How The BRICs (Thanks To Russia) Just Kicked The G-7 Out Of The G-20

International discord over Ukraine does not bode well for the settlement of differences over the IMF’s future. Though the G7 is excluding Russia from its number, this does not amount to isolating Russia. There has been no suggestion that Russia be excluded from the G20. The USA and its allies have suspected that several other G20 members would not stand for it. This suspicion was confirmed yesterday when the BRICS foreign ministers, assembled at the international conference in The Hague, issued a statement condemning ‘the escalation of hostile language, sanctions and counter-sanctions’. They affirmed that the custodianship of the G20 belongs to all member-states equally and no one member-state can unilaterally determine its nature and character.

Beijing leaders have long dreamt of displacing, or at least dethroning, the US dollar from its reserve currency role. US dominance of the IMF is one of several effective bars to the achievement of such a goal. The kind of action Russia is advocating, the BRICS wresting control of the IMF in despite of US veto power, might have some appeal. That would mark the end of the unified global monetary system that has developed since the IMF was founded in 1945, to be replaced by a bloc of fiat currencies in the developed countries and a system in the emerging sector where currencies were linked to drawing rights in some new international fund, possibly with some material backing. It seems unlikely that convertibility between these monetary systems could be maintained for long. Consequently, the 10 April meeting is shaping up as a potentially critical juncture in world economic history.


http://socioecohistory.wordpress.com/

Have to say Tess, think that is quite correct, we might find that Ukraine will be a turning point historically, it's ripple effect is not just affecting who should have the Crimea.

Sassy wrote:Have to say Tess, think that is quite correct, we might find that Ukraine will be a turning point historically, it's ripple effect is not just affecting who should have the Crimea.

Hi Sassy. I'm glad someone replied to this. I think the outome of this meeting could be a huge development - changing the balance of world power from the West. It's like reading a history book but we're actually taking part. Fascinating stuff as far as I'm concerned. Bit worried about the future though - to put it mildly!

Agree with that 100%

   WITH the rise in influence of the 'G10' and 'G20' economic conferences since the 1990s the 'G7'/'G8' meetings have increasingly become more-and-more of a post-WWII anachronism...

Having ITALY in anything supposedly important or influential is a sad joke, on the modern world scene ~ especially since their collapsed and failed economy is now ranked behind South Korea and Australia in real terms (i.e. after factoring in italy's humungous debts..).

THE fact that both China (the world's #2 economic "powerhouse" after the USA), and the fast growing economies like India, Brazil and Mexico, belong to the "G10"/"G20" group ~ but are left out of the "G8", means tha the G7/G8 is largely little more than a "social" piss-up these days !

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ON a side issue ~ see where Oz's Foreign Minister, Julie Bishop, was being reprimanded by India and China this week for suggesting that Russia might not be invited to the "G20" meetings !

http://en.wikipedia.org/wiki/Julie_Bishop

(TO suggest that Bishop is not popular down here would be an understatement ~ the very fact that she has the #3 position in the government only shows up what a dearth of talent and brains the minority (45.5%) Lib'/NP conservative coalition has in it's membership..).

http://juliebishop.com.au/