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Truth is in favor of you and me; for the truth of our enemies whom we have been serving here in the U.S.A. for over 400 years (whom we did not know to be our enemies by nature) is the truth that the Black Man must have knowledge of to be able to keep from falling into the deceiving traps that are being laid by our enemies to catch us in their way which is opposed to the way of righteous of whom we are members. ~ The Honorable Elijah Muhammad

Wednesday, January 28, 2015

Fall of the Dollar (IMF and the World Bank) as BRICS new Development Bank emerges

BRICS New Development Bank Threatens Hegemony Of U.S. Dollar - Forbes

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BRICS’ frustrations with the current system suggest political gridlock inspired these new enterprises. Interestingly, they did not set the example in a global balancing of power within the financial institutions, but rather the balance of power within BRICS themselves. However, what does separate them from their international financial counter-parts is the capital invested equals the votes received. While it will be difficult to sway votes as a coalition of non-founding members, there will be less financial stake. I believe regardless of internal power distribution, the BRICS NDB will decentralize global economics by paralleling the current institutions.

Political Gridlock

Growing impatience within the current western-dominated system sparked this new financial order. But why? At the end of World War II the Bretton Woods conference marked the world’s first attempt at international monetary order. Among the 44 allied nations, the majority of the negotiators agreed that the period between the World Wars demonstrated the disadvantages of floating currency rates. International trading and investing was fairly weak during the 1930s, largely due to lack of confidence. Still, most negotiators at the conference were reluctant in returning to the truly permanent fixed rate model like the 19th century gold standard. What emerged was the “pegged rate” currency regime in which national currencies entered into a currency market. So, through the compromises and deliberations of modern economist, John M. Keynes and Harry D. White, the IMF and World Bank were born.

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