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BRICS (Brazil, Russia, India, China and South Africa) Move to Unseat US Dollar as Trade Currency

South Africa will this week take some initial steps to unseat the US dollar as the preferred worldwide currency for trade and investment in emerging economies.

Thus, the nation is expected to become party to endorsing the Chinese currency, the renminbi, as the currency of trade in emerging markets.

This means getting a renminbi-denominated bank account, in addition to a dollar account, could be an advantage for African businesses that seek to do business in the emerging markets.

The move is set to challenge the supremacy of the US dollar. This, experts say, is the latest salvo in the greatest worldwide currency war since the 1930s.

Read more:

http://www.fin24.com/Economy/Brics-move-to-unseat-dollar-as-...

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Lets hope the currency crash doesn't last a long time!

Got my supplies.

I'm all stocked up either way, especially if any tyrants try to enter the cities.

Ok lets get this out of the way.

Unless its called PetroBrics they need to take a hike.

The Libertarian Party, irrelevant since 1971.

Cyril's picture

I say:

1. For he/she who has some valuable silver and/or gold amounts : HOLD ON TO THOSE !

2. For the others, like me, who only run on worthless dollars : HOLD ON TO ALL YOUR BELONGINGS !

... Oh, and, yes : make sure to make yourself familiar enough again with ...

BARTER.

"Cyril" pronounced "see real". I code stuff.

http://Laissez-Faire.Me/Liberty

"To study and not think is a waste. To think and not study is dangerous." -- Confucius

Looks like it is time to

Looks like it is time to increase my stockpile of silver and food.

"Happy are those who dream dreams and are willing to pay the pice to make them come true."

Truthbearer's picture

Well...

...they can't do that.

Attack...attack...attack them terrorists...they have nukes!!!

/sarc off

+

serious question

so when we have hyperinflation (because we will) and it takes 10,000 dollars to buy a loaf of bread, could i pay back my student loans for the cost of 4 loaves of bread? seriously, though.

Technically I suppose you

Technically I suppose you would pay them back what you owe in a greatly debased and practically worthless currency so yea, I guess you could. However, remember that if you owe student loans to the government then the government can always change the rules, especially in a time of national emergency such as a hyperinflation situation would be. Based on what you owe they might decide to take it out in labor and draft you into some sort of government service or something.

Bottom line for me is NEVER trust the US government and get out from any obligation to them as soon as possible.

Bernanke warns of possible European 'contagion'

http://economywatch.msnbc.msn.com/_news/2012/03/20/10781019-...

Weakness in the eurozone is beginning to have an impact on the U.S. economy, according to Federal Reserve Chairman Ben Bernanke, who will warn legislators Wednesday of possible "contagion."

“The difficulties in the euro area have affected the U.S. economy," Bernanke says, according to prepared text of his remarks. "The European Union accounts for roughly one-fifth of U.S. exports of goods and services. Not surprisingly, U.S. exports to Europe over the past two years have underperformed our exports to the rest of the world. In addition, weaker demand from Europe has slowed growth in other economies, which has also lowered foreign demand for our products.”

The Fed posted the prepared text on its website ahead of time after Fox Business News apparently obtained a copy and published excerpts on its website. Bernanke is scheduled to testify on Europe to the House Committee on Government Oversight and Reform.

"U.S. financial firms and money market funds have had time to adjust their exposures and hedge their risks to some degree as the European situation has evolved, but the risks of contagion remain a concern for both these institutions and their supervisors and regulators," Bernanke says in the remarks. He warned in particular of potential danger to the financial sector.

Although progress has been made, more needs to be done," Bernanke says. He recommends strengthening the European banking and taking steps to boost the continents economy.

The testimony appears to represent a change from February when he told a congressional panel: “Our basic conclusion is that direct exposure of U.S. banks to European sovereign debt is quite limited, particularly on the periphery.”

Read the full text of Bernanke’s prepared testimony at the Fed’s web site. http://www.federalreserve.gov/newsevents/testimony/bernanke2...

The petrodollar and the USD

The petrodollar and the USD being the reserve currency of the world is largely what enables the US gov to continue inflating our money supply without the immediate inflationary/hyperinflationary consequences.

When this changes all the dollars held around the world will need to go somewhere. Much of it will likely be traded for whatever reserve currency or oil purchasing currency replaces it. Those dollars will still exist, though, and will be traded away until eventually those dollars make their way back home to the US (since the demand for those dollars will be significantly less outside of the US) where they will be used to compete with our dollars for limited resources. And that's where the inflation problem comes in. At that point we will see large amounts of currency which the holders simply want to no longer hold, so they will be willing to spend whatever they have to in order to convert their dollars into real assets. If this process becomes rushed, or panicked, that is where the inflation goes from bad/high inflation into a hyper inflationary environment.

Thus, that is why we go to war with countries such as Iraq & Libya which start selling oil in other currencies. I suspect this is also more likely the reason why we have been beating the war drums against Iran, because they also have moved to selling oil in other currencies & even in gold.

...

well i dont think it's so much the convertability of oil dollar

but rather from an old strategic point of view, likely stemming from second world war when imperial japan lost to the us because they ran out of resource--the us military personnel believe that we need to secure our energy source to remain a credible military force around the world, which may have some merit until we develop an alternative energy source. one could argue the need for less military if we stopped causing so much blowback, of course. but no i don't believe it's strictly on the grounds of trading, how oil is convertible to dollars that is the main concern of value behind currencies. by that logic, middle eastern currencies should value a heck a lot higher than us currency, but no, obviously there are a lot more other factors that go into these things, including domestic policies, technological level of your economy which puts a price support on productivity and hence your exchange rate.

they are mainly concerned about when during an international crisis trade gets cut off, and they can't gain access to large oil reserves no matter how much 'money' they have, and when a country occupying these oil reserves gain technological advancement and build defense around it

Both reasons are not mutually

Both reasons are not mutually exclusive as far as I can tell.

Yes, we use our military to secure our energy source in order to maintain our military power around the world.

But at the same time, we use our military force to secure the petrodollar and the USD as reserve currency for largely the same reasons. Maybe not solely to maintain military power but overall power & influence. Without the petrodollar & USD being the world's reserve currency we lose the ability to spend by taxing the entire world with our inflation. Another impact is the (hyper)inflationary hit here at home.

The petrodollar & USD world reserve currency holdings (as well as all the other currencies that are pegged to the dollar) enable us to export our inflation all around the world instead of having to absorb it here. It enables the government to do many things which it normally would not be able to afford to do, such as maintaining military bases all over the world & occupying other countries in order to secure energy.

...

question to experts

and we have a couple. Anyway, I'm wondering how this affects African countries. To me it seems they'd be (somewhat) better off, their main gripe usually they can't export their goods anywhere. This seems like it could make trading with BRICS nations easier, or am I completely off the mark here?

Certainly isn't good

The only reason the U.S. is not in a state of hyperinflation at the moment is that we hold the world reserve currency. In other words, our inflation is spread among all holders of U.S. dollars (most world economies) instead of just our national economy. In a worst case, a "run" on the dollar (just like a bank run) in which countries rushed to sell their dollars while they still had SOME value, would result in an almost overnight destruction of the U.S. economy. Assuming even a best case scenario (slow transition from the dollar as a reserve currency) the inflation in our country will be significantly magnified. So, to the previous posts... this IS bad. The day of reckoning for our inflationary ways is coming.

A time for everything under the sun...

Being the worlds reserve currency is not something to be proud about since in order to maintain this position it has required military intervention. With the end of military intervention it is possible to put trade back unto a level playing field. Of course in order to do this action will have to be immediate as many believe it cannot be maintained even until the November elections. If not the FRN will collapse, lead by the derivatives market which is closing in on 800,000,000,000,000 FRNs more than 10 times the value of all world markets added together. All of course to be financed by the American taxpayer. Anyone wonder why people with money are leaving the country?
http://www.usdebtclock.org/index.html
grant

I don't understand why, as an American, any of us would ever be

I don't understand why, as an American, any of us would ever be happy about this? Sorry we aren't from Russia, Africa, India, etc. Having the dollar as the reserve currency benefits us, not anyone else. We as a country should obviously fully support an effort to remain as the reserve currency of the world, because if we don't, we will face the negative affects that result.

Happy no, but it could bring back pride.

Being the worlds reserve currency is not something to be proud about since in order to maintain this position it has required military intervention. With the end of military intervention it is possible to put trade back unto a level playing field. Of course in order to do this action will have to be immediate as many believe it cannot be maintained even until the November elections. If not the FRN will collapse, lead by the derivatives market which is closing in on 800,000,000,000,000 FRNs more than 10 times the value of all world markets added together. All of course to be financed by the American taxpayer. Anyone wonder why people with money are leaving the country?
http://www.usdebtclock.org/index.html
grant

Who cares?

..

Is Japan sitting pretty or WHAT.

:)

Patriot Cell #345,168
I don't respond to emails or pm's.
http://www.youtube.com/watch?NR=1&feature=endscreen&v=qo8CmO...
Those who make peaceful revolution impossible will make violent revolution, inevitable.

Japan is in a bond bubble

They need to devalue their currency. They will print as we print. The currency wars are under way folks. Not good for anyone.

No one has deputized America to play Wyatt Earp to the world.
-Pat Buchanan

If the numbers are true.

Japan has a lot of public debt, but most of it is held internally, unlike England/UK and Ireland. The U.S. government of course owns a lot of property, mining and drilling rights. So of course when the SHTF the military will be use to protect it's interest which of course is the interest of the ruling class.
grant

Thanks for the answer.

It was kind of a cheeky question. :)

I would say, having debt inside the country could be considered a tiny bit better. At least in my opinion. Less likely to have to bend to the will of another nation like that but debt is debt I suppose.

Patriot Cell #345,168
I don't respond to emails or pm's.
http://www.youtube.com/watch?NR=1&feature=endscreen&v=qo8CmO...
Those who make peaceful revolution impossible will make violent revolution, inevitable.

I'm happy about it. Read my

I'm happy about it. Read my post below.

If you're an American the

If you're an American the only serious threat to your freedom is the government in Washington. Good for the BRICS nations, the sooner they break the dollar hegemony the closer we'll be to getting our freedom back. In fact I'd say that BRICS is the best hope of breaking the tyrannical US government's stranglehold on our lives and the lives of people all over the globe.

End the empire! Give us our republic back.

Agree totally

I couldn't have said it any better.

What do yall think this does

What do yall think this does to buying opportunities in BRICS? Still a good move or too overheated?

I'd buy gold

that way it's not tied to something that the good ole USSR of A won't be able to tie to "terrorists" so they can take lol.

Patriot Cell #345,168
I don't respond to emails or pm's.
http://www.youtube.com/watch?NR=1&feature=endscreen&v=qo8CmO...
Those who make peaceful revolution impossible will make violent revolution, inevitable.

Good idea, I'm 24 years old

Good idea, I'm 24 years old and my portfolio is basically 70% gold and silver right now, the rest cash. Looking to diversify a bit

Same, I'm 23

Just cashed out of the dollar myself. Damn near 85% in gold/ silver. Bring on the inflation.

If you plan on leaving the U.S. it's been done before.

The Confederados (Portuguese pronunciation: [kõfedeˈɾadus]) are an ethnic sub-group in Brazil descended from some 10,000 Confederate Americans who immigrated chiefly to the area of the city of São Paulo, Brazil after the American Civil War. Although many returned to the United States, some remained and descendants of Confederados can be found in many different cities throughout Brazil.

http://en.wikipedia.org/wiki/Confederados

By the way, Brazil continued to have slaves until 1888, but surprisingly (or not) there was no need to kill thousands of American citizens as was done in the U.S.
Brazilians are Americans, South American to be precise.
grant

This might sound a bit far-fetched to you at the moment

but maybe put some into cattle. You can get AG leases for pennies, cattle for meat at around 300 a head per calve, then maybe use this technique below for the majority of the feed.

Big thanks to fishyculture for the link
http://www.youtube.com/watch?v=YlNU7NKiwF0

It can take 1 to 2 years to raise one to slaughter weight and you can collect around $1800 per calve after expenses.

Food, Gold, Silver, Guns and Ammo. Sort of in that order, I'd suggest.. At least the first 3 for economic hedge with the last being a protection for keeping it. :)

Just my opinion.

Patriot Cell #345,168
I don't respond to emails or pm's.
http://www.youtube.com/watch?NR=1&feature=endscreen&v=qo8CmO...
Those who make peaceful revolution impossible will make violent revolution, inevitable.