Category Archives: Multilateral Investment Strategies

Aloha from the South China Sea (FREEPOM)

Chinese Capital Outflows and the Buying of American Business Interests

By JC Collins

Early last year the Chinese government threatened the United States with funding and arming Hawaiian independence activists who want to restore the islands’ constitutional monarchy.  The story passed with little fanfare until just days ago when the Chinese made a comparison between setting up defensive arms on the man-made islands in the South China Sea, to the US establishing military facilities on the Hawaiian Islands.

Continue reading Aloha from the South China Sea (FREEPOM)

How China is Deleveraging from the USD (FREEPOM)

By JC Collins

On December 29, 2015, in the post The Myth of China Dumping US Dollars, I wrote the following in regards to the past accumulation of USD by the People’s Bank of China:

“The PBoC continues to keep the renminbi weak against the dollar for the purpose of purchasing US dollars which are accumulated by Chinese business and exporters.  The People’s Bank of China borrows renminbi in order to purchase these dollars.”

“Once purchased, the PBoC cannot sell renminbi as it would be inflationary. Same as the US with dollars.  In order to prevent excess inflation, the PBoC issues new debt and raises the required reserve ratio of capital held by Chinese banks.  This has led to the increase of domestic debt within China.”

Continue reading How China is Deleveraging from the USD (FREEPOM)

China Just Ended the Dollar Peg (…for the most part) 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

The Coming Commodities Boom – Redux

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

Introducing POM Multilateral Investment Strategies (FREEPOM)

By JC Collins

With so much written and documented regarding the multilateral monetary transition, and the reality of such a transition becoming more apparent by the day, many readers have begun asking for detailed information on multilateral investment strategies.  As with the POM thesis itself, I will approach this request with nothing but the most committed of efforts, with a strong focus on getting the information as accurate and honest as possible.

The personal wealth of readers is something which I do not take lightly, as our wealth is the accumulation of our time and labor. Knowing how hard I work on producing the virtual library of information which is available on POM, I do not intend on providing distorted information which others will use to invest and protect their own time and labor.

Continue reading Introducing POM Multilateral Investment Strategies (FREEPOM)