BRICS Commit to Development Bank

Brics countries - Brazil, Russia, India, China and South Africa - are working towards forming a Development Bank that would offer resources to emerging economies and developing countries.

  • Comment (3)
Photo: South African Government

The fourth BRICS meeting in India.

InFocus



Comments Post a comment

  • lomnfgijh
    Sep 24 2012, 09:42

    This post was deleted because it contravenes AllAfrica's commenting guidelines.

  • Global Justice
    Jun 3 2012, 10:49
    Report Abuse

    BRICS swaps are the first big step to sovereign capitalism. Capitalism is an economic platform that promotes trade by private multinationals or sovereign states. However, private multinationals have controlled the trade platform through military aggression, debt leverage, and violating international law. BRICS swaps support sovereign capitalism through three trade platforms. One platform is a sovereign local currency firewall that promotes small businesses and protects the poor and unemployed from currency instability. This group should not be exposed to the instability and threat of an unregulated international financial system. The second platform is international trade within a state with other global trade partners based on sovereign legal agreements. This allows states to safely trade with other states or assume the risk of trade with private multinationals. The global crash occurred because states could not assess the risk of multinational trade. The third platform is international trade conducted in other states based on legal agreements. States need to assess the jurisdictional and legal status of trade in other countries. BRICS swaps provide a legal and stable currency platform for sovereign state to trade on all three platforms. Each of these platforms enables states to manage deficits, which is the key to sovereign growth. Multinational growth through GDP does not consider deficit expenses. The USD is a global fiat currency, which distorts the valuation of other sovereign state currencies because US debt is simply an expense assessed against the global currency platform. GDP captures growth and profitability for trade partners through currency leverage, while expenses are assessed outside of the GDP. A state that uses all three sovereign capitalist tools based on BRICS currency swap can maximize closing the deficit gap. Sovereign African American analysts promoted this process under the Carter Administration but the Federal Reserve did not support our proposal. There are two types of African Americans, Multinational African Americans and Sovereign African Americans. Sovereign State African Americans support the BRICS Development Bank.