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 expansion of the membership list of the Asian Infrastructure Investment Bank and the growing framework of the Eurasian Development Bank, with probable regional currencies, is creating additional leverage on both America and the IMF to ensure that quota and governance reforms are implemented and that the yuan is included in the upcoming SDR review.

Continue reading More Confirmation of SDR/RMB & Upcoming POM Announcement

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.

The war and political back and forth taking place in Ukraine is one of these regions. The area acts as a natural divide between the Russian geopolitical sphere and the American hegemonic European sphere, a sphere which is now slowly moving away from US dominance and into the multilateral framework.

Continue reading The (Un)Inevitability of War Between China and America

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.

As the USD is replaced with the SDR, we are likely to see the progressive implementation of a Multilateral Effective Exchange Rate Structure (MEERS) as both high income countries and low income countries will promote the benefits of pegging their domestic currencies to the SDR.

Continue reading Hume’s Multilateral Adjustment Mechanism

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.

Many times I have been asked what the average person could do to protect themselves during this transition, and just as many times I’ve given broad statements about diversification.   Within the coming weeks there will be an announcement on PoM containing information on what options are available.  There has been much going on behind the scenes which has been building on the realities of the multilateral transition, which, based on the events and announcements over recent weeks, can no longer be denied.

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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).

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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

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