INDIA , Russia, Brazil, China, and South Africa may soon consider creating their own currency for BRICS : FM Lavrov

[beijingwalker]

There are no institutional checks and balances in china.

How do you know there is not? and how come China developed way faster than India if there's not?

 

[Abdul Rehman Majeed]

How do you know there is not? and how come China developed way faster than India if there's not?

Exactly!

China should not waste time on this nonsensical proposal.

G2 is the way forward.

China and US are the leaders of the 21st Century.

 

[aryobarzan]

After the Brenton Woods collapsed, US pegged the Dollar to Oil and Petro-Dollar became the global currency to funnel Saudi petrodollars into U.S. Treasuries.

Thanks for the info...I must also add that at the time in 1973 when US pegged dollar to oil two things had to be inplace:

1. Oil was the largest trade between countries at the time
2. Largest Oil exporters of the time (Saudi and Iran) had to agree not to sell their oil in any other currency..They both agreed (Vassal states!)

I hope the idea becomes reality and hence remove weaponized "Dollar" in the international trade .

I suggest to call the currency (BRIC)..

 

[Abdul Rehman Majeed]

All currencies of the world should be tied to price of gold.

 

[Hecig]

But you are asking the Chinese to back such currency and essentially give the other country in BRICS or whoever is going to join that basket an inroad to dictate Chinese Monetary Policy........

Again, the economic might of China is probably multiple time of rest of BRICS put together, hence why China would accept a 1 country 1 vote system and allow country like South Africa to dictate term wrt Monetary Policy China is going to be involved with?

I don't know if you aware this is a very, VERY big ask for China to give up their own advantage on policy making to get into a 1 country 1 vote system where everyone have the same. I mean it would work if you were South Africa or India or Brazil or Russia because you can dictate term on the token currency which is going to be pegged to individual currencies. But this is everything to lose for China to basically see "eye-to-eye" on their monetary policy for the rest of BRICS.

Essentially it's everything to play for the rest of BRICS, and nothing is being bring to the table for China, and you are expecting the Chinese would be okay with this?? It's like you are asking the US to drop the world dominance and accept a 1 nation 1 vote system on SDR Basket.....

You are asking me to draft the charter of an organization like the IMF on a forum like PDF.

These are all technical details which has rather straightforward solutions if one is willing to accept the principle of fair play.

The share of currency and vote can be proportional to the size of the economy. The stronger economy will naturally get a larger share but the "control" over governance should not be by "strength" but rather by fair principles that ensure minimal manipulation.

You keep asking me why china would agree to this, and I have already replied that its for china to decide what in its best interest. I don't have to convince china.

How do you know there is not? and how come China developed way faster than India if there's not?

Its not impossible for dictatorships to develop fast. Or Kingdoms.

UAE, Singapore, Libya, USSR, etc. all have demonstrated this capacity. Only this growth is not sustainable. China has yet to prove its sustainability.

 

[jhungary]

Thanks for the info...I must also add that at the time in 1973 when US pegged dollar to oil two things had to be inplace:

1. Oil was the largest trade between countries at the time
2. Largest Oil exporters of the time (Saudi and Iran) had to agree not to sell their oil in any other currency..They both agreed (Vassal states!)

I hope the idea becomes reality and hence remove weaponized "Dollar" in the international trade .

I suggest to call the currency (BRIC)..

lol, this is simply not true.

You need to look at how much USD change hands a day. The largest trade between country is USD itself. SWIFT alone handle more than 5 trillion USD trade a day, while other like Fedwire reaching also reaching Trillion dollar a day.

Oil trade is big, but it's probably less than the 3 days hold over for all USD based transaction, think about how much interest US bank earn from those T+3 USD transaction. It will make oil market, which is trillion dollar market annually looks like peanuts.

 

[Hecig]

Thanks for the info...I must also add that at the time in 1973 when US pegged dollar to oil two things had to be inplace:

1. Oil was the largest trade between countries at the time
2. Largest Oil exporters of the time (Saudi and Iran) had to agree not to sell their oil in any other currency..They both agreed (Vassal states!)

I hope the idea becomes reality and hence remove weaponized "Dollar" in the international trade .

I suggest to call the currency (BRIC)..

Iran and Venezuela became pariah states when they stop trading Oil in the USD. Same with Russia.

 

[beijingwalker]

Its not impossible for dictatorships to develop fast. Or Kingdoms.

UAE, Singapore, Libya, USSR, etc. all have demonstrated this capacity. Only this growth is not sustainable. China has yet to prove its sustainability.

lol, so India's sustainable? how long is "sustainalbe"? 20 years? 40 years? 100 years?

 

[GodToons]

according to pompeo, after doing the balakote shararat you (sushma) went running to him to stop Pakistan from nuking you. then according to him after the Chinese crushed the skulls of 20 of your bravehearts "you were so terrorized" that you went running to amreeka to make you part of a military alliance against China thus qwaad was born.

now you are going to help China to create a currency to rival the US dollar?

it does not compute.

Had Quad born post 2019? Man give me coffee

 

[jhungary]

You are asking me to draft the charter of an organization like the IMF on a forum like PDF.

These are all technical details which has rather straightforward solutions if one is willing to accept the principle of fair play.

The share of currency and vote can be proportional to the size of the economy. The stronger economy will naturally get a larger share but the "control" over governance should not be by "strength" but rather by fair principles that ensure minimal manipulation.

You keep asking me why china would agree to this, and I have already replied that its for china to decide what in its best interest. I don't have to convince china.



Its not impossible for dictatorships to develop fast. Or Kingdoms.

UAE, Singapore, Libya, USSR, etc. all have demonstrated this capacity. Only this growth is not sustainable. China has yet to prove its sustainability.

I am not asking you to draw the charter, I am asking you to explain to me why China would even consider be a part of this basket if it will set them back of their economic policy, essentially you are asking the Chinese to let the world dictate its term, on a 1 to 1 basis of their own Monetary Policy.

If you are Chinese government, do you honestly think this is a good idea and you will sign over this??

 

[Hecig]

I am not asking you to draw the charter, I am asking you to explain to me why China would even consider be a part of this basket if it will set them back of their economic policy, essentially you are asking the Chinese to let the world dictate its term, on a 1 to 1 basis of their own Monetary Policy.

If you are Chinese government, do you honestly think this is a good idea and you will sign over this??

I Fail to see how this will be a set back for China.

This will free china from the need to cater to western demands when it deals with Russia or Iran or Europe. It will offer them more freedom to act in its best interest.

What disadvantage does this system bring to the Chinese economic policy ? Does it decrease their trade or increase it ? Does it give them more clout and reach or decrease it ?

I think it gives them more clout, reach and say in global affairs and reduces their Risk from western sanctions.

lol, so India's sustainable? how long is "sustainalbe"? 20 years? 40 years? 100 years?

Indian system is already proven and known to be sustainable.

Communism OTOH ............

 

[Abdul Rehman Majeed]

I am not asking you to draw the charter, I am asking you to explain to me why China would even consider be a part of this basket if it will set them back of their economic policy, essentially you are asking the Chinese to let the world dictate its term, on a 1 to 1 basis of their own Monetary Policy.

If you are Chinese government, do you honestly think this is a good idea and you will sign over this??

There is nothing China will gain from this BRICS nonsense.

US and China are powers of the 21st Century.

G2 will lead the world.

 

[beijingwalker]

Indian system is already proven and known to be sustainable.

Communism OTOH ............

LOL,, are you really serious or joking? sustainable? from GDP same as China's 70 years ago to one fifth of China today? how long do you like to "sustain" this?

 

[jhungary]

I Fail to see how this will be a set back for China.

This will free china from the need to cater to western demands when it deals with Russia or Iran or Europe. It will offer them more freedom to act in its best interest.

What disadvantage does this system bring to the Chinese economic policy ? Does it decrease their trade or increase it ? Does it give them more clout and reach or decrease it ?

I think it gives them more clout, reach and say in global affairs and reduces their Risk from western sanctions.

First of all, with this token, either China dropped Yuan completely or China have to be at least more freely tradable to other currency, that would put burden on demand of Yuan as currency.

On the other hand, you are assuming everyone play nice and of course, if that is the case, then 1 country 1 vote is not going to be a problem, but what if any one of the country do what they do now, and inflate or devaluate their own currency so to manipulate the price of the token? Say it was 81 INR to 1 Token and on the other hand the same Token get 7 RMB, what if India devalue INR and now you only need 53 INR to convert to 1 token? Effectively you can get more RMB, at least in value if you do that. How about if China do it in reverse?? Would you be okay with that??

For China, yes, it would free China from the need to cater to Western Demand (It doesn't actually because market share also play a role, but let's pretend it does) but what you are nominating is simply for China to bound by another demand, which is whoever going to be in charge of the token. Again, if you are China, would you agree to that?

 

[Abdul Rehman Majeed]

Indian system is already proven and known to be sustainable.

Communism OTOH ............

For most part of your history your rate of growth was abysmal.