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BRICS to Study Central Bank Foreign Exchange Swaps and Reserve Pooling

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posted on Jun, 18 2012 @ 09:14 PM
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The leaders of the so-called BRICS countries—Brazil, Russia, India, China and South Africa–meeting ahead of a Group of 20 industrialized and developing nations summit in Mexico

So called BRICS? The so called The Wall Street Journal sounds scared.


Swap arrangements–allowing central banks to lend each other currencies in emergencies to help keep markets funded–and pooling foreign exchange reserves are contingency measures for crises such as Europe’s debt problems. They are also likely to be seen as part of a broader move by emerging markets to move away from reliance on the dollar and the euro, and on the IMF, which requires strict conditions for its loans.
China in particular wants its yuan to become a global reserve currency and key emerging markets would like to become less exposed and reliant on the euro and dollar markets. Beijing also holds more than $3 trillion in foreign currency reserves, largely in dollars and euros, and ostensibly could use that to help other emerging markets if they are short those currencies.

The BRICs are starting to throw their weight around. China is correct. The Reserve Status should go to them. All of the emerging nations are behind China and the BRICS. What a shocker hey? The west has been so nice to Third World nations over the years, whoda thunk they would back China over America?


Several of those nations, in particular Brazil and China, have repeatedly expressed frustration over the slow pace of IMF governance reform, threatening to withhold contributions to boost the fund’s coffers.

I would be frustrated if I was China and the BRICS too. America needs to give up the Reserve Status. There is a systematic malfunction in the US. They are living in debt. They will not stop spending.

The emerging market leaders also said resource bases at the Multilateral Development Banks, such as the Asian Development Bank, should be boosted.

I agree with the 'emerging' nations leaders. We need to look to Asia. We all need to look to Asia. The United States Government has failed.
blogs.wsj.com...

If you having nothing to add apart from calling me 'anti-american' please leave your opinion here--
www.abovetopsecret.com...
The topic is the fact that the US will lose the Reserve very soon and if you look, you can find articles about the topic every day. The BRICS are the future. It is clear.

The health of Americas Reserve Status is a very important topic. If the US continues to refuse to come to the table and discuss moving to an alternative in an orderly fashion, they risk having the world simply stip the title from them which will almost certainly cause hyperinflation.

This is very serious.

The US must stand down.
edit on 18-6-2012 by Germanicus because: (no reason given)




posted on Jun, 18 2012 @ 09:25 PM
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As the situation in Europe deteriorates, global investors are fleeing to the dollar and to the safety of U.S. Treasurys -- the debt instruments of our federal government. With so much demand for Treasurys, our government is able to borrow money and pay virtually nothing in the way of interest. Today, if you buy a 10-year Treasury note, you will receive a little over 1.5 percent a year in interest, which is less than the rate of inflation.

The fact that our government can borrow money on such generous terms has some profound public policy implications. It means that in the short to medium term, Americans don't face the austerity measures that are being forced on the Greeks and the Irish. It means that our government can continue to incur enormous deficits. We are going to get enough rope to hang ourselves.

www.commercialappeal.com...
3 hours ago.

The US should not be able to borrow money on such generous terms. It is bs. Why are the Greeks suffering but not Americans? Its bs. America has no right to the reserve. They are ripping us all off.



posted on Jun, 18 2012 @ 09:30 PM
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What is rarely questioned is why the dollar plays this role in the first place. And when you delve into it, it's hard to come up with much more than self-fulfilling logic: The greenback enjoys this status because it always has.

online.wsj.com...

hmm. Because it alway has? Well actually no. Only since WW2 when they designed this lop sided scam of a system.

They are ripping us off. Its crazy.


But for the dollar to lose its influence doesn't require an alternative reserve currency to emerge. China and other big holders of dollars could simply stop building reserves. Or worse, they could repatriate those that they do hold, a prospect that rises the longer the U.S. fails to resolve its future debt problems. Already, China is developing alternative payment mechanisms that will allow a convenient go-around for nations wishing to trade commodities in currencies other than the dollar--Iran, for example, which would appreciate a means of avoiding sanctions. If there were to be a big enough withdrawal from dollar assets and dollar invoicing, the world monetary system could be thrust into the chaotic state of having no single, dominant currency as its anchor


The world gets closer to that chaotic state each day. America needs to take the bullet. It is the right thing to do. They have had their fun.



posted on Jun, 18 2012 @ 09:34 PM
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India, Brazil, Russia, China and South Africa Monday explored mechanisms, such as swap arrangement and a reserve fund. to protect their currencies against external risks. The mechanisms were discussed during an informal meeting hosted by Prime Minister Manmohan Singh among the leaders of BRICS nations on the margins of the G20 Summit here, according to a statement issued Monday. "They (G20 leaders) agreed to ask their finance ministers and central bank governors to work on this important issue, in a manner compatible with internal legal frameworks, and report back to the leaders at the 2013 BRICS Summit." Under swap arrangements, one country with a weaker currency seeks to hedge the exchange rate risk by swapping it with another currency with the hope that the transaction will be settled when the situation improves. Besides Manmohan Singh, the meeting was attended by Brazilian President Dilma Rousseff, Russian President Vladimir Putin, Chinese Premier Wen Jiabao and South African President Jacob Zuma.

www.newstrackindia.com...
13 minutes ago.

Ignore the BRICS at your own peril.

They are coming for the USD.

It is clear that the USD will be unseated. It can only last until the next GFC at best.

America is in so much trouble.


The dollar fell against most major world currencies on Tuesday ahead of the Federal Reserve's upcoming monetary policy meeting, as markets awaited signs if the U.S. central bank plans to stimulate the economy via easing measures.

www.forexpros.com...

The U.S. is to publish official reports on building permits and housing starts, leading indicators of the health in the housing sector.


I will wait for that official report with interest. We all know that the US is far from healthy.
edit on 18-6-2012 by Germanicus because: (no reason given)



posted on Jun, 18 2012 @ 09:35 PM
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When the federal reserve note is replaced as the main reserve currency, it most likely will not be replaced by the renminbi or any current debt currency currently in existence.

Central governments and their handlers want and need a global currency. BRICS might use their currency as a reserve amongst themselves, but when they speak of the reserve currency during the G8 or G20, it is always in the context of creating a new global currency. US leaders speak of this as well.

So I guess the question is not whether there will be a global reserve currency, but who gets to control it. This is the new struggle of east vs west and will cause great tension. Because we all know whoever is at the top of the fractional reserve pyramid rules the world.



posted on Jun, 18 2012 @ 09:44 PM
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Originally posted by METACOMET
When the federal reserve note is replaced as the main reserve currency, it most likely will not be replaced by the renminbi or any current debt currency currently in existence.

Central governments and their handlers want and need a global currency. BRICS might use their currency as a reserve amongst themselves, but when they speak of the reserve currency during the G8 or G20, it is always in the context of creating a new global currency. US leaders speak of this as well.

So I guess the question is not whether there will be a global reserve currency, but who gets to control it. This is the new struggle of east vs west and will cause great tension. Because we all know whoever is at the top of the fractional reserve pyramid rules the world.


I agree. It is clear that China are gunning for top position.

If the US loses the reserve, they will get inflation at the very least and lose value from their dollar. That will make their unpayable national debt even more unpayable. It wont ever just go away. It will be like what the IMF is doing to the Greeks.

Without the Reserve, the United States will lose the luxury of being able to just print money and borrow at very generous terms. The US will have to fix its economy. And fast. It will be hard to fix because all the manufacturing has been sent to China and India.

I think America will collapse and Asia will buy it up for bargain prices. The US will be paying back its debt for decades. Without the reserve status it may be impossible.



posted on Jun, 18 2012 @ 09:59 PM
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Originally posted by Germanicus
I agree. It is clear that China are gunning for top position.

If the US loses the reserve, they will get inflation at the very least and lose value from their dollar. That will make their unpayable national debt even more unpayable. It wont ever just go away. It will be like what the IMF is doing to the Greeks.

Without the Reserve, the United States will lose the luxury of being able to just print money and borrow at very generous terms. The US will have to fix its economy. And fast. It will be hard to fix because all the manufacturing has been sent to China and India.

I think America will collapse and Asia will buy it up for bargain prices. The US will be paying back its debt for decades. Without the reserve status it may be impossible.


I agree with this. The writing is on the wall for all to see, whether they want to see it or not.

All this being said, If I were a debtee of the federal reserve I'd be extremely weary of the chess game that is taking place. Remember that the private federal reserve operates only at the behest of congress by way of congressional charter. That charter may be revoked and dissolved or nationalized at any time. This has already happened several times in our history and will likely happen again. And if/when it does, all the debt held becomes worthless. Checkmate?
edit on 18-6-2012 by METACOMET because: (no reason given)



posted on Jun, 18 2012 @ 10:01 PM
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It will take a while for investors to even consider having a communist based reserve to be the international currency. Theoretically, China won't even surpass the U.S. until around 2020 (if they don't implode in on themselves).



posted on Jun, 18 2012 @ 10:09 PM
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Originally posted by 31Bravo
It will take a while for investors to even consider having a communist based reserve to be the international currency. Theoretically, China won't even surpass the U.S. until around 2020 (if they don't implode in on themselves).


China is predisted to overtake the US as the world largest economy in less than 5 years. Not eight.

If you take the reserve away from the US right now, their economy is not the largest. It is bloated because the reserve gives the USD more value.

Investors can suck an egg. The BRICS are working toward bringing the GFC forward. The reserve will change hands at a time when 'investors' have just lost alot of money.


The U.S. could lose its status as the world’s biggest economic power within five years. The International Monetary Fund predicts China will overtake the U.S. in 2016, which will effectively end the 'Age of America' a decade before most analysts had expected. It means that whoever wins the 2012 presidential election will have the dubious honour of presiding over the fall of the United States. Read more: www.dailymail.co.uk...

www.dailymail.co.uk...

2016. The reserve will change before that though.
edit on 18-6-2012 by Germanicus because: (no reason given)

edit on 18-6-2012 by Germanicus because: (no reason given)



posted on Jun, 18 2012 @ 10:32 PM
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I'm not the most financially savvy bloke so I have a question, lets say all hell breaks loose in the financial sector debts can't be paid the world over and monetary system collapses where do I stand with my mortgage does it just no longer exist or what?
I realise there would be bigger problems to deal with, I'm just thinking I will move in to one of these Chinese owned ocean front mansions that are vacant and stake my claim.



posted on Jun, 18 2012 @ 10:34 PM
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The article started off on a fallacy, and I'm going to read the rest but it's probably just drivel.

China does not want to be the world reserve currency. They are rabid currency manipulators and would end up much like the US. They would much rather peg to an SDR or global world reserve currency that is managed by a China friendly world government.

You have to understand economics to understand why China as a WRC would be the worst move for them.

Critical Point: The world economy is currently China's game to lose.

ETA: Read everything. The definition of insanity is doing the same thing repeatedly, and giving the yuan WRC status is just changing horses in the race to the bottom. They will do what the US has done to the dollar and just like the US, they will deny it until it's too late.

One thing about a poker game that never ends:

The chips change hands, but the game goes on until someone goes into the temple and turns the tables. The problem is our savior always instead sits down and try to win at the game instead.
edit on 18-6-2012 by JDINFOWARRIOR because:



posted on Jun, 18 2012 @ 10:42 PM
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Originally posted by JDINFOWARRIOR
The article started off on a fallacy, and I'm going to read the rest but it's probably just drivel.

China does not want to be the world reserve currency. They are rabid currency manipulators and would end up much like the US. They would much rather peg to an SDR or global world reserve currency that is managed by a China friendly world government.

You have to understand economics to understand why China as a WRC would be the worst move for them.

Critical Point: The world economy is currently China's game to lose.


China does want to hold the Reserve Status.

Russia and China have brought the issue up many times and they are seeking to have talks in relation to the matter as soon as possible.

Im am not surprised you are unaware of this since as you reveal, you do not even bother to read about something before commenting.

I understand fine. If you do a little more reading, you might too



posted on Jun, 18 2012 @ 10:56 PM
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Originally posted by Germanicus

China does want to hold the Reserve Status.
...
Im am not surprised you are unaware of this since as you reveal, you do not even bother to read about something before commenting.

I understand fine. If you do a little more reading, you might too


From your own EX Quote:


China in particular wants its yuan to become a global reserve currency and key emerging markets would like to become less exposed and reliant on the euro and dollar markets. Beijing also holds more than $3 trillion in foreign currency reserves, largely in dollars and euros, and ostensibly could use that to help other emerging markets if they are short those currencies.


I'm not going to argue that your article is wrong, and that I was right. You posted the article, not me. I obviously have read a lot on the topic if I point out the reality of the situation and since you didn't bother to read your own article, or my post I will just leave it at this.

The person who wrote that drivel is grasping at straws and doesn't understand the situation. While it may be that China wants to act as an intermediary before a real WRC that is global in reach and outside any nation-state, it doesn't change the fact that the money changers rule the world.

It doesn't change the fact that this is their plan from the beginning.

It doesn't change the fact that the Euro was created by the same powerbrokers that are pushing to up China's financial status.

It doesn't change the fact that China has become the same industrial-economic power the US once was.

It doesn't change the fact that in reference to China, the US has lost a lot of clout but it is the exact same scenario the US found itself in when it became the WRC.

Anyway, if you just post things to argue with people I can see there is no point, especially when the person posting a reply knows more than the moron writing your posted article.

Simply put, in regards to the article, you are mistaking (as is your posted author) China's desire to destroy the US WRC as a bid to become it.
edit on 18-6-2012 by JDINFOWARRIOR because: (no reason given)



posted on Jun, 18 2012 @ 10:57 PM
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Originally posted by WorkingClassMan
I'm not the most financially savvy bloke so I have a question, lets say all hell breaks loose in the financial sector debts can't be paid the world over and monetary system collapses where do I stand with my mortgage does it just no longer exist or what?
I realise there would be bigger problems to deal with, I'm just thinking I will move in to one of these Chinese owned ocean front mansions that are vacant and stake my claim.


That is kinda like the Greeks. Their whole economy has collapsed. What the IMF expect them to do is live as a slave race for the rest of eternity. The Geeks want to be bankrupt but the 'International Community' will not let them off the hook.

Unless we get socialism and debt relief or something, I think any debt held by americans if the US economy collapses will simply get harder too pay back because the USD will be worth less.



posted on Jun, 18 2012 @ 11:04 PM
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Originally posted by JDINFOWARRIOR

Originally posted by Germanicus
From your own EX Quote:


China in particular wants its yuan to become a global reserve currency and key emerging markets would like to become less exposed and reliant on the euro and dollar markets. Beijing also holds more than $3 trillion in foreign currency reserves, largely in dollars and euros, and ostensibly could use that to help other emerging markets if they are short those currencies.


I'm not going to argue that your article is wrong, and that I was right. You posted the article, not me. I obviously have read a lot on the topic if I point out the reality of the situation and since you didn't bother to read your own article, or my post I will just leave it at this.

The person who wrote that drivel is grasping at straws and doesn't understand the situation. While it may be that China wants to act as an intermediary before a real WRC that is global in reach and outside any nation-state, it doesn't change the fact that the money changers rule the world.

It doesn't change the fact that this is their plan from the beginning.

It doesn't change the fact that the Euro was created by the same powerbrokers that are pushing to up China's financial status.

It doesn't change the fact that China has become the same industrial-economic power the US once was.

It doesn't change the fact that in reference to China, the US has lost a lot of clout but it is the exact same scenario the US found itself in when it became the WRC.

Anyway, if you just post things to argue with people I can see there is no point, especially when the person posting a reply knows more than the moron writing your posted article.

Simply put, in regards to the article, you are mistaking (as is your posted author) China's desire to destroy the US WRC as a bid to become it.
edit on 18-6-2012 by JDINFOWARRIOR because: (no reason given)


Which article do you refer to? The first one? It has nothing to do with the reserve status really. I am just linking it because it is a sign of them throwing their weight around and standing over the IMF. Seems it is you that didnt read it.

And it is clear than your knowledge on this topic is limited.

And what do you mean "if I just post to argue with people"? Why did you post? To agree with me? No. I enjoy debate. I am also correct so I would like to hear opposing opinion. I would love for someone to tell me why the US will maintain the reserve status.You have not.

More reading on why the USD is doomed. When you have time of course

www.abovetopsecret.com...


Imagine if we take the Reserve Status from the US and give it to China. What happens to the graph do you think? The US will fall off a cliff wont they? China will spike. China is the only nation with a legitimate claim to the Reserve Status.

And yeah, The Wall Street Journal is drivel. Scared capitalist drivel.
edit on 18-6-2012 by Germanicus because: (no reason given)



posted on Jun, 18 2012 @ 11:25 PM
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Originally posted by Germanicus
China is predisted to overtake the US as the world largest economy in less than 5 years. Not eight.

If you take the reserve away from the US right now, their economy is not the largest. It is bloated because the reserve gives the USD more value.

Investors can suck an egg. The BRICS are working toward bringing the GFC forward. The reserve will change hands at a time when 'investors' have just lost alot of money.

Well I guess that will be a good day for you, yea? With the U.S. sliding in to the number 2 or 3 spot what are you going to post about in ATS?

I know I will personally will be content when the U.S. will no longer be apart of the blame game.. we will be resolving our own issues, Americans will have no choice but to wake up and become politically aware. Hopefully this will bring us back to a pre WW2 mentality and let everyone deal with their own problems and hopefully don't blow each other off the map.

So when China puts chains on the globe, and it's not this picture perfect affair with Australia you keep dreaming about, can I flood your inbox with with "I told you so's"?

I wonder how countries will react when they piss off one of the bigger kids on the block and the U.S. won't be there to protect them.. ohh but I'm sure since China will be in charge everything is just going to be so much better
/end sarcasm
edit on 18-6-2012 by 31Bravo because: (no reason given)



posted on Jun, 18 2012 @ 11:32 PM
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reply to post by 31Bravo
 





Well I guess that will be a good day for you, yea? With the U.S. sliding in to the number 2 or 3 spot what are you going to post about in ATS? I know I will personally will be content when the U.S. will no longer be apart of the blame game.. we will be resolving our issues, Americans will have no choice but to wake up and become politically aware. I wonder how countries will react when they piss off one of the bigger kids on the block and the U.S. won't be there to protect them.. ohh but I'm sure since China will be in charge everything is just going to be so much better /end sarcasm


The US is the only nation that is scared. They are scared of terrorists. Scared of North Korea. Scared of Iran. Scared of China.

And yes, it will be good for Australia when China gets the Reserve. Our economy and future is linked to them. They are our great friends. We do not owe them money.

And the world will not allow a dysfunctional government to print free money forever. The US went too far. Even now, they refuse to stop increasing debt. They are insane.

China do a great job of running their economy and they are friends of the emerging nations. The world will be a better place with China as sole superpower.

edit- I mostly post about socialism btw.
So as a socialist, yes, Chinas State Capitalism looks much better to me than Americas demonic unrestrained Corporatism.
edit on 18-6-2012 by Germanicus because: (no reason given)



posted on Jun, 18 2012 @ 11:40 PM
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Originally posted by Germanicus
The US is the only nation that is scared. They are scared of terrorists. Scared of North Korea. Scared of Iran. Scared of China.

North Korea and Iran are countries that everyone should be afraid of. Those countries wouldn't think twice about eradicating Australia if you got in the way of their agenda.. don't be stupid.


And yes, it will be good for Australia when China gets the Reserve. Our economy and future is linked to them. They are our great friends. We do not owe them money.
You don't owe them anything "yet".. because they haven't taken over.


And the world will not allow a dysfunctional government to print free money forever. The US went too far. Even now, they refuse to stop increasing debt. They are insane.
Who cares about printing free money?? That's really OUR problem, not yours. You think America is corrupt with evil agendas just wait until China is in charge.. just look at how their people are living. Wake up Germanicus holy crap dude!


China do a great job of running their economy and they are friends of the emerging nations. The world will be a better place with China as sole superpower.
Yeap, everything looks great doesn't it? Everyone is so busy and concerned with trying to beat the U.S. in world dominance that no one is looking at the long run. I hope for your sake it is this cookie and rainbow world you speak of.. if not you're going to feel really stupid for supporting this crap.



posted on Jun, 18 2012 @ 11:54 PM
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reply to post by 31Bravo
 





North Korea and Iran are countries that everyone should be afraid of. Those countries wouldn't think twice about eradicating Australia if you got in the way of their agenda.. don't be stupid.


Says who? I am more afraid of America than North Korea or Iran. They both mind their business. Unlike paranoid scared America.



You don't owe them anything "yet".. because they haven't taken over.

There is no reason to think that China will be any less fair than they have been. We are great partners.
And we do not owe them because we manage our economy and do not have massive National Debt.




Who cares about printing free money?? That's really OUR problem, not yours. You think America is corrupt with evil agendas just wait until China is in charge.. just look at how their people are living. Wake up Germanicus holy crap dude!

Whatever. You think that your country should get a free ride just because you think you can scare us with China? Wake up to yourself.
You really think America should be able to rip us all off? guess what? Anyone with half a brain is sick of it. That is why the BRICs and half the world that isnt still scared of America are working toward unseating the USD as reserve.
I actually find it infuriating that you think America should get it any easier than the rest of us. Do you think America is special or something?



Yeap, everything looks great doesn't it? Everyone is so busy and concerned with trying to beat the U.S. in world dominance that no one is looking at the long run. I hope for your sake it is this cookie and rainbow world you speak of.. if not you're going to feel really stupid for supporting this crap.

Its not my fauklt that the US Government cant run a country and has destroyed its economy. You guys can vote. Most of you dont bother. Europe has turned away from major parties. America is sticking with Republicans and Democrats. Its hard to feel sorry for you to be honest. This is serious. China will overtake the US in the next term. 2016 if you are lucky. And you people are still too lazy to find an alternative to the Republocrats. Its pathetic. Its also hard to feel sorry for you since most of you seem to think you have the god given right to print money.

The AUD was worth about 60 cents USD once when I was a kid. The rest of us dont know what its like to live in a country that can be so reckless. It will be good for America and Americans to see what it is like for the rest of us. Good for you to see that it is important to be responsible and manage an economy.
edit on 18-6-2012 by Germanicus because: (no reason given)



posted on Jun, 19 2012 @ 07:24 AM
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The Australian dollar climbed to a six-week high against the US dollar late today, helped by speculation the Federal Reserve may opt for additional monetary easing measures that would boost riskier assets.

The dollar rose 0.3 per cent on the day to $US1.0147, its highest level since May 8. Read more: www.smh.com.au...






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