At the latest BRICS Summit in New Delhi, the member nations have announced plans to evaluate forming their own development bank. Currency swaps between them are under way, and in fact, Russia and China are already settling bilateral trade in Rubles and RMB’s. Below is Andrew Gavin Marshall weighing in on this development on Russia Today, with commentary about the lack of coverage in the Western press on this topic:
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pug_ster says
The Era of Western dominance is waning. This is only another sign of this.
jxie says
We’re living in a rapidly changing era, sort of like during a geomagnetic reversal. Once upon a time, currencies such as US dollar, euro, yen were called “hard currencies”. Nowadays China sprinkles them as aids and grants everywhere, but reserves its own RMB to only strategic foreign investments. Even the staunchest American allies, such as Japan and Korea, jumped on the opportunity of currency swap with China. These central bankers aren’t dummy. Sure rhetorically you will always be an AAA nation, but numbers don’t lie.
In 2011, the preliminary data show China’s nominal GDP as 11.1% of the world GDP, based on the atlas method, which understates the appreciation of RMB. Yet China currently has only 4% of the IMF quota, and even in the ongoing discussion, the number floated around for China is 6.4%, which will not take effect until 2014. In 2011, Brazil’s nominal GDP was 4.0% of the world GDP, its current IMF quota is 1.79%, and 2.32% (proposal) for the 2014 round. In the case of China, since China has shown the willingness to lend through IMF, an even higher percentage (e.g. 15%) is warranted — China’s world GDP percentage may reach that level in 2014 anyway.
However, my read though is that China will still support IMF’s role in the immediately future regardless how out of whack its quota/votes are. The fire power of IMF is a small fraction of China’s. The quota/votes percentage is more prestige than any real power.
Jimmy says
The video link seems out of order, yinyang. Could you please fix it? Thanks.
YinYang says
@Jimmy
If you are inside China, it is likely Youtube is blocked completely by the Chinese government. I recommend you search for Andrew Gavin Marshall and Russia Today on some Chinese video sites like Youku or Tudou, etc..
YinYang says
@jxie
Rapid change indeed. Talking about these banks, there is one more that we often don’t hear about in the Western press. That’s the Asia Development Bank (ADB) with Japan and the U.S. at the helm. Few years back, the ADB tried to lend money to India to develop in territories under dispute with China – a rather bold political move.
zack says
american and british (generally all western) media outlets launch propaganda war on the BRICS; the day after India tests its Agni V missile, every western media outlet consistently reminds the audience that ‘missile can reach Beijing’ and how it’s ‘targeted at China’, over and over and over again.
sow discord, divide and rule. Such is the way of the anglos.
YinYang says
@zack
Indeed, the Anglo press wants discord between India and China. Here are just a few headlines:
NYT: “India, Eye on China, Tests Missile With Longer Range”
WSJ: “India’s Missile Launch Puts China in Range”
The Guardian: “News: India’s missile fails to rattle China”
Daily Mail: “India missile puts China – and Europe – within striking distance”
USA Today: “India tests missile that can hit Beijing”
Reuters: “India tests nuclear-capable missile that can reach China”
Normally they’d be able to hide this sort of propaganda better, but on this news all veneers are off.
Navigator.. says
Don’t forget this one yinyang!!!!
Global Times: “India being swept up in missile delusion”
YinYang says
@Navigator..
Yes, and there is a bit of that in Chinese media in response to some Indian press. However, on balance, did you miss this other article on GT’s same page?
http://www.globaltimes.cn/NEWS/tabid/99/ID/705723/705723.aspx
Navigator.. says
Sorry yinyang I only saw the one that was on the front page with the large photo, and mustve missed the article buried further in the paper!
Not sure it proves much anyway, but note with interest how you say the Global times story is “in response” to the Indian media.
YinYang says
@Navigator..
Heh. The reason I said “in response” is because certain Indian media are pretty hawkish towards China. Given that China supports Pakistan (and India harbors the TGIE), the relationship is complex. Chinese media in general are much more benign towards India.
Where make sense for the two giants to cooperate, they are. For example, China is helping to build a lot of infrastructure for India. They teamed up at Copenhagen. The agreements at the 4th BRICS meeting are the latest.