There are some interesting things happening in the financial system of the world. Nations are beginning to form alliances, and one of the things they are doing is planning to dump the US Dollar as their Reserve Currency.
BRICS - (Brazil, Russia, India, China and South Africa)
These countries make up 42 percent of the world’s population and a quarter of its landmass. They are also responsible for 20 percent of the Global GDP and own a whopping 75 percent of the foreign reserve worldwide.
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.
In the 30s, several nations competitively devalued their currencies to give their domestic economies an advantage over others.
And this led to a worldwide decline in overall trade volumes at the time.
The north will be pitted against the entire south in a historic competitive currency battle – whose terrain has moved to the Indian capital New Dehli – where the Brics (Brazil, Russia, India China and South Africa) nations will assemble next week.
China seeks to find new markets for its currency and to lobby to internationalise it throughout the Brics states.
For China this is not a new game. In 2009, senior Chinese banking officials issued a statement that the international monetary system was flawed owing to an unhealthy dependence on the US dollar and called for a “super-sovereign” international reserve currency.
Another article reports this:
The Brics group of emerging world powerhouses – Brazil, Russia, India, China and South Africa – is expected to launch plans this week for a joint development bank and measures to bring their stock exchanges closer together.
Officials say the initiatives will take time as they need to sort out details. But they herald a new level of ambition for a bloc that brings together about half the world’s people. The Middle East and energy security will also be discussed, officials say.
When the dollar gets dumped as the world's reserve currency... that is when things will really unravel here...
Send your card of thanks to Mssrs. Bernanke, Obama and Geithner (and certain members of Congress too - Pelosi and Reid)
They have made sure we get screwed over pretty well.
Devaluing our currency in order to pay for their moronic spending and wars will be our undoing.
(How do you like Ron Paul and Peter Schiff now?)
And you can forget the Euro.
PIIGS (Portugal, Italy, Ireland, Greece and Spain) have made sure that will going down the tubes too.