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Wednesday, June 20, 2012

Dollars Reserve currency status under threat-BRIC’S prepare to move out of the U.S.D.

Cross-posted by Charleston Voice from China Money Report

Not to be alarmed. This proposed move is safely under the control of the CFR through its proxy, the Carnegie Endowment for Peace. Don't tell them, but the BRICs have been hoodwinked by the globalists to submit their people under monetary control. Then, of course political control. Hey, nobody ever said the long march to a New World Order would be easy.

June 20, 2012 / D.Collins

The BRICS countries said on Monday that they’re considering setting up a foreign-exchange reserve pool and a currency-swap arrangement as financial problems threaten to spread across the global economy.Leaders of the five-member group —Brazil, Russia, India, China and South Africa — also said BRICS is “willing to make a contribution” to increase the International Monetary Fund’s ability to rescue troubled economies.

Army Gen. Martin E. Dempsey, chairman of the Joint Chiefs of Staff, speaks at the Carnegie Endowment for International Peace in Washington, D.C., May 1, 2012.

President Hu Jintao joined his counterparts from other BRICS nations on Monday
morning in the Mexican resort city Los Cabos ahead of the start of the G20 Summit.
According to the Chinese Foreign Ministry, the leaders discussed the currency swap
and foreign-exchange reserve pool ideas and tasked their finance ministers and
central bank chiefs to implement them, according to China’s Foreign Ministry.

Swap arrangements, which allow nations’ central banks to lend to each other money
to keep markets liquid, and the pooling of foreign-exchange reserves are contingency
measures aimed at containing crises such as the one roiling the eurozone, analysts

Zhang Yuyan, director of the Institute of World Economics and Politics affiliated
with the Chinese Academy of Social Sciences, said the new mechanisms established
by the emerging markets themselves, who “know their current conditions and demands
much better”.

Amid the global economic slowdown, the pooling of foreign-exchange reserves will
help BRICS countries to fight the lack of market liquidity, beef up their immunity
to financial crises and boost global confidence, Zhang said.

Contributions to this “virtual” bailout fund, as Brazil’s Finance Minister Guido
Mantega put it, would be tied to the size of each BRICS member’s currency reserves,
he said. The five leaders also discussed BRICS’ participation in replenishing the IMF’s
lending capital. Hu said the G20 should encourage and support the eurozone countries’
adoption of fiscal controls and spending cuts as efforts to improve confidence in world
markets. The leaders also urged the IMF to carry out promised reforms of its quota
and governance systems. Mexico, which was hosting the G20 Summit on Monday and Tuesday, has said it will use the meeting to press the world’s largest economies to increase IMF resources and build the fund’s capacity to intervene in the European debt crisis.

A boost in IMF funding makes sense and gives emerging economies such as China a greater
role, according to Yukon Huang, senior associate at the Carnegie Endowment for International Peace and a former World Bank country director for China. Finish reading @Source