Excerpt from The Daily Telegraph and its bearing on gold.
<China has seen its nominal GDP double since 2008, so any agreements based on the relative size and balance of trade prevailing then are already very much out of date. It is bigger than the combined GDP of France, Germany and Italy, three European countries which also have an intransigent stance about more substantial global reform.
Even though Brazil and Russia have especially disappointed in the past couple of years, both are within the top 10 economies by size. Collectively, the Bric countries are now nearly as large as the US and already quite a bit larger than the eurozone.
While the other Bric countries probably don’t have much sympathy with Russia on the specifics of the Ukraine issue, they might have broader sympathy with the notion that emerging economies are not allowed a relevant voice in global affairs.
Such thoughts might serve to undermine the legitimacy of global organisations such as the IMF and World Bank, the G20 itself as it morphs into clubs within a club, and encourage the growth of their own club.
My impression, for example, is that there is renewed energy surrounding previous plans to form a Brics Development Bank, and later this year the funding and location for such a body seems set to be announced.>
telegraph.co.uk
Of course, it just so happens that strongest buying and advocacy of gold is among these very same BRIC nations. Could the emergence of their own development bank and other multi-national financial institutions provide the necessary infrastructure to increase the role of gold in trade and finance among that bloc of nations in direct competition with the anti-gold, western bloc that uses the IMF and the World Bank to support their global fiat regime?
IMO? The answer if a big yes. It's yet another step toward dramatically reducing the role of the U.S. Dollar and other fiat currencies in the global economy. It would eliminate the necessity for the current, clumsy, bi-lateral agreements (ex. the one between China & Brazil, a few years ago) to bypass the dollar if there's a BRIC development bank that can clear those trades in a basket of currencies where gold has some - as yet - undefined, but likely role.
Isopatch
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