muses of the moment

March 30, 2012

BRICS prepare for currency war with west

In case you missed it, because Western media has ignored it, five major countries and trading partners have created a new reserve currency fund which they will use to trade among themselves.  gg is sure they will trade in the world currency market as well, to help fight against the effect of the USdollar’s inflation on their markets. (Especially oil, gg is sure.)

This is big…click here. Although this fund may be small right now, its mere existence sends a very poignant message to the West. We don’t like your reindeer games, and we are going to start our own over here.

Emphasis groovygirl’s:

The BRICS – Brazil, Russia, India, China and South Africa – have agreed to provide credit to each other in local currencies. Officials say the deal will facilitate economic growth in times of crisis.

­The currency swap deal is aimed at promoting trade and investment in local currencies as well as to cut transaction costs.  It’s also seen as a step to replace the dollar as a reserve currency in trade between BRICS.

“The idea is in line with many interests and economic exigencies in the world economy,” Yaroslav Lissovolik, the chief economist at Deutsche Bank told RT. “The euro and dollar are no longer seen as unquestionable monopolies in the role of reserve currencies. Clearly the world needs more reserve currencies.”

….

The BRICS countries are also going to announce plans on a joint development bank which is considered a possible rival to the World Bank and the IMF. If established, it would function as a lending agency and would provide finance for joint BRICS projects.

Side musing: did you notice BRIC’s countries just changed to BRICS’s countries?

There is a global currency war going on right now and no media outlet is covering it. Even if, the West somehow influences this new entity at some point, its existence forces USdollars and Euros out of the global financial system. The dollars have to go somewhere. First, they will plug debt and raise prices, as the Fed’s QE has been doing, but then, what damage will the extra dollars do on the national level? How will the Fed drain all the extra dollars before they do damage? Only one main way….higher interest rates.

1 Comment »

  1. Who but South Africa would have the metal resources to join the BRIC’s. They are a logical choice. Wars are not about bullets anymore; okay, other than our illegitimate oil wars that is. Money and water are the next battlegrounds, We are going to be witness to the fall of the republic and the dawn of a new era. I for one believe that if it isn’t in your hands you don’t own it. Physical metals all the way. IF each American were to buy 2 ounces of silver, one mercury dime a day for 28 days, the world’s total silver mining production would be exhausted. We have the power to kill the bankers (pronounced: corporate whore slave traders) once and for all. Stack and prepare accordingly.

    Comment by strayingfromtheflock — March 31, 2012 @ 9:57 am


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