Can Emerging Market Economies Make a Credible Movement Against the Dollar?
It’s no secret that the BRIC countries want more global political influence. In fact, they explicitly asked for it this week. This is their attempt to strike while the iron is hot, to win market share of global influence. And the dollar is the media whipping boy … a perfect political tool. But then again, these countries have a large stake in the dollar, so the punches they throw have to be calculated and followed with counters and ambiguity. It’s also important to remember that we’re talking about a group of countries that could sink back into economic anonymity just as quickly as they emerged. Take a look at Russia for example … When the housing market began to fall in the U.S. and the financial system began to crack, the mantra of decoupling was making the rounds. Experts thought that emerging super-growth economies could operate independently of the U.S. and the world economy would keep on plugging away. That was quickly and clearly proven wrong. And there was no country hit ha
