AUGUST 08, 2014 AFP
By Bill White —
The five-nation BRICS group—Brazil, Russia, India, China and South
Africa—announced recently that it is launching new financial institutions to
compete with and serve as alternatives to the World Bank and the International Monetary Fund (IMF).
The New Development Bank (NDB) and the Contingent Reserve Arrangement (CRA) will
each be capitalized with $100 billion. The former will compete with
the World Bank while the latter will work against the IMF.
China is contributing $41 billion to each
institution, South Africa $5 billion and each other nation $18 billion.
The NDB will invest in infrastructure development
projects in developing countries, while the CRA will hold currency
reserves designed to stabilize nations in case of a balance-of-payments
crisis similar to those now ongoing in Venezuela and Brazil. The idea is
to give developing countries and the world an alternative to the
Anglo-American banking system in times of crises.
In the current system, the World Bank frequently loans
money to developing nations, and when these nations have difficulty repaying
these loans, the Bank compels them to adopt “austerity” measures and
domestic reforms that advance American and Zionist policy goals.
The IMF plays a similar role during currency crises.
Because few to no nations are autarkic—possessed of a self-sufficient
economy—most nations must import and export some goods, usually in
dollar-denominated transactions. But when they import more than they
export, dollars flow out of the country. If confidence in the nation’s
currency fails, the nation’s central bank cannot purchase dollars on
the market to maintain a stable currency reserve. At times, Zionist
assets like George Soros have deliberately sold nations’ currencies to
collapse their economies and topple their governments.
The proposed system will vastly increase the
economic independence of the BRICS nations, though South Africa will
remain something of the “poor man” of the group. While the system won’t
give debtor nations greater independence from their creditors, it will
give them an alternative set of creditors to turn to when IMF-World Bank proposals
for reform are not acceptable.
The system also helps link the five nations’ banking systems
outside of the current system operated by the privately owned and
controlled Federal Reserve, laying the foundation for an international network
immune to United States interference and banking sanctions.
The World Bank is capitalized at $332 billion and the
IMF at $368 billion, making the new system about 29% of the size of the
existing one. The NDB system is the first concrete step BRICS has
taken to challenge Anglo-American-Zionist power.
Russian President Vladimir Putin signed the deal creating
the NDB and CRA at a meeting that began following the World Cup
Soccer tournament in Brazil. En route he stopped in Cuba to forgive $32 billion
of that island’s debt. In exchange, Cuba, like Nicaragua and Venezuela,
will allow Russian naval and air bases, part of a potential first response force
to continuing American and Zionist aggression. Similar moves in 1962
almost led to war between the U.S. and the U.S.S.R.
Bill White is a freelance journalist and publisher
based in Florida. He has also written articles for THE BARNES REVIEW (TBR) magazine. You can write him at: William A. White
201400005514 Seminole County Jail 211 Bush Blvd Sanford FL 32773.
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