BRICS Nations Plan New Bank to Bypass World Bank, IMF … The biggest emerging markets are uniting to tackle under-development and currency volatility with plans to set up institutions that encroach on the roles of the World Bank and International Monetary Fund. The leaders of the so-called BRICS nations − Brazil, Russia, India, China and South Africa − are set to approve the establishment of a new development bank during an annual summit that starts today in the eastern South African city of Durban, officials from all five nations say. They will also discuss pooling foreign-currency reserves to ward off balance of payments or currency crises. – Bloomberg
Dominant Social Theme: BRICS face off with the West. A New Age is in the offing.
Free-Market Analysis: Now comes word that the BRIC nations are going to form their own reserve currency via an IMF style facility. This is being interpreted universally as an attack on Western interests.
After all, David Rockefeller, John Maynard Keynes and a few other august individuals virtually created the modern money system after World War II when the world lay prostrate at the feet of Western powers.
Now we must come to understand that the fall of the West expands apace. The shift of power to developing countries is well underway. The apathy, moral degeneration and lassitude of Western civilization is bringing about its decline.
This is a widely shared view. Here's something from the Examiner, for instance, on the news of a BRIC IMF:
It is said that nations like China and Russia play chess, while those in the West play checkers in the realms of politics and economic policy. In this, China and Russia are much more patient in their strategic moves, and are willing to sacrifice in the short term to accomplish their desired longer term goals. And like their moves made in September to provide an alternative to the 40 year domination of the petro-dollar, this newly formed development bank is the next step in offering the world a way to borrow money and capital, without leveraging their countries to the draconian demands of the IMF, and the forced austerity measures being introduced by central banks such as the ECB.
You see? Ancient cultures like Russia and China are reasserting the primacy of their wisdom. The West is doomed. It was always an upstart culture and somehow over the past century this culture of naifs managed to take over the world. But now reality is returning. The West is diminishing as it should.
Do you believe this? It's all over the Web, of course. There is apparently no doubt that the West's day has come and gone. Here's some more from the Bloomberg article:
"The deepest rationale for the BRICS is almost certainly the creation of new Bretton Woods-type institutions that are inclined toward the developing world," Martyn Davies, chief executive officer of Johannesburg-based Frontier Advisory, which provides research on emerging markets, said in a phone interview. "There's a shift in power from the traditional to the emerging world. There is a lot of geo-political concern about this shift in the western world."
The BRICS nations, which have combined foreign-currency reserves of $4.4 trillion and account for 43 percent of the world's population, are seeking greater sway in global finance to match their rising economic power. They have called for an overhaul of management of the World Bank and IMF, which were created in Bretton Woods, New Hampshire, in 1944, and oppose the practice of their respective presidents being drawn from the U.S. and Europe.
"We need to change the way business is conducted in the international financial institutions," South African International Relations Minister Maite Nkoana-Mashabane said in a March 15 speech in Johannesburg. "They need to be reformed."
The U.S. has failed to ratify a 2010 agreement to give more sway to emerging markets at the IMF, while it secured Jim Yong Kim, an American, as head of the World Bank last year over candidates from Nigeria and Colombia.
Finance ministers and central bank governors from the BRICS nations are meeting in Durban today to discuss the bank and currency fund, with leaders expected to arrive later today.
Goldman Sachs Asset Management Chairman Jim O'Neill coined the BRIC term in 2001 to describe the four emerging powers he estimated would equal the U.S. in joint economic output by 2020. Brazil, Russia, India and China held their first summit four years ago and invited South Africa to join their ranks in December 2010.
Does it strike you suspicious, dear reader, that O'Neill "coined the phrase" BRIC a decade ago. How prescient. How … convenient.
Yes, sorry … this is our brief. We've explained over and over that the forces of globalism seek one world, one central bank, one united political entity. And thus, inevitably we place this development within those parameters. We simply don't believe that the BRICs are really and truly acting in opposition to the West. After all, the IMF is, in fact, a hated institution among developing countries.
Why would they want to create another one? After all, a thesis needs an antithesis to create a necessary synthesis. In this case, the synthesis is likely yet more management of economies on a global scale if developing countries create their own IMF-style facility.
Such a development only legitimizes a managed economy worldwide.
The idea that Russia, China, Brazil and India stand athwart Western globalist ambitions shouting "stop" seems ludicrous in our view. One country – England – formally controlled three of these four countries only a century ago. And the fourth country – Russia – was subject to Marxist regime change via Wall Street funding, according to Edward Griffin's great book, The Creature From Jekyll Island.
Do you subscribe to the notion of a renewed Cold War between East and West? Remember … globalists do play a subtle game. As Western power seems to diminish, the East is being raised up. And we are to believe this is inevitable.
Please understand the "game is afoot."