BRICs Bank To Rival World Bank And IMF And Challenge Dollar Dominance

Tyler Durden's picture


From GoldCore

BRICs Bank To Rival World Bank And IMF And Challenge Dollar Dominance

Gold’s London AM fix this morning was USD 1,664.00, EUR 1,246.16, and GBP 1,037.54 per ounce. Friday's AM fix was USD 1,655.75, EUR 1,245.86 and GBP 1,041.22 per ounce.

Silver is trading at $32.41/oz, €24.29/oz and £20.21/oz. Platinum is trading at $1,634.50/oz, palladium at $651.96/oz and rhodium at $1,350/oz. 

Cross Currency Table – (Bloomberg)

Gold rose $8.10 or 0.49% in New York on Friday and closed at $1,668.20/oz. Gold traded volatile in Asia with quick gains seen at the open prior to determined selling which saw a drop to $1,663.77/oz in late Asian trading and European trading saw further weakness.

Gold climbed towards $1,700 last week after the U.S. Federal Reserve Chairman Ben Bernanke alluded to the possibility of more QE.

Gold continues to be guided by the currency markets.  The dollar index hit near a 1 month low last Friday and this plus weakness in all major currencies is seeing gold supported close to the 200 day moving averages.

Gold 1 Year – (Bloomberg)

Gold's short term technicals remain poor after a lower monthly close in March (-6.4%) and the weekly close below the 200 day moving average. 

However, the technicals are not uniformly bad as gold had a higher weekly close last week - rising 0.33% for the week.

The higher quarterly close of a 6.7% gain in Q1, 2012 and 11 consecutive years of annual gains mean that the long term technicals remain favourable. 

Gold’s still strong long term supply demand fundamentals and the long term trend of rising gold prices remain a gold buyer’s friend.

Jewellers in India, plan to suspend the longest nationwide strike after the government said that it will delay the implementation of an increase in excise duty on non-branded ornaments.

India’s gold imports will drop near 59% to about 125 tonnes in the 3 months through March as the tax increases boost retail prices by more than 6%, Prithviraj Kothari, president of the Bombay Bullion Association, said. That compares with 306 tonnes imported a year earlier, according to data from the World Gold Council.

The lack of Indian demand has almost certainly contributed to recent weakness and the renewal of India demand in the coming days should provide further support to gold.

BRICs Bank To Rival World Bank and IMF and Challenge Dollar Dominance

Outgoing President of the World Bank, Robert Zoellick, after just three days ago dismissing the idea of a BRICs created, new global multi lateral bank, has come around and endorsed a BRICs bank in an interview with the FT.

Zoellick had initially said that a BRICs bank and potential rival to the western and U.S. dominated IMF and World Bank, would be difficult to implement given competing BRIC interests. 

He acknowledged that a BRICs bank was being created and said that the World Bank supported such a bank. He said that not having Russia and China as part of "the World Bank system" would be a “mistake of historic proportions”.  

Leaders of the BRICS nations meeting in India appear to have made much progress in creating a new global bank as the emerging economies seek to convert their growing economic might into collective diplomatic influence.

The five countries now account for nearly 28% of the global economy, a figure that is expected to continue to grow.

On Thursday morning, President Hu Jintao of China, President Dmitry Medvedev of Russia , President Dilma Rousseff of Brazil, President Jacob Zuma of South Africa and Prime Minister Manmohan Singh of India shook hands at the start of the one day meeting in New Delhi.              


BRICS leaders, from left, Brazil’s President Dilma Rousseff, Russian President Dmitry Medvedev, Indian Prime Minister Manmohan Singh, Chinese President Hu Jintao and South African President Jacob Zuma. Photo: AP

Top of the agenda was the creation of the grouping's first institution, a so-called "BRICS Bank" that would fund development projects and infrastructure in developing nations.

The initiative would allow the countries to pool resources for infrastructure improvements, and could also be used in the longer term as a vehicle for lending during global financial crises such as the one in Europe, officials said.

Less noticed and commented upon is the aspirations of the BRIC nations to become less dependent on the global reserve currency, the dollar and to position their own currencies as internationally traded currencies.

The leaders of BRIC nations and other emerging market nations have adopted the idea of conducting trade between the five nations in their own currencies. Two agreements, signed among the development banks of Brazil, Russia, India, China and South Africa, say that local currency loans will be made available for trade between these countries.

The five fast growing nations participating in local currency trade will allow participants to diversify their foreign exchange reserves, hedging against the growing risk of a euro or dollar crisis. 

The BRICS want to have easy convertibility of currency to make it easier to use the real, ruble, rupee, renminbi and rand amongst themselves without having to always use the US dollar. Higher intra-Brics trade, conducted in their own currencies would shield their economies from economic dislocations in the west.

In the long run, if global dependence and exposure to the dollar is to be reduced, then the BRICs currencies will have to trade amongst themselves, creating an intra Brics currency market. This could lead to a special reserve BRICs currency that could rival the IMF's Special Drawing Rights (SDRs) and in time a regional currency could emerge. However, the EU's experience of a single currency may make this less likely. 

Left unsaid so far is the possibility that one of the BRICs or the BRICs in unison might peg the value of their respective currencies to the ultimate store of value and money - gold. 

Having a gold standard enforces a form of fiscal self or national control and does not allow any one nation to have an exorbitant privilege in terms of monetary affairs that can be used in order to further selfish national or national corporate or banking interests.   

Having a new gold standard or even a quasi gold standard, as proposed by Zoellick himself some months ago, would lead to the end of the greenback as the sole global reserve currency. 

This is likely an objective of some of the BRICs, especially China and Russia, and has obvious ramifications which should inform decisions regarding investments, savings and managing wealth in the coming years.

Global diversification and owning the hard monetary asset of gold has never been more important. 


(Bloomberg) -- U.S. Mint March Gold-Coin Sales Rise to Estimated 62,500 Ounces 

Sales of gold coins by the U.S. Mint rose to an estimated 62,500 ounces this month from 21,000 ounces in February, data on the Mint’s website showed today.

Sales of silver coins climbed to 2.542 million ounce in March from 1.49 million in February.

(Bloomberg) -- Gold Imports by India Plunge in March After Industry Shutdown 

Gold imports by India, the world’s biggest, plunged in March after jewelers closed stores for more than two weeks to protest against higher taxes, an industry group said.

Purchases may have been about 15 metric tons to 20 tons last month, compared with 75 tons to 80 tons a year ago, Prithviraj Kothari, president of the Bombay Bullion Association, said today by phone. Second-quarter imports may slide to 150 tons, from 250 tons a year earlier, he said.

India may buy about 700 tons to 800 tons of gold in 2012, Kothari said. That compares with record purchases last year of 969 tons, according to World Gold Council data.

(Bloomberg) -- India Raises Benchmark Import Price of Gold to $539/10 Grams 

India raised the benchmark price for imports of gold to $539 per 10 grams from $530, according to a statement from the finance ministry.

The benchmark price for imports of silver was cut to $1,032 per kilogram, from $1,036, it said.

The benchmark prices are used to set the tax on precious metals imports.

(Financial Times) -- Rush to scrap household gold and silver is taking its toll on Birmingham jewellery

In a back room in Birmingham Nigel Blackburn is busy smashing up pieces of Georgian silver in preparation for a "melt".

(Bloomberg) -- Gold Traders Increase Bets on Price Rise, CFTC Data Shows

Hedge-fund managers and other large speculators increased their net-long position in New York gold futures in the week ended March 27, according to U.S. Commodity Futures Trading Commission data.

Speculative long positions, or bets prices will rise, outnumbered short positions by 147,821 contracts on the Comex division of the New York Mercantile Exchange, the Washington-based commission said in its Commitments of Traders report. Net-long positions rose by 16,358 contracts, or 12 percent, from a week earlier. 

Gold futures rose this week, gaining 0.4 percent to $1,671.90 a troy ounce at today's close. 

Miners, producers, jewelers and other commercial users were net-short 185,076 contracts, an increase of 18,938 contracts, or 11 percent, from the previous week. 

Each Friday the CFTC publishes aggregate numbers for long and short positions for speculators such as hedge funds and institutional investors, as well as commercial companies that buy or sell futures to protect against price moves. Analysts and investors follow changes in speculators' positions because such transactions can reflect an expectation of a change in prices.

(Bloomberg) -- Silver Traders Trim Bets on Price Rise, CFTC Data Shows

Hedge-fund managers and other large speculators decreased their net-long position in New York silver futures in the week ended March 27, according to U.S. Commodity Futures Trading Commission data.

Speculative long positions, or bets prices will rise, outnumbered short positions by 18,655 contracts on the Comex division of the New York Mercantile Exchange, the Washington-based commission said in its Commitments of Traders report. Net-long positions fell by 2,514 contracts, or 12 percent, from a week earlier. 

Silver futures rose this week, gaining 0.7 percent to $32.48 a troy ounce at today's close. 

Miners, producers, jewelers and other commercial users were net-short 29,678 contracts, down 2,448 contracts, or 8 percent, from the previous week. 

Each Friday the CFTC publishes aggregate numbers for long and short positions for speculators such as hedge funds and institutional investors, as well as commercial companies that buy or sell futures to protect against price moves. Analysts and investors follow changes in speculators' positions because such transactions can reflect an expectation of a change in prices.

For breaking news and commentary on financial markets and gold, follow us on Twitter.


Gold edges up, eyes on currency market

Business Week
S&P 500 Beating Gold Most Since 1999 on Positive Earnings

The Street
Nations Put Pressure On Gold

U.S. job growth seen tapering off slightly

Analysis: Resistance to austerity stirs in southern Europe


Gold bugs think Q2 will bring new rebound

The Guardian
Gold rush: what happened to bling?

Zero Hedge
Niall Ferguson: Empires On The Edge Of Chaos - 10% Of Portfolio Should
Be Held In Gold

You Tube
"What Does the Fed Do?" with James Grant

Zero Hedge
Jim Grant Crucifies The Fed; Explains Why A Gold Standard Is The Best Option

Your rating: None

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Mon, 04/02/2012 - 07:35 | 2309124 critical_mass_soon
critical_mass_soon's picture


Mon, 04/02/2012 - 07:38 | 2309129 maxmad
maxmad's picture

Thanks Tyler for finally posting this..... we were all wondering when you would get around to it..... Dollar is done!!

Mon, 04/02/2012 - 07:41 | 2309131 maxmad
maxmad's picture

The Treasury/Derivative bubble will be the first to collapse! 

Mon, 04/02/2012 - 07:49 | 2309146 Comay Mierda
Comay Mierda's picture

Gold in USD right now is the best investment opportunity of a life time

Mon, 04/02/2012 - 08:40 | 2309215 trembo slice
trembo slice's picture

2nd best behind silver.

Mon, 04/02/2012 - 10:11 | 2309449 prole
prole's picture

You are both right

Mon, 04/02/2012 - 19:26 | 2311245 mkkby
mkkby's picture

If they peg to gold, everyone will flock to it and the dollar is done.  If they don't, their idea will go nowhere for decades.

Right now the squid is figuring out how to dominate this and ultimately destroy it.  Their "help" needs to be completely refused, as it's intent is to strangle the baby.

Mon, 04/02/2012 - 15:43 | 2310427 AlvarezEarnestine7
AlvarezEarnestine7's picture

my best friend's sister makes $63/hr on the computer. She has been out of work for eight months but last month her pay was $18250 just working on the computer for a few hours. Read more on this site...

Mon, 04/02/2012 - 08:24 | 2309189 Northeaster
Northeaster's picture

When this stops, you might have a case, but it hasn't:


Mon, 04/02/2012 - 08:43 | 2309220 maxmad
maxmad's picture

Look at the chart China went from over 1.3 Trillion in holdings down  to 1.1 in what 6 months.... Thats rather significant... The other countries who added on are just Bernanke's Boys... Countries who are simply printing money and forced to buy the trash..

Mon, 04/02/2012 - 09:55 | 2309396 bank guy in Brussels
bank guy in Brussels's picture

The hat tip on this topic should go to the great Jim Sinclair, who raised this issue many days ago, and some days after that it was picked up by Forbes magazine.

Following Jim Sinclair, Jon Matonis in Forbes also hinted that the recent political move by the USA along with its EU poodle, to block Iran from the international bank-transfer payment system or 'SWIFT' (located in Belgium) ...

That this act may mark the end of Western dominance of the global financial system. Other countries are seeing that the West cannot be trusted with the financial machinery, and that they need to develop alternate structures that are not under Western control.

From the Forbes article (which also later quotes Jim Sinclair), Matonis writes:

« Highlighting and exposing the structural importance of centralized financial institutions that sit at the very top of the payments pyramid will hasten the trend to more decentralized and regional payment structures.

Moreover, a single worldwide financial structure with near-absolute authority will begin to be seen as a vulnerability to many nations because they cannot always be expected to comply with U.S. and European Union directives.

Now that the precedent has been set for evicting a country’s financial institutions from the prevailing global payments network, all nations will be rightly suspicious of that powerful weapon. »

Mon, 04/02/2012 - 09:06 | 2309268 Abiotic Oil
Abiotic Oil's picture

Perhaps Lindsey Williams is correct in his recent interview where he says that the petro-dollar, and hence the US, is done, over, demolished by start of 2013.

Mon, 04/02/2012 - 09:48 | 2309386 LawsofPhysics
LawsofPhysics's picture

Fine, if it is replaced with a gold-backed currency.  Totally bullshit if it is replaced with another fiat.  Any one of the BRIC nations could have moved to their own currency to a gold standard a long time ago but they haven't.  Ask yourself why not.  Again, resource-rich countries and states will now start demanding gold and silver or other real resources in exchange for real goods and services.  How many mouths to feed in China again?  China doesn't tlike the dollar?  They want to replace it with another fiat?  Fine, the next time we send soybeans to them, pay us in gold bitchez and next time be careful what you wish for.  Wake up morons, the fucking world is awash with fiat and the hot potato is the dollar, one of the BRICs wants it, fine let them have it.  I call bullshit.

Mon, 04/02/2012 - 10:31 | 2309521 Ignorance is bliss
Ignorance is bliss's picture

When the u.s. dollar became the global reserve currency it was based on the gold standard. That is one of the reasons it became accepted. Now we appear to be migrating toward several regional currencies. Anyone that backs theirs with gold or other commodities will gain reserve status.

Mon, 04/02/2012 - 07:36 | 2309125 critical_mass_soon
critical_mass_soon's picture

and second bitches!

Mon, 04/02/2012 - 07:36 | 2309126 Green Leader
Green Leader's picture

Fiat challenges fiat.

Mon, 04/02/2012 - 07:48 | 2309138 Ghordius
Ghordius's picture

of course - remember that Fiat is based on trust and force.

gold is only used at the end of a currency war - after everybody agrees to use less force and you need to rebuild trust.

Mon, 04/02/2012 - 08:45 | 2309225 blindfaith
blindfaith's picture



O'yea I can see Russia, China, and India trusting each other just like always. 

Now come on folks, if these countries really wanted to have 'money' backed by gold, they would have/could have done it with their own currencies by now.

Nope, they already know the 'value' of fiat currency for their purposes. 

As for any "gold being used at the end of currency wars", those 'wars' won't be between countries, it will be the counrty against the citizens who bought gold and won't give it up to the powers incharge.

History repeats, memories don't.

Mon, 04/02/2012 - 07:37 | 2309128 casey13
casey13's picture

So what happens to the US $ when the excess money currently used as currency reserves is no longer needed and comes back to the US? 

Mon, 04/02/2012 - 07:45 | 2309136 gmak
gmak's picture

It doens't just "come back".  It will come back through buying us domestic assets (not T-bonds), such as companies etc....


The money doesn't just get up and walk back. It can only enter the US through an exchange.  If no one wants to exchange the USD for anything else, including other currencies - then it becomes worthless and the USA will have to get by on it's own internal resources - or create another currency pegged to maybe the BRIC one, a la Brazil of 1994.


Note that most of those USD in foreign hands are already in the form of assets which would have to be sold to create USD to buy domestic US assets. If no one wants to buy those foreign-held assets, then there are no USD to come back home until the held T-bonds mature. 


At that point, there will be a reckoning.  That is the great abyss: not that these reserves are no longer needed - but that the underlying asset is no longer wanted and needs to be re-financed. Where will US Treasury get the money to roll over that debt?


The answer to that answers your question. If QE666 happens, then it will be the end of confidence in the USD and the US will have to earn whatever currency replaces it,  create a new currency pegged to a hard currency (like the USD used to be), or circle the wagons and try to survive using only internal production.


I've entered this backwards with the summary at top and details at the bottom, but that is the way my mind is working today and I'm too lazy right now to edit.

Mon, 04/02/2012 - 08:56 | 2309246 LawsofPhysics
LawsofPhysics's picture

I think you get it, but you are over simplifying a bit.  The U.S. still has a tremendous amount of resources left.  Basically it sounds like the next time we sell soybeans to China I should request that they pay in gold.  The world is awash with fiat, period.  The central bankers know this and in fact made it so.  Gold revaluation is coming.  China's problem is it's own population.  Do you really think these folks would be able to pay for their essentials in gold?  No, that is why China is building the reserves that it is in both commodities and gold.  The world is coming to parity and the central banks around the world will see to it.  America will be "poor" but well fed.  China will be "rich" but pay out the ass for it's food. Everyone else will be somewhere in between.  This has been the plan all along.  Live where you want, work hard and choose your friends wisely because we are going to need each other as governments (full of the "best and brightest") around the world all come to the same bullshit end game and try to tell us all what is "good for us".  Anyone who does not agree with what their government is saying will be cast out, period.  Numerous examples of this already.

Mon, 04/02/2012 - 07:48 | 2309140 Koffieshop
Koffieshop's picture

I would be guessing there is some kind of plan to keep that money within the walls of financial institutions so that the inflation doesn't hit the streets.

Then the inflation will hit anyway sooner or later as the Fed will be forced to buy 100% of the Treasuries.

Then... there is a choice. Cancel the empire like happened with the USSR... or go for a full scale open war with a couple of BRCIS countries.

Mon, 04/02/2012 - 07:53 | 2309153 Ghordius
Ghordius's picture

full scale open war? with Russia? forget it, Russia is at this very moment helping NATO to access Afghanistan. China is another country you'd need some thirty million soldiers just to hold down. Brazil? also vast. India? You'd need even more troops.

besides, all financial centers have huge investments in the BRICS. I'm sorry, this empires has nearly no enemy to gobble down anymore...

it would be time to convert some swords into ploughs, though this implies painful decisions... and empires don't cancel themselves, they implode

Mon, 04/02/2012 - 07:56 | 2309157 malikai
malikai's picture

Three words answer all of the problems facing humanity today: Worldwide Thermonuclear War.

Mon, 04/02/2012 - 08:02 | 2309160 Ghordius
Ghordius's picture

the answer is still: Mutual Assured Destruction - even mad raving tyrants follow this logic. nope, we are in for interesting times again - though not simple ones with simple answers

it's world politics, not religion or local elections or MSM or children's tales or whatever else that soothes the mind - it's complex and those who have more power are those who have to change their mind less then the others

Mon, 04/02/2012 - 08:17 | 2309181 Koffieshop
Koffieshop's picture

Obviously starting a war with the BRICS is fucking nuts, but look at it this way:

The US has one final ace; It's fast, unmatched, over-funded military. If there is nothing left to lose and those in power are too stubborn to give up, there is only one other possible move.

Mon, 04/02/2012 - 07:54 | 2309154 malikai
malikai's picture

Yea, I'm thinking it's time to bring some of that good ol' democracy to those damn BRICS. Fuckers think they can unite against the empire. We'll show them.

Mon, 04/02/2012 - 08:33 | 2309201 Tompooz
Tompooz's picture

"We'll show them".


Right! We hate them for their freedoms. Or so.

Mon, 04/02/2012 - 19:32 | 2311257 mkkby
mkkby's picture

What are you smoking?  Unless you mean S. Africa, lol.  No way the US can win a war against BRI or C.  C would be the dumbest move ever.  All they have to do is nationalize the entire western world's factories.  Not a bad prize.

Mon, 04/02/2012 - 08:36 | 2309206 trembo slice
trembo slice's picture

Breaking News:  Russia, China, South Africa, India, Brazil, and Iran have been harboring terrorists.  In fact, we have overlooked the reality that these nations are in fact the largest "state-sponsors of terror" for some time now.  /sarc

Mon, 04/02/2012 - 09:17 | 2309297 Normalcy Bias
Normalcy Bias's picture

...And, they gots them WMDs!

Mon, 04/02/2012 - 10:28 | 2309513 kill switch
kill switch's picture

Don't forget Yellow Cake and our man on the street curve ball!!! Bet you can't make up that kind of deep intrigue!!! Fuckit bombs away

Mon, 04/02/2012 - 07:42 | 2309134 PaperBear
PaperBear's picture

“He acknowledged that a BRICs bank was being created and said that the World Bank supported such a bank. He said that not having Russia and China as part of "the World Bank system" would be a “mistake of historic proportions”.”

I think we understand what kind of historic proportions he is referring to … that of escaping the clutches of the money changers.

“Left unsaid so far is the possibility that one of the BRICs or the BRICs in unison might peg the value of their respective currencies to the ultimate store of value and money - gold.”

And what do you know ? The barbarous relic.

Mon, 04/02/2012 - 07:44 | 2309135 Sandmann
Sandmann's picture

At least a BRICs Bank would have resource backing with Russia and Brazil and maybe Iran would join and a few other oilers......could be interesting and certainly make Goldman Sachs feel left out

Mon, 04/02/2012 - 08:20 | 2309155 GeneMarchbanks
GeneMarchbanks's picture

BWIs were established only after a WW was fought and ... won for that matter. What absolute naive 'planning' on the part of the BRICS to think they can step in now and be opportunistic without causing a major schism.

Empire doesn't play defense. The old saying: The best defense is a good offense.

Mon, 04/02/2012 - 09:23 | 2309309 Sandmann
Sandmann's picture

Yes you are right, but don't you expect war as the next stage in this economic disaster ?

Mon, 04/02/2012 - 07:45 | 2309137 cossack55
cossack55's picture

Lets see, trust BRICs or FED, ECB and IMF.  Do BRICs give away toasters? Doesn't matter, BRICs here I come.

Mon, 04/02/2012 - 07:48 | 2309141 Robslob
Robslob's picture


So in the end...another Central Bank run by Bankers but this time for "productive & growing" economies...


I just want in on the ground floor and as close to the "new" money spigot as possible....

Mon, 04/02/2012 - 07:50 | 2309148 Equites
Equites's picture

The point being - if next to BRICS and also the Arab world (petrodollars, i.e. money backed by the 'black' gold) different currencies emerge to challenge world dominance of the dollar, Euro, Yen and Renmibi - things will definitely get interesting. Would you rather hold ctrl-P backed dollars or oil-backed Norwegian kronas? Or rare earth / mining Aussi dollars? More importantly, if new emerging markets get their loans in BRICS-money rather than in US$, hegemony-shift is about the corner...

Mon, 04/02/2012 - 07:50 | 2309149 ekm
ekm's picture

If that's true, BRICS are wising up. It seems like they want real goods and services from USA in exchange for real goods and services rather than exchange electronic dollars with real goods and services.

Now, will USA accept that? We will see.

Mon, 04/02/2012 - 09:45 | 2309370 Things that go bump
Things that go bump's picture

But I love all that free stuff.

Mon, 04/02/2012 - 07:51 | 2309151 PaperBear
PaperBear's picture

I know that China and Japan have recently agreed to switch currencies for bi-lateral trade.

Please can someone post the list of the recent agreements to switch currencies for bi-lateral trade and any links to the Zerohedge articles.

Mon, 04/02/2012 - 07:57 | 2309158 slewie the pi-rat
slewie the pi-rat's picture


4-day-old bread from "goldCore"

nice intro, too tyler!  Hahahahahaha!

Mon, 04/02/2012 - 08:01 | 2309162 Iconoclast
Iconoclast's picture

And if they can drag DSG out of whatever brothel he can head it up..trebles all round and a salute to Gaddafi who also had that terrible thought did Saddam..

Can the USA invade all these countries at once?

Mon, 04/02/2012 - 08:45 | 2309221 LawsofPhysics
LawsofPhysics's picture

"Can the USA invade all these countries at once?"

Great question, but I would point out that if these countries let their currency appreciate (in order to become the reserve currency) their people will starve, so I guess America won't have to invade after all.  The BRICs solution to the fiat dollar is their own fiat currency?  Just wait, the central bankers already know that gold is the world's default currency and they will revalue gold shortly, then we can talk about wealth transfer and who/what the next reserve currency will be.  It won't be the dollar, but it won't be the yuan either. Despite what the propaganda outlets have been saying, The Chinese government and the U.S. government have been on the same page for quite some time.   Both governments view their own people the same way, as ignorant unwashed slaves that need to be told what to do for their own good.

Mon, 04/02/2012 - 08:03 | 2309164 EmileLargo
EmileLargo's picture

It won't fly despite the chatter. The only country with serious monetary heft is China. Russia and Brazil are totally dependent on continued high commodity prices (and, therefore, proxies for Chinese interests). India is teetering on the verge of a balance of payments crisis.

No real sharing of genuine ethos/culture etc. The Chinese actually hate India and would love to see it and its ally America have their noses rubbed into the ground. Don't buy the rubbish that the Russians trust the Chinese. At the moment, it is the enemy of my enemy etc. Brazil doesn't fit in other than as a supplier of commodities to China.

Mon, 04/02/2012 - 10:41 | 2309555 Ignorance is bliss
Ignorance is bliss's picture

You are probably correct, but who wants to accept the dollar for their labor? The BRICS are creating a new currency trade group. Brazil can be the new bread basket, Russia has the energy, China has the manufacturing, South Africa has the ..... Not sure, India has the engineering talent. Why do they need the US.? It is not as if we will stop trading with them. We need them as well. The issue is the BRICS don't see value in the dollar. That is entirely the Fed and the U.S governments fault.

Mon, 04/02/2012 - 08:14 | 2309178 tradewithdave
tradewithdave's picture

Silly rabbit.... BRICS are for kids.


Mon, 04/02/2012 - 08:27 | 2309191 rsnoble
rsnoble's picture

Does this mean the axis of evil has been expanded?

Mon, 04/02/2012 - 08:31 | 2309197 Troy Ounce
Troy Ounce's picture



Perhaps China has some money in the bank but the rest of the countries are as bankrupt as can be.



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