Jun
20
BRIC Countries: Unified in their Hatred of the Dollar
June 20, 2009 | Leave a Comment
Author: My Wealth.com
- Currency Investing
- More of a symbolic meeting than anything else, the one topic on everyones mind was what to do about the US dollar?
Why was the meeting symbolic?Because the BRIC economies have absolutely nothing in common!The only common factor they have is that they hate having the US dollar as the worlds reserve currency.Lets face it, these countries speak 4 different languages and are on 3 different continents bordered by 3 different oceans.One country is communist, another formerly was, and the others are republics.
- But yet we always hear that China is concerned about our weak dollar?What gives?What do they want from the dollar?
The short answer is that they dont know. Brussia benefits the most when the dollar is weak as this tends to be inflationary which results in higher commodity prices.Chindia would rather see a strong dollar, so that the US will consume more of their goods, their energy costs will be less, and theyll get more interest on their dollar reserves.
So what did they hope to accomplish at their first summit?Basically it was a wake-up call to the US and the rest of the world that these economies want to be players and taken seriously.After all, it wasnt that long ago the China was accused of unfair trade practices and criticized for keeping its currency pegged, Russia was privatizing companies and blowing out foreign investor holdings, and Brazil was defaulting on their debt!
And they claim the problem is having the US dollar as the worlds reserve currency! They wouldnt even be having this summit if it werent for a guy sitting in an office at 85 Broad St!
So as we can see, the BRIC countries are nothing more than a collection of developing economies looking for a bigger place on the world stage.But rather than all of the negative talk about the US, they should be thankful that their past sins have been forgiven and that theyve been encouraged to grow and become prosperous.
After all it could be worse.Emerging economies South Korea, Hong Kong, Indonesia, and Thailand could have been added to the existing Brazil, Russia, India, China.Ill let you figure out what that acronym is!
About the Author:
Mike Conlon Instructor Instructor@mywealth.com
Article Source: ArticlesBase.com – BRIC Countries: Unified in their Hatred of the Dollar
Related Articles
Comments
RSS
Blog Links
