BRIC summit could become the global economic and political situation the beginning of the evolution of

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

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