End Game Confirmations & MacroQE

JcollinsEconomics, FREEPOM44 Comments

By JC Collins The following material was originally posted on February 26, 2015, and details the strategy which is now unfolding in the European Union.  It was stated that the European Stability Mechanism (ESM) would take control of the Greek banking sector and facilitate debt restructuring. That is exactly what … Read More

IMF and China Give US Ultimatum

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America Becoming Isolated in the Monetary Framework By JC Collins In a June 12 press release from the International Monetary Fund it was made clear that the time for the United States to act on the 2010QGR is fast approaching.  The IMF has given the US until September 15 to … Read More

Rebalancing World Wealth in the 21st Century

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The original intent of the Bretton Woods Conference was the creation and implementation of a true international money clearing unit. Economist John Maynard Keynes originally predicted the trade imbalances described above in the 1930’s, and at Bretton Woods attempted to implement a global financial arrangement based on the principles of a non-national unit of account.

To understand which currency will go up and which will go down, one only need reference the balance of payments of each country and make the determination, based on surplus/deficit levels, and liquidity (along with composition) of foreign reserves. Based on the formula defined above, the countries which are subjected to the harshest western propaganda are the countries which have the strongest position in the emerging framework.

Has the US lost its role as the underwriter of the economic system?

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Guest Post by Willem Middelkoop, Co-founder of the Commodity Discovery Fund and author of The Big Reset

This article has also been published in an edited version of the OMFIF bulletin

Twitter: @wmiddelkoop

In light of these facts it is easy to understand why China has decided to fast-track the start of its own global institutions. By combining the powers of all BRICS-countries (Brazil, Russia, India, China and South Africa) China is able to pressure the US. It is the first real confrontation on a global economic level for the US, since the fall of the Berlin Wall in 1989. Because Russia is part of all of these new initiatives, Putin feels backed by China.

Now the AIIB can start with the backing of even some major western countries the coming reset of world’s financial economic system could come faster than many in the West have thought possible. These changes will also have a huge geopolitical impact. We could well witness the start of a total new era. An era in which the West will loose and the East will gain power.

Cras In Transitu 明天轉型 Redux

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The Global Currency

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From USD to SDR to Bancor

By JC Collins

A little known fact of the Bretton Woods Agreement at the end of World War 2 was that many of the participating countries wanted to use an actual global currency called the bancor as the international reserve unit of account. Representatives within the United States called for an end to the Bank for International Settlements and a rise of the USD as the global reserve currency.

The SDR in future years will transition into the global currency, which was named in 1944 as the bancor. The rise of the bancor should take place somewhere around 2023 to 2028. The scale and macroprudential legislation which has to be implemented in each country around the world will take years yet.

IMF team in China to assess reserve-currency status for yuan

JcollinsEconomics, FREEPOM7 Comments

Nary a mention in the western media. One has to ask the question why China is so keen on having this happen, along with adopting the IMF data reporting standards.  Could it be that the POM thesis was correct all along?  It’s looking that way. http://thebricspost.com/imf-team-in-china-to-assess-reserve-currency-status-for-yuan/#.VX9-U0ZIOCd US senators promoting propaganda … Read More

On Optimism and Optics

JcollinsEsoteric, FREEPOM24 Comments

Behind the Veil of Reason and Logic By JC Collins It was Marcus Aurelius who wrote “Anyone who has seen the present day has seen it all, both everything that has taken place since time began and everything that will be for all eternity; for all things are of one kind … Read More

China, Greece, Gold, and the SDR

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Could This Be the Real Reason for China’s Gold Accumulation

By JC Collins

With both Ukraine and Greece on the verge of defaults, it is time for the world to take collective action on a sustainable solution and path forward. The growing crisis will require the framework of a multilateral approach, as no unipolar, regional authority, or single monetary union can adequately address the depth and severity of the threat. Any real solution cannot be to the benefit of any one country. With that thought in mind, let’s review some of the upcoming milestones over the next few weeks and how they may relate to the sovereign debt restructuring.

The BRICS Development Bank will be officially launched on July 8-9 in Russia. The importance of this event cannot be overstated, as it is the first major launch of such an institution in decades. The fact that it is eastern oriented as opposed to western serves to underscore the importance and reality of the emerging multilateral system.

It is being reported by Zero Hedge that an IMF delegation is traveling to China for meetings on June 15 and 16, to discuss the inclusion of the RMB into the SDR composition. This is expected and late, as it was originally scheduled to happen in May. I’ve been unable to confirm this meeting but we can assume that the information is accurate.

A Solution to the European Crisis

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Debt Deflation, Domestic Assets, and the European Stability Mechanism

By JC Collins

Debt deflation is not something which is in the recent collective human memory bank. Few alive today have lived through a period of debt deflation. Those who have would only retain vague memories of the experience from early childhood. So it is not surprising that debt deflation has not been recognized or expected by the majority of people today.

With global GDP contracting and money velocity at all-time lows, world-wide deflation is a reality that cannot be ignored and denied. All of those who expected QE to cause hyper-inflation and gold to skyrocket by multiples of hundreds are now beginning to realize the full and complex nature of the monetary strategy which has been playing out over the last 7 years.