Archive | July 16, 2014

BRICS Announce $100 Billion Reserve Bypassing Privately Controlled Central Banks*

BRICS Announce $100 Billion Reserve Bypassing Privately Controlled Central Banks*

By Tyler Durden

As we suggested last night, the anti-dollar alliance among the BRICS has successfully created a so-called “mini-IMF” since the BRICS are clearly furious with the IMF as it stands currently: this is what the world’s developing nations just said on this topic

“We remain disappointed and seriously concerned with the current non-implementation of the 2010 International Monetary Fund (IMF) reforms, which negatively impacts on the IMF’s legitimacy, credibility and effectiveness.”

As Putin explains, this is part of “a system of measures that would help prevent the harassment of countries that do not agree with some foreign policy decisions made by the United States and their allies.” Initial capital for the BRICS Bank will be $50 Billion – paid in equal share among the 5 members (with a contingent reserve up to $100 Billion) and will see India as the first President. The BRICS Bank will be based in Shanghai and chaired by Russia. Simply put, as Sovereign Man’s Simon Black warns, “when you see this happen, you’ll know it’s game over for the dollar…. I give it 2-3 years.”

  • BRICS MINISTERS SIGN DEVELOPMENT BANK AGREEMENT
  • INITIAL SUBSCRIBED CAPITAL OF BRICS BANK IS $50 BLN: STATEMENT

A quick take on existing monetary policy.

  • MONETARY POLICY MUST BE CAREFULLY CALIBRATED: BRICS STATEMENT

The punchline, however, is that using bilateral swaps, the BRICS are effectively dis-intermediating themselves from a Fed and other “developed world” central-bank dominated world and will provide their own funding.

We are pleased to announce the signing of the Treaty for the establishment of the BRICS Contingent Reserve Arrangement (CRA) with an initial size of US$ 100 billion. This arrangement will have a positive precautionary effect, help countries forestall short-term liquidity pressures, promote further BRICS cooperation, strengthen the global financial safety net and complement existing international arrangements…. The Agreement is a framework for the provision of liquidity through currency swaps in response to actual or potential short-term balance of payments pressures. 

Incidentally, the role of the dollar in such a world is, well, nil.

For those who have forgotten who the BRICS are, aside from a droll acronym by a former Goldman banker, here is a reminder of the countries that make up 3 billion in population.

Key excerpts from the Full statement:

We remain disappointed and seriously concerned with the current non-implementation of the 2010 International Monetary Fund (IMF) reforms, which negatively impacts on the IMF’s legitimacy, credibility and effectiveness. The IMF reform process is based on high-level commitments, which already strengthened the Fund’s resources and must also lead to the modernization of its governance structure so as to better reflect the increasing weight of EMDCs in the world economy. The Fund must remain a quota-based institution. We call on the membership of the IMF to find ways to implement the 14th General Review of Quotas without further delay. We reiterate our call on the IMF to develop options to move ahead with its reform process, with a view to ensuring increased voice and representation of EMDCs, in case the 2010 reforms are not entered into force by the end of the year. We also call on the membership of the IMF to reach a final agreement on a new quota formula together with the 15th General Review of Quotas so as not to further jeopardize the postponed deadline of January 2015.

BRICS, as well as other EMDCs, continue to face significant financing constraints to address infrastructure gaps and sustainable development needs. With this in mind, we are pleased to announce the signing of the Agreement establishing the New Development Bank (NDB), with the purpose of mobilizing resources for infrastructure and sustainable development projects in BRICS and other emerging and developing economies. We appreciate the work undertaken by our Finance Ministers. Based on sound banking principles, the NDB will strengthen the cooperation among our countries and will supplement the efforts of multilateral and regional financial institutions for global development, thus contributing to our collective commitments for achieving the goal of strong, sustainable and balanced growth.

The Bank shall have an initial authorized capital of US$ 100 billion. The initial subscribed capital shall be of US$ 50 billion, equally shared among founding members. The first chair of the Board of Governors shall be from Russia. The first chair of the Board of Directors shall be from Brazil. The first President of the Bank shall be from India. The headquarters of the Bank shall be located in Shanghai. The New Development Bank Africa Regional Center shall be established in South Africa concurrently with the headquarters. We direct our Finance Ministers to work out the modalities for its operationalization.

We are pleased to announce the signing of the Treaty for the establishment of the BRICS Contingent Reserve Arrangement (CRA) with an initial size of US$ 100 billion. This arrangement will have a positive precautionary effect, help countries forestall short-term liquidity pressures, promote further BRICS cooperation, strengthen the global financial safety net and complement existing international arrangements. We appreciate the work undertaken by our Finance Ministers and Central Bank Governors. The Agreement is a framework for the provision of liquidity through currency swaps in response to actual or potential short-term balance of payments pressures.

 Source*

Related Topics:

The Real Purpose of the IMF*

132 Nations Want Out of the Cabal’s Global Banking System*

Germany on the Verge of Bankruptcy*

BRICS ~ Brazil, Russia, India, China, & South Africa: Block Rothschild’s US and EU Computer Generated Ponzi Bailout Scheme Money Issuances.

The World Cup is Damaging Brazil*

220,000 Metal Workers on Strike in South Africa*

South Africa: What is Really Protected by the State Protection Bill!

Death and Autoimmune Diseases the Price of HPV Vaccines on 24,000 Indian Girls

Education: China’s Poorest Beat U.Ks Best*

China Rare Earth Minerals: Possession, Excess and the State

The Truth about the Internet vs. Russian Sovereignty*

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Formerly U.S. Detained ISIL Leader’s Speech Full of Flaws Say Iraqi Clerics*

Formerly U.S. Detained ISIL Leader’s Speech Full of Flaws Say Iraqi Clerics*

By Hassan Al-Obaidi in Baghdad

Iraqi clerics speaking with Mawtani rejected the sermon of “Islamic State of Iraq and the Levant” (ISIL) chief Abu Bakr al-Baghdadi as mistake-ridden and proof of his ignorance of Islam and Islamic jurisprudence.

An Iraqi who was forced to attend the ISIL leader’s first speech in Mosul said much of his videotaped sermon was edited because it was riddled with mistakes and empty talk, while social media users ridiculed the ISIL leader for the flashy wristwatch he was wearing.

“Everyone has found mistakes in the sermon of the so-called al-Baghdadi such that not even a student of shari’ah would make,” said Sheikh Mahmoud al-Khalidi, a member of the Iraqi Iftaa Authority and a preacher at Abu Hanifa Mosque in Baghdad.

Al-Khalidi told Mawtani these mistakes came as no surprise.

“This can be expected from someone who has throughout his life given priority to blood over forgiveness and tolerance,” he said. “This confirms that he does not represent our tolerant religion.”

Al-Baghdadi ‘Not Worthy To Be A Shari’ah Student’

“In his sermon, al-Baghdadi cited two ahadith he attributed to Prophet Mohammed, peace be upon him, but one is ineligible for lacking a proper source and the other is weak and not accepted by scholars and verifiers,” al-Khalidi said.

Al-Baghdadi has “defended his proclamation of a caliphate, saying Muslims lost [the caliphate] hundreds of years ago”, he added.

“This is wrong, as the last legitimate Muslim caliphate was present less than 100 years ago in the era of the Ottomans.”

In addition, the ISIL leader held prayers at Mosul Mosque, which houses a grave, although Salafism prohibits holding prayers at shrines, he said, adding that this means al-Baghdadi’s prayers were null and void.

From a religious and Islamic jurisprudence standpoint,

“al-Baghdadi is not worthy enough to even be a student in a shari’ah class; he has shown his ignorance in Islamic jurisprudence and history”, al-Khalidi said.

Sheikh Khaled al-Obaidi, a Sunni cleric in Baghdad, told Mawtani al-Baghdadi’s speech showed he has no knowledge of shari’ah.

“[Al-Baghdadi] spoke in the singular form, which is not permissible for preachers and clerics, who must use the plural form,” he said.

“He also cited an incorrect hadith and ascribed it to the prophet, peace be upon him, and wore black clothes, although [it was a] Friday which is a festive day for Muslims during which white and bright colours should be worn, in accordance with the Muslim sunnah,” al-Obaidi added.

In addition, he said, al-Baghdadi’s followers entered the mosque carrying their guns, which is not permissible.

“All manifestations of violence are prohibited at mosques where there should be rituals to respect and implore God,” al-Obaidi said.

“His followers carried weapons and stood at the heads of worshippers, something which suggests the worshippers were forced to listen to his poorly-worded sermon,” he added.

“If their caliph or leader is like that, then those ignorant people who are following him are not to blame.”

Iraqis Forced to Attend Al-Baghdadi’s Speech

Mohammed Abu Saad, 45, told Mawtani by phone that he heard al-Baghdadi’s sermon in Mosul.

“We entered the mosque to pray without knowing about al-Baghdadi’s intention to preach,” he said.

“However, we noticed strange movements by gunmen, and then a man dressed in black and wearing a black turban whom we had never seen before stood [at the pulpit]”.

“Gunmen were surrounding him from all sides as if they were afraid he would be assassinated,” Abu Saad added.

“He did not greet any of the citizens at the mosque; he was arrogant in the way in which he walked, and then we knew from his speech that he was al-Baghdadi.”

Al-Baghdadi did not promise citizens anything, Abu Saad said.

“[Al-Baghdadi] said whoever wants security must fear God, whoever wants livelihoods must fear God, and whoever wants stability must fear God,” he added.

“He then concluded, saying he does not promise us luxury. What is his role then? Does his caliphate mean killings, floggings, punishments and want for us while his followers eat the best foods and use luxury cars, and we live in great need and scarcity? I do not think that Islam promotes that.”

Much of al-Baghdadi’s sermon was deleted from the published version because of his mistakes and empty talk which, if leaked, would have made him a joke among his own gunmen and before Muslims and the world, Abu Saad said.

The ISIL leader has already been ridiculed for the flashy wristwatch he wore during his speech that resembles an expensive Omega or Rolex and could be worth more than $6,000 dollars, Britain’s Telegraph reported.

Iraqi social media users posted photos featuring photo-shopped advertisements for these watches with al-Baghdadi’s face superimposed on the models used in the original advertisements, along with jokes and cartoons poking fun at the ISIL leader, which went viral.

Source*

Related Topics:

ISIL Faces Mosul Residents in Defence of Shrine*

Making Fun at Alleged ISIL ‘Passport’*

Takfirism a Saudi and CIA Creation*

Jon Stewart’s Take on the Current Gaza-Israeli Conflict

Jon Stewart’s Take on the Current Gaza-Israeli Conflict

Related Topics:

Muslim Americans Boycott White House Ramadan Dinner*

Demonstrators Take to the Streets against the Massacres in Gaza
Behind the False Flag: Israel’s After Gaza’s Natural Gas*