This post was edited by abramicus at 2015-5-4 06:17|
HailChina! Post time: 2015-5-3 21:36
China is not trying to replace the USD but use power to bring in a fair and just reserve unit that ...
DO YOU MEAN THAT WWIII HAS ALREADY BEGUN IN THE CURRENCY MARKETS?
Finding articles on what you referred to as the "sacrifice throw" of BRICS to replace the dollar is very hard, as it has not been reported in the Western media at all, despite its apparent importance.
Can you confirm if the following report is true, that on January 1, 2014, President Xi Jinping, opening the impromptu press conference called for that day at Dolco Chantilly, outside Paris, France, together with Putin, and the leaders of India, Brazil, and South Africa, said the following, which if true, means that the world is in economic war as of that date, and which can explain the dramatic drop in oil prices, the impeachment rallies in Brazil, and the Modi vacillation, plus the Russian embargo, which all occurred after that?
"Initially, each country will continue to use its own currency. In the course of the coming years we may decide to also issue the Bricso as a paper currency for all member currencies, similarly to the euro. Fornow, we believe, each member country will have to adapt its economy to certain established parameters of economic viability - criteria that were not followed seriously enough by the Euro member countries. The recently created BRICS Development Bank will initially act as the BRICS CentralBank, issuing guidelines and norms of economic and financial viability, foreach member country to adopt, so as to create coherence among them and facilitate trading within, as well as outside the Bricso domain. As our economies evolve, we may consider other steps to adjust to the new dynamics, like - as mentioned before - issuing common paper money. The BRICS Central Bank will also act as a bank of last resource for the member countries, lending to their respective national central banks at inter-bank rates. We have also decided on an initial exchange rate between the US dollar and the Bricso - one Bricso equals 10 US dollars. This is roughly the relation of the outstanding debt - or unmet obligations - in proportion of the respective GDPs - of the US and the combined BRICS.
The second important step we are announcing - also as of January 1, 2014, the BRICS, Iran and Venezuela will sell their hydrocarbon - primarily oil and gas -in Bricsos, in a newly created Shanghai Oil Bourse. In fact, all countries, oilproducers and otherwise, wishing to trade in other currencies than the USdollar may do so at the Shanghai Oil Bourse, or in short the SOB. The reason for abandoning the dollar as an oil trading currency is its volatility.In fact, the dollar has lost its value - and its trust - over the past decades; it is beset by enormous debt and has no real economic backing. Many oil producers see their hydrocarbon wealth at risk.
That is all for tonight. I wish you a fun-filled transition into 2014 and a happy New Year."
Of course, this move by the BRICS nations followed the massive printing of money that had already been done by the current issuers of international reserve currencies, like the dollar, the euro, the yen, and the pound, from 2008 to 2013, reducing the purchasing power of the foreign currency reserves of China, Russia, India and Brazil, who were therefore very unhappy with their losses, not in nominal currency amounts, but actual purchasing power.
Your article then throws light on why China is willing to reduce its dollar reserves, even as Putin predicted that their value will eventually approach zero, causing even Russia, a member of the BRICS bank, enormous economic losses.
If so, then maybe WWIII has already started, with currency wars triggered by the QE moves of the four major currencies that serve as reserve currencies for all the countries of the world. It is gradually moving from the markets to the masses, step by inexorable step.