Posted on 03/21/2013 3:51:30 PM PDT by Track9
AFP - Brazil hopes to sign a bilateral accord with China to promote trade in their national currencies at next week's BRICS summit of the world's five emerging powers, Trade and Industry Minister Fernando Pimentel said Thursday.
The initiative was tentatively agreed last June with the signing of a memorandum of understanding after a meeting of Brazilian President Dilma Rousseff and then Chinese prime minister Wen Jiabao during the UN summit on sustainable development in Rio.
Pimentel said that at the BRICS summit in Durban, South Africa on Monday and Tuesday "we plan to turn this memorandum into a final agreement which is being finalized by central banks of the two countries."
He gave no details on the deal except to say it would allow "an exchange mechanism in local currency involving up to $30 billion" or nearly half of total bilateral trade.
The proposed exchange mechanism will be discussed at the summit which will bring together the leaders of Brazil, China, Russia, India and South Africa.
Chinese President Xi Jinping said Wednesday Beijing hopes that the BRICS summit will make "positive headway toward establishment of a development bank and a joint foreign reserves fund."
Details about the formation of the development bank are expected to be thrashed out in Durban.
(Excerpt) Read more at france24.com ...
ping
Her party is affiliated with the Socialist International, an organization of socialist political parties around the world, who try to assist each other to make their nations socialist nations, though they are strongly opposed to nations as such, and seek to undermine their nations’ unique peoples, cultures and histories.
http://en.wikipedia.org/wiki/Socialist_International
Stronger countries will likly come in to loot the place - as we won't be able to pay for a standing army to defend ourselves. We won't be able to hold off the horrors of the dictator protection agency (the UN) either ... We do most of their funding - and we're broke.
Broke. The reason it appears we're doing OK because we swiped a 'credit card' from Mom's purse - and she hasn't caught us yet... This is one more sign we're getting caught...
The most telling point is that historically, Brazil periodically gets a windfall that could make them very prosperous, but then they totally squander it on some of the most hair-brained schemes imaginable, impoverishing themselves.
The more the world goes off the dollar, the more difficult the feds will have sustaining their zero interest rate policy.
I’ve read various estimates of how much US currency is overseas. They range from half to 80%. Since the Betton Woods accords all countries have satisfied their debts in US dollars. They do that because the US Currency was the most stable at the time; 1933. If the amount overseas is only half and all that money came home we’d see unprecedented inflation. Carter increased the money supply 13% and we saw three years of interest rates in the 20% range. That interest rate is the emergency pressure relief valve that keeps our economy from overheating. Since at least 2008 that relief valve has been tied open. In other words, our economy may be superheating right now and we’re unaware of it. When the chickens come home to roost the US will lose its power-pole position as the currency of choice which then means we’ll have to pay as we go. Suddenly, brakes will be applied to our economy as never before. I believe it’s the SHTF (defecation/fan) scenario.
As far as I understand, the feds insanely artificial policy of zero interest rate for banks at the discount window, which of course makes the banks lots of money and hurts savers, is entirely dependent on them being able to print endless money. Stop printing money and interest rates go way up.
“Stop printing money and interest rates go way up.”
Yes. In 2008 there was $900 billion in existance. By 2010 it was $1.8 trillion. By 2011 it was 2.6 trillion. Since then they’ve added 87 billion per month. Any dollar you earned before 2008 is now worth somewhere south of 25% of what it was.
Yup.
Stunning. Do you have a link for that info?
Brazil doesn’t have what it takes to break big, although it will probably manage to do okay, and perhaps to demo some prestige projects like orbiting an astronaut; the Russian economy is shrinking; India has 150 million muzzies and in thirty years is likely to have something close to 50:50 humans to muzzies (and China’s number one arms customer is Pakistan); the Chinese are rats in our wheel; South Africa (trails off into laughter).
You get different answers depending on how you pose the question. For example, you’ll find out that there are now $1.13 trillion dollars in circulation. But that’s not all the money created; just the money printed. Above is a link to an article I found, but the original numbers came from a news article on FR.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.