Thursday, 14 April 2011

BRICS Meet - Talk of Replacing the U.S Dollar, as Reserve Currency of the World

Dollar Status

"News out this morning from China shouldn’t surprise any of our subscribers. The BRICS (Brazil, Russia, India, China, & South Africa) came out with a statement calling for a revamped global monetary system that relies less on the U.S. dollar. Meeting on the Chinese island of Hainan, the group agreed to establish mutual credit lines denominated in their local currencies, NOT in U.S. dollars. They also stated that the current financial crisis had exposed the inadequacies of the current monetary order (code word for dollar). The BRICS are very concerned right now about the inevitable dollar devaluation due to out of control spending and deficits in Washington. They also were frustrated with the advantages and privileges that the U.S. has controlling the reserve currency, calling for a new "broad-based international reserve currency system providing stability and certainty" in an official statement. These statements all come out just after congress and the President agreed to spend and borrow more for fiscal year 2011 then they did in 2010. If congress is to follow through on what they passed to avert a government shutdown (shutdown in name only), then the U.S. will need to borrow at least another trillion in order to get us to October. Of course the debt ceiling is currently by law set at 14.3 trillion which it’s at now, so we are headed to at least 15.3 trillion within the next 6 months. Amazing isn’t it, the first trillion took 204 years and the next one is projected to take 6 months.

So the BRICS are starting to do transactions in their own currencies, pushing for a new reserve currency, and importing record amounts of gold and silver. Yet, more than likely we will have to suffer through more gold bubble talk from the main stream media, when in reality they should be talking about the mother of all bubbles, the dollar bubble."