New 2010 IMF Reform Deadline

During a virtual press release by Chrstine Lagarde today, she was asked the question on the 2010 reforms.  Her answer gives the 15th of September as the deadline for the reforms to be enacted by the United States before the interim steps (Plan B) are implemented.

MS. LAGARDE: First of all I don’t think we should give up on the 2010 reform. We take every day as it comes. We take every contact with Congress representatives as they come. But I very much hope that we can continue to hope for a positive resolution of this 2010 reform, which is completely in the hands of the U.S. authorities. We have nearly 80 percent support in the membership, but we need the key member. Now, the IMFC, which is one of the key governing institutions of the IMF, has decided that if by the 15th of September this matter is not resolved satisfactorily, then we have to select the interim step that we will take forward in order to make sure that there is an element of down payment on the quota increase. So I’m not suggesting that the quota increase that was decided under the 14th review, which is often referred to as the 2010 reform will be completely delivered upon. That would be wishful thinking on my part. But I know that an interim step is very much in the cards and that it will be considered as a down payment compared with what we should achieve under the 2010 reform.

And she also mentions that the decline in Chinese’s stock market will not affect the SDR review.

Read the full transcript here.

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The First SDR Review

By JC Collins

The press release from the International Monetary Fund on June 23, 2015, covered some interesting and relevant topics which we have been discussing here.  The trend in regards to monetary reform and the multilateral transition is now beginning to align with the macroeconomic policies which are unfolding internationally.

Whether its debt relief in Greece, revaluating exchange rates, loosening of capital controls in China, and the composition review of the Special Drawing Right, the signs and markers are undeniable.

Gerry Rice, Director of Communication for the IMF, during the press briefing, made it clear that along with ESM (European Stability Mechanism) management of the Greece debt and banking crisis (which was first covered here back in Feb), there would be further debt restructuring.  How this debt restructuring would look, and what others countries would be involved, was not made clear.

Continue reading The First SDR Review

The Grand Man – Chapter Two

The Before the Beginning

By JC Collins

Thoth, the god of learning in the Egyptian Mysteries, considered the pineal gland to be the source of twenty-six thousand books.  In the first chapter of this series we reviewed how the brain is an embryo attempting to become.  The pineal gland is the center of this embryo, and represents the only singular part of the human brain, which is found in the center between both halves.

The alchemical mystery of regeneration, or becoming, is deeply connected with the pineal gland.  The regeneration of man, or the becoming of the grand man, is dependent upon the process of accessing this gland, and extracting the nectar of both the visible and invisible worlds of nature.  The reconciliation of both is a function of the pineal gland, the place where spirit and matter meet, and represents the alchemical process of turning base metals into gold.

The esoteric function of the pineal gland is not recognized or acknowledged by modern medicine and science.  But some interesting characteristics of the pine cone shaped gland can provide the abstract thinker with an extraordinary understanding of its deeper function.

Continue reading The Grand Man – Chapter Two

POM Analysis Is Trending Accurately

By JC Collins

This week has brought some interesting trends to the forefront of the international monetary order.  Here on POM we have been trending data and presenting an analysis based on the fundamental process of transitioning the international monetary framework from a unipolar USD based system, to a multilateral framework.

This transition will require the broader internationalization of the Chinese renminbi, along with methods of expanding RMB liquidity, such as the AIIB and BRICS Development Bank.

We have reviewed how debt restructuring will become the hot topic, which it now has, as the IMF begins to promote the sovereign debt restructuring process as a priority over continued bailouts.

We have concluded that China would announce, for the first time in 6 years, their actual gold reserves in the lead up to the decision on including the RMB in the SDR basket composition.  With the preliminary SDR announcement only days or weeks away, it is not surprising that China announced their updated gold reserves today.

The POM analysis concluded that the price of gold would continue to go down throughout this process.  That is exactly what is happening.

There has been a convincing case presented here that each crisis would lead to further consolidation and loss of sovereignty. That is exactly what we see happening in Greece.

This will soon spread to other distressed countries.

It was stated here back in Feb that direct management of Greece’s banking system would be given to the ESM, or European Stability Mechanism, and that Syrzia would be the trojan horse used to integrate Greece deeper into the union and implement a greater loss of sovereignty.  That is exactly what has happened.

When others were stated that gold was going to skyrocket to $10,000/oz and China’s gold reserves were going to be tens of thousands tons higher, the POM analysis maintained a realistic analysis and trending of the facts.

When others stated that China, and the BRICS as a whole, were going to overthrow the western banking system, the POM analysis stated that the BRICS institutions would be integrating within the larger international monetary framework, and work with other multilateral institutions, on engineering the transition.

When others stated that China would never have anything to do with the IMF and the SDR, and that the SDR was dead, the POM analysis continued to review the actual process of adding the RMB to the SDR and how this would unfold.

It has since become accepted fact that the Chinese currency will be added to the SDR, and that China has incorporated the IMF’s SDDR data reporting standards in the announcement of their gold reserves.

Philosophy of Metrics was created to grow a broader understanding of the macroeconomic trends and esoteric patterns which weave in and out of the systems of the world.  The education of the masses on these extremely important topics and events needs to continue.

The points made in this post only partially represent the accuracy of the analysis and trends which are presented here on POM.  The complex nature of this transition will continue to evolve as the geopolitical and macroeconomic events shift upon the sands of the history which is yet to happen.

Many have derided me and attacked the analysis and conclusions which have been presented here.  But time proves all things, and no other site, or analysis, can prove the level of accuracy which has been presented here over the last 19 months.

The reason for this accuracy is because the POM analysis is based on facts, and a very real process which is taking place in the international monetary framework.  This process is attempting to correct the imbalances which have developed in the world’s economy over the last 7 decades.

Once this reality is accepted, the actual analysis comes easy, and proves to be extremely accurate on the broad strokes.

I look forward to continuing to produce these valuable posts and educate all who wish to have a deeper understanding of how the international monetary system functions, and what it’s future will look like.

For those who continue to support this endeavor, and those who see the value of the message being presented here on POM, I say thank you.  It means the world to me and my family that so many appreciate the time and effort I put into this all important project.  – JC

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SDR Negotiations – A Visual Guide (FREEPOM)

Export Increases and Currency Depreciation

By JC Collins

The future composition and weight of the SDR basket could fluctuate with the exchange rates of the domestic currencies which will use it as an anchor.  To fully understand how the Special Drawing Right could work as an international monetary unit which is used to balance trade between countries, an understanding of the problems with the balance of payments under the USD regime will be required.

Most readers are now aware of the Triffin Paradox which defines the imbalances which are created when the domestic currency of one country is used as the international monetary unit of account.  This is best visualized in the chart below.

US Trade Deficit vs China Trade Surplus

 

The growth of America’s trade deficit is clear to see against the increase in China’s trade surplus.  Both countries are on opposite extreme spectrums of the balance of payments and represent the imbalances explained in the Triffin Paradox.  When China, as the world’s largest exporter, accumulates ever increasing amounts of USD in its foreign exchange reserves, the United States is forced to expand the dollar supply in order to meet the demand.  This creates the large trade deficit for the US and the large trade surplus for China.

Continue reading SDR Negotiations – A Visual Guide (FREEPOM)

Guest Post: Homogeneous Identity Within Globalization And Multilateralism (FREEPOM)

The Shifting Ideology from Religion to Statism

By DeeJJ

“In education, the Dewey system was initiated and promoted by Skull and Bones members. Dewey was an ardent statist, and a believer in the Hegelian idea that the child exists to be trained to serve the State. This requires suppression of individualist tendencies and a careful spoon-feeding of approved knowledge.”
– Dr. Antony Sutton, “America’s Secret Establishment (Order of the Skull And Bones)”

Over many thousands of years, humans have survived and managed to collectively create social order despite excruciatingly challenging environments, from harsh desolate desert lands to ice capped frozen tundra. Historically, resources such as food and safe shelter were limited to those who allocated their individual resource of time, labour, and ingenuity to construct communal organization. Lifespans were much shorter than we experience today and the threat of immediate death was much more pronounced.

Continue reading Guest Post: Homogeneous Identity Within Globalization And Multilateralism (FREEPOM)