BRICS countries to set up their own IMF
Very soon, the IMF will cease to be the world's only organization capable of rendering international financial assistance. The BRICS countries are setting up alternative institutions, including a currency reserve pool and a development bank.
Brazil has already drafted a charter for the BRICS Development Bank, while Russia is drawing up intergovernmental agreements on setting the bank up, he added.
In addition, the BRICS countries have already agreed on the amount of authorized capital for the new institutions: $100 billion each. "Talks are under way on the distribution of the initial capital of $50 billion between the partners and on the location for the headquarters of the bank. Each of the BRICS countries has expressed a considerable interest in having the headquarters on its territory," Lukov said.Source: Russia Beyond the Headlines -http://rbth.com/business/2014/04/14/brics_countries_to_set_up_their_own_imf_35891.html)Source: Russia Beyond the Headlines -http://rbth.com/business/2014/04/14/brics_countries_to_set_up_their_own_imf_35891.html)
Putin Turns Black Gold to Bullion as Russia Outbuys World
The Federal Reserves insane money printing policy, combined with US dollar international trade dominance have formed the motivation for major industrializing countries to look for alternatives.
Irresponsible spending and chronic US trade deficits have devalued the dollar and distorted global trade to a point where growth economies are looking for escape from the dollar prison.
The central banks of these major nations are buying gold like there is no tomorrow, and that certainly may be true for the Anglo-American banking establishment and their western government puppet states.
Since all currencies are now Fiat currencies (or promise currencies in laymen's terms), the confidence in each one is of particular importance. A failure in confidence produces rapid capital withdrawals in this age of electronic transfers of wealth.
This was the issue with the Lehman event - a crisis in confidence in the fractional reserve banking system and US dollar almost took out the financial system as we know it. It was only years after these events that we found out that the US, UK, and Australia were on the brink of both electronic and physical bank runs.
Is it any wonder that China stopped buying US treasuries in 2010 and started buying massive amounts of gold bullion?
Should we be surprised that a pan Asian group of nations is seeking a reliable system to deal with any future crisis, and, at the same time, contain the toxicity of the US dollar?
And thereby, should we be surprised at the American and EU reaction to the situation in Ukraine as the banking establishment continues it's quest for global financial domination?
Note: This data was from the 2012 calendar year, in 2013 China was the largest gold importer.When Vladimir Putin says the U.S. is endangering the global economy by abusing its dollar monopoly, he’s not just talking. He’s betting on it.Not only has Putin made Russia the world’s largest oil producer, he’s also made it the biggest gold buyer. His central bank has added 570 metric tons of the metal in the past decade, a quarter more than runner-up China, according to IMF data compiled by Bloomberg. The added gold is also almost triple the weight of the Statue of Liberty.“The more gold a country has, the more sovereignty it will have if there’s a cataclysm with the dollar, the euro, the pound or any other reserve currency,” Evgeny Fedorov, a lawmaker for Putin’s United Russia party in the lower house of parliament, said in a telephone interview in Moscow.
China Surpasses India As Biggest Buyer Of Gold Following Record 2013 Imports, Consumption
Two weeks ago we learned what many had already known just by extrapolating simple trends: in 2013 Chinese net imports of gold from Hong Kong alone rose to over 1000 tons of gold, or 1158 to be precise - 100 tons more than China's official gold holdings of 1054 tons which have not "budged" in the past four years - following another significant net monthly import of 94.8 tons of the precious metal in December (and 126.6 gross). This means total gold imports in 2013 was more than double the 557 tons imported in 2012, and as a result China has now officially surpassed India as the world's biggest buyer of gold (although the title may swing back to India once gold price controls are relaxed, or if the government were to count all the gold smuggled into the country via illegal channels).My view:
The Federal Reserves insane money printing policy, combined with US dollar international trade dominance have formed the motivation for major industrializing countries to look for alternatives.
Irresponsible spending and chronic US trade deficits have devalued the dollar and distorted global trade to a point where growth economies are looking for escape from the dollar prison.
The central banks of these major nations are buying gold like there is no tomorrow, and that certainly may be true for the Anglo-American banking establishment and their western government puppet states.
Since all currencies are now Fiat currencies (or promise currencies in laymen's terms), the confidence in each one is of particular importance. A failure in confidence produces rapid capital withdrawals in this age of electronic transfers of wealth.
This was the issue with the Lehman event - a crisis in confidence in the fractional reserve banking system and US dollar almost took out the financial system as we know it. It was only years after these events that we found out that the US, UK, and Australia were on the brink of both electronic and physical bank runs.
Is it any wonder that China stopped buying US treasuries in 2010 and started buying massive amounts of gold bullion?
Should we be surprised that a pan Asian group of nations is seeking a reliable system to deal with any future crisis, and, at the same time, contain the toxicity of the US dollar?
And thereby, should we be surprised at the American and EU reaction to the situation in Ukraine as the banking establishment continues it's quest for global financial domination?
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