BRICS Announce $100 Billion Reserve To Bypass Fed, Developed World Central Banks

[Ria]

BRICS Announce $100 Billion Reserve To Bypass Fed, Developed World Central Banks
Submitted by Tyler Durden on 07/15/2014 23:38 -0400
http://www.zerohedge.com/news/2014-0...-central-banks
As we suggested last night, the anti-dollar alliance among the BRICS has successfully created a so-called "mini-IMF" since the BRICS are clearly furious with the IMF as it stands currently: this is what the world's developing nations just said on this topic "We remain disappointed and seriously concerned with the current non-implementation of the 2010 International Monetary Fund (IMF) reforms, which negatively impacts on the IMF’s legitimacy, credibility and effectiveness."



As Putin explains, this is part of "a system of measures that would help prevent the harassment of countries that do not agree with some foreign policy decisions made by the United States and their allies." Initial capital for the BRICS Bank will be $50 Billion - paid in equal share among the 5 members (with a contingent reserve up to $100 Billion) and will see India as the first President. The BRICS Bank will be based in Shanghai and chaired by Russia. Simply put, as Sovereign Man's Simon Black warns, "when you see this happen, you’ll know it’s game over for the dollar.... I give it 2-3 years."

BRICS MINISTERS SIGN DEVELOPMENT BANK AGREEMENT
INITIAL SUBSCRIBED CAPITAL OF BRICS BANK IS $50 BLN: STATEMENT
A quick take on existing monetary policy.

MONETARY POLICY MUST BE CAREFULLY CALIBRATED: BRICS STATEMENT
The punchline, however, is that using bilateral swaps, the BRICS are effectively disintermediating themselves from a Fed and other "developed world" central-bank dominated world and will provide their own funding.

We are pleased to announce the signing of the Treaty for the establishment of the BRICS Contingent Reserve Arrangement (CRA) with an initial size of US$ 100 billion. This arrangement will have a positive precautionary effect, help countries forestall short-term liquidity pressures, promote further BRICS cooperation, strengthen the global financial safety net and complement existing international arrangements.... The Agreement is a framework for the provision of liquidity through currency swaps in response to actual or potential short-term balance of payments pressures.
Incidentally, the role of the dollar in such a world is, well, nil.

For those who have forgotten who the BRICS are, aside from a droll acronym by a former Goldman banker, here is a reminder of the countries that make up 3 billion in population.



Key excerpts from the Full statement:

We remain disappointed and seriously concerned with the current non-implementation of the 2010 International Monetary Fund (IMF) reforms, which negatively impacts on the IMF’s legitimacy, credibility and effectiveness. The IMF reform process is based on high-level commitments, which already strengthened the Fund's resources and must also lead to the modernization of its governance structure so as to better reflect the increasing weight of EMDCs in the world economy. The Fund must remain a quota-based institution. We call on the membership of the IMF to find ways to implement the 14th General Review of Quotas without further delay. We reiterate our call on the IMF to develop options to move ahead with its reform process, with a view to ensuring increased voice and representation of EMDCs, in case the 2010 reforms are not entered into force by the end of the year. We also call on the membership of the IMF to reach a final agreement on a new quota formula together with the 15th General Review of Quotas so as not to further jeopardize the postponed deadline of January 2015.

BRICS, as well as other EMDCs, continue to face significant financing constraints to address infrastructure gaps and sustainable development needs. With this in mind, we are pleased to announce the signing of the Agreement establishing the New Development Bank (NDB), with the purpose of mobilizing resources for infrastructure and sustainable development projects in BRICS and other emerging and developing economies. We appreciate the work undertaken by our Finance Ministers. Based on sound banking principles, the NDB will strengthen the cooperation among our countries and will supplement the efforts of multilateral and regional financial institutions for global development, thus contributing to our collective commitments for achieving the goal of strong, sustainable and balanced growth.

The Bank shall have an initial authorized capital of US$ 100 billion. The initial subscribed capital shall be of US$ 50 billion, equally shared among founding members. The first chair of the Board of Governors shall be from Russia. The first chair of the Board of Directors shall be from Brazil. The first President of the Bank shall be from India. The headquarters of the Bank shall be located in Shanghai. The New Development Bank Africa Regional Center shall be established in South Africa concurrently with the headquarters. We direct our Finance Ministers to work out the modalities for its operationalization.

We are pleased to announce the signing of the Treaty for the establishment of the BRICS Contingent Reserve Arrangement (CRA) with an initial size of US$ 100 billion. This arrangement will have a positive precautionary effect, help countries forestall short-term liquidity pressures, promote further BRICS cooperation, strengthen the global financial safety net and complement existing international arrangements. We appreciate the work undertaken by our Finance Ministers and Central Bank Governors. The Agreement is a framework for the provision of liquidity through currency swaps in response to actual or potential short-term balance of payments pressures.
Goodbye visions of an SDR-world currency. As for the USD...

[Wolf Khan]

One small step for man, One giant leap for wo/mankind.

[KosmicKat]

I'm not sure about the 2-3 year window for the final collapse of the US $, but we should expect to see some financially-oriented thrashing before things settle down.

[The One]

What i dont get with all this is this

If i country like Britain can print its own money i think they call it quantitative easing and put 700 billion into the banks then it really does make you wonder does it not.

Each country if they wanted could go there own way

[Seikou-Kishi]

Each country if they wanted could go there own way

Saddam Hussein tried that just before the attack on Iraq and Colonel Gadaffi tried it just before the attack on Libya.

[BabaRa]

What i dont get with all this is this

If i country like Britain can print its own money i think they call it quantitative easing and put 700 billion into the banks then it really does make you wonder does it not.

Each country if they wanted could go there own way

The problem is at least in the US and I assume any country that has a Central Bank: The US Gov't can't print it's own money - I repeat can not. We gave that ability away to the Federal Reserve ( which isn't Federal, but privately owned). And the Federal Reserve charges us for every dollar they print.

Which is why many of us ask: Why don't we take that task away from the Fed. Reserve. Why are we paying private individuals to print our money, when the US Treasury could do it for nothing?

Supposedly Kennedy was attempting to do that and one of the many reasons he was killed.

[Ria]

ADid the Other Shoe Just Drop? Big Banks Hit with Monster $250 Billion Lawsuit in Housing Crisis
Posted on July 16, 2014 by Ellen Brown — 4 Comments ↓
For years, homeowners have been battling Wall Street in an attempt to recover some portion of their massive losses from the housing Ponzi scheme. But progress has been slow, as they have been outgunned and out-spent by the banking titans.

In June, however, the banks may have met their match, as some equally powerful titans strode onto the stage. Investors led by BlackRock, the world’s largest asset manager, and PIMCO, the world’s largest bond-fund manager, have sued some of the world’s largest banks for breach of fiduciary duty as trustees of their investment funds. The investors are seeking damages for losses surpassing $250 billion. That is the equivalent of one million homeowners with $250,000 in damages suing at one time.

The defendants are the so-called trust banks that oversee payments and enforce terms on more than $2 trillion in residential mortgage securities. They include units of Deutsche Bank AG, U.S. Bank, Wells Fargo, Citigroup, HSBC Holdings PLC, and Bank of New York Mellon Corp. Six nearly identical complaints charge the trust banks with breach of their duty to force lenders and sponsors of the mortgage-backed securities to repurchase defective loans.

Why the investors are only now suing is complicated, but it involves a recent court decision on the statute of limitations.
http://www.maxkeiser.com/2014/07/did...ousing-crisis/

Read more at http://www.maxkeiser.com/2014/07/did...gBBE0E466LL.99

[Ria]

BRICS establish $100bn bank and currency pool to cut out Western dominance
For more click on link
http://rt.com/business/173008-brics-bank-currency-pool/

[Lord Sidious]

Saddam Hussein tried that just before the attack on Iraq and Colonel Gadaffi tried it just before the attack on Libya.

So did Corporal Hitler.

[Spiral]

What i dont get with all this is this

If i country like Britain can print its own money i think they call it quantitative easing and put 700 billion into the banks then it really does make you wonder does it not.

Each country if they wanted could go there own way

No Britain cannot print it's own money, The Bank of England is a private company, it's share holders are secret, it & nearly every other bank in the world is a private company pretending to be a state organ, there is little practical difference between the Fed ( "it's as federal as fed-ex" as the joke goes) & The Bank of England.

These currencies issued by these banks are called "fiat currencies" and they can just create as much money out of thin air as they like, the people behind these banks are the real "Cabal"

This is long but its a much watch.

Source: https://www.youtube.com/watch?v=HfpO-WBz_mw

[norman]

Putin is in Brazil at the BRICS Summit right now.

I wonder if that makes any difference to his willingness to push the nuke button if he's provoked enough.

A nuclear exchange wouldn't (probably) target him in Brazil.

[monk]

Sooo the next step is simultaneous Iraq style invasions against Brazil, Russia, India, China, South Africa, South America etc etc to prevent an independent gold standard?

Maybe they'll try to nuke us all!!? Ha!

Anyway, I've used up my lifetime allowance of 4 seconds investing my infinite power in the potential negative future machinations of individuals I want to suffocate of, at the very least, my infinite power and attention.

[Spiral]

Russia Ratifies $100 Billion BRICS New Development Bank

Source: https://www.youtube.com/watch?v=M9uBJD9glrY


The Russian State Duma has ratified the $100 billion BRICS bank that’ll serve as a pool of money for infrastructure projects in Russia, Brazil, India, China and South Africa, and challenge the dominance of the Western-led World Bank and the IMF.

The New Development Bank is expected to start fully functioning by the end of 2015, according to the Russian Finance Ministry.

Russia has agreed to provide $2 billion dollars from the federal budget for the bank over the next seven years.

It will have three-tiers of corporate governance, with a Board of Governors, Board of Directors and a President.

http://rt.com/business/234027-russia...es-brics-bank/

[That Guy]

Errrrrrrrrrr, not that I have a 100 billion to spare laying around in the direct vicinity of my laptop, but a 100 billion isn't that much if you'd ask me, its definitely not going to save the world, the EU just pumped 1100 billion in the economy, meaning........ apparently there's a hole 1100 billions deep somewhere, just like that, and the world has currently probably dozens of these holes.

For fun check out the below numbers, adding them up is fun too, is these are costs in the open, only god knows how much was actually pumped into this conflict and the occasional relief fund alone.

FY2003 Supplemental: Operation Iraqi Freedom: Passed April 2003; Total $78.5 billion, $54.4 billion Iraq War
FY2004 Supplemental: Iraq and Afghanistan Ongoing Operations/Reconstruction: Passed November 2003; Total $87.5 billion, $70.6 billion Iraq War
FY2004 DoD Budget Amendment: $25 billion Emergency Reserve Fund (Iraq Freedom Fund): Passed July 2004, Total $25 billion, $21.5 billion (estimated) Iraq War
FY2005 Emergency Supplemental: Operations in the War on Terror; Activities in Afghanistan; Tsunami Relief: Passed April 2005, Total $82 billion, $58 billion (estimated) Iraq War
FY2006 Department of Defense appropriations: Total $50 billion, $40 billion (estimated) Iraq War.
FY2006 Emergency Supplemental: Operations Global War on Terror; Activities in Iraq & Afghanistan: Passed February 2006, Total $72.4 billion, $60 billion (estimated) Iraq War

[Spiral]

Errrrrrrrrrr, not that I have a 100 billion to spare laying around in the direct vicinity of my laptop, but a 100 billion isn't that much if you'd ask me, its definitely not going to save the world, the EU just pumped 1100 billion in the economy, meaning........ apparently there's a hole 1100 billions deep somewhere, just like that, and the world has currently probably dozens of these holes.

For fun check out the below numbers, adding them up is fun too, is these are costs in the open, only god knows how much was actually pumped into this conflict and the occasional relief fund alone.

FY2003 Supplemental: Operation Iraqi Freedom: Passed April 2003; Total $78.5 billion, $54.4 billion Iraq War
FY2004 Supplemental: Iraq and Afghanistan Ongoing Operations/Reconstruction: Passed November 2003; Total $87.5 billion, $70.6 billion Iraq War
FY2004 DoD Budget Amendment: $25 billion Emergency Reserve Fund (Iraq Freedom Fund): Passed July 2004, Total $25 billion, $21.5 billion (estimated) Iraq War
FY2005 Emergency Supplemental: Operations in the War on Terror; Activities in Afghanistan; Tsunami Relief: Passed April 2005, Total $82 billion, $58 billion (estimated) Iraq War
FY2006 Department of Defense appropriations: Total $50 billion, $40 billion (estimated) Iraq War.
FY2006 Emergency Supplemental: Operations Global War on Terror; Activities in Iraq & Afghanistan: Passed February 2006, Total $72.4 billion, $60 billion (estimated) Iraq War

Yeah, this is what played in my head

Source: https://www.youtube.com/watch?v=l91ISfcuzDw