A couple weeks ago, Russia Today did an interview with Dr. Sreeram Chaulia, who is the Executive Director of the Centre for Global Governance and Policy (CGGP) at the Jindal School of International Affairs on the significance and mission of the new BRICS bank and how it will be completely different than nearly all global financial institutions currently functioning in the West.
During his interview, Dr. Chaulia stressed the importance of how banking is expected to change within the scope of the BRICS coalition, and that unlike the IMF and World Bank missions that have been around for decades, the new BRICS bank will focus more on lending and development for the people, and less so for oligarchs, politicians, and other sovereign entities that have used these types of financial institutions for their own gains in the past.
RT: Why is there a need for such a bank?
Sreeram Chaulia: Absolutely. We needed something that would counter the hegemony of the Bretton Woods institutions that have been defining the global financial architecture for the last 60 years. I think it’s a huge new player and rightly it’s called the New Development Bank, as the BRICS Bank is formally called. I think we are going to evolve into quite a different beast from that of the World Bank to which it’s been compared. I think we are going to create new types of governing standards, to steer the world in a new direction as far as financing options are concerned. We are going to change the meaning of conditionality, which often accompanies World Bank and IMF assistance. I think we are also going to bring back people at the stage into this whole financial game because it has been completely dominated by financial oligarchs. In a way we are going to bring back something which has been unheard of but which had existed in the pre-finance capital era. We are going to bring back banking that is for the people and for developing countries. – Russia Today
Besides Dr. Chaulia’s assessment in regards to the purpose of the new BRICS Bank, Dr. Jim Willie has chimed in as well on what he believes this entity is for, especially since it would appear on the surface to be superfluous now that the Asian Infrastructure and Investment Bank (AIIB) is online.
People ask me, as they say they can see the gold price getting to 7 or $8,000, but how is it going to get into the teens? Gold Will Fly Past $10,000 and Silver Past $400 because the BRICS nations are going to make a gold and silver-backed currency. And Germany is going to back it.
We have lots of different avenues for gold demand coming down the pike. What we don’t have is supply! – Currency Connect
Recently, I published an article citing how the BRICS bank will also be used to protect the primary nations within the coalition from dollar devaluation. And from a purely monetary standpoint, this cannot happen in the form of another fiat currency, but in a monetary construct backed by gold that is immune to whatever amount of paper script the U.S. central bank feels it must print, or how bad the liquidity problems grow within entities like the European Union.
In many ways, China and Russia are already aiding small businesses within their own countries, and focusing much of their banking towards the people… with less towards supporting corporations and politicians who are failing in the current economic climate. And going into the future, should the BRICS bank serve this same purpose for countries outside their internal banking systems, we could see the emergence of a new global financial structure that is in complete opposition to the oligarchical agendas that have bound the West to private central banking for the past 400 years.
Kenneth Schortgen Jr is a writer for Secretsofthefed.com, Examiner.com, Roguemoney.net, and To the Death Media, and hosts the popular web blog, The Daily Economist. Ken can also be heard Wednesday afternoons giving an weekly economic report on the Angel Clark radio show.