BRICS And Stones: Should An Emerging Alliance Worry The US?
Also, one long-running speculation has been that the BRICS nations ultimately want to form their own currency as an alternative to the U.S. dollar and the euro. This could reduce demand for the dollar as a reserve currency, which could lower the dollar's value relative to other currencies. A strong currency is a double-edged sword -- it makes imports cheaper but makes a nation less competitive on an export basis. Also, a weaker dollar would somewhat tie the Federal Reserve's hands on policy decisions, such as the current low-interest-rate approach.
It's possible that with stronger currency competition, the U.S. would have to offer higher interest rates to support the dollar. Depositors in savings accounts, CDs and money market accounts might love that outcome, but if it came about too suddenly it could be very disruptive to the economy.
Fortunately, multi-national financial cooperation is too complicated to come about quickly. For now, the BRICS summit is primarily a reminder that the future may be very different from today's world.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV