The SDR Purpose of BRICS

By JC Collins

Global markets are showing increasing signs of instability and there are serious concerns about risks to international liquidity building across the spectrum.  Exchange rate volatility is deepening with the Russian ruble leading the way and the systemic contagion is spreading around the world, from European and Western banks to stock market crashes in the Middle East.

Oil continues its descent into the $30 to $40 dollar range with a strategically timed announcement by OPEC today, at the peak of the turmoil, stating it will not meet again until June, 2015, ensuring continued instability and lack of confidence in the energy markets.

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IMF and G20 Moving Forward on Plan B

The year is coming to an end and as expected the 2010 IMF Quota and Governance Reforms have not been passed through the US Congress.  True to her word, Christine Lagarde has been quick to respond to the lack of movement on the reforms and has issued a press release.

Things will now begin to escalate across a broad spectrum, with instability in the USD expanding and global stock markets adjusting dramatically.  We can also likely expect increases in the valuations of gold as the liquidity crisis deepens and global money seeks liquidity outside of the dollar.  The propaganda promoting US instability will increase internationally and the script stating alternative sources of liquidity must be utilized will begin to be distributed to global media outlets.

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The Globalization of Central Banks

By JC Collins

Disclaimer:  The following material is written from the perspective of the global interests which are engineering the multilateral financial system and shifting the monetary frameworks away from the USD based system, and the imbalances that are inherent within that framework. In researching this material and structuring essays such as this one, it is challenging to coherently write from an opposing position, or even supporting position for that matter.  The material is presented in a neutral manner and the reader can make self determinations based on their own prejudices and analytical abilities.  Where I have expressed opposition should be obvious to the reader.

With the coming multilateral financial system the framework of global institutions such as the International Monetary Fund will have to be adjusted, which is what we are seeing with the now imminent implementation of Plan B for the 2010 IMF Quota and Governance Reforms. The reforms will restructure the institution to more accurately reflect the economic realities of the emerging economies, such as China.

As we discussed in the previous post, the shift towards the multilateral is in essence a shift away from the USD structured system. The current dollar based system has survived on a monetary policy framework which has focused on price stability and output growth, both of which affect financial stability through impacts on asset valuations, commodity prices, credit, leverage, and exchange rates.

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The Barbarians at the Gate

By JC Collins

The amnesty issue and immigration reform are symptomatic of the larger implosion of American culture and the transition away from micro empire to macro empire. In order to fully understand the scale and scope of what is transpiring on the socioeconomic and geopolitical spheres one must gain a deeper understanding of how the current situation and dynamics have been engineered and orchestrated.

All empires have been built around monetary policies and they crash alongside the corruption of those policies. In regards to the current state of world affairs, the transition away from one economic framework to the emergence of another represents the larger transformation of empire which is taking place in the world today.

The characteristics of the international monetary system since the early 1970’s can be defined as desperate attempts at maintaining the USD’s valuation. Whether contrived as an act of socioeconomic engineering or a reactionary position is somewhat irrelevant as the world now stands on the steep slope of transition away from a dollar centralized system.

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The Implosion of American Culture

By JC Collins

It was widely expressed by the mainstream media of the time that the collapse of the Soviet Union and the fall of the Berlin Wall could not have been predicted. In hindsight, the stagnation and drop in oil prices should have been the obvious signs that a dramatic change was coming. And when the USSR began to borrow from western banks, the fix was in.

Western banks is something of a misnomer, as no bank, or conglomerate of banking interests, can exist separate and independent of the larger international banking structure which has been built throughout the the 20th Century. Stagnate growth and the deflationary oil prices which began in 1986 acted as fine toothed methods of transferring wealth from the social trust within the Soviet Union, forcing banks within the USSR to borrow from western banks, which was in fact an exchange of assets amongst financial institutions.

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The Brotherhood of the Snake – Part One

By JC Collins

Even as a middle aged man Edom still dreamed of being a Viking. The large powerful Nordics who pillaged the corners of his childhood imagination still lingered in the shadowed recess of his mind. When no one was looking he would puff himself out and walk around pretending to swing an axe or sword.

The thought of razing and raping whole villages excited him. The feelings associated with pain and despair freed him from the everyday drudgery of life.

Here in the back of the limo hidden behind dark tint and smoky interior he swung his arms through the air in arc like motions, jabbing, thrusting, and splaying pretend people. Their playdoh parts and organs sprayed over the leather seats and velvet curtains.

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The Tail of the Dragon

How and Why China Delayed IMF Reforms Through Republican Party Donations

By JC Collins

In March of 2009 the People’s Bank of China Governor Zhou Xiaochuan called for a reform of the international monetary system.  Among the initiatives called for by Zhou was the creation of an international reserve currency which would be disconnected from any individual nations currency, and would remain stable by removing the deficiencies inherit in using credit based national currencies.

Other factors called for by Governor Zhou was for part of the official reserves of member countries to come under the centralized management of the International Monetary Fund.  Special Drawing Rights, or SDR’s, of the IMF should be expanded as a means of payment, denomination of securities, commodity denomination, such as oil, and the denomination of the new international reserve currency mentioned above.

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