John Ward July 16, 2014 Global economy doing rather badly well

Global outlook murky, Brics new bank a breath of fresh air

The global economy is deteriorating fast, says the Market Oracle. The global economic outlook is rising says the Economic Times. The outlook is uncertain says Janet Yellen. Chinese output grew 7.5% in the 2nd quarter of 2014 says Beijing. We’re not impressed said the Asian markets, as they fell overnight.

Yes, it’s that clear. But something of some significance did happen yesterday: The Brics founded a new joint bank as a rival to the IMF/World Bank cartel.

Small potatoes for now. ut another small pin in the Hindenburg of Western hegemony.

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1

Garet Jax on July 27, 2014 at 3:53 pm

Agreed – to a point but its the petrol dollar which forces the us dollar to be the ‘reserve currency’. Countries need to hold dollars in order to buy oil – if another currency becomes ‘ favoured ‘ and replaces the us dollar in this role – massive amounts of dollar holdings would possibly be dumped in its favour ! Causing all sorts of currency chaos for many countries…..

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2

rtj1211 on July 17, 2014 at 9:24 am

Dear me, that’s on a par with Saddam Hussein selling oil in Euros.

Time to get Cheney and Rummy to bomb Rio, Moscow, Joburg, Shanghai, Beijing, Mumbai and Delhi immediately!!

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3

the ghost on July 16, 2014 at 10:07 pm

If you fix any new currency to assets & true values ie return to sound economics,then any old currency must respond,to keep printing will only speed old monies to collapse even quicker,has false values will be forced to re-balance

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4

mark deacon on July 16, 2014 at 9:25 pm

Kind of pointless really unless you exclude any / all current fiat currencies that are being abused through excessive money creation. Wakey, wakey people, if those with power can create money out of thin air what is to stop them creating so much and pumping it into this mechanism effectively swamping it. At this point the new mechanism is contaminated with all the current abuses and debt.

50 worthless dollars / pounds purchasing some new currency renders it the same.

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5

TrT on July 16, 2014 at 7:32 pm

A rival to the WB/IMF has been in the Planning / Ranting stages for decades, the question is as always, who is going to stump up the funds, who is going to borrow, and what are the odds of them paying it back?

You do all realise that the “Reserve Currency” isnt official right?
People hold dollars because they are readily convertable and reasonable reliable. Would you hold your savings in Argentine Pesos? Hardly Reliable? Swiss Francs, reliable, ish, but you cant really hold 4trillion of them. Chinese Yuan, unconvertable.

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6

the ghost on July 16, 2014 at 6:56 pm

not if the dollar loses confidence,then China ,Russia or any other country can swap dollars for it ,$1trillion = >1 floater anyone

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7

the ghost on July 16, 2014 at 6:51 pm

In essence a black market reserve currency,that will undermine the dollar unless the fed returns to good economic practises

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8

the ghost on July 16, 2014 at 6:46 pm

+1 they say everything as a price Iraq, Afghanistan & protectionism price is soon about to fall on the free marketeers with actual competition ,in losing it’s integrity & the mirror of justice & righteousness the West as become vulnerable Bush,Reagan Thatcher destroyed the West in destroy the USSR competition

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9

the ghost on July 16, 2014 at 6:40 pm

+1 the arrogance of stopping competition from”free marketeers” is astounding,you would think they would welcome competition

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10

jdseanjd on July 16, 2014 at 6:37 pm

We are in the ‘Caligula’ days of the Anglo/US = Rothschild BOE/FED Empire.
A truly mad horses ass, not called Incitatus, is nominal ‘head’ of the mad Bankster US Empire.
Google 1st May 1776 & find the Rothschild Times of London article railing against the foundation of the free enterprise, not in debt, USA. Understand that what is happening now is long planned.
I wonder if this remark will be disappeared as some of my previous too near the truth remarks have been?
Top post, John, & excellent replies.

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11

KJH on July 16, 2014 at 4:33 pm

“…what will the US do when it realises its paradigm is over?”
They already know. They are positioning themselves for their best possible outcome.
This will, according to the author of ‘The Big Reset’, perhaps be an agreement to change the reserve currency from the dollar to SDR’s or a basket of others, maybe including gold. Right now its all political posturing, control and salvage. Let’s not forget every bit of plastic with Visa, Mastercard, Amex, etc on it contributes to the US economy. Russia’s intervention is not something the US can respond to with a military led regime change.

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12

tfs on July 16, 2014 at 2:28 pm

Off Topic:

Anyone think the Saudis and Bandar Bush are getting a bit hot under the collar?

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13

tfs on July 16, 2014 at 2:23 pm

Off Topic:

http://www.craigmurray.org.uk/archives/2014/07/hysteria-versus-impunity/

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14

broderickcrawford on July 16, 2014 at 2:22 pm

Well yes but what are we talking for the BRICS “new bank ” reserves? 400 billion USD tops ?

Not in the same league as the petro and eurodollar markets which have at least in binary computer speak and admittedly fiat , reserves in the Trillions ? Isn t Chna alone supposedly holding a couple of trillion is US bonds ? Not to mention petrodollar monstrosities residing in Mid East , Russian coffers etc .

Everybody is too scared to move because by selling the dollar en masse they will be cutting
noses off spited faces !! Thus USA serenely continues to print and stock markets bask in its afterglow …. for now..

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15

Impoverished Psychologist on July 16, 2014 at 2:12 pm

Interesting statistic here – Vlad’s BRIC bank now could potentially link roughly half of the entire world population economically.

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16

Impoverished Psychologist on July 16, 2014 at 2:09 pm

I must agree…
Can you imagine the response only a matter of years ago if the petrodollar was circumvented in such a way? and of course if a transactional framework between the BRICS becomes fully operational what prospect is there for a world currency based on the SDR?

I am beginning to think that the US was so concrete in its belief that the dollar could be defended using hegemony that it failed to recognise the threat of an alternative being developed by a group of like minded nations.
The Werhmacht were so utterly convinced that the Enigma ciphering machine was uncrackable that they continued to use it despite evidence that their messages were being intercepted and instead blamed spies or insiders. Hubris often leads to such flawed thinking.

The terrifying issue is – what will the US do when it realises its paradigm is over.

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17

Admiral C.Loughrey Esq on July 16, 2014 at 1:48 pm

The BRIC bank wasn’t just the biggest news yesterday, it’s the biggest event for months, if not several years. Yet the MSM dare not utter a word about it.

One, more, nail.

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18

Admiral C.Loughrey Esq on July 16, 2014 at 1:43 pm

Too many dollars + too many wars + too many enemies = goodbye Reserve and goodbye SDRs. I give this “current” dollar, 3 years, tops.

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19

John Ward – Global Outlook Murky, Brics New Bank A Breath Of Fresh Air – 16 July 2014 | Lucas 2012 Infos on July 16, 2014 at 12:00 pm

[…] Read the full story at: http://www.hat4uk.wordpress.com / link to original article […]

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20

the real gemz on July 16, 2014 at 8:51 am

The recent attempts by the USA to impose huge fines on foreign banks for violating US sanctions with Iran based solely on transactions in dollars is having the same impact as FATCA. The US Justice banking penalties are becoming a threat to the dollar being used in such transactions. While this is unlikely to cause the decline in the dollar as a reserve currency, for transactions, firms and banks are starting to plan to replace the US dollar as a trading currency. This growing fear of the future penalties from the US authorities is starting the process in motion whereby we will eventually move to a new international reserve currency.
The efforts of Russia and China to establish trade in their currencies is interesting but not a threat to the reserve status of the dollar. That is separate and distinct from the trading status of the dollar. One can trade in any currency, but where do you park money? That can still only be the dollar where there is a deep market (reserve). So we must separate the dollar into these two primary categories – trade and reserve. They perform two distinct functions. The Euro never got off the ground as a reserve currency and is second to even the Chinese yuan in trade. Because the Euro would not create a consolidated debt, they prevented the second prong from forming – the place to park money.
You can conduct trade in yuan, but you cannot park trillions of dollars in yuan or rubles no less euros. So you trade in whatever you like, but you convert to dollars to bank it. Major banks can switch out of dollars to for any transaction thereby avoiding US sanctions. After the transaction takes place, the parties can flip into dollars to park it. The US Justice Department will then be defeated.
MA

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21

bill40 on July 16, 2014 at 8:28 am

Max Keiser gave the following words of wisdom to Janet Yellen: “You cannot taper a Ponzi Scheme”. He’s right and it seems the BIS agrees with him. You can only collapse them.

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22

oldasiahand on July 16, 2014 at 8:22 am

John, this is just half of it. China is also working on a $100 billion Asian International Infrastructure Bank to be established next year. The BRICS bank and the AIIB combined will be as large as the World Bank and the Asian Development Bank together. At a bound the western funding stranglehold established in 1944 at the Bretton Woods conference is significantly reduced. A new multi-polar world is emerging. Good!

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23

Hazel on July 16, 2014 at 8:07 am

Jim. Thank you for the link to the Wallerstein blog. I’ll follow it too, from now on.

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24

jimsresearchnotes on July 16, 2014 at 7:41 am

I subscribe to Immanuel Wallerstein’s blog, and have done for some years now. His post today is about the emergence of Russia as a major power. http://www.iwallerstein.com/germany-united-states-unprecedented-breach/ The problem is the Ukraine crisis will be hard for Germany as EU’s strongest economy to disentangle from. Perhaps it won’t be necessary, and Russia will defeat the EU attempt at destabilising it. Russian alliance with another BRIC – China, perhaps the largest and most dynamic of the BRICS – will be of major importance in this.

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25

Impoverished Psychologist on July 16, 2014 at 7:30 am

The question for me is, will the multivariate challenges to dollar hegemony prod the US into another silly act or have we reached the tipping point where enough nations are fed up to such an extent that they start taking meaningful steps to circumvent the greenback.

Not so many years ago any rumblings from smaller nations were met with interventions designed to remove whatever government had the temerity to ask impertinent questions about the dollar. If you were a despot, all the better you tended to end up dead.

I think Ukraine was a bridge to far for the US, they have revealed their shadowy dollar hegemony mechanism to too many people and now that these theories are no longer the preserve of the tinfoil hat brigade they have killed their golden goose.

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26

jimsresearchnotes on July 16, 2014 at 7:26 am

Reblogged this on EU: Ramshackle Empire and commented:
It is an interesting point that Russia is one of the BRICS: http://en.wikipedia.org/wiki/BRICS.

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27

TFS on July 16, 2014 at 7:23 am

So when are THEY gonna momentarily stop the PonziOpoly game?

http://notquant.com/did-the-bis-just-call-for-a-collapse/

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