The paradigm-shifting importance of this week’s BRICS summit in Brazil and its joint announcement of the New Development Band (NDB) and the currency fund, is beginning to break out in East Asia. China, of course, has given the events and President Xi Jinping’s further activities in South America extensive coverage, but outside of brief, matter-of-fact Japanese reports, the revolutionary nature of this weeks events was not brought forward until Friday.
The most significant coverage is probably in Singapore’s Straits Times, which functions as the Empire’s East Asian voice.
“China has scored a big geopolitical win in its drive to rebalance the global playing field with the establishment of the new BRICS development bank this week. But with the counterweight to Western-dominated global financial institutions now a reality, China faces the tough balancing act of asserting leadership of the new bank while reassuring its Brics partners that they have not swapped one hegemon for another, said mainland analysts yesterday….
“Analysts said the NDB will have to tread lightly in its initial days, given the strategic and political differences that still exist among the five BRICS nations. ‘The initial projects must be minor, politically neutral ones like infrastructural projects in small, developing countries,’ said East Asian Institute analyst Chen Gang. ‘The real political tension will emerge when the member countries borrow from the NDB to finance major, strategic projects in their territories, as they still view one another as strategic threat,’ Chen added.”
In other words, the Empire can live with the NDB, as long as it does nothing significant, nothing strategic; otherwise, it is a “strategic threat” to the Empire—a threat which the Empire may have to confront directly, since it may not be able to split the block.
“Mainland observers were confident that the BRICS’ over-arching goal of diluting Western influence in the global financial architecture and over their own emerging economies is a big enough shared priority that would outweigh their differences.”
Another British outlet, The Standard in Hong Kong, merely announces that something major has happened: “President Xi Jinping and his Russian counterpart Vladimir Putin have just staged a geopolitical show in the United States’ backyard. And it was spectacular. The most spectacular of all at the BRICS summit, held in the Brazilian city of Fortaleza, must be the launch of the New Development Bank—nicknamed the BRICS Development Bank—and the reserve currency pool, each starting with a blockbuster US$100 billion (HK$780 billion).”
Thanong Khanthong, Managing Editor of Thailand’s The Nation, puts the BRICS events in context, although he does not fully get the point.
“The global crisis is essentially a dollar crisis, which might have a spill-over effect into the next world war. In an interview with USA Watchdog, Egon von Greyerz, founder of Matterhorn Asset Management, says another world war seems inevitable. ‘That’s been the rule whenever an empire is collapsing. The actions they take are they start wars everywhere, because then you can frighten people and you can borrow more money. Of course, to some extent, the United States has done that….
“‘Ukraine is just one situation. When you take a look at what’s happening with Iraq, Saudi Arabia and the Middle East, it’s a very unstable situation also. War is certainly a major part of the risks we have.'”
Thus the context for the BRICS move is set:
“The BRICS countries’ move is widely seen as an attempt to break the predominance of the U.S. dollar as the world’s currency reserve of choice. That is why we are seeing an intensifying global crisis…. The combination of Russia and China’s fresh attacks on the dollar will have a deep impact on the global status of the dollar.”
The NDB, currency arrangements and other BRICS activities do intensify the global crisis, but only in laying out the beginning steps for a feasible, possible alternative to the dying system. That is what Thanong misses.
Bankrupt IMF Now “Delighted” To Work with the BRICS; Not on Your Terms, Brazilian President Says
The International Monetary Fund (IMF), which has spent the last 50 years wrecking the economies of sovereign nations and killing their populations with its austerity conditionalities, is now expressing great interest in what has emerged from the just-concluded BRICS summit in Brazil—a direct threat to its existence—and would be “delighted” to collaborate, according to Managing Director Christine Lagarde.
In July 16 letter to Brazilian President Dilma Rousseff, who hosted the BRICS summit, Lagarde congratulated Rousseff on the success of the summit, and “especially on establishing the Contingent Reserve Arrangement.” IMF staff, she said, “would be delighted to work with the BRICS team dedicated to this project with a view to reinforcing the cooperation among all parts of the international safety net intended to preserve financial stability in the world.”
“Preserve financial stability in the world?” The financial system that Lagarde wants to preserve is already gone, and a huge percentage of the world’s population has just rejected the IMF’s killer policies for something that offers a future and the possibility of real development.
In a July 17 press conference in Brasilia, Rousseff commented on Lagarde’s offer: “We are also interested in working with [Lagarde],” she said, “but it is absolutely too soon to discuss under what conditions this would occur. We believe…[that] we will cooperate with all those who wish to work with us, under our conditions.“[emphasis added]
Rousseff recalled her earlier statements in which she had said that the new BRICS institutions weren’t directed “against anyone,” and that Brazil had no intention of foregoing its rights within the IMF. But she pointedly noted that the IMF had failed to implement reforms by which emerging markets such as Brazil, and others, would have a representation within the Fund that reflected their important role in the global economy.