BRICS to end dollar rule and USA's supremacySubmitted by Charleston Voice on Tue, 04/10/2012 - 17:24
The BRICS countries (Brazil, Russia, India, China and South Africa) in late March held a summit in New Delhi, which can be considered the beginning of a new global financial and political order. In five years this world will be unrecognizable.
The Anglo-Saxon model of governance of the world that flourished in the 1990s is losing its way and is being replaced by the Sino-Russian one. Yuan came close to international recognition, and with the adoption of Brazil and India into the UN Security Council the West will lose its political hegemony.
In 2008, the Wall Street's practice of inflating financial bubbles in alliance with the U.S. Congress led to the collapse of neoliberalism. As Western politicians have not been able to build a coherent model of its resuscitation, the financial crisis is smoothly transforming into the political one. If President Obama advocates for the return of the industry to the country, what kind of subsequent prosperity of the United States are we talking about? The globalized economy has gradually shifted production to China, India and Brazil, where labor is cheaper, and tax and other legislation is much softer. So far there are no obvious reasons as to why Obama will return it to the United States.
This year, the BRICS countries provided 56 percent of world GDP growth, while the share of the richest of seven (G7) is only 9.5. In 2035 the BRICS countries will outrun G7 in terms of the economic potential. The volume of trade within the block grew from $27 billion in 2002 to $250 billion in 2011.
The main interests of the groups include the need to change the present world order, which is based on the global leadership of the U.S. dollar and its leading position as a major world currency. This order was approved by the agreements in Bretton Woods in 1944, at the end of World War II. The U.S. allies in Europe panicked before the inevitable spread of Soviet socialism and were happy to have hidden under the wing of the economically powerful neighbor in the Atlantic.
The economic rationale for cooperation among the BRICS is clear today, but more serious political points of contact are found. Here Russia rules, because it was President Medvedev who most emphatically called for political unity. The unity for the first time was obvious on the Libyan issue...finish reading...