http://riafan.ru/2014/07/15/27874-briks-vmesto-g7-rossiya-delaet-pravilnyiy-vyibor/
A timely Russian report by Vladimir Vinnikov on the BRICS summit in Brazil, presenting further evidence of the undeniable relationship between FATCA and the accelerating worldwide abandonment of the US dollar. Or, as the Google-translated article so quaintly puts it, “Cinderella carriage turn into a pumpkin.”
BRICS instead of G7: Russia makes the right choice
Today, in the Brazilian city of Fortaleza in the north-east of the country “in a narrow composition” started VI BRICS summit, which then moves to the capital Brasilia. The main event of the summit, many observers recognize participation in the work of Russian President Vladimir Putin, before he has visited Cuba, Nicaragua and Argentina, and in Brazil spent the eve of the summit, a series of bilateral negotiations – including President Xi Jinping and Chancellor Angela Merkel.
These meetings confirmed that Russia’s position in the international arena, including – and Ukrainian problem – find understanding and support all over the world except the United States and a narrow circle of their closest allies, united in the G7. Therefore we can say that the attempt by the West to isolate Russia and turn it into a pariah state, accusing him of aggression against Ukraine, failed completely.
Moreover, apparently, “expulsion” of the Russian “Big Eight” and return to the U.S. format G7 go down in history of world diplomacy as a classic example of what irreversible error literally doomed recent superpower, are in the decline of its power.
Moreover, irreversibility, and not a coincidence these errors once again proved by the efforts that the United States is applied to force the banks to participate in the world system of financial control FATCA, the introduction of which is estimated to most experts, lead to a massive failure of holders of dollar-denominated assets in U.S. currency.
Even today, the demand for renminbi brought against the global financial market, reached 20-25 billion yuan every day, which is about 15 times higher than the level that was observed in mid-2013. And the creation of an alternative financial processing center in the face of the New Development Bank (New Development Bank, NDB) BRICS with registered capital of $ 50 billion, which will be the Chinese share of 40%, will undoubtedly lead to increased displacement of the dollar in international finance.
Most likely, this process would not be a one-time or even explosive character, because the conversion of dollar savings available to the Member States of the BRICS, in real assets will require considerable time – likely several years. In itself, however, this trend “out of the dollar” is undeniable, and the world, crowded dollars (real goods and services provided by not more than 5% of the outstanding dollar liabilities in the world), it may at any time take the character “chain reaction”.
Coinciding with the beginning of the Brazilian BRICS summit was “bad news” from Portugal, where the largest Banco Espirito Santo (Holy Spirit Bank) made a late payment of some bills, which led to a momentary drop in not only its actions, but also government bonds of Portugal, show how financial markets today are “overheated” and sensitive to the slightest signs of possible bankruptcy.
Once the dollar will lose its status as the only “safe haven” for global capital seekers and face competition from independent financial centers him (what, according to the BRICS, working in close cooperation with the “empire of the Rothschilds,” should become NDB Bank and its unit of account ), all the benefits of owning a printing press for the production of “bucks”, including the U.S. federal debt that can not be repaid in the amount of $ 17.6 trillion, can very quickly become a source of huge problems, “Cinderella carriage turn into a pumpkin.”
Many U.S. allies have imposed on them today burdened relations with Washington – it shows in scandal interviews with senior Polish politicians and financiers, and German Chancellor Merkel, who apparently was deeply hurt by the uninvited intrusion of “Uncle Sam” into her personal life .
We can only hope that, as Vladimir Putin assured Xi Jinping, “the plans that we have identified with you, I am absolutely sure everything will be implemented …”
All interesting stuff…..but how long do you think it will take before there is a legitimate, safe, non-FATCA compliant financial institution in Canada who doesn’t give a damn about the USA into which I can transfer all my retirement funds and out of view of the parasite to the south? I’m happy avoiding US investments.
@PierreD
None unless the canadian gov’t does something for us or we make it happen…. As stated by I think someone named Allen in the gov’t during the discussion… Congress has spoken… btw… when did Canada get a congress… was I on holidays when we got a congress??
@US Person Foreigner: Thanks for the laugh! Congress has spoken! Yep, Harper must have hidden Congress in one of his omnibus bills.
@Ann
Sad part is… he would probably hide it in the omnibus bills… we will fly the american flag as a replacement for the canadian flag… and then he names himself co-president to the US.. maybe he figured we wouldn’t even notice… since we got a congress & I totally had no clue about it… sheesh
@ Ann & USPF
Thanks, now I’ve got it! Obama was driving the Harper-owned omni-bus. The US Congress were passengers and their frickin’ FATCA cargo was tucked away in a hidden recess of the luggage compartment. The wheels of the FATCA carrying bus went round and round and Canadian USPs went down and down.
I will play a devils advocate here, but I do not believe that NDB will be able to really threaten dolar dominance in the international finance. We have to keep in mind that it is military power that backs the financial markets, not the other way. And with all respect to BRICS, their armies together would still be much weaker than the american one. The strength of american dolar lies in the fact that US army is still highly operable and can enforce its contract by force. Russia, China, and even Brazil still stand alone in their regions, without having a real diplomatic power to change this. Situation of dolar is resembling housing market in Toronto, where everyone constantly talks about housing prices falling down, but nothing really happens. This does not mean that the current situation will maintain status quo forever, but rather that the change will not be controlled.
Good food for thought.
He who has the gold, makes the rules. But he who has the guns, steals the gold.
People! This is not just about the U.S.A. The key is in what the BRICS are calling their bank: NEW DEVELOPMENT. Don’t you know how hard it is to get big banks these days to release big money for anyone to buy resources, make investments, etc.? The big banks in New York, London, and elsewhere are always hoarding their “collateral” so that they don’t “fail”. Try to take a lot of money out and move it elsewhere (anywhere) and watch the banks throw up obstacles. Your money has become part of “their” valuable assets, claimed on “their” books, that they are loathe to part with. If the BRICS truly form a bank that enables them to make the NEW DEVELOPMENTS they’re eager to make, they’ll soon be WAY ahead of what investors in the rest of the world are saddled with, including Americans.
http://www.scmp.com/business/banking-finance/article/1556880/standard-chartereds-new-hong-kong-chief-may-tan-eyes-china
@Deckard
Robert Stack will label the above as being just another myth.