Charles Payne

Yesterday, BRICS nations (Brazil, Russia, India, China, and South Africa) formally announced the creation of a special reserve fund that will rival the International Monetary Fund (IMF).

BRICS Fund in Billions

Country

IMF in Billions

$41

China

$9.5

$18

Russia

$5.9

$18

Brazil

$4.3

$18

India

$5.8

$5.5

S. Africa

$1.9

In addition, a $50 billion Development Bank (each nation contributing $10 billion) will be created to help non-member nations build out their infrastructure. Who knows, maybe America could dip into the fund to help bridge the gap in the financing needed to improve highways and bridges by 2020. According to the America Society of Civil Engineers, governments (state and federal) will fall $1.6 trillion short of the $3.6 trillion needed.

Of course, that is not going to happen. In fact, BRICS and other nations in developed countries believe that the IMF, which made draconian resources involving the decolonized nations, have been overly generous to European borrowers.

IMF

The IMF was created in July 1944, at the Bretton Woods Conference. IMF Special Drawing Rights (SDRs) are issued through the General Resource Account (GRA) to borrowers:

  • 117 Members
  • $302 Billion Total Assets
  • $3.2 Billion Gold
  • $142.7 Billion Currenciesr Genl Resource Account
General Resource Account

SDR

% Outstanding GRA

Africa

856

0.9

Asia/Pacific

1,640


Charles Payne

Charles V. Payne is a regular contributor to the Fox Business and Fox News Networks. He is also the Chief Executive Officer and Principle Analyst of Wall Street Strategies, Inc. (WSSI), founded in 1991 which provides subscription analytical services to both individual and institutional investors.