In addition, the members of BRICS (Brazil, Russia, India, China, South Africa) recently came together to discuss the failure of the American Dollar as world reserve currency and called for a new international currency to replace the dollar. This they believed would help bring stability to the commodities market, thus eliminating many of the price shocks that have recently occurred.
From American Thinker, The Guide to the New World Order:
In his recent speech before the Peterson Institute for International Economics, Robert Zoellick, President of The World Bank Group, proposes that we must modernize multilateralism.He is referring to the late 20th century understanding of multilateralism as a number of nations consulting and, perhaps, acting cooperatively to achieve a specific goal.The realities of the economic power shifts that are taking place, he says, call for top-down integration of national economies into an interconnected whole now hopefully opportunely made possible by significant changes taking place in many, especially Near Eastern, countries.We have lived through destructive Communist and Progressivist forms of Socialism during my lifetime. What New Social Contract on a world scale should I be looking forward to now?Here is a hymn from Belgrade, from the land where I was born, which extols the virtues of one of the more recent top down managed systems invented by Socialist ideologues:There is no unemployment but nobody works.No one works but everyone receives wages.All get wages but nothing can be bought with them.Nothing is purchased but everybody owns everything.Everybody owns everything but they are all dissatisfied.All are dissatisfied but everyone votes for the system.
SANYA, China (Reuters) - The BRICS group of emerging-market powers kept up the pressure on Thursday for a revamped global monetary system that relies less on the dollar and for a louder voice in international financial institutions.
The leaders of Brazil, Russia, India, China and South Africa also called for stronger regulation of commodity derivatives to dampen excessive volatility in food and energy prices, which they said posed new risks for the recovery of the world economy.
Meeting on the southern Chinese island of Hainan, they said the recent financial crisis had exposed the inadequacies of the current monetary order, which has the dollar as its linchpin.
What was needed, they said in a statement, was "a broad-based international reserve currency system providing stability and certainty" -- thinly veiled criticism of what the BRICS see as Washington's neglect of its global monetary responsibilities.
The BRICS are worried that America's large trade and budget deficits will eventually debase the dollar. They also begrudge the financial and political privileges that come with being the leading reserve currency.
"The world economy is undergoing profound and complex changes," Chinese President Hu Jintao said. "The era demands that the BRICS countries strengthen dialogue and cooperation."
In another dig at the dollar, the development banks of the five BRICS nations agreed to establish mutual credit lines denominated in their local currencies, not the U.S. currency.
The head of China Development Bank (CDB), Chen Yuan, said he was prepared to lend up to 10 billion yuan to fellow BRICS, and his Russian counterpart said he was looking to borrow the yuan equivalent of at least $500 million via CDB.
"We think this will undoubtedly broaden the opportunities for Russian companies to diversify their loans," Vladimir Dmitriev, the chairman of VEB, Russia's state development bank, told reporters.