In previous posts I have postulated that QE was used to facilitate the framework construction of the MFS, or multilateral financial system, which will be emerging between now and 2018. This concept is not an easy one to understand. The first step is to fully understand what QE, or Quantitative Easing really is and how it works.
The transition script for the SDR Multilateral Financial System (MFS) is becoming clearer with the recent announcements of numerous banks failing stress tests. The large list of banks which are insolvent or becoming insolvent continues to expand and the obvious nature of what has been hidden in plain site for the last 5 years will soon be brought to the surface.
There has been much discussion over the last few days of how the Chinese yuan and the Singapore dollar are now directly convertible. The action is of course another move towards the full convertibility and internationalization of the renminbi. As we have previously discussed, along with the emerging multilateral financial system where the SDR will replace the US dollar as the reserve asset, expanding liquidity by way of SDR bonds, there will also need to be a new exchange rate regime.
Over the last 9 1/2 months many readers have asked me to explain what I think will happen during the transition to the multilateral system and what they should do about it. I’ve been very reluctant to give financial advice in this regard and have deferred answers to the instincts of those asking the questions. In this post I will attempt to be more straight forward and open about what I think will happen and how. What you choose to do about it will have to be inferred by your interpretation of what is written.
Completely in tune with today’s post, the Telegraph just came out with this article. The conditioning for the inability of the “Wizards of Oz” or central banks to fix the worlds financial problems is being fully implemented.
Money Changers and the Great Fire of London in 1666
By JC Collins
“There is no proletarian, not even a Communist movement, that has not operated in the interests of money, and for the time being permitted by money – and that without the idealists among its leaders having the slightest suspicion of the fact.”
Well, I didn’t want to do another post directly on the heels of my PrimNomics post, but an article on the USA Today website has made me reconsider. The article talked about discussions taking place in Washington this week between the IMF and World Bank. And on the agenda are the items that we have been discussing here.
Fragmentation in Pursuit of Self-Preservation
By JC Collins
“He is led by an invisible hand to promote an end which was no part of his intention.”
– Adam Smith, An Inquiry into the Nature and Causes of the Wealth of Nations, 1776
On March 9, 1776, the book titled The Wealth of Nations, a compilation of economic essays by Adam Smith, was published. This was in the early days of the American War for Independence and the air was full of hope and transformation. On May 1 of the same year the secret society known as the Illuminati was founded by Adam Weishaupt. And later that year, in December, Thomas Paine writes the now famous line in which in which he states:
Much of what has been happening throughout the year will continue throughout the winter. The global institutions and organizations will further progress on the path towards the multilateral financial system. The patterns have been relatively easy to discern and discover, with a similar pattern continuing into the spring.
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