6/12/2009
By Charles Payne

I have no doubt we are moving toward a one-world government or at least that's what the intellectuals and their billionaire benefactors' desire but there is something odd obstructing the view of this future utopia.  In fact, that object is not only blocking out the sun on their dream of lowering everyone else's dreams for the sake of the greater good, but that object is also moving.  It's a brick or should I say BRIC hurling at speeds not seen since a cloud of dust somehow exploded packing the power of a million nukes which resulted in the creation of our universe.  This big bang is aimed at shattering the old guard or old world order.  There may not be any way to slow it down or change its trajectory.  Although their economies aren't as dynamic as western nations or Japan, part of their economic growth will actually come from developing homegrown markets while also exerting more muscle around the globe.

These countries have been in our rearview mirror for years but only now are we understanding the warning: objects may be larger (and moving faster) than they appear.  Certainly it looks like their bite will be as large as their bark, maybe larger.  Without a doubt they are on the verge of carrying out threats (or promises) to lessen their exposure to the dollar.   Russia, with more than $400.0 billion in currency reserves of which $168.0 billion is the USD, says it cut its future investments in the greenback for IMF bonds known as Special Drawing Rights based on a basket of currencies.   Reports say China and India plan to purchase $50.0 billion of IMF SPD.  This is a serious rebuke of Americans' economic policies as there is fear that the leap in the deficit to almost $1.8 trillion dollars comes with heightened risk to investors and holders of the USD.

But its clear there are a few upstarts (although for China and India it's a comeback as there was a time they represented 50% of the world's GDP) that are ready to reshape the new/old world order.  The growth of BRIC can't be ignored and they are young countries compared to the US, EU and Japan.  In fact, the current top economies need huge migration waves to prevent their economies from collapsing in the next 10 to 15 years. Note: Purchasing Power Parity (PPP) uses the long-term equilibrium exchange rate of two currencies to equalize their purchasing power.