It was a cruel October and the Lodgers' fed, their like stomach and like liver with moral bread. The Lodgers' filled their like lungs and like heart gladdened, to ole' glorious song and a mischief maddened. The Lodgers' like brain and like eyes consumed, the haggis of man and beastly pruned. The Lodgers' they are, like horn and hoof, the burden of flesh and heavenly roof. Bleed and stem, the rain of flesh, suffer the folds of mortal mesh. Like parts and shiver, the world falls apart, leaving in place a like Lodgers' a la carte.
Learn Why The US Dollar Will Not Collapse : Since 1944 the currency of the United States has been used as the primary reserve asset in the international monetary system. The use of a single domestic currency such as the USD as the global reserve currency has caused large systemic imbalances in the global financial framework. These imbalances have led many to believe that … Continue reading Learn Why The US Dollar Will Not Collapse
Important Update for Members and Non-Members : By JC Collins First, I’d like to thank everyone for their patience as the site transitions to a subscription service. There have been a few glitches with the registration process but all seems to be working fine now. Second, the large library of information which has accumulated on POM over the last year and half … Continue reading Important Update for Members and Non-Members
The Cashless Society : The elimination of paper currency and the inevitable end of anonymous transactions are fast approaching. As frightening as this reality may be, there are both pros and cons to the reduction of paper currency in circulation and the regulated use of electronic currency. The obvious con is directly related to individual sovereignty and privacy rights. The ability to perform anonymous transactions will become impossible under the protocols of a cashless society. For many, this seemingly natural right to remain anonymous is unfortunately overshadowed by criminal activity and underground economies, both of which are supported by paper currency in circulation. One method of reducing paper currency which has been discussed is to hold a reverse lottery of sorts, where random note serial numbers are pulled, at which point they become worthless and are taken out of circulation. Anyone holding the lottery notes would instantly lose the associated wealth. Under such a program there would likely be a rush of paper currency back to the central bank as wealth retention is sought. It’s a freakish catch-22 when systemic deflation is growing by the day, which in turn leads to the hoarding of cash. The central bank answer to the deflationary shocks is to go even deeper into negative interest rate territory. But this negative interest rate policy, and associated savings debit, will also lead to the hoarding of cash, as individuals attempt to protect their wealth from confiscation. The obvious solution, from a central planning perspective, is the elimination of paper currency in circulation.
The Secret of the TPP : The Coming Interest Rate Increases and Dollar Depreciation By JC Collins The Trans-Pacific Partnership is being promoting as an opportunity for the United States to boost exports and create more domestic jobs. The reluctance of most Americans to accept this salesmanship at face value exists for good reason. Trade agreements of the past, such as NAFTA, have not particularly benefitted the average citizen of the United States, Canada, or any other country that has entered into FTA’s of any sort. With that being said, one of the main reasons for the continued disparity of past trade agreements is centered on the inability of authorities to address exchange rate manipulation and currency mismanagement.
The Mechanics of a Vietnamese Dong Appreciation : One segment of this multilateral shift has to do with using exchange rates as a method of correcting the imbalances. It has been determined that appreciating the domestic currencies of trade surplus countries is a viable rebalancing strategy. This is likely what is behind so much of the “global currency reset” talk and conspiracy which has built up online over the last 5 years. It is not a coincidence that talk of this sort began at the same time as 2010 IMF Quota and Governance Reforms and announcements from China on moving away from the USD towards a supra-sovereign (non-domestic) asset, such as the SDR, and discussions around the sovereign debts of historical bonds. The SBV is unable to contract the money supply because that would mean purchasing less government bonds and ending the managed peg to the USD. The multilateral framework is not yet ready to support such a move by Vietnam, but could be by Jan 1, 2016, which is when both the AEC trade agreement and new SDR composition, which will include the Chinese currency, will come into effect. The State Bank of Vietnam, or any other central banks, have the ability to bring money in and out of existence. As such, a method of reducing the money supply, once the VND ends the peg to the USD, could simply entail purchasing additional government bonds with the existing money supply, as opposed to creating new money supply. This would take money out of circulation.
China Gold Deposits to the IMF : The world has never used a supra-sovereign (non-domestic) currency as the global reserve asset, and as such, there are some unknown factors which could swing valuations and volumes. The agreement between all countries and global institutions on a multilateral framework has been in negotiations since at least 2009, if not earlier. Many of the geopolitical and macroeconomic adjustments (such as the tension with Russia and the Swiss franc depeg) are symptomatic of the challenges presented by attempting to draw all countries into a multilateral framework. There are so many moving pieces to this transition, but some semblance of pattern is beginning to take shape. Based on the demand of China to have their own domestic currency added to the SDR composition, and the agreed upon accumulation of gold by China, along with the “multilateralization” of gold exchanges, such as in London, and the rise of the yuan denominated SGE, can be interpreted as early indicators of the intent of Chinese authorities to place a large amount of gold on deposit with the IMF, in anticipation of the implementation of the SDR as the global reserve asset.
The Rise of the Philosophical Class : The attempts at replication between all layers and levels of our socioeconomic framework unfortunately focuses on mundane and self-defeating obsessions, such as mindless entertainment, substance abuse, rumor and fear mongering, being better and faster than the rest, all take and no give, pornography, illusionary sexual ideologies and pairings, and all other forms and methods of lowest common denominator methodologies and mannerisms. ......... The emergence of advanced technologies, such as AI and robotics, which will find one of its ultimate purposes in the autonomous replacement of all human labor, will leave humanity with an endless yearning for more. We will attempt to live vicariously through our artificially conscious companions and servants, and perhaps in time even seek union with them through the mandates of Trans-Humanism. But it is my contention that humanity is now entering a period, or feedback loop, where the esoteric philosophy of the old world is gaining ground in the minds and hearts of those whom least suspect, or want it to happen.
Will the AIIB Use SDR as the Currency of Settlement : By JC Collins It is interesting that the countries which have joined the Asian Infrastructure Investment Bank (AIIB) are now the same countries which are supporting the inclusion of the Chinese currency in the basket composition of the Special Drawing Right of the IMF. The currency of settlement which will be used by the AIIB has been widely speculated over the last few weeks and months. There has been talk of an AIIB currency basket, and the discussion around using the USD as the currency of settlement. A unique AIIB specific currency basket is likely a non-starter as the time and negotiations required to construct and implement such a regional currency basket will not align with the operational timeframes of the AIIB itself.
Important Update from JC : Corporate Hedging, Alternative SDRF Compositions, 401k Service, and PoM Membership Following the announcement of the SDRF strategy 5 days ago, there has been a tremendous amount of interest and requests for additional information. Some of the initial feedback had a lot to do with the minimum start-up amount of $10,000.00, and how to make the … Continue reading Important Update from JC
Announcing the SDR Futures Account : It is with great excitement that I introduce the world’s first SDR based financial product which is available to the average retail investor. The SDR Futures Account, or SDRF, functions outside of the systems of the global institutions and central banks, but is based on the framework and diversification of the SDR.
Chasing Ghosts : The Prison of Our Mind By DeeJJ It is perceived by both the rent seeking elite and disorganized masses that there is an eternal enemy that lies beyond our control. It is labelled in various ways depending on the belief structure of the current society. Within the construct of religion, for example, the enemy is presented as a daemon or devil; a heartless evil creature that has the power to lure those of weak virtue into acting on more primal impulses such as murder or promiscuity. The stakes are high in the battle of good vs. evil, with the soul elevated as collateral. This creates a continuous push and pull within the mind, knowing what is moral, ethical, and righteous while being tempted by mammalian motives
Conflict and Commonality Between Multilateralism and Democracy : By JC Collins With the increasing socioeconomic tension in the United States, it is reasonable to expect that the population could begin to see the scaling back of police state methodology and the beginnings of a more democratic process which reflects the growing demand for fair and equitable representation. Whether its protests and rioting against the abuse of power by police, or legislative bills demanding an audit of the Federal Reserve, the pattern of reversal is beginning to take shape. Some assumption can be made and discussed regarding the rise of multilateralism and the effects of a waning unipolar American world.
Fear Not the Death of the Dollar : Dollar Depreciation and Investment Safe Havens By JC Collins With so much fear mongering and predetermined analysis surrounding the so-called “demise, or death of the dollar”, it can be frustrating for the average person and investor to step back and reflect on the totality of what the multilateral effects will be on the American currency. What is certain amongst the international financial institutions and central banks is the reduction in reserve currency usage of the dollar.
More Confirmation of SDR/RMB & Upcoming POM Announcement : Updates from the IMF Spring Meetings By JC Collins During a live question and answer session at the Spring Meetings of the International Monetary Fund and World Bank, Managing Director Christine Lagarde once again reiterated that China has formally requested the inclusion of the renminbi currency in the SDR basket composition. She also stated that Chinese efforts towards economic reforms, such as opening up capital accounts, has been supporting the case for the yuan.
The (Un)Inevitability of War Between China and America : And the Destabilization of North Korea By JC Collins As the world continues the shift from a unipolar American dominated world to a multilateral world based on the fair political and economic representation of all countries, there remains flashpoints of tension and possible conflict in regions of the world which have acted as hinges, or gateways, for American hegemony.
Hume’s Multilateral Adjustment Mechanism : By JC Collins As the Special Drawing Right (SDR) rises to its position as primary reserve asset used in global trade, other countries outside of the current 4 which make up the composition, will seek to have their own domestic currencies added to the supra-sovereign asset basket. China’s yuan is the obvious inclusion on this 2015 go around, but India, and other emerging economies, will likely be internationalizing their own currencies over the next 5 years to ensure they are included in the 2020 adjustments which will be made to the SDR basket composition.
SDR Fundamentals & Future Announcements : By JC Collins This post is specifically structured to help readers, who may be unfamiliar with the SDR and how it works, to become more educated on the history of the SDR, and what it's future characteristics and functions will be. As we move through the year and to the ultimate restructuring of the global monetary system, it will be important for people to understand what they can do, and how they can do it, to protect their wealth and remain viable throughout the multilateral transition.
When Will China End the Dollar Peg : The Last Year of American Hegemony By JC Collins Update: The IMF and China sign agreement on strengthening fiscal institutions and capacity development. China is now heavily involved with the integration of its financial and monetary architecture within the macro multilateral framework. This should eliminate any remaining doubt as to the validity of the transition. - JC
China Officially Requests Yuan in SDR : Chinese Premier Li Keqiang on Monday asked the International Monetary Fund (IMF) to include the Chinese currency in the special drawing rights (SDR) basket, endorse the yuan as a global reserve currency alongside the dollar and euro.
The Coming Western Tribunals : Update2: As a gesture of fellowship amongst the group, here are a list of links supporting the probability of some sort of tribunal process against the west. The momentum and political mandate for such action is slowly growing around the world. With the move away from USD geopolitical and economic hegemony will come the inability of American interests to veto such actions taken against them for war crimes committed over the last 7 decades. How the process will look, and who will be held responsible can not be determined, but once the required leverage is achieved, you can bet a formal process will be enacted against America for reparations.
JASON & The Black Swan Probability : Now that current events are confirming the analysis which has been developed here over the last year and 2 months, it's time to move forward and understand the broader ramifications of what these changes will mean for the monetary world.
Am I A Psy-Op & Don’t Even Know It? : Since starting this site on New Years Eve, 2013, a mere 14 1/2 months ago, I've received some strange and bizarre messages in the comments section. As I have chosen to moderate the comments, there are many that do not make it to the screen. There are many reasons for this.
The Real Reason the Swiss Peg Ended : When Managing Director of the International Monetary Fund Christine Lagarde gave the speech last year where she mentioned the number 7 numerous times, the internet caught fire with theories and analysis of what exactly was meant by the term "magic seven". Contrary to popular opinion, it had very little to do with the occult, and more to do with the forthcoming composition changes to the SDR valuation.
The Redback Revolution : The Made In China label became a symbol of economic production lost in the western world alongside the rise of cheap labor and goods from the emerging economies. The cultural meme of "everything made in China" became common and could be heard at any given moment, anywhere in the developed world.
The Coming Western Tribunals : "The record of US war crimes and crimes against humanity, against human and planetary life itself, is suppressed. It should be foremost in the minds of those observing what happens next in this potential world war situation or – perhaps at last – non-US resolution." - Prof. John McMurtry, Fellow of the Royal Society of Canada, from his essay published on Global Research.
The Greek Betrayal and Pan-European Solidarity : It has now become common knowledge that the promises made by the new Greek Syriza government have been broken. The voting population of Greece were fed a steady stream of propaganda on how Syriza was going to stand up to the Troika, or trifecta of the European Commission, European Central Bank, and the International Monetary Fund.
Economic Ground Zero for Canada : After the collapse of oil prices and home valuations in 1986 the oil sands mining town of Fort McMurray became a semi-desolate place of reduced expectations. One of the two mining operations went on strike and I remember the workers picketing on the highway near the site access.
Development Goals of the New World Order : For lack of a better term, the European banking structure is about to be gutted and the direct management of the system will be given to the European Stability Mechanism. This statement is not made flippantly or without regard to the facts and macroprudential policies which are being implemented globally.
War & Petroleum Reserves : In the interest of analytical balance, we would do well to consider the possibility of war strategies when it comes to the global stockpiling of petroleum reserves. In the years leading up to the German invasion of Poland, the world witnessed dramatic decreases in the price of oil as well as massive increases in petroleum inventories, especially as the Texas fields began to produce.
BRICS SDR to Bailout Eurozone : The different angles of geopolitical and macroeconomic events are beginning to coalesce into the direct 90 degree turn which will shift the global financial system in the direction of the multilateral architecture. The apparent movement away from the USD unipolar structure towards the multilateral framework which is being implemented in stages is becoming more visible with each passing day.
The Greatness Beyond :
The Shifting Script : With the first month of 2015 in the books, the year, thus far, has met the expectations of the volatility which has been previously discussed amongst us here on the site. So many readers and contributors have written and shared links to massive amounts of material that it leaves very little for me to write myself.
One Hundred Percent of Nothing : The Association for Mineral Exploration British Columbia, AME BC, is holding its annual Round Up Conference in Vancouver this week. One of the attendees is Rick Rule of Sprott Asset Management, who sat on a discussion panel this morning for Aboriginal Engagement.
Returning to the Source : Mornings in Vancouver are vibrant. And on this particular morning I spent some time staring out over the water of Coal Harbor. I'm here for the next few days attending a Mineral Mining Conference which is sponsored by companies such as Gold Corp, Rio Tinto, Teck, and other mining and precious metals groups.
The Shadow of Tomorrow : When President Obama stated last night in his State of the Union Address that the "shadow of crisis has passed" it perfectly set the stage for the next phase of the CSI, or Cultural and Socioeconomic Interception. The CSI is a prolonged and multi-scripted methodology which is implemented over years and decades to engineer specific adjustments to the collective awareness of mass populations.
The Gears Are Grinding Down : It has become common knowledge in the mining industry here in Canada that the large oil companies began holding strategy sessions over a year ago to address this downturn in the market. The "sustainable cost reduction strategies" were slow in coming at first but are now being developed and implemented from one day to the next.
The Fed & SDR Denominated Derivatives : Many for so long have proclaimed the end of the dollar and a collapse of the USD system. Though the dollar will be adjusted downward at some point in the initial implementation of a multilateral system, its sustainability in a broader monetary framework will be a fundamental corner stone to correcting the imbalances which originated from the USD system itself.
Fat Cats and Starving Dogs : This is why the solution has to come from within, as every system will simply corrupt again. Philosophers and great thinkers have warned us continuously for thousands of years. The manifestation of inner dysfunction and imbalance will always be represented physically as dysfunction and imbalances in the systems man develops.
China & Saudi Arabia Forcing USD Acquiesce : Back in August of 2014, Saudi Arabia signed a multi year energy deal with its largest crude oil customer China. This energy deal was focused more on nuclear energy and solar energy as opposed to crude. The agreement between the King Abdullah City for Atomic and Renewable Energy and Chinese Nuclear Energy Corporation is meant to develop domestic energy projects within Saudi Arabia worth $80 billion for nuclear and $100 billion for solar, between 2014 and 2032. Saudi Arabia is the largest crude oil producer in the Middle East as well as OPEC. It is also the largest consumer of hydrocarbons, with about 25% of its production being used for domestic needs. The country would like to change that by developing nuclear and solar energy which would allow it to export more of its crude and other hydrocarbon production onto the world market.
Reversing Bretton Woods : With so much happening on the economic front over the last few weeks its important to ground ourselves and take stock of just what is actually taking place. The continued depreciation of oil and the beginnings of depreciation of the stock markets are the result of the end of Quantitative Easing and the beginnings of the deflationary correction which will build the case for the economic transition from the unipolar USD Bretton Woods based system to the multilateral SDR based system.
2015 – A Year of Implementation : "The G20 has so far taken significant strides in designing and launching policy frameworks in many areas. In November 2014, as the members of the G20 we have agreed on the Brisbane Action Plan and pledged to undertake about 1000 commitments that, if fully implemented, will add more than USD 2 trillion to the global GDP and generate millions of additional jobs for our citizens by 2018.
Happy New Year and First Anniversary : It is one year since I started this blog, with no real idea or plan on what I was going to do, or how I was going to do it. Naturally my own thoughts and processes began to materialize within the body of writing, and with each new reader and commenter the blog began to take on a life of its own.
The Engineering of Global Public Goods : No analysis of the current macroeconomic and geopolitical situation in the world can be thoroughly complete without considering the role of Global Public Goods, or GPG. In contrast, private goods are considered to be produce, bread, televisions, etc.., items that are purchased individually for the enjoyment and consumption of the individual solely.
The Brotherhood of the Snake – Part Two : Read The Brotherhood of the Snake - Part One. Through the haze and detachment Edom watched as the devil figure proceeded toward the center of the room. The head was that of a goat with twisted horns and blood red eyes. The hooves were dark and stained. The rest was that of a large naked man with no discernible genitalia.
USD Needs Yuan in the SDR Basket : The international monetary system is inherently unstable, and the process to shift from a unipolar to a multi-polar system is well underway. The transition itself will take considerable time to fully implement and we are now somewhere between the first and second stages, with a third stage scheduled to be completed in the coming years.
The SDR Purpose of BRICS : 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.
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.
The Globalization of Central Banks : 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.
The Barbarians at the Gate : 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.
The Implosion of American Culture : 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.