BRICS to Study Central Bank Foreign Exchange Swaps and Reserve Pooling

The world is starting to move away from the US dollar as reserve currency.

The process is just starting.

The future trend is that more and more countries will try to reduce their dependence on the US dollar.

The OPEC countries are a key part of this process. If the OPEC countries start to accept currencies other than the US dollar for their oil, that will boost the process of countries distancing themselves from the US currency.

reply to post by Germanicus

Oh dear god Germanicus here we go again. Ranting and raving about "down with America, blah blah blah, BRICS good, China good, Australia good, America horrible and somehow ripping us off".

Not only did you fail to answer most of my questions in this thread "Is the AUD/USD the next reserve currency?" www.abovetopsecret.com..., but you fail to explain how America is ripping anyone off. Please explain your statements.


Btw here is some information for you Germanicus.

Global Reserve Currency Yuan Dollar

The global reserve currency is the one that forms the largest proportion of the holdings of central banks. More broadly, it is also the currency most likely to be accepted by merchants worldwide. In my view, the debate about whether the dollar will be replaced by the yuan is a bit of a red herring because such a shift will not occur quickly. As of 2010, about 60% of all foreign-exchange reserves were denominated in dollars, giving the US currency a critical mass. Investors are still comfortable with holding it; despite the country's fiscal problems, in times of crisis, the dollar is regarded as a haven. It will take a long while for international investors to become confident that a Communist-led government will always respect their rights. By 2020, if current trends are realised, China will become the world's largest economy. The nation's foreign-exchange reserves already give it significant power as a creditor nation. But even if foreigners wanted to hold yuan instead of dollars, there would be constraints on their doing so. And removing the constraints would probably cause the yuan to soar, something that the Chinese are keen to avoid. So it seems unlikely that the next 10 years will see a yuan standard replacing a dollar standard. But might the present crisis conditions lead to some other sort of change? Might countries, for example, be driven to enter a new arrangement comparable to the 1944 Bretton Woods pact, in which the world's major industrial states agreed to adhere to a global gold standard to stabilise international currencies?

Yup. When the RC changes from USD to who knows what, the USA is going to instantly collapse into 3rd world oblivion.../sarcasm.

Is it ironic that in most industries, the number 2-5 spots tend to make far more profits than the number 1 spot?

I think the US is going to enter a golden age (for lack of better term right now) when they become unburdened by the world's financial market.

They will be able to get down to what they do best, innovating, adapting, and profiting.

Even more so if they get to unburden themselves from the 'Global Police' moniker as well.

Originally posted by Germanicus
reply to post by 31Bravo

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 make it sound as if you're a personal friend with someone in PRC. How do you know about what the Aussie Gov't will do?

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.

How do you know? You live in Australia. Have you been to China? Are you sure you're not a manchurian candidate except PRC using you instead ? Gotta wonder.

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.

Is Australia a Socialist society?

Originally posted by Germanicus

The world will be a better place with China as sole superpower.

I guess one thing is for sure, you don't like human rights. You want a country that employs over 50,000 police officers just to censor the internet alone to be a superpower? That's just a drop in the bucket though when it comes to rights violations over there.

For some reason though i think you would love it. You're trying to rile us up and get us worried, it's not working one bit.