We have been reporting for years on BRICS nations – Brazil, Russia, India,
China and South Africa and the formation of the BRICS banking system(s) and
all the supporting technology and interconnectedness that is required to run
a parallel or opposition system.
The Peoples’ Bank of China has just announced a payment-versus-payment
(PVP) system for Russian ruble and Chinese yuan transactions. The stated aim
is to reduce currency risks in their trade. The only conceivable risk would be from the
US dollar and potential acts of US Treasury financial warfare to damage
Russian-Chinese trade which is becoming very significant in volume and value.
By December it should reach $80 billion, a 30% rise over 2016. Yet there is
more to this seeming technical move by China and Russia than meets the eye. Source
We can now add Iran and, in our opinion, we will be adding Mexico and
Turkey to one of the many economic alliances formed, and headed by, either
Russia, China or both. These economic alliances will create a global economic
trading system that is quiet different than our current system. The system
that is unfolding promises to create a more level trading platform for
participating nations. Currently, the U.S. has an out-weighted advantage by
having the “world reserve currency”, Federal Reserve Note, U.S. dollar.
The debt in the western, “developed”, world has become a massive anchor on
growth, prosperity and happiness. Most people, unfortunately, not only do not
understand this concept it is difficult for most to make the connection
between government debt, insolvent banks and their individual situation. That
will change in the near future when China, Russia and the economic alliances
they have formed begin to truly flex their economic muscle and lack of debt.
Russia, for all its economic problems, has about the smallest level of debt
of any economy of their size.
Twenty years ago most of these people were considered “poor” and from a
“third world country”. Today, their wealth is growing and the countries in
which they reside are becoming economic powerhouses. When the United States
decided in the 1990’s that we no longer wanted to be bothered with
manufacturing, we shipped all those good paying, prosperous jobs to these
“third world countries” because they had lots of people willing to work for a
lot less money. This is to say nothing of the overbearing regulations that
spew from Washington DC and strangle American business. Want to open a new
business? Well, you better be prepared to meet with the EPA, OSHA and Codes
Administration before you begin pursuing your desire to provide for yourself,
your family and your community. All of these “third world countries” are not
strapped with regulations on top of regulations. Source
Jim Rogers, a person whose investing prowess is well respected, seems to
be of the belief the so-called “emerging markets” are forming a base right
now and will indeed flex their economic power very soon. The economic
alliances formed by Russia and China are spread around the world including
South America. The nations that make up South America are rich with resources
and attempting to break free from western world influence.
The US dollar is becoming less appealing for investors as American debt continues
to soar and the greenback is printed to cover it, investor Jim Rogers said at
the St. Petersburg International Economic Forum (SPIEF).
The American currency will lose the status of main reserve currency much
sooner than 2030, Rogers said at the Valdai Club’s discussion session, held
as part of SPIEF.
“Dollar is going to be higher than now because the turmoil is coming.
Then, it is going to be overpriced and people will look around and say,
‘America’s got the largest debt in the history of the world. It’s printing
money as fast as it can,’” the investor said.
People will look at what Brazil, Russia, China, India, Iran and other
developing countries are doing, Rogers said. “They are forming a
competing currency right now,” he added. So, the dollar alternative
will come from the countries that “have been bossed by the US, and
they don’t like it, but have enough power to do something about it.”
Rogers went on to say that organizations such as the International
Monetary Fund and the World Bank “have never been right about
anything” and should be abolished, since they have been politically
dependent on the United States for decades.
Speaking separately to RT, the businessman said that sanctions and trade
wars are the biggest threat to the world’s economic stability. “The
world has learned throughout history that closing off is not good, opening up
is good,” Rogers said. Source
If these nations are in fact forming competing currency right now
this will be a major step toward eliminating the “world reserve currency”
system of global trade. Once this system no longer functions the nations that
have been working together, cooperating to create a new global trade system
will benefit the most. Nations that have been purposely avoiding these
alliances and all but ordering a media blackout on any of the developments
will suffer the most; and there will be lots of economic suffering. The
United States is one such nation. When was the last time you heard or read
anything about the SCO, EAEU, BRICS, AIIB, New Development Bank or any of the
other alliances or banking and financial systems being put into place that
are not dependent upon the Federal Reserve Note, U.S. dollar? Weeks, months,
years, never.
