Sunday drill), lowered them away half filled or less.

The day the ship sailed was the first day its crew ever assembled as one.

"Glasses" (binoculars) were missing for Crow's Nest occupants.

The ship's course was the inverse of one layed out for safety: the safest route was to immediately arc southward toward warmer water away from the ice, then turn due west toward America.  But of couse, instead the ship sailed directly westward, then intended to arc south only later as it approached the US.  The longer the ship stayed north, the more likely was an ice berg hit. 

The Titanic sinking lead to Congress' first direct and permanent funding of the Coast Guard.  It also lead to establishing international crime for any ship ignoring sign of distress at sea. 

Sorry, forgot the name of the book, but I highly recommend it.  The star of the book is the Congressman who called the hearings. 

Several acts of valor occurred, including (IIRC) multimillionairs Astor and Vanderbilt who died so that others might live. 

The Titanic show at LV rocked, loved it.

Sat, 07/19/2014 - 20:46 | 4978539 gatorengineer
gatorengineer's picture

The BRICS are nothing to worry about.....  lets be realistic.  Russia an South Africa have resources.  India China an Brazil hungry mouths and none have a middle class.

All 5 are oligarchies....  we are becoming / became/ an oligarchy....  The world is much closer to the end game, than I think anyone realizes....  the next financial crisis is what will put it in play, one world government.  The US and Western Europe will get hit the hardest, and in the sense of societal damage the BRICS will suffer the least.

Sat, 07/19/2014 - 21:38 | 4978691 MontgomeryScott
MontgomeryScott's picture

Not bad.

Not too bad, at all!

You are learning!

Now, grasshopper, try to snatch the pebbles from my hand. (My feet are really burning. Perhaps it is the load of burning coals that I am obligated to walk over)

"The US and Western Europe will get hit the hardest,..."

Nuclear strikes and 'pre-emptive wars' are like that, I suppose. Would it be better to be a victim of this type of warfare; or a survivor of such?

Is it better to be obliterated' or rather suffer the torture of the 'night of a thousand long knives'? Would it be more heroic to die on one's feet, or be killed on one's knees? Are the needs of the few to outweigh the needs of the many, or is the opposite the truth? Is the goal of 'SOCIETY' really more important than the goals of 'FAMILY'? Is PROCREATION the enemy of HEDGEMONY? Are OLIGARCHIES afraid of the actions of FREE WILL by those that they claim to reign over?

 

"The world is much closer to the end game, than I think anyone realizes..."

When emphasizing a point, three periods (not FOUR) are obligatory. I took one of these off when cutting and pasting your statement. GOD HELP US if the 'dictum-spelling' police show up...

 

Sat, 07/19/2014 - 21:46 | 4978709 tickhound
tickhound's picture

"Brics are nothing to worry about"

Who's worried? Unless you currently have hegemony. In which case the trend is clear no matter the players.

It's amazing how often people wish dollar hegemony doom and then as soon as the world revolts against, those same people are there to defend the very sanctimony.

OMFG everyone DONT PANIC!!! All is well!

What you're seeing is a trend that won't stop. Don't bash the first players to step up formally.

Many nations have come before the BRICs in attempt to do the same.

The difference is we can't WAR THESE nations.

I've never seen more people on this site indirectly defend the dollar until now.

It's pathetic.

Sat, 07/19/2014 - 21:47 | 4978725 Woodyg
Woodyg's picture

The leaders of the bricks better watch their backs - and those plane engines -
Lots of clay in graves from taking on the monetary elite -

Sun, 07/20/2014 - 04:01 | 4979161 Calmyourself
Calmyourself's picture

Sorry but neither China nor india can feed themselves, the South Africans are about to undergo a brutal race war and Russia pays its citizens to procreate as their demographics suck.  I want change as much as anyone here but doubtful these are the horses to bet on..  Just too many systemic vulnerabilities, agreed!

Sat, 07/19/2014 - 23:10 | 4978919 WhackoWarner
WhackoWarner's picture

Dear Mr. Pelvis.

 

I have said in the past how stupid this "bitchez" comment is.  But your pay grade (membership 11 weeks) does not give access to this high grade info. 

Sun, 07/20/2014 - 04:03 | 4979162 Calmyourself
Calmyourself's picture

Multiple accounts, you will get used to bitch slapping him and his idiotic S. Korean self loathing blog..  Only one thing of value about him and you can get it in higher quality elsewhere.

Sat, 07/19/2014 - 20:07 | 4978439 MontgomeryScott
MontgomeryScott's picture

@ DoChen:

You are seeing the correct (and unfortunately true) story.

", it is hard for me to see how Russia and China cooperate in the longer term."

China and Russia are both voracious in appetites, and jealous of each others' capabilities. They have been mortal enemies for millenia, and will continue to be so in the future. RIGHT NOW they are playing the game of 'An enemy of MY enemy is my FRIEND', regarding the 'western alliance', but once it is defeated (and it WILL be), they will not hesitate to become hostile towards one another again.

The 'downvotes' are most likely due to the fact that you asked the question regarding Putin being a Chicom male's bitch. The Chicoms generally have smaller statures (and hence penises); and while they seem able to propogate heftily, they will not be the ones 'on top', once the dust settles. The Chinese, like the Central and South Americans, are not only smaller, but also suffer quite HEAVILY from 'little-man syndrome'; which makes them INSANELY JEALOUS of a larger dicked man (be he white, black, or Caucasoid).

It's not the size of the ship. It's the motion of the ocean.

Some women like a short ride on the 'Queen Mary', and some appreciate an all-day fishing trip on a small speedboat. MOST women are fickle, though, and never satisfied; no matter WHAT.

The Chinese and the Russians are GAMING each other (and the CONUS, INC. is the current GAME OF CHOICE).

The Q.C. in the East is really quite bad, you know; when it comes to repeatability in production and materials of iron and steel manufacturing of precision items such as 'roller bearings'. It has gained by leaps and bounds within the past 10 years or so (probably due to the importation of the high-quality steel from the WTC complex), but it has a long way to go before it can be deemed as 'high-quality'.

The Chi-coms got this steel, and the Ruskies didn't. They don't really care. though, because they have their own sources.

I'm still trying to find out about the 'B' thing. Brazil doesn't seem to have anything (exept for the rumors of the Hitlerian exodus of '45, combined with some remarkable pharmecutical advances that make men into women; and women into men). I think that it's not only 'transsexual', but also 'trans-humanist' alliances in play here. Russia, India, China, and South Africa ALL seem to have stuff that women WANT and DEMAND in order to feed their vanity (gold and diamonds), but BRAZIL?

The Island Of Dr. Moreau?

 

Sat, 07/19/2014 - 20:55 | 4978561 johny2
johny2's picture

Instead of downvoting, I will try to enlighten you. A country with resources and a means to protect these resources is formidable, as is the group of people who run it. Du chen is underestimating value of hydrocarbons backed by nuclear weapons.  I skipped the rest of your comment, as it seemed to stray too far of the course in my opinion. 

Sat, 07/19/2014 - 21:43 | 4978707 MontgomeryScott
MontgomeryScott's picture

DU CHEN?

DO CHEN?

TWO DIFFERENT POSTERS?

Enlighten me, oh wise sage.

Sat, 07/19/2014 - 22:12 | 4978788 johny2
johny2's picture

I wrote I would try, it remains to be seen if it can be done. As for Brasil, among other things, they produce food which together with oil is highly prized in China and India. Cooperation is possible.

Sat, 07/19/2014 - 20:47 | 4978543 zer0concerns
zer0concerns's picture

Do, I always respect your comments and you got that ass lit up with the downers.
I can't up/down vote ya b/c I don't why you think that. Would you give your reasoning for why they will not?
Do...isn't the long term interest of everyone exclusive to their own interests?
Didn't the good doc hank killinger(Nobel peace laureate don't you know) say something similar to that?
What would be your long term interest, sir, if you don't find any offense in my query?
Don't worry about me...I got zero Fucking concern.
And, again,I really do always find your comments be pretty reasonable.
Peace

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