The world is changing, we are currently witnessing a shift in power which will have a huge impact on people that don’t see it coming. Brazil, Russia, India, China and South Africa and now Australia by making the decision to trade directly with china are moving off the US dollar as reserve currency it marks a move in world power away from US and European dominance.
Ultimately the western currencies will devalue and economic power and output will move to the places where they are protected from the financial meltdown. The countries in the BRICS alliance are well placed to be the beneficiaries of the shift. Coorporations and transnational companies and individuals may well benefit from all the mess but most of the non-informed propagandised public will be hurt significantly in the panic and by the lower standard of living that will accompany the shift.
In this post I will describe what being a reserve currency means and my view on the possible sequence of events and impacts of the coming economic shift.