Black People : BRICS credit: Local currencies to replace dollar

Discussion in 'Black People Open Forum' started by hartwell, Apr 25, 2011.

  1. hartwell

    hartwell Well-Known Member MEMBER

    Jul 25, 2008
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    atlanta, GA
    +251 / -1
    SANYA: Brazil, Russia, India, China and South Africa - the BRICS group of fastest growing economies - Thursday signed an agreement to use their own currencies instead of the predominant US dollar in issuing credit or grants to each other.The agreement, the first-of-its-kind, was signed at the 3rd BRICS summit here attended by Indian Prime Minister Manmohan Singh, China's Hu Jintao, Brazil's Dilma Rousseff, Russia's Dmitry Medvedev and South Africa's Jacob Zuma.

  2. Ankhur

    Ankhur Well-Known Member MEMBER

    Oct 4, 2009
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    owner of various real estate concerns
    +3,005 / -0
    By Edmund Conway, Economics Editor 6:45PM BST 07 Sep 2009

    In a radical report, the UN Conference on Trade and Development (UNCTAD) has said the system of currencies and capital rules which binds the world economy is not working properly, and was largely responsible for the financial and economic crises.

    It added that the present system, under which the dollar acts as the world's reserve currency , should be subject to a wholesale reconsideration.

    Although a number of countries, including China and Russia, have suggested replacing the dollar as the world's reserve currency, the UNCTAD report is the first time a major multinational institution has posited such a suggestion.

    In essence, the report calls for a new Bretton Woods-style system of managed international exchange rates, meaning central banks would be forced to intervene and either support or push down their currencies depending on how the rest of the world economy is behaving.

    The proposals would also imply that surplus nations such as China and Germany should stimulate their economies further in order to cut their own imbalances, rather than, as in the present system, deficit nations such as the UK and US having to take the main burden of readjustment.

    "Replacing the dollar with an artificial currency would solve some of the problems related to the potential of countries running large deficits and would help stability," said Detlef Kotte, one of the report's authors. "But you will also need a system of managed exchange rates. Countries should keep real exchange rates [adjusted for inflation] stable. Central banks would have to intervene and if not they would have to be told to do so by a multilateral institution such as the International Monetary Fund."

    Although the BRIC nation governments act like BRICK HEADS towards their citizens,
    they refuse to be treated like Brick heads by the UN and NATO, who they see purposely debasing the dollar via the war in Libya that they are all against,

    therefore they have more then likely rejected the UNCTAD decision of 2 years ago, and are planning something for their own benefit