She’s a BRICS-house

She mighty, mighty, just lettin’ it all hang out.

According to digitaljournal.com, BRICS (Brazil, Russia, India, China, and South Africa) are positioned to overthrow the dollar and end US supremacy as the leading superpower.

Quote:
Among the many subjects discussed by the leaders were the creation of an alternative global lender and dropping the U.S. Dollar as a reserve currency. The leaders believe that institutions like the IMF (International Monetary Fund) and the World Bank have now “outlived their usefulness” and the creation of a alternative global lender would be the way to go.


View the article here

This news comes after a summit in New Delhi in late March. The five are hoping to extend their union beyond economic goals into the political realm. Two main statements were made at the summit, the first announced plans to create a joint development bank in the future, and the second condemned sanctions placed against Iran and Syria. The nations also agreed to begin giving out loans in their own local currency, beginning their move away from the dollar.

Quote:
“Other matters on their minds included the Syrian crisis. The leaders believe that it is important that the Arab Republic’s government and its opposition are given a chance to start a dialogue. They want peace in Syria, and they do not want Assad to step down.”

In particularly bold language written by “pravda.ru”, one writer claims that

Quote:
“The foreign factor that unites the BRICS countries is the desire to push the US dollar from the leading positions, to oust the U.S. from the Middle East, not to decolonize Africa and to deprive it of the economic and hence political influence in developing countries.”

The writer has nothing positive to say about the US, and mentions no obstacles standing in the way of BRICS should it decide to take on the IMF. Readers of WSO, what do you think? Are these the five up and coming world superpowers? Each certainly has their own potential for growth, but will the dollar decline, replacing the US?

The pravda.ru article concludes with:

Quote:
“The political benefits of Brazil and India are also obvious. Traditionally on the sidelines of the world politics, these countries finally got the opportunity to realize their ambitions through the BRICS. For the first time they are talked about as a giant, and not only on the regional scale. With regard to South Africa, after its entry into the union for the first time sub-Saharan Africa ceased to be referred to as “miserable and poor.”

This type of talk reminds me of the girls that have a few “glamour” shots taken by an amateur photographer and then go on to claim they are “models”. Even the prettiest ape wearing mascara is still an ape. Does BRICS really stand a chance at enormous growth or is hubris getting the best of them?

In a Telegraph article titled “Why a BRICS-built bank to rival the IMF is doomed to fail”, Jeremy Warner explains his doubts.

Quote:
“Outside endemic corruption, uncertain or wholly absent rule of law, and relatively low per capita income and life expectancy, there wouldn’t appear to be much that unites this disparate collection of nations.”

 

View this on Wall Street Oasis here or read my entire WSO blog here.

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