On March 13, 2012, the Chinese government approved a request from Japan, to buy U.S.$10 billion worth of bonds.
Japanese officials admitted the move was to help them “diversify” away from U.S. bonds. The move signals the growing influence of the Chinese yuan, as a international currency.
It also comes as BRICS countries prepare to sign an agreement on March 29 that would create a new international banking system that refuses to use the U.S. dollar.
March 10, 2012, just hours after Moody’s declared Greece in full default the U.S. based International Monetary Fund offers Greece another multi-billion Euro loan.
Moody’s declared Greece in full default after Greece agreed to a new sovereign debt (government bonds) swap deal, which will see 53% of Greece’s debt erased. Many holders of Greek bonds will be forced to take losses.
Now Christine Lagarde, Managing Director of the IMF, is offering Greece a U.S. $36.7 billion loan. That’s on top of the other loans Greece is still waiting for.
So credit ratings companies are saying Greece is not in a position to pay back more debt, yet the U.S. led world finance institutions are offering Greece more debt? By the way, the IMF had to borrow that money from BRICS! In 2011, for the first time in the IMF’s history they were broke, and went ‘cap in hand’ to BRICS (Brazil, Russia, India, China and South Africa) to beg for money, so they could in turn lend it to Western countries.
“We will discuss the creation of structures and mechanisms for lending in local currencies in order to maximize economic and financial transactions between the countries that are members of the accord.”-statement from Brazil’s development bank BNDES
The BRICS are about to lead a new Revolution; no more U.S. dollar! It’s being spearheaded by the Chinese Development Bank.
BRICS members (Brazil, Russia, India, China and South Africa) are about to institute a new World Lending system that will not require the use of the U.S. dollar!
Reports say the new system will be signed into operation by BRICS members on March 29, 2012. It will deal in not only the Chinese Yuan, but in local money as well. Currently most international lending systems require loans to be made in U.S. dollars. That’s because the major lenders, the IMF and World Bank, are actually run by the United States.
In response (yet not really explained by the main stream U.S. media why Clinton is making such a statement) U.S. Secretary of State, Hillary Clinton, is demanding China explain itself: “Given the historic challenges to security and stability posed by rising powers, they do have a special obligation to demonstrate in concrete ways that they are going to pursue a constructive path.”
Clinton’s statement shows just how paranoid the U.S. government is of China. But, oh well, surveys show many of the citizens of the U.S. are also paranoid of China! This new international lending agreement with the BRICS will only prove to the paranoids that they are justified in their fear.
“The emerging markets will only help once two conditions are met…they reinforce the firewall, which means doing more than what they’re doing with the European fund of stability… and on top of that….they carry out the reform of the International Monetary Fund.”-Guido Mantega, Finance Minister of Brazil
CELAC (Comunidad de Estados Latinoamericanos y Caribeños, or Community of Latin American and Caribbean States) and BRICS (Brazil, Russia, India, China and South Africa) are telling the U.S. based IMF that if it wants any more money to help Europe, it needs to clean up its act!
One of the reforms CELAC & BRICS are demanding is that they have more say in how the IMF is managed.
September 19, later this week the Group of 20 developed and developing economies will meet in Washington DC. The main issue, as always, the collapsing global economy.
Actually the main stream western media wants you to think the “global” economy is collapsing, in reality it’s just the ‘western/capitalist’ economies that are going down the toilet.
Demands from the European Union, United States and Japan are revealing how bad the situation is: “The consolidation plans to be undertaken in most EU countries, in the U.S. and in Japan need to be accompanied by appropriate policies in other regions of the world so as to avoid an undesired compression of global demand.”-European Union statement
What this means is that the economies that are going down the toilet need more help from the economies that are actually booming (the “other regions”). Basically the EU, U.S. and Japan have become beggar they neighbor nations; needing to borrow from the wealthier BRICS (Brazil, Russia, India, China, South Africa), just to survive.
In order to get the much needed cash, expect the EU, U.S. and Japan to make some huge concessions at this weeks G20 meeting. One thing China and Russia would like to see is a new currency to replace the U.S. dollar as the World’s reserve money. It’s unlikely the U.S. would support that, ’cause it could make the economic situation in the U.S. even worse.
However, the latest European Union statement indicates that if the EU, U.S. and Japan don’t get financial help from the BRICS, then it could be lights out for the ‘West’.
“We believe that the time has come for the council to take further actions to step up the pressure against those who are responsible for the violence against the citizens of Syria.”-Philip Parham, U.K. representative to UN Security Council
The U.S., France, Germany and Portugal all backed up the British demand that the UN Security Council take action against Syria.
The problem is that all the most economically powerful countries are opposed. Brazil, Russia, India and South Africa believe the government of Syria is correct when it says the insurgency was started by outside forces (meaning the U.S. and Europe).
Russia and China are permanent members of the UN Security Council. India currently holds the presidency of the UN Security Council.