No G20 Stimulus Sets the Stage for Structural Reforms

JcollinsEconomics17 Comments

All Tools Will Be Used as Momentum Builds for Multilateral Framework

By JC Collins

“We will not target our exchange rates for competitive purposes.”

The G20 Communique from this weekend’s summit in Shanghai was very clear on the agreed upon multilateral approach which will be required to transition the international monetary framework to a multi-currency system. The above quote from the G20 statement is one of many straightforward approaches which is being taken by the largest economies in the world to increase global growth and address vulnerabilities.

Goldman Sachs to Support BRICS Development Bank

JcollinsEconomics17 Comments

By JC Collins

In a major validation of the POM thesis, it has been confirmed that the BRICS New Development Bank will receive funding for infrastructure development loans denominated in the domestic currencies of the member nations. Based on China’s large foreign exchange position, and growing international reserve position of the renminbi, it can be expected that China will contribute a large portion of this funding.

Regional War, Crude Production, and a Depreciating Dollar (FREEPOM)

JcollinsEconomics, FREEPOM, Geopolitical15 Comments

How the Collapse of the House of Saud could salvage the Global Economy

By JC Collins

This is a follow up to the article titled “Are We on the Eve of War – Is the US Leading Saudi Arabia down the Kuwaiti Invasion Road?” published on February 9, 2016.

Saudi Arabia could quickly find itself on the wrong side of international geopolitics. The course which could lead the Kingdom down this path would be a combination of refusing to cut oil production in an effort to boost the value of crude, and the strategy which it has implemented along with Turkey to overthrow the Assad government in Syria.

Dealing with the conflict in Syria first, we see that the both Saudi Arabia and Turkey have pushed the world’s powers into a position where war between Russia and NATO has become a real possibility. Such a conflict must be avoided at all costs. The regional ambitions of both countries have collapsed in front of the continuous military onslaught from the joint forces of Russia, Iran, Hezbollah, along with the Syrian government forces themselves.

Aloha from the South China Sea (FREEPOM)

JcollinsCultural, Economics, FREEPOM, Geopolitical, Multilateral Investment Strategies9 Comments

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.

Are the G20 Nations about to Depreciate the US Dollar?

JcollinsEconomics, Premium POM

By JC Collins

There are increased discussions taking place between the G20 finance ministers and central bank governors that a decision should be made at this weekend’s meetings in Shanghai to depreciate the US dollar against select currencies. The meetings, which are being held on February 26th and 27th could very well signal the beginning of the exchange rate transition which we have been reviewing here on POM for the last two years.

As we have thoroughly covered, the increasing global deflation and slowing growth would act as the monetary and financial catalyst to spur the economic reforms and promote the required monetary policy changes to support the multilateral framework. This is exactly what is now taking place.

Hate Speech in Alberta, Canada

JcollinsCultural, FREEPOM, Geopolitical18 Comments

Here’s an example of the hate speech which greeted the poor Syrian refugees arriving in Alberta. We need to stand with people of all faiths and creeds to promote peace and acceptance. There is no place in the world for this type of self-professed exceptionalism and elitism. The difference between … Read More

The Effects of RMB Appreciation

JcollinsEconomics, Multilateral Investment Strategies, Premium POM

And Why the TPP and AEC Trade Agreements Offset the Negative Aspects

By JC Collins

Back in October of 2015 I wrote a post titled TPP and AEC – Parallel Trade Agreements. It presented the trade agreement aspect of the monetary transition and suggested that both agreements are intended to address the changes to the international trade model as the US dollar begins to share reserve responsibilities with the Chinese renminbi.

It also discussed another previous post from May of 2015 titled The Secret of the TPP – The Coming Interest Rate Increases and Dollar Depreciation. Both articles together lay the groundwork for understanding the short-term measures and long-term strategies which China and the international community as a whole, are implementing in order to capitalize on the forthcoming appreciation of the renminbi and depreciation of the USD. The negative aspects of these exchange rate changes are also considered within the developing framework of these agreements.

The Myth of China Dumping US Dollars (FREEPOM)

JcollinsEconomics, FREEPOM15 Comments

Why America Has a Strong Position in the New Bretton Woods Negotiations

By JC Collins

This article was originally posted on December 29, 2015.

Understanding how balance of payments work is key to understanding the monetary leverage which one country holds over another. Based on the modern method of money creation, the functionality of balance of payments is really a zero sum game.

Allow me to explain.

The importance of aligning all nations within the same structural central banking framework becomes obvious when the fiat method of money creation is considered. The intent of this post is not to debate the merits and faults of such a system (eg. Fiat money creation allowed for the expansion of the money supply which funded the industrial revolution, but also indebted nations to each other, and in turn, to an invisible web of international banking interests), but to demonstrate the ebb and flow of wealth as it shifts around the world.