BRIC Nations decry “monetary rape” by the West but powerless to stop it.

Brazilians work hard growing soybeans for shipment to global markets.
Likewise Russian’s work hard extracting gas and exporting it. China does
it’s bit by being the workshop of the world spending their lives on an
assembly line. In exchange for their efforts they get a rapidly depreciating
printed currency from the Federal Reserve. When their savings are not enough
to cover the deficits in the West and Japan in the form of treasury buying, the
rich nations then send shockwaves of QE bond buying into the global market
causing high inflation in the productive emerging economies. American’s then
get their transfer payments and government largess and go to spend it. The large
commercial banks get their bad bond deals covered and If your one of the lucky
ones in New York or London you get to oversee this process and are firmly placed
at the head of the pyramid of credit creation and you make millions.

Having a world’s reserve currency is known as “exhorbinant privilege” or what
one might call a form of monetary rape. The offenders take what they want and
the victims are powerless to stop it. You build it….they print it. Japan, the EU,
and the biggest serial rapist of all, the U.S., is now under fire from their trade
partners for their monetary policies of money printing and low interest rates.

 

 

 

 

 

 

(It takes the printed fiat currency….or it get’s
the QE hose again.)

 

From Reuters….

Brazil to rally BRICS against rich countries

(Reuters) - Brazil will push for its large emerging-market peers including
China to denounce what it sees as unfair monetary policies by Europe and
the United States, raising the stakes in a global confrontation over economic
imbalances.

Brazilian Trade and Industry Minister Fernando Pimentel told Reuters on
Wednesday his country would seek such language in a communique at this
week’s BRICS summit, which brings together Brazil, Russia, India,China and
South Africa.

Pimentel said that China had previously been cautious about supporting
language on global monetary imbalances “because they thought we could
be indirectly referring to them.”

Many analysts believe that Beijing artificially manipulates its currency but
Pimentel said the biggest policy problems now are in the rich world.

“Today’s (problem) doesn’t have to do with China,” he said in a 30-minute
interview on the eve of the summit in New Delhi. “It has to do with the dollar
and the euro.”

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