By JC Collins
“Behold, I show you a mystery; We shall not all sleep, but we shall all be changed, In a moment, in the twinkling of an eye, at the last trump: for the trumpet shall sound, and the dead shall be raised incorruptible, and we shall be changed.” I Corinthians 15:51-52
“So as marvel you not at the thin population of America, nor at the rudeness and ignorance of the people; for you must account your inhabitants of America as a young people; younger a thousand years, at the least, than the rest of the world.” The New Atlantis, Francis bacon
The script which is running in the background of the collective consciousness can be extracted for study when the objective pattern is observed and quantified. The timing of the message being delivered through Donald Trump is both non-coincidental and supportive of the macroeconomic fundamentals which we have been reviewing here.
Continue reading Trump – Making America Great Again
By JC Collins
There are multiple things going on with the recent announcement from the People’s Bank of China to reduce the daily reference rate of the renminbi against to USD by 1.86%. The most obvious factor which we need to consider is that China is preparing to widen the trading band.
China’s State Council itself announced on July 24th that they would be widening the trading band against the USD from 2% to 3%. So the move yesterday by the PBoC should not be a big surprise when we consider the level of strategy taking place between China and the United States in regards to the multilateral transition.
Back in March I published a post titled When Will China End the Dollar Peg, where we reviewed the process which China will follow on its path to having their currency added to the SDR basket composition. In that piece I stated that China will in fact widen the trading band in the lead up to the SDR decision, or right after. As stated, this was recently confirmed by China’s State Council.
Continue reading China’s Rate Change is Preparation for Widening of Trading Band
By JC Collins
NOTE: Authorization is given to re-post this material so it reaches the widest possible audience. Please just link back to the POM site and give credit for the work. There is much confusion and misleading information being presented regarding the changes to the monetary framework. The more this process is understood the more people can prepare and financially plan.
With yesterday’s announcement from the IMF that a recommendation has been made to delay the effective date of the new SDR basket, which would include the Chinese renminbi, by 9 months, it becomes important that we take this opportunity to review the facts which have been presented here on POM over the last 19 months, and bring a sense of understanding to the issue.
The first thing to extract from the IMF statement yesterday is that the recommendation was not to exclude the RMB, but only delay the effective start date of the new basket. Sites, such as Zero Hedge, have been quick to put out articles with titles stating that the IMF has delayed the addition of the RMB. This is misleading as the recommendation was based on the effective date of the new basket, as opposed to the vote on including the Chinese currency.
Continue reading Analysis of Recent IMF Report on SDR Adjustments (FREEPOM)