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BRICS: The World’s New Banker?

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Already existing are:

the ADB (African Development Bank) and the Asian Development Bank

 

I suppose this is really about holding wealth within the BRIC countries,

and escaping from US Dollar hegemony.

 

They don't want to hold their wealth anymore in a depreciating currency

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BRIC-currencies-since-2007.jpg

 

Hey, does anyone know where we can find a BRIC currency index, or etf ??

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BRIC countries have grown, while others (US, Japan, Europe) stagnated...

 

The only way to accurately measure changes in a nation’s economy is to do so relative to the world (see Notes for non-nerds below before protesting). According to the World Bank, the U.S. represented 31.8% of the world’s economic activity in 2001. By the end of 2011, that share had dropped to 21.6%, meaning America’s slice of the world economy is 32% smaller than it was a decade ago, and getting smaller every day. Note that America’s housing bubble did nothing to boost the U.S. on the global stage.

 

As horrific as these results are, they’re better than Japan’s, whose “lost decade” proved only to be prologue for its “lost-er decade.” Japan’s share of the world economy fell more than 35% from 2001 to 2011 (literally worse than Zimbabwe) and has now shriveled 54% from its peak. But Japan’s real collapse did not coincide with the bursting of its stock and real estate bubbles in 1990 and 1991 respectively. The decline actually began in 1995 when policymakers allowed government debt to exceed 90% of GDP (a milestone the U.S. quietly passed in 2010).

 

The more they “fixed” it, the more it broke. 17 years later, the only thing Japan has proved is that smart Japanese economists are about as real as Godzilla. Time and time again, the country has chosen collapse over admitting failure. On November 19, 2012, Bloomberg reported, “The Japanese government will spend 1 trillion yen ($12.3B) on a second round of fiscal stimulus as it tries to revive an economy at risk of sliding into recession.” It would be funny if it wasn’t so tragic.

 

The United Kingdom gets third place in the 2001-2011 major economies’ “Race to Oblivion”, although with a less than 3.5% share of world GDP it’s hard to call this a major economy with a straight face anymore. While the U.K. printed its way to 24% loss in world GDP, France and Brazil both passed the nation where an actual troy pound of sterling silver now costs about 235 “pounds sterling”. With government debt expected to reach 88.7% of GDP in 2012, once-Great Britain will soon be seated at the kids’ table at economic summits, if it gets invited at all.

 

All three of these countries are in death spirals for the same reason: They believe that they have the ability to avoid recession by simply printing their own money. As America’s 100-year numbskull (and current Federal Reserve Chairman) Ben Bernanke once mused:

 

“…the U.S. government has a technology, called a printing press (or, today, its electronic equivalent), that allows it to produce as many U.S. dollars as it wishes at essentially no cost.”

 

True dat, Ben….unless there’s “cost” associated with turning the nation’s currency into the world’s laughing stock….

 

 

More + some great charts: http://www.zerohedge...idding-yourself

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CHART Updates - BRIC Stock Markets

 

MSCI BRIC Index Fund.. (BKF - News) : Weekly : 2yrs-D : 6mos-D : 10d

Guggenheim BRIC ETF. (EEB - News) : Weekly : 2yrs-D : 6mos-D : 10d : since Oct. 2006

SPDR S'P BRIC 40 ETF.. (BIK - News) : Weekly : 2yrs-D : 6mos-D : 10d : since July 2007

 

eeb.gif

 

Hey, does anyone know where we can find a BRIC currency index, or etf ??

 

There are BRIC stock index etfs, but they haven't performed very well (in USD)

 

2_bkf_eeb_bik_return_past_year.jpg

 

Those funds are the iShares MSCI BRIC Index Fund (BKF - News), the Guggenheim BRIC ETF (EEB - News) and the SPDR S'P BRIC 40 ETF (BIK - News).

 

What’s interesting about this chart is how big a role currency depreciation has played in setting those returns. Each portfolio’s weightings to Russia, India, Brazil and China is shown below and, by stripping out the currency returns of each, we get two sets of one-year returns:hedged and unhedged.

 

3_bkf_eeb_bik_exposure_and_returns_table.jpg

 

It’s clear that in the past year, investors would have stopped a fair amount of bleeding if they had had currency-hedged exposure to the BRICs, even considering the big weightings to China and the renminbi’s ascent over the past year.

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/more: http://finance.yahoo...-212710680.html

 

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The new BRICS New Development Bank.

 

BRICS-320x189.jpg

 

The new BRICS New Development Bank (NDB) is likely going to decapitate the Top Policy-Makers of the SSG (Shadow Secret Govt) from their elastic, create as much as they need, FIAT phony money supply created with the flick of a pen or a keyboard entry by the Federal Reserve System, the biggest financial scam in history.

 

The new BRICS New Development Bank (NDB) is growing by the day and now includes 139 members who have either signed agreements or Letters of Intent to join up. There are now estimates that this new World Trading Bloc includes between 40-47% of the World’s population and is actually in process of displacing the US Petro Dollar which will very likely not be able to continue being the World’s Reserve Exchange Currency much longer.

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> more: http://www.veteranstoday.com/2014/09/13/ending-the-continuing-stream-of-americas-secret-shadow-government-psyops/

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