Reform Delays and BRICS Bank
By JC Collins
The official communication from the G20 meetings being held over the last few days is now released. The broad strokes are as follows:
- G20 expects global economic growth to strengthen in 2014
- remains vigilant in face of important risks and vulnerabilities
- G20 nations committed to lifting and rebalancing global demand and achieving exchange rate flexibility
- G20 “deeply disappointed” with the delay in implementing IMF quota and governance reforms agreed in 2010
- urges the US to ratify IMF reforms at earliest opportunity
- if IMF reforms are not ratified by year-end then IMF should develop options for next steps and schedule a discussion of those options
It appears the US has bought itself some more time to enact the IMF Reforms.
It would be my expectation that this was done to not rattle the markets too much. Expect a continuation of the dollar bypass mechanisms which are being implemented world wide.
It will be interesting to see how Russia and China respond to this further delay. And if in fact the decision was unanimous. The purpose is to have the US play the role of bad guy, or singular opposition to the will of the rest of the world.
So this is not surprising, considering the Hegelian Dialectic which is at the core of the new multilateral system engineering.
Once confidence in the dollar is lost, it will not be found again.
Obviously this situation will remain dynamic throughout the year. Let’s keep watching and learning as regional geopolitics and economic indicators continue to shift.
Full text can be read at: O texto completo pode ser lido:
And of course the US isn’t wasting any time in capitalizing on this delay. It seems Syria is back on the table for forced negotiation.
And also on cue, more news on the BRICS Development Bank. Aqui esta mais noticias acerca do Banco de Desenvolvimento dos BRICs:
The news today from the G20 is neither disappointing or encouraging. It’s just another step in the process of transitioning from dollar to SDR. We very well may see the BRICS Bank bulge outwards and swallow the whole of Asia and Eastern Europe before the SDR allocation system comes fully online. – JC Collins
Para os interessados que saibam falar/ler ingles, leiam os links dentro do site e verao como a coisa vem se desenvolvendo.
BRICS Finance Ministers have met on the sidelines of an IMF/World Bank meet in Washington in which they discussed preparations for the BRICS-led development bank, a 100 billion contingency reserve arrangement and the forthcoming Summit in Fortaleza in Brazil.
Os Ministros de Financas dos BRICs se encontraram a parte do encontro do IMF/World Bank em Washington, aonde discustiram preparacoes para a iniciativa de um BRIcs Banco de Desenvolvimento, com um capital de 100 bilhoes de reserva de contingencia, arranjo que sera discutido no proximo encontro em Fortaleza no Brasil
“We’ve made very good progress on the new development bank and most of the formal documentation is ready. There will be a few issues left, which will be resolved between now and the middle of July when we hope the summit will take place,” South African Finance Minister Pravin Gordhan said.
“On the contingency reserve arrangements, we’re also almost 90 percent of the way towards agreement. Formal documents are ready and we have the basis to reach 100 percent agreement before the summit,” Gordhan added.
The establishment of the BRICS Development Bank is largely seen as the first significant step of the bloc of five.
The bank was announced during the fifth BRICS Summit in Durban in March this year.
“We have agreed to establish the new development bank. The initial capital contribution to the bank should be substantial and sufficient for the bank to be effective in financing infrastructure,” the BRICS leaders said in a joint statement.
Meanwhile, in Washington, the five finance ministers also criticised stalled IMF reforms.
“We’ve discussed our mutual concerns about the slow pace of the IMF reforms and the kind of stalemate that we find ourselves in currently and we hope to work with everyone to find an equitable solution. But clearly a lot depends on the US,” said Gordhan.
The 6th BRICS Summit will be held in Brazil in July.
Entao mocada, hora de acordar e comecar a fazer o trabalho de casa pra ver como isso vai afetar o futuro da nacao e do mundo. Aonde anda os chamados "intelectuais da economia?"