| The first BRIC summit will be held in the Russian city | | | | sub-prime crisis erupted and intensified, the U.S. |
| of Yekaterinburg. This may be the global economic | | | | government to implement large-scale fiscal and |
| and political situation the beginning of the evolution. | | | | monetary policy to rescue the market with rising |
| BRIC countries (BRICs) is created by Goldman Sachs | | | | negative externalities. Once the U.S. Treasury market |
| economists terms, but once created it swept the | | | | demand can not keep up supply growth, emerging |
| globe. This title will be China, Russia, India, Brazil 4 | | | | bond yields rise and the decline in stock market value |
| world's most important emerging market economies | | | | of bonds will be the inevitable result of BRIC holdings |
| characterized as a group, the four countries have | | | | of U.S. Treasury bonds to escape the shrinking value |
| one-fourth of the world's population, 15% of global | | | | of doom. U.S. "quantitative easing" monetary policies |
| GDP. China and Russia are big countries the UN | | | | of the implementation of dollars destined to result in |
| Security Council, while India and Brazil are | | | | additional excess reserves by commercial banks |
| "permanent," the candidate. The rise of the BRICs, | | | | increased. Once the stabilizing U.S. financial markets, |
| no doubt will profoundly change the global economy, | | | | the real economy began to rebound, the money |
| financial and geopolitical situation. | | | | multiplier will quickly enlarge, the United States may |
| The background to this summit, of course by the U.S. | | | | be Danxizhijian deflation into inflation, foreign currency |
| subprime mortgage crisis evolved from the global | | | | reserve assets of the BRICs remain in jeopardy. |
| financial crisis. The global financial crisis originated in | | | | In this context, the BRICs government tried two |
| the U.S., but hit the other developed countries (such | | | | ways to reduce dependence on the dollar. Bank of |
| as the euro zone, Japan and the United Kingdom) and | | | | China Governor Zhou Xiaochuan made in March this |
| emerging market countries (including the BRIC | | | | year to reform the international monetary system, |
| countries). The outbreak of the global financial crisis | | | | proposals for the establishment of a super-sovereign |
| not only exposed the deficiencies in the existing | | | | reserve currency, this reserve currency from IMF |
| international monetary system, but also a threat to | | | | Special Drawing Rights (SDR) start. This proposal has |
| global free trade system, but also makes the future | | | | been Russia, Brazil and other government officials |
| power source for global economic growth has | | | | strongly endorsed; In addition, the BRICs have |
| become complicated and confusing. Activation of the | | | | attempted to expand their national currencies for |
| global financial crisis, various international multilateral | | | | cross-border trade settlement of the pilot. China and |
| forums, including the Group of Twenty (G20), | | | | Brazil are on bilateral currency swap and currency |
| Financial Stability Forum. Emerging market countries as | | | | exchange trade settlement problems in full swing. |
| a concentrated expression of personal demands of | | | | The future may be signed between the BRIC |
| the group, BRIC summit produced a timely act. | | | | countries more bilateral currency swap and currency |
| There is no doubt, calls for a change from the | | | | trade settlement agreement. |
| dollar-dominated international monetary system, | | | | Strengthen the BRIC economic and trade cooperation |
| reducing international trade and investment | | | | between, will become the main topic of this summit. |
| dependence on the dollar will become the core of this | | | | BRIC's economic structure has an important |
| summit to discuss the issue. In the current dollar | | | | complementary, such as China and India is an |
| standard system as the core of the international | | | | important resource importing country, while Russia |
| monetary system, the BRICs are an outsider. As the | | | | and Brazil are important exporters of primary |
| currency can not be directly involved in international | | | | products. In the near future, China has with Russia, |
| financing, they had to rely on resource exports and | | | | Brazil have signed the loan agreement for oil. Future |
| way of access to dollar earnings at the same time to | | | | bilateral and multilateral free trade agreements, |
| invest in U.S. financial assets (in particular U.S. | | | | investment memorandum of cooperation in terms of |
| Treasury bonds) in the form of dollar export earnings | | | | the BRICs will have more cooperation results. |
| into foreign exchange reserves. However, with the | | | | |