Please allow me to get past the introduction of today’s post before you call it boring. This is important information that we need to understand. I don’t think that we will be in a “Mad Max” scenario, but we need to look at what is going on in the global markets to understand the economic implications to us. So with that said, I will be discussing the original bric countries, their economies, the new BRICS Alliance and what this means for IMF Global, and how it could be their market globalization failure, not necessarily that it will.
Because this topic can get dry, I will keep my points as short and sweet as possible.
What are the BRIC countries?
They are Brazil, Russia, India, and China. They are the up and coming economic powers, according to Goldman Sachs, that are developing rapidly. They are believed to be the power holders of the global economy by 2050, overtaking the G7 economies, like the US.
What about the BRIC economies?
As I stated, the BRIC economies themselves are believed to eclipse the richest nations by 2050. These four countries are fairly dominant by Area, Population, Labor Force, and GDP (gross domestic product). Several people believed that the BRIC countries would attempt a political or economic trade alliance. It was even suggested that South Africa would join in.
Are you seeing how BRICS is coming about?
BRICS is Brazil, Russia, India, China, and South Africa. A lot is happening between these countries. They have actually discussed in 2012, fighting the US and European Downturns. They planned on softening the blow. BUT… Just one year after the 4th Summit in March 2012, there was another (5th) in March 2013. This one seemed to have less discussions, or at least, less information on those discussions. But what they DID discuss was the possibility of a new GLOBAL BANK.
What is IMF?
IMF is the International Monetary Fund. If we make it REAL simple, it is where everyone that trades on the global market must convert to US Dollars, which obviously the US can control, trade in dollars, and convert back to their own money. This system is the entire reason that the dollar is accepted everywhere and why our system has been able to hold up our debt loaded pants. The IMF is our belt or suspenders. It can be compared to a local transaction. I do electrical work and you do plumbing. I could do some work with you and you pay me back with work. Or we could convert the labor, costs, and profit into dollars. My electrical work is worth $3000 and your plumbing is worth $2000. Now we exchange the work for money, and I am up $1000. The dollar value is controlled by the US, not you and me.
The new global bank is called the BRICS Development Bank. It is the BRICS’s new way to bypass the IMF. They can direct trade, bypassing the world banking system. Now, since the US cannot control that market, we cannot force our dollar value in the market. Now we will have to value our dollar for what it is worth… nothing.
The BRICS has every right to do this. Who are we to control other people around the globe? But the consequences to us are pretty dire. It is probably about time to get up off the couch, learn some skills, and stop living on the fat of the IMF. It won’t be there long, so let’s ease ourselves into it by preparing.
Why South Africa?
HELLO?! That is probably one of the most resource rich countries in the world. Their problem is the procurement and marketing of those resources.
Brazil absolutely knows what is up! They pardoned and restructured a lot of South Africa’s debt. “So now South Africa, will you be my new Best Friend Forever?” …”Of course, I will, Brazil!”
Our Saving Grace?
We have a potential temporary natural gas boom heading our way. The Panama Canal is already being widened for the exports. Lots of countries are getting ready for it. Even China is buying up everything they can get their hands on around the canal, so they can get a piece of the pie.
Pay attention to Goldman Sachs. They cannot be trusted.
I know I mentioned them, but the information given by GS is only partial. I wouldn’t trust anyone that is buying out US food companies using a Chinese Corporation as the front for their operation.
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