Putin BRICS Remarks Imply Need for New Monetary System

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The presidents of the BRICS smile for their summit photo in Johannesberg, 2018

July 26, 2018 (EIRNS)—Very brief remarks delivered by Russia’s President Vladimir Putin at the Johannesburg BRICS Summit today, after a restricted meeting of the five leaders’ in the BRICS Council, implicitly point to the need for a new monetary system, and the basis which has been created for such a system in the cooperative banks, funds and institutions created by the BRICS, the Belt and Road and China, and the Shanghai Cooperation Organization. A good part of Putin’s statement, posted to the Facebook page of the Russian Embassy to the United States, dealt with this. He said:

“We view positively the activities of the [BRICS Business] Council to implement joint multilateral projects. It is necessary to conduct these activities in close cooperation with the [BRICS] New Development Bank. It is important that the business community should help enhance the Bank’s loan portfolio.

“The New Development Bank has considerably expanded its operations as of late. Members of the Board of Directors have approved 21 projects worth over $1 billion, including five that will be implemented in Russia.

“We support the idea of opening regional offices of the Bank. Talks are underway with Brazil on this issue. Hopefully, the possibility of opening the Russian office will be discussed after the talks.

“The establishment of the BRICS Contingent Reserve Arrangement [to support countries under balance-of-payments pressure] deserves praise, and this has become an important mechanism for the prompt financing of our countries’ banking sector....

“In 2017, we met in Xiamen [China] and decided to establish the BRICS Local Currency Bond Fund. This is very important for the development of the financial systems of our states. Therefore, the Fund’s timely initial operations, due to commence in 2019, serve the interests of BRICS.”

BRICS: Creating a New Paradigm for World Development — Will the West Join?
Thursday, July 26, 2018

A demonstration of the accelerating emergence of a new world order is taking place in South Africa today, where the leaders of the five BRICS nations — Russia, China, India, South Africa and Brazil — are holding their tenth annual Summit beginning yesterday and continuing through Friday. Also attending are the heads of state from Indonesia, Turkey, Argentina, and a large number of African nations, as part of the "BRICS Plus." The African leaders will also attend a BRICS Africa Outreach Summit.

Kesha Rogers, the LaRouchePAC-supported independent candidate for Congress from the 9th Congressional District in Houston, Texas, noted yesterday that there are strong similarities between the economic challenges facing Africa, which are a primary subject on the BRICS Summit agenda, and those facing Houston, Texas, and much of the United States. Despite the vast difference between the historic development in the United States economy and the historic lack of development in Africa, the fact is that Houston was devastated by Hurricane Harvey in August of 2017 primarily due to the severe lack of infrastructure to deal with the inevitable storms which strike the region regularly. Beyond that, she added, much of the damage from that storm has yet to be repaired, while the dire necessity to build new infrastructure to prepare for the new hurricane season which is now arriving remains at best ideas on paper. Rogers will call on Americans, and especially African-Americans across the country, to join her in demanding that the U.S. learns from the model of the BRICS approach to the transformation of Africa, through vast infrastructure development in the spirit of the New Silk Road.

President Trump has dedicated himself to restoring and expanding the decayed U.S. infrastructure. Following his "peacemaker" summits with Xi Jinping, Kim Jong-un and Vladimir Putin over the past year, there is every reason to believe that he could achieve that goal, with the support of the American people, by joining with the BRICS, and with the new financial institutions such as the BRICS' New Development Bank and the China-initiated Asian Infrastructure Development Bank, bringing the New Silk Road into the United states. This process would also provide U.S. industry with huge new opportunities to join with China, Japan and others in the explosive development now beginning to transform Africa, Ibero America, and Asia.

Listen to the words of Xi Jinping, addressing the BRICS Business Forum yesterday:

"We should pursue innovation and seize development opportunities. Science and technology, as the primary production forces, have provided inexhaustible power driving progress of human civilization. Humanity had made giant leaps forward as it progressed from an agricultural civilization to an industrial civilization, a process which created both huge gains in social productivity and growing pains. The world today has once again reached a critical historic juncture. In the unfolding new round of scientific and technological revolution and industrial transformation, new things will inevitably emerge and take the place of old ones. Indeed, this will be a difficult and painful process. But if countries succeed in seizing opportunities that have presented themselves, they will be able to achieve new dynamic growth and deliver better lives to their people.

"In the face of new opportunities brought by new science and technology, every country has an equal right to development. Those who fail to keep abreast of the trend of the times will fall behind and become irrelevant. What we can and should do is to seize opportunities, increase input in innovation, focus on creating new areas of growth and replace old growth drivers with new ones.

"Home to more developing countries than any other continent, Africa has more development potential than any other region in the world. We should strengthen cooperation with Africa, support its development and make BRICS-Africa cooperation a model for South-South cooperation. We should actively carry out cooperation with African countries in such areas as poverty reduction, food security, innovation, infrastructure development and industrialization in a way compatible with their national conditions."

The Schiller Institute has now released the totally new 440-page Volume 2 of the ground-breaking Special Report from 2014, "The New Silk Road Becomes the World Land-Bridge." The new report, subtitled "A Shared Future For Humanity," covers the incredible worldwide developments of these past four years, while proposing a model for the development of the world and beyond for the next fifty years based on the principles of physical economy developed by Lyndon LaRouche. It can be purchased at: https://schillerinstitute.nationbuilder.com/wlb_ii

In August of 1971, the oligarchy succeeded in finally destroying the Bretton Woods monetary system, created by Franklin Roosevelt, bastardized by Harry Truman, but nonetheless a basis for stable trade between nation states. What came in its wake was the free trade system favored by the City of London, in which price has no relation to the actual cost of production.