Russia plans for the BRICS to dismantle the dollar system
The status of the dollar as world reserve currency gives the U.S. a number of advantages over other countries. The most important global commodities traded in dollars, although much of this material is not made in the USA. The fact that the global financial system based on the dollar, the Fed allows exporting inflation to other countries, and the government can easily operate under huge deficits.
So far, only China has actively opposed the supremacy of the dollar. RMB internationalization is an official priority of the Chinese leadership.Currency swap agreements with major partners such as Brazil, France and Australia are the albeit small, but important steps the Chinese strategy.Change in the global financial system – not an easy task. But now, it seems, Beijing found an ally in the Kremlin. And among the BRICS countries, most likely, there is a consensus – is an urgent need to remove the dollar system.
A week before the recent BRICS summit in Durban, the Kremlin administration has quietly produced a document which describes the Russian strategy in the context of the BRICS. The document is quite interesting for anyone who is brave enough to wade through the pile of legal terms Russian language. The strategy was developed in the “inner circle” of Vladimir Putin’s team, so it’s safe to assume that this is a formal point of view on the future of BRICS. should Russian Byzantine politics, the fact that the Kremlin has decided not to hide the document or to allow him to “escape” for a select few journalists, and published it, is a very clear signal in the direction of the United States. The signal that the Western media chose to ignore. preamble to the authors point out that “there is a common desire of the partner countries to reform outdated BRICS global financial and economic system that does not take into account the growing economic weight of emerging markets.” Moreover, Russian strategists consider the BRICS as a tool for reforming how at the moment is global governance: Russia suggests that, given sufficient political will of the leaders of the BRICS countries to further deepen cooperation, this alliance could be one of the key elements of the new system of global governance , especially in the economic and financial fields. Off The New World Order! BRICS are going to change the world. Objectives are clear. In the section entitled “Strategic Goals”, the first item on the agenda of the BRICS should reform the global financial system, so as to make it “fairer, more stable, and more efficient.” In subsequent chapters, clearly states that this “reform” is actually dismantling the dollar system. worth noting that the place reserved this task on the list of priorities BRICS, clearly indicates its importance. According to the order of priority, the deprivation of the dollar’s status as the world’s reserve currency is more important than the “prevention of violation of sovereignty” (ie “the Syrian problem”) or “enhanced economic cooperation.” Language used in this document indicates that it is was written under the strong influence of the Presidential Adviser on Economic Affairs Sergei Glazyev, who believes that Bernanke’s policies will eventually lead to a military confrontation, “Saving the logic of the current financial and political system leads to a further escalation of the military-political tensions, including to top great war. ” An entire chapter of the strategic document assigned step by step instructions for dismantling the existing global financial system. The list of activities includes: – The reform of the world monetary system in order to create a representative, stable and predictable system of the world’s reserve currency; – Decrease associated with massive cross-border capital flows, risks destabilizing the currency and equity markets; – Increased use of national currencies in trade between the mills BRICS; – Increase the level of cooperation between the BRICS countries to promote their interests in world trade; – Strengthening the BRICS exchanges alliance; – Establishment of independent rating agencies; After the summit in Durban was implemented, at least one of these tasks: the creation of the rating agency. As soon as the BRICS countries implement other strategic objectives will become clear whether the dollar system to survive the onslaught of the joint largest growing markets.