BRIC Countries: Unified in their Hatred of the Dollar

0 Comments Published June 19th, 2009 in 4xGenie

Currency Investing

More of a symbolic meeting than anything else, the one topic on everyone’s mind was what to do in this area the US dough?

Why was the meeting symbolic? Because the BRIC economies have absolutely nothing in common! The only common thing they have is that they despise having the US dough as the world’s reserve currency. Let’s face it, these countries converse in 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 in this area our weak dough? What gives? What do they want from the dough?

The small answer is that they don’t know. Brussia benefits the most when the dough is weak as this tends to be inflationary which consequences in higher commodity prices. Chindia would rather see a strong dough, so that the US will consume more of their goods, their energy costs will be less, and they’ll get more interest on their dough reserves.

So what did they hope to accomplish at their initially 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 wasn’t 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 dough as the world’s reserve currency! They wouldn’t even be having this summit if it weren’t 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 larger place on the world stage. But rather than all of the negative talk in this area the US, they should be thankful that their past sins have been forgiven and that they’ve 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. I’ll let you figure out what that acronym is!