Pivot East

#26
#26
US influence is gradually losing steam. Meanwhile, the BRICS are gaining momentum... Pivot East

Lagarde says IMF to discuss moving on voting reforms without Washington | Business Standard News

The head of the International Monetary Fund said on Friday the global lender was ready to discuss ways to move forward without the United States on reforms that would give emerging markets greater IMF voting power.

IMF member nations agreed on so-called quota reforms in 2010, with the strong backing of the Obama administration, but the U.S. Congress has so far failed to give the changes a needed stamp of approval.
Click to expand...

The agreed changes would double the Fund's resources and hand more IMF voting power to countries such as Brazil, Russia, India, China and South Africa. It would also revamp the IMF's board to reduce the dominance of Western Europe.

Some Republicans in the U.S. Congress have said the changes would cost too much at a time Washington was running big budget deficits. The reforms also ran afoul of a growing isolationist trend among the party's influential Tea Party wing.
Click to expand...
 
#28
#28
#29
#29
red butler said:
I've read analysis that these reforms are prerequisites to using the special drawing right to replace the dollar as the reserve currency. Do you agree with that analysis?
Click to expand...

That is a goal of the IMF. Lets separate the IMF goals and the Chinese/BRICS goals for a moment though.

The SDR would essentially be a Mulligan for the same guys that are corrupting the system right now. I can't see China being willing to give London and NYC banking interests another chance to ruin the world economy for too much longer. If the world financial system breaks down any further, then I could see the desire by some (some outside of the BRICS) to have the SDR as the fix. The Chinese Yuan will be going through a series of tests next year by the IMF to see if it qualifies as a reserve currency. Once those tests are complete, then the Yuan will have a weighting within the SDR that allows China to have more of a voice in the IMF. In my opinion, this is a short term gain for China and the BRICS. Keep in mind that next year, the BRICS will be starting up its own IMF rival development bank. I think long term, the Chinese don't really desire the SDR as a long term solution, but look at this series of tests that they will be going through next year for reserve status recognition as a way to strengthen their hand as more countries move away from the USD and into RMB trade settlement.
 
#30
#30
red butler said:
I've read analysis that these reforms are prerequisites to using the special drawing right to replace the dollar as the reserve currency. Do you agree with that analysis?
Click to expand...

Jim Rickards is one of the main ones trying to sell the idea that China "wants" the SDR in the next phase. I'm not so sure China isn't looking at the SDR as a means to an end. The Yuan is simply not ready for prime time just yet. But once you start to see the BRICS countries and the BRICS development bank begin to bring more countries in the fold, the result will be that the Yuan will ultimately be the world reserve currency anyways. And if the IMF can either play ball with the Chinese or the BRICS can just walk away altogether as they create a commodities backed currency.
 
#32
#32
#PivotEast #WrongSideOfHistory

Russia military agreement in Cyprus - Business Insider

Notably, Cyprus is one of the 28-member states in the EU, which have been imposing sanctions on Russia over the past year in response to the actions in Ukraine.

And just like Greece has recently caused a stir by complicating the process of extending sanctions on Russia, Cyprus, too, just voiced some opposition to the additional sanctions on Russia, adding that many EU members share that opinion.

"We want to avoid further deterioration of relations between Russia and the European Union," the Cypriot president reportedly said.

So military cooperation between Cyprus and Russia is yet another red flag for the EU.
Click to expand...
 
#35
#35
Ras, how would you prefer the genocide of the American people to go down?
 
#36
#36
Not that you can read this, but I would recommend reading "The Accidental Superpower" by Peter Zeihan.

It presents a wonderful argument as to how American power projection allowed your sloppy seconds to become global powers.
 
#37
#37
Russia's debt downgraded to junk by Moody's | World news | The Guardian

Moody’s has cut Russia’s debt rating by one notch into “junk” territory, saying the Ukraine crisis and the fall in oil prices and plunging rouble would further undermine Russia’s economy.

Just over one month since its last downgrade of Moscow’s credit rating, Moody’s said Russia “is expected to experience a deep recession in 2015 and a continued contraction in 2016.

“The decline in confidence is likely to constrain domestic demand and exacerbate the Russian economy’s already chronic underinvestment.”

Moody’s cut the rating on the country’s bonds by one step to Ba1, a “speculative” or junk grade. Previously it was Baa3.
Click to expand...
 
#38
#38
Velo Vol said:
Russia's debt downgraded to junk by Moody's | World news | The Guardian


Moody’s has cut Russia’s debt rating by one notch into “junk” territory, saying the Ukraine crisis and the fall in oil prices and plunging rouble would further undermine Russia’s economy.

Just over one month since its last downgrade of Moscow’s credit rating, Moody’s said Russia “is expected to experience a deep recession in 2015 and a continued contraction in 2016.

“The decline in confidence is likely to constrain domestic demand and exacerbate the Russian economy’s already chronic underinvestment.”

Moody’s cut the rating on the country’s bonds by one step to Ba1, a “speculative” or junk grade. Previously it was Baa3.
Click to expand...
Click to expand...

Moody's and S&P are jokes for rating agencies. They proved that in 2008 when A rated bonds went bust and when the White House got mad at S&P's rating of US debt a few years back, they threatened to sue and S&P ended up changing their grading.

Rating group to rival Moody’s, S&P and Fitch, China & Russia to launch new credit rating agency, first rating expected this year
 
  • Like
Reactions: 1 person
#39
#39
Rasputin_Vol said:
Moody's and S&P are jokes for rating agencies. They proved that in 2008 when A rated bonds went bust and when the White House got mad at S&P's rating of US debt a few years back, they threatened to sue and S&P ended up changing their grading.

Rating group to rival Moody’s, S&P and Fitch, China & Russia to launch new credit rating agency, first rating expected this year
Click to expand...

I don't know if anyone noticed, but one of the rating agencies got hit by a pretty big fine a couple of weeks ago. Of course they said it wasn't related to downgrading our debt.

Why would Russia's debt get downgraded? They don't really have any debt. I bet they could sell off their US treasuries and be debt free tomorrow, with a little something left over. What they need is some Dave Ramsey.
 
#40
#40
red butler said:
I don't know if anyone noticed, but one of the rating agencies got hit by a pretty big fine a couple of weeks ago. Of course they said it wasn't related to downgrading our debt.

Why would Russia's debt get downgraded? They don't really have any debt. I bet they could sell off their US treasuries and be debt free tomorrow, with a little something left over. What they need is some Dave Ramsey.
Click to expand...
Everyone keeps forgetting about that. All they focus on is the hemorrhaging of US treasuries in their reserves, which is not by accident.
 
#43
#43
BBC News - France and Germany join UK in Asia bank membership

_81617381_457748138.jpg
 
  • Like
Reactions: 1 person
#44
#44
New posts
You must log in or register to reply here.

VN Store



Back
Top