By JC Collins
First I would like to thank all POM readers for the continued support over another year. We are two years into this experiment which I started on Dec 31, 2013, and I am still humbled by the comments of those who have found value and education in the material I produce for the site. To know that this site has become so important to so many is both inspiring and heartwarming.
The site had a big change this year, which was the switch to a subscription service. So many understood the need for such a change, as the amount of time and energy I put into every article for research and writing shines through in the accuracy of the material produced.
Continue reading Happy New Year and Second Anniversary to All POM Readers (FREEPOM)
Wishing all POM readers the very best on this oldest of holidays. The origin of the traditions associated with December 25 are lost in the dark recess of human emotion and thought. Having been celebrated by different cultures and societies in vastly different ways, today we can at least remember the importance of love and family.
The past celebrations of debauchery and weak morality associated with Saturnalia have become more harnessed and disciplined in this evolving age of enlightenment.
The awakened spirit must tame the unknowing beast. Spirit and matter evolving together.
“Now the parable is this: the seed is the word of god.” – Luke 8:11
“Of all wonderful things, the most immanent was the miracle of generation. The seed which seemed lifeless and very small was planted in the earth. The sun shone and the rains came, and from the dark womb of the soil, life was released. Is it remarkable that the unlettered and unlearned should accept the miracle of the germinating seed as a spiritual symbol of life, death, and resurrection? Was it any more remarkable that man should apply this symbolism to himself—not only to his body, but to the soul within it?” – Manly P. Hall
May the Grand Man inside all of us blossom this holiday season as we continue the process of becoming. May all our paths intersect at the place from which the illusion is manifest. – JC
For those POM readers who are following, the recent announcement by China of a points system for its citizens will not come as a surprise. This was covered back in March in the post The Redback Revolution.
In that post I stated the following:
China has developed an urbanization plan which is meant to attract “elite human talent” to the “elite cities” which will be structured under strict population controls and citizenship will be based on a point system.
Some decent coverage of this recent event can be found here.
Most fail to tie in the broader urbanization plan and the filling of the ghost cities with Chinese rural population between now and 2020. China is creating a middle class to act as consumers as they switch from a trade exporting model to a trade services model. – JC
The Dual Purpose of Debt Management and Debt Restructuring
By JC Collins
Just after World War Two the United States had a massive debt-to-GDP ratio of over 140%. Today’s debt-to-GDP ratio of 104% seems paltry in comparison. But along with a huge debt-to-GDP ratio after the war, the US also had one of the largest trade surpluses in the world. Much like China does now.
The difference, China’s debt-to-GDP ratio today, for government debt, is around 42%, with a balance of payments surplus of over $60 trillion. This puts China in a very strong position within the multilateral monetary transition which is taking place.
At present time, the US has a large trade deficit, with China being the biggest creditor, and a high debt-to-GDP ratio. The ability of the US to push its debt-to-GDP ratio down after the war had a lot to do with its strong balance of payments position at the time.
Continue reading How America Lost its Sovereignty (FREEPOM)
Rise of Multilateral Exchange Rates & the Feds Rate Hike
By JC Collins
On March 25, 2015 I published a post titled When Will China End the Dollar Peg. In that post we speculated that the USD based managed peg of the RMB will be removed before the end of the year. Just in time for the implementation of the AEC trade agreement which starts on January 1, 2016.
As we can now determine, China has in fact created an alternative valuation for the renminbi which will function outside of its dollar based exchange rate arrangement. This new composite index will help stabilize the Chinese currency as the Federal Reserve begins the process of policy normalization through incremental interest rate increases.
Continue reading China Just Ended the Dollar Peg (…for the most part) FREEPOM
Bank of Canada Just Announced QE and Zero Interest Rate Policies
By JC Collins
Things just went from bad to worse for Canada. Along with a continuing collapse in crude prices, and a teetering real estate market, the Federal Reserve in the United States is set to increase interest rates on December 16th for the first time in ten years.
Traditionally the Bank of Canada would match interest rate increases in the US with its own increases. The challenges which Canada faces by increasing interest rates is that the country holds the title for the highest level of private debt in the world, as well as one of the most overvalued real estate markets.
Continue reading Canada Set for 2008 Style Collapse (FREEPOM)
How Investors Can Benefit from BRICS Development Bank Loans and Emerging Infrastructure Development
By JC Collins
Back on October 13, 2015, I published an article which defined the coming commodities boom and the investment opportunities it would produce. Since that time the Chinese currency has been officially added to the Special Drawing Right composition with an effective start date established for October, 2016.
It has been my conclusion all along that the renminbi would be widely used to fund this infrastructure development with RMB denominated loans being issued through both the BRICS Development Bank and the Asian Infrastructure Development Bank. I also stated that this would happen at a pace which would surprise many.
Continue reading The Coming Commodities Boom – Redux