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

http://www.imf.org/external/np/sec/pr/2015/pr15141.htm

One of the biggest questions which we need to consider as the world moves closer to the full implementation of the multilateral financial system is when will the RMB end its managed peg to the USD?  Now that the official request has been made to the International Monetary Fund, for the yuan to be included into the SDR basket composition, it is only a matter of time before the ending of the peg occurs.

There are a few time frames we are working with.  One is the May meeting of the IMF where the first formal discussions around the new SDR composition will take place.  The second is in October, which is when the new composition will be confirmed.  Finally, the new basket will come into effect on January 1, 2016.

There are some key indicators and trends which we can use to build a case for the time frame of this event(s).

Continue reading When Will China End the Dollar Peg

China Officially Requests Yuan in SDR

As expected, China has made the official request to the IMF.

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.

Full article can be read here:

http://thebricspost.com/li-vows-reforms-to-help-yuan-be-worlds-5th-reserve-currency/#.VRE4I-FE5f0

The Coming Western Tribunals

By JC Collins

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.

Russian Diplomat Says NATO Used Methods of Hybrid War - http://tass.ru/en/world/784478

Israel to Finally Face ICC Over War Crimes in Gaza - http://www.mintpressnews.com/israel-to-finally-face-icc-over-war-crimes-in-gaza-settlement-construction/203401/

ICC Should Prosecute ISIS for Iraq Genocide - http://www.reuters.com/article/2015/03/19/us-mideast-crisis-iraq-un-idUSKBN0MF0TX20150319

Sudan’s President Claims CIA and Mossad Behind ISIS - http://www.independent.co.uk/news/world/africa/sudans-president-claims-cia-and-mossad-stand-behind-isis-and-boko-haram-10051024.html

Did the Senate Just Open Up the US to ICC Prosecution - http://www.washingtonpost.com/blogs/monkey-cage/wp/2014/12/10/did-the-senate-just-open-the-u-s-up-to-icc-prosecution/

Prosecuting American War Crimes - http://www.wsj.com/articles/SB10001424052748704013004574519253095440312

This list can go on for a very long time.  If any readers question the validity of what I have presented in this post, I suggest they do there own research and consume the vast amount of information which is beginning to accumulate in regards to war crimes committed by the west and its partners and institutions, such as NATO.

Before closing, I’d like to bring to the attention of all of you the work of Gajendra Singh and his piece titled The Duality of an International Financial, Political, and Legal System  – Conferring Impunity on Major War Criminals.  The material can be read at the following link-http://tarafits.blogspot.ca/2014/04/iraq-war-crimes-international-legal.html

Update:  The recent announcement by the Obama administration in regards to the AIIB does not mean America is suddenly joining that institution.  It would still require congressional approval, and considering the US Congress has refused to pass the 2010 IMF Reforms, which the Obama administration also supports, strongly suggests that any AIIB membership will also be refused. The Obama administration, as represented by US Treasury Secretary Jack Lew, last week called on congress again to pass the IMF reform package as America was losing influence in the world.  This reluctance by Congress is what was implied in the post below about America not being admitted into the AIIB, no matter what Obama wants.

Original Post

The increasing isolation of Washington picked up speed this morning as it was announced by Christine Lagarde of the International Monetary Fund that cooperation with the new Asian Infrastructure Investment Bank will offer “massive room” for opportunity on infrastructure financing.

The AIIB, which was launched in October, 2014, is set with the objective of promoting road, rail, port, and other infrastructure construction projects in Asia, and around the world.  The establishment of the bank itself is being touted as a response to the failure of the administration in Washington to enact on supporting legislation to the IMF 2010 Quota and Governance Reforms.  These reforms were agreed upon by all members of the G20 as a response to the financial crisis of 2008, and as a means to give the emerging markets a more equitable representation in the existing international monetary system.

Initial funding for the AIIB was established at 36.3 billion SDR (considering the increasing emergence of the multilateral framework, we will no longer be stating amounts in the traditional USD method, no matter the denomination of issuance), and will grow to 72.6 billion SDR by the end of this year, if not sooner.

Continue reading The Coming Western Tribunals

JASON & The Black Swan Probability

By JC Collins

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.

There have been numerous proclamations over the last few years in regards to the irrelevance of the International Monetary Fund and the SDR – Special Drawing Right.  Now that it has been officially announced by both China and the IMF that the yuan will be added to the SDR composition by the end of this year (stating that they are in discussions is tantamount to a confirmation of such), the conspiracy theories and faulted analysis of the BRICS countries overthrowing the IMF and World Bank, and by default America, should be tossed in the trash bin where they belong.

Continue reading JASON & The Black Swan Probability

Am I A Psy-Op & Don’t Even Know It?

By JC Collins

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.

Some are racists, while others are outright criminal.  Occasionally messages from space aliens and planet gods from other dimensions make their way into the pending post section.  Sometimes it’s simply the same old tired rant against Jews.  Considering my wife is half Jewish (the other half is Egyptian, which made for confusing Passover celebrations when she was growing up), I could never take such comments seriously.

Continue reading Am I A Psy-Op & Don’t Even Know It?

The Real Reason the Swiss Peg Ended

And More Mischief About the SDR, RMB, and Gold

By JC Collins

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 purpose and theme running through the Special Drawing Right composition is also directly connected to the ending of the Swiss franc peg to the EUR. But before we get into that let’s review some of the information and logic behind the analysis which we are going to review and present in this post.

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The Redback Revolution

How China Is About to Flip from Trade Exports to Trade Services

By JC Collins

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.

Whole industries and business models were built around the economic methodology of exporting cheap goods.  Such as numerous chains of dollar stores, and brand name clothing outlets, which manufactured products in the Chinese provinces with the lowest labor costs, and then sold the goods at inflated prices to the developed world.

Continue reading The Redback Revolution

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