“BRICS countries will be in the most unfavorable situation mainly because a currency crisis may break out within their borders, which has been underestimated for too long.
“To counter the financial crisis of 2008, central banks in developed economies eased their monetary and fiscal policies, and most of the “hot” Western capital has been directed to countries with emerging economies in order to support their growth. But now there is a danger that that old credit bubble will burst.
“The financial balance of BRICS can fail because the dollar continues to rise and the credit institutions of the Old World are suffering from poor liquidity.
“What’s more, the Chinese real estate bubble may implode, causing the fall of commodity prices, which so far were moving the growth of emerging economies.
“The crisis will break out when they run out of foreign currency reserves. If the global recession brings energy prices down, it will adversely affect the national economy of Russia. For China, the biggest danger lies in the real estate bubble that can burst at any moment. If the U.S. and Europe fail to cope with the situation, the world should prepare for the worst.”
My Comment: The crisis will force us to rethink our attitude towards ourselves and the world.