Aust has been invited by China to join the BRICS Development Bank. http://www.dnaindia.com/money/report-what-is-the-brics-development-bank-2002600

It seems the rules of this organisation have yet to be fully determined. If this bank won't allow member countries to create at least half of the new money, then we will be no better off than under the present Rothschild cartel of Central Banks.
http://www.afr.com/p/special_reports/opportunityasia/china_steps_up_pressure_for_infrastructure_QiThrgbn7j521HjYL6TlrN

Aust has broken with US $ trade hegemony by trading in Yuan directly with China and saving on currency costs. We also have broken with their view of the Ebola threat by banning travel from African affected countries. We seem to paying lip service to US wars in the Middle East with token gestures and not falling in line on what really matters to us, which is a positive step.

The argument is that if we get in on a ground level of the BRICS Bank, we can have a say in how this new Bank will function. How should this BRICS Development Bank be set up ?

Do the lack of comments reflect the ignorance of OLO readers ? This is a topic far more important than gay marriage, terrorism and all the other contrived agendas of social and political division.

I don't know arjay why no one is taking this seriously but i'm hearing our federal government has buckled under pressure from the USA into not supporting it.
We exported $100 billion of our resources to them last financial year(2nd Japan $50 billion) so i would have thought we should collaborate more with them.The chinese to me are pragmatic when it comes to doing business.

Right about bowing out due to pressure from America.

Another nail in the coffin of American dollars holding countries to ransom.

The Dollar Decline Continues: China Starts Direct Convertibility With Asia’s #1 Financial Hub
Earlier this week some of the biggest financial news of the year made huge waves all over Asia.

Yet in the Western press, this hugely important information has barely even been mentioned.

While this is ignored in the US so far, it’s front page news in Asia.

So what’s the news?

The Chinese government announced that the renminbi will become directly convertible with the Singapore dollar… effective immediately.

http://www.globalresearch.ca/the-dollar-decline-continues-china-starts-direct-convertibility-with-asias-1-financial-hub/5411067

Arjay
You believe in a government right to print money, remember?

Not really, Arjay

>>Do the lack of comments reflect the ignorance of OLO readers?<<

More likely is because - as usual - you have your facts wrong. As in...

>>Aust has been invited by China to join the BRICS Development Bank<<

That is simply not the case. Australia has not been invited by anyone to join the BRICS Development Bank. Apart from anything else, it is no longer called the BRICS Development Bank, it is now called the New Development Bank (NDB). But hey, what's in a name, eh - and we haven't been invited to that party either.

What is up for grabs is participation in the Asian Infrastructure Investment Bank (AIIB), to which twentyone countries have already signed up, ranging from (alphabetically) Bangladesh to Vietnam. Considering the need for infrastructure investment is expected to be in the trillions of dollars this decade, the AIIB can only be a Good Thing, and I expect our government will eventually see the logic of being inside the tent, and sign up.

Although quite why you are so excited by it, Arjay, given that your understanding of international finance can fit neatly on the back of a postage stamp, is a mystery.

According to Alisdair Macleod China could have far more gold than it has disclosed ie up to 30,000 tons. Some say they only have 4500 tons. If China has this huge amount they will become far more powerful when the Western system collapses.

James Rickards say there will be losses of over $100 trillion. Total value of all precious metals is only $15 trillion. So we could see China increase their metal wealth by 7 times. At current prices China has gold worth $1.5 trillion X 7 = $10.5 trillion. China will become too dominant and our fools have fallen right into their trap.

http://www.globalresearch.ca/chinas-massive-holdings-of-gold-bullion-is-the-west-financially-bankrupt/5411692

If China and Russia do not allow member countries to create their own credit then it will be just like the old Rothschild Banking Cartel.

Hi Everyone,
I hadn't heard about Australia being invited to join.
I thought BRICS was simply just a way for developing countries to get around the petrodollar and to allow trade between each other more easily, but now I am wondering if they have the worlds next reserve currency (a gold backed global currency) in their sights. I think it would be foolish on our part not to investigate this offer to be more involved more seriously. Of course the US would not want to lose its position in world hegemony as well as not wanting other nations to join as it only helps to further weaken the US currency, but they cant stay the worlds reserve currency for much longer given that many countries are abandoning the petrodollar now and the US has massive debts. They have also now stopped their policy of quantitative easing.
Arjay, thanks for posting this info and don't forget that if the US dollar collapses we will probably also see a huge increase in precious metals prices as well.
- Scott

Yes Armchair, even Germany is having close talks with Russia. Germany has 3000 business who trade with Russia and they don't want to go down the sewer with the USA. France is thinking likewise. Russia supplies most of Europe's energy, this is why the US oligarchs like the Rothschilds are furious and want war with Russia and China.

PS Hungry just kicked out the Rothschild Bankers, that's why trouble is stirring there. Russia did likewise. Syria, Iran, North Korea, Iceland, China, Venezuela, and Cuba also do not have a Rothschild Bank. Notice the pattern of demonization ?

When they privatised 4 state banks and the Commonwealth here, foreign entities like HSBC, Citibank, and JP Morgan now have over 40% share holdings in all our banks. So the money just goes back OS. Half the money for growth + inflation first of all comes from central banks like the Rothschilds and our big 4 create the other half and most of that goes OS. This is why we have such a large current account deficit. More money leaves this country than what comes in even with a trade surplus.

To fix this we must move back to Govt owned banks and create our own new money for infrastructure. You will then see your taxes decline because our Govt will not then be slaves to foreign central bankers.

Yet more nonsense, Arjay. You are making a bit of a habit of this, you know.

>>China could have far more gold than it has disclosed ie up to 30,000 tons.<<

Gold is a traded commodity, like oil, palladium and lean hogs:

http://www.cmegroup.com/

The hoarding of gold would only have relevance if it were used to underpin a currency. But it isn't, so it doesn't.

Now, here's the hard part:

>>James Rickards say there will be losses of over $100 trillion. Total value of all precious metals is only $15 trillion. So we could see China increase their metal wealth by 7 times.<<

You need to explain, if you can, who is potentially going to lose that $100 trillion, and to whom.

Given that by your own estimate, the "value of all precious metals is only $15 trillion", you might also care to enlighten us on how the losses of $100 trillion are calculated.

When you have done that, we might be able to rationally discuss any potential impact on China's economy. But experience tells me we won't actually get that far.

http://www.youtube.com/watch?v=KYW5OGWfqJc Rickards is talking about the stock market excluding the toxic derivatives of 20 times this amount.

Add into the mix the over inflated property market values. All these values are based on the earning capacity of workers and real wages/ salaries are falling.

Pericluesless, you are here as a droll troll of deception and mis-information. Please go away.

Monetary value does not disappear, it just moves to another medium of stability to find expression. Real wealth exists in the knowledge and skills of your population and this present system is destroying real wealth in the pursuit of avarice and power.

Yep, didn't think you could explain yourself Arjay. As usual.

>>Rickards is talking about the stock market excluding the toxic derivatives of 20 times this amount.<<

That simply proves that you haven't the faintest idea what derivatives are, how they operate, and how you calculate net exposure to them.

>>Pericluesless, you are here as a droll troll of deception and mis-information. Please go away.<<

Actually, I am the calm voice of rationality and reason here. Oh, and facts, don't forget about those. All of which you, deep down, actually understand, but cannot bring yourself to accept.

But please, have another go at explaining this, I'd really love to hear what you make of it:

- who is going to lose that $100 trillion, and who is going to gain from it

- if the "value of all precious metals is only $15 trillion", how can losses of $100 trillion be achieved

Shouldn't take you long, if you do actually understand Rickards' video. But I still won't be holding my breath.

Arjay, what makes you think that
a) The Western system will collapse?
b) China and Russia could disallow a country to create their own credit?

Aidan, 1/ Our system will collapse because in 2008 they just made the problems worse with money printing and bailing out banks that should have been left to fail. Now the share market bubble is much bigger while globally production and jobs are down. The real rate of unemployment in the USA is 24% and they have 50 million on food stamps.

The repeal of the Glass Steagall Act was another blow to financial stability. This was brought in in the Great Depression to separate speculative, risky banking from the retail sector.
http://www.nerdwallet.com/blog/banking/glass-steagall-act-explained/

Dr Paul Craig Roberts said recently that since 2006 US Corporations have borrowed $4.3 trillion from the banks to buy their own shares and thus pay themselves huge bonuses and salaries.

See what James Rickards says about the coming depression that could last 25 yrs.
http://www.youtube.com/watch?v=KYW5OGWfqJc
He sees many signs that are worse than the Great Depression like the velocity of money ,the misery index, real unemployment and the fact the West has no real productive jobs to back up their economies.

2/ China and Russia have many Govt banks and they may decide to be the our Central Private Bankers and not allow member countries to create their own credit, thus they become all powerful. The rules have not been formulated. Why have a singular all powerful central banking system when individual countries can do likewise ?

Arjay,

1) Why do you think money printing made anything worse? Surely the only think money printing makes worse is inflation (which has been quite low since the GFC)? And any government with the ability to print money can enable its country to exit any depression within a year.

Events of 2008 highlighted the folly of America repealing the Glass Steagall act, but since then they've started to tighten banking regulations again.

And the West does have quite a lot of productive jobs – it's just that fabrication of goods is not the high value activity it once was.

2) That's rather implausible, as they'd be jealous of each other's power.

"Why have a singular all powerful central banking system when individual countries can do likewise ?"
Good question. I think it's because individual countries don't want to do likewise.

All good questions, Aidan.

I'll ask Arjay a supplementary.

>>...bailing out banks that should have been left to fail<<

What would have been the impact on the general public if these banks had been "left to fail"? Consider, for example, the impact on industry (and employment) if businesses had been unable to arrange any refinancing of their loans, due to the "failure" of their bank. Why would any government allow that to happen, if they had the means to prevent it?

Arjay, your instincts on finance would fit easily onto a banner at a street march, but unfortunately that is also the limit of their intellectual content. Slogans are fun, of course, but not particularly helpful.

Well great Periclueless; what to private central banks actually produce that makes them too big to fail? Other than counterfeiting our money and creating needless debt from nothing,they really have no use.

It would be better to have mutual banking societies so both borrowers and depositors can share in this newly created money.

Aiden and Clueless are just another two trolls baiting myself and others to try and gum up the works.

Why did the suppository of no wisdom suddenly be unable to "shirt front" Vladmir Putin ? Ans. Tony Abbott just does as he is told by the likes of the Rothschild Bankers.

Could the Rothschilds be doing secret deals with both China and Russia in regards to this new BRICS bank ? Russia to avert a nuclear war may well be considering a deal with these criminals.

Arjay my questions were not thetorical and my answers and comments are what I genuinely believe. I'm not trolling. What made you think I was?

That doesn't make any sense at all, Arjay.

>>It would be better to have mutual banking societies so both borrowers and depositors can share in this newly created money<<

Why would it be "better"? How would it be "better"? How would the borrowers and lenders "share in this newly created money"? And what is "this newly created money" anyway?

You seem intent on proving yourself completely ignorant on all matters financial.

As my old granny used to say, if you don't have anything useful to tell us, just stay quiet.

Wise woman, my granny.

So perhaps it is best that you stick with your bizarre conspiracy theories after all:

>>Could the Rothschilds be doing secret deals with both China and Russia in regards to this new BRICS bank ? Russia to avert a nuclear war may well be considering a deal with these criminals.<<

In some weird way they are actually more convincing than your attempts to articulate your understanding of international finance.

It never does make any sense to you Pericles because you ignore the truth and cherry pick items that suit your bias.

More avoidance, Arjay.

>>It never does make any sense to you Pericles because you ignore the truth and cherry pick items that suit your bias<<

I was "cherry picking" your own words, and simply asking whether you understood anything that you write.

Clearly, you don't.