Comment on the BRICS summit in New Delhi

Goldman Sachs economist Jim O’Neill coined the “BRIC” acronym (Brazil, Russia, India, China) in a 2001 paper titled “The World Needs Better Economic BRICs,” which described a  global shift in power towards emerging markets. South Africa joined the grouping in 2010, so that it became BRICS.

The BRICS nations represent 26 percent of the world’s landmass and 42 percent of the world’s population.

Russia has been pushing for a BRICS alignment since 2006. The first BRICS Summit was held in Yekaterinburg, Russia (2009), followed by Brasilia (2010) and Sanya, China (2011).

At this moment the BRICS nations are holding a summit meeting in New Delhi to make plans to create a joint development bank like the Western-controlled World Bank — except it will not use US dollars. Such a mega-bank will let BRIC nations pool resources for infrastructure improvements. Eventually this bank will start lending to a dying West. (The BRICS nations already do this, but separately.)

This is not a Western-style summit of foreign ministers who work for private bankers. No, the New Delhi BRICS summit is being attended by Brazilian president Dilma Rousseff, Russian President Dmitry Medvedev, Indian PM Manmohan Singh, Chinese President Hu Jintao, and South African president Jacob Zuma. All of them brought large entourages of bankers and businessmen from their own nations.

It will take time to iron out all the details, but the death of the West makes this new alignment inevitable. Already the BRICS nations are making agreements whereby their individual development banks extend credit to other members in local currency. The goal is to get rid of the US dollar as the world’s reserve currency (which will doom the USA in its current form.)

In Jan 2012, China reported a trade surplus of $ 27.28 billion. In February, China reported a trade deficit of $ 31.48 billion and revised down its economic growth forecast to 7.5 percent. We can;t know if these figures are accurate (the Chinese lie, as does every other nation), but it is clear that as the Depression continues to worsen, Western demand continues to fall. India’s  GDP will only grow 6.9 percent this year, the slowest pace in the past three years.

Therefore the BRICS nations must start exporting to each other, and must bring their stock exchanges closer to each other. Until now they have been hampered by having different economies, different systems of government, and competing priorities. Now they have a common cause in the decline of the West — but several sticking points remain. China does not agree with the other BRICS nations regarding the structure and function of the new mega-bank. China and Russia do not agree with the Western assault on Syria. These are among tghe topics being discussed at the summit.

Russia worries that the continued assault on Iran will eventually destabilize world oil prices, causing chaos and war. Russia also insists that no group of nations should be allowed to impose their will on any target nation. So says Alexander Kadakin, Russia’s ambassador to India.

The BRICS nations are also discussing greater representation in the IMF and World Bank. India wants to become a member of the UN Security Council, but China favors letting South Africa become a member first. (The West wants NO new members.)

They will also discuss adopting new member nations in the BRICS bloc.

Goldman Sachs economist Jim O’Neill predicts that the BRICS bloc’s total GDP will be larger than the United States within three years, and China’s economy alone will overtake the United States by 2027.

This is nonsense, since the USA has a massive trade deficit, such that its real economy was eclipsed ten years ago. The BRICS nations already account for 40 percent of global GDP ($18.486 trillion), while America’s “mighty GDP” is based on fraud, theft, and a Wall Street house of cards.

Western nations have an advantage in that their ruling bankers are far more unified than the bankers and corporate leaders of the BRICS nations. However, Western nations also have a disadvantage, in that their bankers are working as hard as they can to destroy the West.