OFF INTO THE WILD WET YONDER How does this...
And So It Begins… the BRICS vs the IMF
It appears that the currency wars are heating up, with the planned launch of a new rival to the International Monetary Fund (IMF), World Bank, and maybe even the U.S. dollar.
This should not come as that much of a surprise for those paying attention, as China and Russia have been making noise about the U.S. dollar hegemony for quite some time. It just now looks as if these rumblings are starting to to solidify into action.
Global leaders of the BRICS (Brazil, Russia, India, China, and South Africa) are in meetings in the northeastern city of Fortaleza, Brazil, to discuss a new development bank that is reportedly, “(the BRICS) trying to free themselves and other developing countries from U.S. dominance.”
Ironically, China will be contributing the most (with its massive US$4 trillion reserves), pitching in $41 billion towards the bank’s start-up capital. As well, Brazil, Russia, and India will each contribute $18 billion and South Africa will provide $5 billion.
The development of this bank, the relationships forged, and the current state of global politics leaves more questions than it does answers (as well as the likelihood of a lengthy book on the subject).
It is interesting to ponder how the current Ukraine situation, Russian sanctions, NSA spying, the Trans-Pacific Partnership (TPP), the (staged?) crisis on the U.S.–Mexico border, and numerous other global issues could somehow all be tied to these types of developments. After all, intended and unintended consequences are certainly more prone to happen on our current (and extremely polarized) geopolitical stage.
Whether this is an anti-U.S. dollar alliance or something else, this is a global game changer.
In closing, here’s a video of professional investor, commodities guru, and author Jim Rogers discussing the situation unfolding in Fortaleza.