Reform Delays and BRICS Bank
By JC Collins
The official communication from the G20 meetings being held over the last few days is now released. The broad strokes are as follows:
G20 expects global economic growth to strengthen in 2014
- remains vigilant in face of important risks and vulnerabilities
- G20 nations committed to lifting and rebalancing global demand and achieving exchange rate flexibility
- G20 “deeply disappointed” with the delay in implementing IMF quota and governance reforms agreed in 2010
- urges the US to ratify IMF reforms at earliest opportunity
- if IMF reforms are not ratified by year-end then IMF should develop options for next steps and schedule a discussion of those options
It appears the US has bought itself some more time to enact the IMF Reforms.
It would be my expectation that this was done to not rattle the markets too much. Expect a continuation of the dollar bypass mechanisms which are being implemented world wide.
It will be interesting to see how Russia and China respond to this further delay. And if in fact the decision was unanimous. The purpose is to have the US play the role of bad guy, or singular opposition to the will of the rest of the world.
So this is not surprising, considering the Hegelian Dialectic which is at the core of the new multilateral system engineering.
Once confidence in the dollar is lost, it will not be found again.
Obviously this situation will remain dynamic throughout the year. Let’s keep watching and learning as regional geopolitics and economic indicators continue to shift.
Full text can be read at:
And of course the US isn’t wasting any time in capitalizing on this delay. It seems Syria is back on the table for forced negotiation.
And also on cue, more news on the BRICS Development Bank.
The news today from the G20 is neither disappointing or encouraging. It’s just another step in the process of transitioning from dollar to SDR. We very well may see the BRICS Bank bulge outwards and swallow the whole of Asia and Eastern Europe before the SDR allocation system comes fully online. – JC Collins