BRICs..calls for end of $$ standard, Bretton Woods institutions

[murphy_p_t]

http://www.youtube.com/watch?v=Urr39KKO ... ture=share

here's some red meat.

[Wonk]

What's funny is that these countries say this several times per year and then do nothing about it.  Fact is, everyone wants strong reserves and a weak domestic currency to favor exports.  They are free to shift dollar assets to whatever crappy currency they can find--but everyone is devaluing right now.  Someone should send the BRICs a memo that Bretton Woods collapsed 40 years ago.

[cabronjames]

my understanding, is that the primary point of this BRICS meeting, is that intra-BRICS trade will be done with their own currencies.  Eg when India trades with China, they will do it with Rupees &/or Yuan.  Prior status quo is that they were switching to USDs for such trading.

the BRICS should save money in eliminating this bid-ask spread & extra effort for using USDs.

It lowers 1 source of ex-US demand for USDs.

http://en.wikipedia.org/wiki/Reserve_currency
Per wiki, the USD is the top fiat paper (eg excluding precious metals) reserve currency with 62%, the Euro is #2 with 26%.

1 possible scenario imho, that I haven't heard mentioned, could be the USD remains the top reserve currency, but loses "market share".  Maybe the USD over the upcoming decades falls to 49% or 25% of "the market" but is still the top reserve currency.  Basically the "reserve currency market" would move in more in the direction of a "competitive free market" than its current "cartel/oligopolistic market"

At the risk of me pulling a Lamestream Media-esque "both sides are wrong" comment, it seems that the pundit commentator "experts" may indeed be both wrong, with Libertarian super-USD bear extremist Peter Schiff making laughable hyperbolic dumb statement that USDs will be worthless/hyperinflated by 2014 with $30 milk carton price(!); & otoh others claiming the USD is "the only game in town" & implying the USD will remain indefinitely strong as a reserve currency as it is currently.

btw, iirc Craigr or somebody else here noted how market pundits are not measured for their track record of predictions. In 2015 Peter Schiff when interviewed should be reminded of his $30 milk carton comment.  As should Bill Gross now of his comment to short 30 yr Treasuries in 2011, before they went up 30+% in 2011.  If market pundits were baseball hitters, a hitter with a .050 batting avg could arrogantly front like he's a .400 excellent hitter, & his interviewee would praise the hitter instead of criticize him.  Once again, makes me glad to mostly ignore these incompetent "experts" & use a PP asset alloc.

[ochotona]

Now it gets messy and chaotic. I think Vlad is going to pull his kompromot choke chain. The apprentice isn't supposed to flex on the master. If Dollar hegemony and the Petrodollar end, it's very bad for the US.

100% tariff on everything from China? And Saudi oil? (BTW, we have to import oil from abroad, because West Texas Permian Basin oil is too light to refine in our refineries... it has to be blended with other crudes).

"President-elect Donald Trump said he would require countries that are part of BRICS — a China- and Russia-backed group of emerging economies — to commit to not creating new currency or face 100% tariffs during his administration.

'The idea that the BRICS Countries are trying to move away from the Dollar while we stand by and watch is OVER. We require a commitment from these Countries that they will neither create a new BRICS Currency, nor back any other Currency to replace the mighty U.S. Dollar or, they will face 100% Tariffs, and should expect to say goodbye to selling into the wonderful U.S. Economy,' Trump posted on Truth Social on Saturday afternoon.

BRICS had been made up of Brazil, Russia, India, China and South Africa since 2011. Earlier this year, Iran, Saudi Arabia, the United Arab Emirates, Ethiopia and Egypt formally joined — the first expansion in over a decade. Thirty-four countries have submitted an expression of interest in joining the bloc of major emerging economies, South African Foreign Minister Naledi Pandor said in February."

[dualstow]

Ooh, good word Ocho
https://en.wikipedia.org/wiki/Kompromat

Was just reading in Foreign Affairs about how the US should deal with China, Russia, Iran etc now, but it’s beyond the scoope of this old thread.