Bric in search of elusive common cause (Brazil, Russia, India & China)

NO wonder that Russia was so keen to host the summit of the Bric countries, the giants of the developing world. Brazil, China, India and Russia are a would-be club in search of a common cause. Out of the four, it is Russia which is the weakest - and which has the most to gain from the others' solidarity.

Brazil's President Luiz Inacio Lula da Silva, left, Russian President Dmitry Medvedev, Chinese President Hu Jintao and Indian Prime Minister Manmohan Singh line up for a group photo at the first Bric summit Picture: Reuters We can credit Goldman Sachs, not Vladimir Putin, Russia's Prime Minister, with the creation of Bric. The term, coined in 2001, was an economist's device to draw attention to the parallel attractions, as investments, of the four countries, outclassing in size and growth much of the developing world.

Now Russia, desperately in search of power it can adjoin to its own, even if that properly belongs to other nations, has seized on the Bric concept, claiming that established economic forces should take notice.

Yet for all the trumpeting, the summit ended with a whimper. The four found little common ground beyond a shared self-interest in welcoming President Ahmadinejad of Iran on his first foreign trip since his disputed election victory.

Instead of demonstrating clout, the four leaders demanded it. "The emerging and developing economies must have a greater voice and representation in international financial institutions," the final short statement said - code for the International Monetary Fund.

But the statement did not mention two notions that Moscow loves: a smaller role for the dollar and a new supranational reserve currency.

http://www.theaustralian.news.com.au/business/story/0,28124,25653835-5018001,00.html

BRIC are the nations that are calling for a international currency, i.e., getting out of dollars. Having the dollar as the international currency is part of the reason our country has so much power. But the move to an international currency could devastate our Republic along with obozo's quick move to socialism. If the move to the international currency is made, what should the currency be called? International Operating Unit nee IOU?

> Yet for all the trumpeting, the summit ended with a whimper. The four found little common ground beyond a shared self-interest in welcoming President Ahmadinejad of Iran on his first foreign trip since his disputed election victory.<

Just pure talk and grandstanding for America-haters. Why dont these idiots just invade America militarily to make it more interesting...

Brazil and China will be conducting trade with a fixed exchange rate between their currencies. If the arrangement works, China and Brazil will expand the concept to other countries. Russia is the only one stupid to announce opennly that they want to kill the dollar. China is quietly making it happen. The dollar will die when enough countries are trading and ignoring it. Question is what will the NWO elites in US, Canada and EU going to do about it? Raise taxes on the middle class to cover their losses??

And despite all the talk about alternative currency, which is not something to worry about and would not be bad at all (like any competition, euro is keeping dollar somewhat more "honest")
BRIC Dollar Bonds Beat Ruble Debt as Medvedev Frets - June 17, 2009

For all the criticism of the U.S. currency by leaders of the so-called BRIC nations, dollar bonds sold by the largest emerging-market countries are outperforming debt traded in reais, rubles and yuan.
Russian President Dmitry Medvedev, Chinese President Hu Jintao, Indian Prime Minister Manmohan Singh and Brazilian President Luiz Inacio Lula da Silva called for a “more diversified” monetary system yesterday to reduce dependency on the world’s reserve currency. The four leaders met in the Urals city of Yekaterinburg, where they planned to discuss buying each other’s bonds and foreign exchange, said Arkady Dvorkovich, Medvedev’s top economic adviser.
“It’s not up to politicians to determine which currency will be the world reserve currency,” said Lutz Karpowitz, a currency strategist at Commerzbank AG in Frankfurt. “In the end the market decides it.”
Dollar bonds sold by China earned 11.4 percent in the past year, more than double the 4.6 percent for debt in yuan, JPMorgan Chase & Co. indexes show. Brazil’s U.S. currency bonds returned 3.6 percent as real-based notes lost 4.9 percent, and Russia’s dollar bonds outperformed with a 1.9 percent loss compared with a 7 percent drop in ruble debt. India doesn’t have dollar-denominated debt. .....

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