Emerging markets are being battered by the global financial crisis as investors shun assets seen as being riskier. Russia, the world’s largest energy supplier, has spent $210 billion, or more than a third of its currency reserves, supporting the ruble since August, Fitch said.“The country made a mistake trying to defend the ruble when it was indefensible,” said Nouriel Roubini, the New York University professor who forecast a US recession two years ago, in an interview in Moscow. (via Fitch cuts Russian debt rating, sparks memories of '98 crash- International Business-News-The Economic Times).
G7 and OECD countries have created a club for themselves, by giving each other unlimited line of credit - while the developing world gets credit based on fast-depreciating dollar/euro foreign exchange reserves. Maybe this needs an inversion.
The OECD and G7 should be asked to pay their purchases. In a new global reserve currency. And the BRICS need to start working on that.
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