Thursday, April 14, 2011

Will this affect the way house prices are manipulated?

BRICS demand global monetary shake-up, greater influence

"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". "Burdened by heavy debt, the United States, the euro zone and Japan are struggling to shake off the lingering effects of the 2008 global financial crisis. Rich countries will grow 2.4 percent this year and 2.6 percent in 2012, the International Monetary fund forecast this week". The BRICS caucus is a work in progress.. maybe the Yuan becomes more convertible before joining the SDR basket?

Posted by alan @ 10:05 AM (1385 views)
Please complete the required fields.



2 thoughts on “Will this affect the way house prices are manipulated?

  • The reserve currency is not something you can campaign for. It is just an expression of the current voluntary preferences of the majority. At the moment the majority of countries want to treat the Dollar as the reserve currency, ipso facto it is the reserve currency. When more countries prefer another currency, it will become the reserve currency.

    What these BRICS are really moaning about is that they issue an invoice in Dollars and by the time the invoice is paid, the Dollar is often worth less, so they take a hit. That complaint is quite understandable but before they start crying about it, they should consider their part in the squabble. They treat their own people like dog-turds so that they can undercut western manufacturers. This abuse of their own people helps them to sell far more stuff than they buy. The flip side of this is that their customers end up with a large trade deficit and large trade deficits tend to lower the value of a currency. The BRICS therefore played a full part in this game. If they want to improve their position they should stop whining and play the game better. Another solution is for them to pay their people a decent wage and to give them stuff like running water and votes etc. They refuse to do this because they value growth above all else. That is their business but they should realise that every action has a consequence.

    Reply
    Please complete the required fields.



  • 1. flashman

    At least you are entertaining the possibility of the dollars demise as the reserve currency.

    I can assure you that it’s finished, don’t get excited when it makes a valiant attemp to rally, it will be just for show.

    Taking Le Crunch lightly can be costly, ask techieman..

    It’s ok, I’m not expecting a response. LOL.

    Reply
    Please complete the required fields.



Add a comment

  • Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
  • Please note that any viewpoints published here as comments are user´s views and not the views of HousePriceCrash.co.uk.
  • Please adhere to the Guidelines

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes:

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>