Investors all over the world stampede to get in BRIC (Brazil, Russia, India, China) emerging superpowers but there are spots of problems
Sudhir Chadda, Special Correspondent
December 18, 2004

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The BRIC nations of emerging super powers have very similar stock charts that say World’s all major investors are stampeding to get in. After building tremendous bases the charts have broken through and are consolidating before blasting off again on the upside. But there are spots of problems in BRIC.

The stampede into these countries very natural because these nations are coordinating together as economic, trade, political and military powers. 

The economic mussel that is grabbing the world by surprise is coming from a new coalition of superpowers - Bric - Brazil, Russia, India, China... 

The BRIC countries are sucking away capital from America, Europe and Japan with the force of high-powered vacuum. 

For example Capital inflow in China, India, Brazil and Russia is staggering. The Forex reserves of all these courtiers are rising at the rate of a meteorite because of lower cost manufacturing, outsourcing, oil and gas in Russia and cheaper agricultural products. 

All economic indicators are pointing towards a stagnating America, Europe and Japan while double digit sequential growth in Bric. While US Dollar, Euro and Yen fight out the sparring match on Forex market with central bank intervention, interest rate differential etc, the real action is in BRIC. 

All is not well in BRIC though. Recently General Electric exited India’s booming outsourcing market after being established as a pioneer in Bew Delhi for the same. The bell weather nature of General Electric says what GE thinks today, the world thins tomorrow. 

Germany's Deutsche Telecom said on Dec. 17, it is selling almost half of its interest in Russia's Mobile TeleSystems cellular phone company. Considering that Russia's cellular market is one of the country's top investment possibilities and that Germany has many reasons to stay economically engaged in Russia, Deutsche Telecom's announcement is likely the first sign that major amounts of foreign investment will be flowing out of Russia.

There are reports that China has a hidden policy of not allowing foreign companies to make a significant profits.

Brazil is also susceptible to upheavals in neighboring Venezuela.

But overall the BRIC nations are growing at phenomenal rate and soon together will control two thirds of world’s economies.

As a trading partner, they can corner the Americans, Europeans and the Japanese.

However, before the big bang boom, they may correct themselves well and then move up like a stair-case.