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Archive for the ‘BRICS’ Category

#Brexit = #NoMoreUK =#FUK

 brexit_images

With regard to the recently held referendum in Great Britain, the highly respected and truly inimitable authority that is the roving reporter Pepe Escobar writes on his Facebook wall that “THE WRITING ON [the] FUK’s WALL . . . Those two-bit Game of Thrones/House of Cards Tory clowns STILL can’t see the writing on [the] FUK (Former United Kingdom)’s wall. Brussels hardball is here to stay. NO single market access without freedom of movement, respecting the competence of the European Court of Justice and a “contribution” to the EU budget almost equivalent to what the UK pays today. [The]FUK (Former United Kingdom) gets a status equivalent to Norway, Iceland and [Lichtenstein]. And a trade deal similar to what the EU has with Singapore, Japan and Canada. That’s it. Those Tory clowns simply had no clue Brussels would definitely use Brexit as an example to prevent a domino effect, showing to assorted Europhobes that leaving IS painful. The governor of the Bank of England apparently got the picture: ‘economic post-traumatic stress disorder’. The Economist Intelligence Unit (EUI) says [the] FUK’s economy will contract 6% by 2020. Investment (China included) will decline 8%. Unemployment will RISE. And public debt will reach 100% of FUK’s output. Eastern and Northern Europe are trying hard to soften the ball for [the] FUK. But who gives a damn what Estonia’s president thinks about it all? Even [the] FUK supporters agree there should be no special favors – because that would be a Godsend to Frexisters and Nexiters. But as I said before, everyone is irretrievably pissed, pissed off, pissed beyond belief with the English – and not necessarily the Brits (everyone loves Scotland). Mark Rutte, Dutch Prime Minister and not exactly the brightest bulb in the room, at least nailed it; England has collapsed ‘politically, monetarily, constitutionally and economically’. He should add ‘footballistically’as well. Someone should propose Gareth Bale for PM”[1]

  brexit_leave_7006194783_4ea0b7Is there anything else left to add, I wonder. And, as it turns out, the equally incomparable Nafeez Ahmed did, even before the ballots were cast and fully counted: “Nigel Farage has jumped off an economic cliff screaming ‘Independence Day!!!’, and he’s taking us all down with him. While Brexit will almost certainly usher in a new wave of austerity and impoverishment, it’s far from clear that Remain would avoid it. Wherever you stand on the outcome of Britain’s EU referendum, hard economic reality is going to bite – and it’s going to bite hard. The #VoteRemain camp made a point of highlighting the numerous warnings from economists that a UK exit from the EU would trigger an economic crisis. The #VoteLeave camp insisted that this was a doom-mongering lie. It wasn’t. Last night, over Twitter, I predicted that the Leave campaign would win by a narrow majority – but that the victory would grow hollow very quickly as its immediate economic impact kicked in [:] ‘So here’s a #brexit scenario: 1. #VoteLeave wins by slim majority 2. #VoteLeave victory create crisis in Cameron’s leadership. 11:26 PM – 23 Jun 2016’.[2]  Dr Ahmed then adds the following: “So far, my little forecast has turned out to be uncannily prescient. The pound is in free-fall, so far hitting a thirty-year low. Stocks have slumped, and look to decline further. Banks are shifting their money, and their jobs. David Cameron has resigned, virtually in tears, a fitting end perhaps to a shambolic premiership. But he also put off invoking Article 50 of the Treaty of Lisbon, which would formally begin the EU exit process. I’ve said that by next week, escalating economic turbulence and the inadequacy of contingency measures to keep it in check will dramatically shift the euphoric mood to one of increasing foreboding about the economic slowdown”.[3]

The Canary

And finally, Dr Ahmed opines that’ll be “just the beginning folks. Over the next few weeks, we’ll watch as a pound in free-fall drives up inflation, and squeezes the spending power of the average consumer. Who’s that going to hit hardest? The lower middle and working classes, of course. The impact will hit the profits of businesses, big and small, and squeeze wages too. As the UK’s GDP growth – already tepid – freezes over, this will in turn have global impacts: the Eurozone, particularly the northern countries like Denmark and Finland, will be drawn into the downwards spiral; so will parts of southern Europe, already teetering on the precipice. And China, which is seeing its economy hit the brakes, will suffer when the European slowdown triggered by Brexit reduces demand for Chinese exports. It’s the global transmission of these shocks, and their capacity to mutually intensify, that will push the UK off the edge, taking large swathes of the global economy with it. The government will have little choice in this context except to try mitigating the deepening economic crisis – but this simply won’t be possible within the current model of neoliberal capitalism, without repairing the damage done to the UK-EU trade relationship. In the words of The Economist: ‘A lot depends on the kind of trade deal Britain can negotiate with the EU and how quickly. If Britain gets a quick deal with no big reductions in its access to the single market, the grimmer scenarios for the world economy may not come to pass. But markets do not seem to be counting on it.’ And that’s the crux of it. In coming weeks, the mess inside the government that is Cameron’s rather pathetic legacy will be grappling with how to keep the promise of exiting the EU, while staving off the protracted financial collapse that would inevitably follow”.[4]

great briitain leaves european union metaphor

united kingdom exit from europe relative image

 

 

[1] Pepe Escobat @Facebook. https://www.facebook.com/pepe.escobar.77377?fref=nf.

[2] Nafeez Ahmed, “Brexit is about to usher in Third World Britain” The Canary (24 June 2016). http://www.thecanary.co/2016/06/24/brexit-usher-third-world-britain/.

[3] Nafeez Ahmed, “Brexit is about to usher in Third World Britain”.

[4] Nafeez Ahmed, “Brexit is about to usher in Third World Britain”.

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Corbett Report 27 March 2013

‘Corbett Report and Media Monarchy that covers some of the most important developments in open source intelligence news. This week: Story #1: ‘Monsanto Protection Act’ slips silently through US Congress; Story #2: Kerry, Karzai Bury Hatchet in Kabul Meeting; Story #3: BRICS nations fail to launch new bank (27 March 2013)’.

BRICS Summit in Durban, South Africa

On 26 March 2013, the “Big Picture” on India’s parliamentary television station Rajya Sabha TV discussed the BRICS summit in Durban (26-7 March 2013): ‘Guests: M K Bhadrakumar (Former Ambassador and Foreign Policy analyst) ; Mohan Guruswamy (Distinguished Fellow, Observer Research Foundation) ; Nandan Unnikrishnan (Senior Journalist and Senior Fellow, Observer Research Foundation) ; Pramit Pal Chaudhary (Foreign Affairs Editor, Hindustan Times) – Anchor: Girish Nikam’.

The Associated Press reports as follows: ‘Leaders of five of the world’s emerging economic powers agreed Wednesday [, 27 March] to create a development bank to help fund their $4.5 trillion infrastructure plans _ a direct challenge to the World Bank that they accuse of Western bias. But the rulers of Brazil, Russia, India, China and South Africa _known as the BRICS group _were unable to agree on some basic issues. Foreign Minister Pravin Gordhan of South Africa told reporters that there were “different views” about how much capital such a bank would need. He said $50 billion had been mentioned, an amount conference officials said would be seed capital shared equally between the five countries. Finance ministers had discussed basing contributions on a country’s wealth, but then felt it would leave economic giant China, with the world’s No. 2 economy, in an untenably dominant position, according to conference officials, who spoke on condition of anonymity because they are not authorized to speak to reporters. Analysts said there was little doubt that China, with the world’s largest reserves of foreign exchange, inevitably would be dominant, perhaps in much the same way that the United States and Europe dominate the World Bank and the International Monetary Fund. The development bank would be the first institution of the informal BRICS forum which was started in 2009 amid the economic meltdown to chart a new and more equitable world economic order. South Africa joined two years ago. “Russia supports the creation of this financial institution,” President Vladimir Putin said Wednesday, but he cautioned “we believe that, if it is created, then it must work on market principles only and support the businesses of all our countries.” But his deputy foreign minister, Sergey A. Ryabkov, implied the announcement was premature: “We are not contesting the idea, we support it, we favor it, but we are urging everyone to be serious enough to make further efforts in order to create the right foundation.” They were at a stage where “the devil is in the details,” he added. Inability to agree on fine points about the bank, first mooted a year ago when finance ministers were tasked with exploring its feasibility, highlighted the differences between the bloc that is made up of democracies and autocracies, diverse foreign policies and structurally different economies. But at the fifth BRICS summit, its first in South Africa at the coastal resort of Durban, leaders pointed to their shared histories and aims: South Africa, very much the junior partner with a much smaller economy, has a decades-old relationship with China and Russia since they funded and armed anti-apartheid liberation movements; it shares a history of colonization with Brazil, a country that was the destination for more African slaves than any other; and with India as Mahatma Gandhi lived in South Africa for more than 20 years and developed his political activism here as he faced discrimination from a white minority government. South African President Jacob Zuma, whose country is lobbying to be home to the BRICS development bank, said the formal negotiations to establish the institution were “based on our own considerable infrastructure needs, which amount to about $4.5 trillion U.S. dollars over the next five years.” The bank will also cooperate with other emerging market countries and developing economies. Zuma said the bank also will establish a “BRICS contingent reserve arrangement,” a pool of money to cushion member states against any future economic shocks and further lessen their dependence on Western institutions. Both those aims challenge the traditional roles of the World Bank and the International Monetary Fund, institutions that in their 50-year life have been dominated by the United States and Europe’.[1]

Will Durban spell the end of the era of Breton Woods???  The AP report continues that ‘Brazil’s President Dilma Rousseff said BRICS has confounded its critics. “Even the most skeptical voices do recognize the contribution the BRICS bloc of countries has provided in the field of international economics,” she said. Even the World Bank has said that global growth over the past few years and for the foreseeable future is being driven by the bloc. Rousseff said it is time multilateral institutions like the IMF and World Bank become more democratic to clearly reflect the growing influence of developing countries’.[2]  If nothing else, these developments highlight the power of words, as the mere concept of BRIC (or BRICS, as it is now spelt and understood) was actually coined by the Goldman Sachs economist Jim O’Neill, lumping together far-flung countries with apparently similar economic outlooks. I wonder what will happen to the MIST configuration in some years’ time???


[2] “BRICS plan development bank to fund infrastructure”.