China on par with US in economic influence, says expert

As China is gearing up to grab global financial hegemony from the United States, the world has witnessed its breakthrough in a recent development.

The unexpected 3% depreciation of the renminbi on May 3 shocked the whole world, resulting in turmoil in global financial markets, a sign that China’s economic clout has surpassed that of the US, Japan and European countries and that the renminbi is more influential than the US dollar, euro, Japanese yen and British pound. Continue reading

Outlines of a Multipolar World

NEW DELHI/BERLIN (Own report) – Berlin seeks to use Indian Prime Minister Narendra Modi’s current visit to Germany to strengthen India’s ties to the western camp in the West’s struggle for global influence against Russia and China. Years ago, the Federal Republic of Germany had established a “Strategic Partnership” with this Southern Asian nation. This partnership will now to be reinforced, particularly at the economic level. Recently, New Delhi has expanded not only its cooperation with some of the western countries, but above all, it has strengthened its ties to Russia and China. India does not participate in the west-imposed sanctions on Moscow, but does participate in the foundation of global institutions – including the BRICS-Development Bank as well as the Asian Infrastructure Investment Bank (AIIB) – opposing the existing western hegemony. Western strategists’ plans of pitting New Delhi against Beijing, to insure western global hegemony, have been unsuccessful so far. Berlin now seeks to relaunch the effort.

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The Alliance of the Threatened

BERLIN/WASHINGTON/MOSCOW (Own report) – The EU and USA have expanded their sanctions against Russia and – in addition to individuals – have now also placed important Russian companies on their lists. Washington has restricted dealings, for example, with Rosneft and the Gazprombank. Brussels has announced the possibility of preventing EU companies from doing business with Russian companies and is planning to list them by the end of July. German business circles are protesting. They have already suffered billions in losses. Experts are warning that, with its sanctions against Russia, the West may experience, in the economic arena, an overreach similar to that experienced by the US in the military arena with its war on Iraq. With the power of the West obviously waning, it has already become noticeable that even close allies are defecting. Observers explain this with the Crimea conflict: NATO countries had been unable to retain the Crimea within the reign of its allied Ukrainian government; therefore it seems that an alliance with NATO countries would no longer be a reliable assurance against ones enemies. Defections can be noticed in Asia and Latin America, not least of all because of the recent founding of the BRICS development bank, rivaling the US-dominated World Bank. Russia and China are among the founders of this bank. Continue reading

Argentina Might Join BRICS – Indian Ambassador

MEXICO CITY, May 13 (RIA Novosti) – Three out of five members of the BRICS group of emerging economies support Argentina’s bid to join the club, the Indian ambassador to Buenos Aires said Monday, according to the Clarin news agency. Continue reading

BRICS countries to set up their own IMF

Very soon, the IMF will cease to be the world’s only organization capable of rendering international financial assistance. The BRICS countries are setting up alternative institutions, including a currency reserve pool and a development bank.

The BRICS countries (Brazil, Russia, India, China and South Africa) have made significant progress in setting up structures that would serve as an alternative to the International Monetary Fund and the World Bank, which are dominated by the U.S. and the EU. A currency reserve pool, as a replacement for the IMF, and a BRICS development bank, as a replacement for the World Bank, will begin operating as soon as in 2015, Russian Ambassador at Large Vadim Lukov has said.

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So Long, Yankees! China And Brazil Ditch US Dollar In Trade Deal Before BRICS Summit

China and Brazil agreed to trade in each other’s currencies just hours ahead of the BRICS summit in South Africa.

The deal, which extends over a three-year period and amounts to an exchange of about $30 billion in trade per year, marks the latest effort among two of the world’s largest emerging economies to shift the dynamics of international trade that have long favored the U.S. dollar. Continue reading