The BRIC Summit and The Reserve Currency Debate

intra BRIC Brazil, Russia, India and China trade have increased significantly in recent years because you have a huge consumer of commodities that is China and a huge producer of commodities that is Russia , in this case why bother going to the American dollar , the only problem you have in those countries is that you do not have full convertibility yet or their currencies , there should be a currency of exchange in the middle and this in the future could be the Yuan or the Euro..."What the BRIC are trying to do is effectively move away from the issue that they've got themselves, which is a vast amount of foreign exchange reserves predominately denominated in dollars. They're seeing that the trade between their own economies has increased significantly," Shanat Patel from Liberum Capital said.there is not a viable alternative to the dollar at this stage , Russia and China together hold a huge amounts of dollar reserves at around 2.4 trillion , as a block the BRIC is becoming very powerful right now
The heads of the BRIC countries called for emerging economies to have a “greater voice and representation in international financial institutions” and for a “more diversified” global monetary system. The comments were made in a joint statement released after the historic meeting today.The leaders of The BRIC agreed to push for more clout in global financial institutions at this first summit, without announcing a common policy on how to flex their $2.8 trillion reserves in US Dollar .

The $134.5 Billion Bond Seizure in Italy

The mysterious $134.5 Billion Bond Seizure found by the Italian finance police " La Guardia Di Finanza " at the Swiss Italian Border of Chiasso on two apparently Japanese Citizens raises multiple questions on whether those bonds are real or fake , both are two scary scenarios , if the bonds are real this means some foreign government is trying to dump the US treasury bonds before the hyperinflation hits ?!?!?! that's a plausible scenario , the other scenario is that some foreign government with the capacity and the technology of printing money is now into the business of printing "counterfeit US treasury bonds" and is ready to flood the market with fake US bonds ? could it be Iran North Korea the Russian Mob or the Italian Mafia , who knows ? we all remember that in the 80s , Iran have purchased a US dollar printing machine and have flooded the market with fake US dollar bills , the printing fraud was located in southern Lebanon and was controlled by Iranians ...this is a huge amount of MONEY that is 1% of US GDP , this could destabilize the markets ...the funny coincidence about this is that the arrest of these two Japanese citizens came just a couple of days after the Japanese Finance ministers publicly declared his total and full faith in the strength of the DOLLAR ...!!! all this leave us with too many question marks , only time will answer them ...

US Treasury bonds sales in sharp decline

Foreign governements and Investors have been very shy lately when it comes to purchasing US treasury bonds , according to the The Treasury Department the sales of Treasury bonds have dramatically dropped in the month of April compared with the month of March from $US55.4 billion in March to $US11.2 billion in April.
Both China, the largest holder and buyer of US Treasury Bonds and Japan have dramatically reduced their purchases, other Foreign governments and private investors have done the same .
US investors have been sending their money abroad, too. US residents invested $23 billion in long-term foreign securities in April, up from just $1 billion in March.
China alone owns 10 per cent of America's publicly held debt.

For the first time in 11 months China's holdings of US Treasury bonds fell - to $763.5 billion in April, according to US government data .

The figure is down from March's $767.9 billion, was the lowest since June 2008