BRICS summit to explore creation of “World Bank” like bank for southern hemisphere

March 29, 2012 by · 1 Comment
Filed under: Global News 

The is an ambitious project for the BRIC countries that is made up of: Brazil, Russia, India, China and South Africa.  They do not discount the efforts and helpfulness of the current World Bank that was setup by the U.S. and allies to help give assistance to lower developed countries that historically have had a very difficult time securing financing for development and infrastructure project that tend to create jobs and higher standards of living for the local population.

In the article, it is cited that the demand for these services are much more great that the availability of funding, this is what is driving the BRICS to formally starting discussing the formation of this bank based on the “World Bank” model.  As long as the assistance is given at rates that can be paid back so these nations come out in better shape than before.

Al-Jazeera – The proposal of a development bank is high on the agenda at the summit of the five BRICS bloc nations – Brazil, Russia, India, China and South Africa – starting on Thursday in New Delhi.

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China calls for new global currency to replace dollar

March 24, 2009 by · Leave a Comment
Filed under: Currency News 

The calls for a replacement to the dollar is getting more pronounced everyday.  China has really pushed for the IMF to use SDRs (Special Drawings Rights) as the super-sovereign currency used between governements.  I am not in favor of giving any international agency this type of power.  When you concentrate power, it makes it much easier to abuse.  

I understand why the call for these changes are coming, being that we are the de facto reserve currency, our domestic monetary polices are devaluing the dollar.  We should not look to bailout and look more to preserve our currency on the world market and let the market take care of the mal-investment.

News (AP):

China is calling for a new global currency controlled by the International Monetary Fund, stepping up pressure ahead of a London summit of global leaders for changes to a financial system dominated by the U.S. dollar and Western governments.

The comments, in an essay by the Chinese central bank governor released late Monday, reflect Beijing’s growing assertiveness in economic affairs. China is expected to press for developing countries to have a bigger say in finance when leaders of the Group of 20 major economies meet April 2 in London to discuss the global crisis.

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