-United Arab Emirates
Still think this is just a temporary trend? You still feel that this is only a cycle? Or is your survival instinct kicking in and challenging your world view with the reality that it is over for the United States? You can not have these many powerful economies that represent near 60% of global GDP set up swaps that will bypass the dollar and think that it is �business as usual�. You should now put down your coffee, step away from your computer screen and run into the street screaming in anger that you have been sold out and your posterity has been cut off by charlatans in a far off capital that has squandered the finest economy the world has ever seen in a a few short years!!!! On second thought don�t run out of your house screaming a police �officer� might either shoot you or taser you for �terroristic threats� this is the new Amerika.
BRICS BANK: Game Changer
I can not detail how significant this concept and desire for a BRICS bank is. It will be the biggest most significant financial agreement in history supplanting even the formation of the Euro. Why? Simple the BRICS proposal challenges the entire dollar leveraged global system of trade and world reserve, no other agreement in modern history has done that. It challenges the IMF and the World Bank shaking the western banking conglomerates to the core and making them take a second look into this very real and credible threat.
So why are they setting up this trade and finance apparatus in the first place? First and foremost the Dollar IS deemed as a volatile currency backed by an even more volatile country. It does not need much deliberation to know that the US has all THE recipes for economic failure. The other reason for the surge in setting up a BRICS bank is thanks to the US-Japanese initiated currency war it has become incredibly expensive to swap dollars when you have to debase your currency to keep up with the derelict American currency.
The constant debasement of the dollar creates exchange volatility that makes it very hard to predict the value of your currency versus the dollar. The uncertainty affects many nations causing rapid rise of energy and food costs, slowdown in capital inflows all the while running deficits. This compounded on top of all the costs of transacting in the dollar vis-a-vis fees, transaction costs etc. It is predicted the BRIC S nations themselves would save close to $13 billion a year in expenses related to dollar transactions!!!
The Rest Of The World
Folks economic considerations always outweigh political compulsions thus we kid ourselves into thinking that every nation in the world will commit suicide with us. There is no honor among thieves so we must not expect a rallying cry amongst the central bankers to save the sinking USS Economy. Non-Dollar currency swaps save money on imports by freeing nations from currency fluctuations due to the dollar and reducing the cost of funds. The key for the world will be to negotiate favorable terms of agreement. Only then will many nations� economic advantages outweigh the geopolitical risks of such a currency swap deals.
The chart below represents why the world is abandoning us. It is from 2011 it does not matter that current numbers are not available as we have statistically moved into the realm of the absurd.
They have no need for us and they can not sell their goods to an impoverished American consumer, the lie of the �service� based economy and Keynesian economics has been dashed to pieces on the rocks of reality, the free market and human nature. 2013 will be known as they year that America died. 2014 will be the year where the vultures begin to pick our carcass clean, get ready for the austerity and bail ins.
*Article in it’s detailed entirety are at www.RogueMoney.net*