Biggest World Transformation Since the Napoleonic Wars

Economics, Premium POM16 Comments

The Replacement of USD Denominated Reserves with Chinese Renminbi Reserves

In yet another sign that the multilateral thesis presented here is accurate and unfolding as planned the European Central Bank announced the switch of USD denominated reserves into Chinese renminbi denominated reserves.  The initial re-allocation of reserves is in the amount of 500 million euros and will represent the first of many re-allocations as trade between the EU and China expands with the implementation of the Silk Road initiative and development of the Eurasian Union.

The re-balancing of global liquidity between the USD and RMB is in the early stages but will increase in frequency and volume in the coming months and years.  The current composition of the EU foreign exchange reserves are in USD, Yen, gold, SDR and now RMB.  We should expect that further re-allocations will take place with the RMB and eventually SDR replacing the traditional USD reserves.

The overall multilateral strategy of Europe re-aligning with the Eurasian continent in place of the Anglo-American arrangement it has held for centuries is a milestone in the history of world geopolitics and monetary frameworks.  The re-structuring which is taking place internationally is not broadly discussed or understood by the larger masses and media outlets.

The changes that are now taking place will transform the world unlike any time since the Napoleonic Wars which indebted European royal bloodlines and expanded the central banking structure across Europe. The revolutions and civil wars that followed around the world were a direct result of these wars and restructuring of how the systems of the world functioned.

Equally so today we are experiencing a massive migration of cultures and a major shifting of the old world borders and alliances which have been maintained for centuries.  The function of the Napoleonic Wars and revolutions has been replaced by the War on Terror and the transformation of mass demographics around the world through migration and the fragmentation of nationalism.

We have previously discussed the new modern nationalism which Brexit and Trump represent, but it should be noted that this new modern nationalism is in fact the fragmentation of true nationalism under the weight of a descending new world framework and system of governance.  The package is being sold to individual and specific subset demographics through whatever presentation works best in that region, with common strategies overlapping across the terrorism and migration themes.

Each movement and phase of the transition from the USD denominated framework to the multi-currency and multipolar framework will be weighed and measured before implementation.  The fluctuation and allowance for flexibility in the transition is allowing for small individual movements within a well-defined boundary.

The end result must be a rebalanced international monetary system with a new global governance framework put in place which determines the direction and movement of individual nations so the collective whole is managed effectively.  Whether we agree with this direction, or not, is irrelevant as the power and influence behind the strategy will not be denied.

The internationalization of the Chinese renminbi is one of the top priorities which will be pushed and encouraged across the geopolitical and monetary spectrums.  New alliances will develop based on the amount of reserve holdings of the USD and RMB.  It would be my anticipation that the Eurasian Union will be largely built upon the RMB in much the same fashion that the Anglo-American establishment managed the world under the pound and dollar frameworks for so long.

Outside of Eurasia the dollar will still reign supreme but the ability of the Anglo-American establishment to control and direct the course of the world will now be shared with other partners and through new alliances, as opposed to sanctions and military interventionism.

The reduction of the accumulation of USD foreign exchange reserves will be replaced with an increase in accumulation of RMB foreign exchange reserves, as represented by the recent actions of the European Central Bank.  The end objective is a move away from reserve accumulation completely and towards a new SDR based framework which will not require foreign exchange reserve accumulation but will be based on quota amounts and each nations fundamental weighting in the SDR composition.

A substitution account process will eventually be used to replace foreign exchange reserves with SDR quotas.  Both processes could overlap one another as the re-balancing and replacement takes place.  But one thing is certain, the multilateral transformation of the world is proceeding as planned and there is little that will alter the direction or prevent the realization of the end objective.  – JC

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16 Comments on “Biggest World Transformation Since the Napoleonic Wars”

  1. Hello JC
    Thanks for yet another great article.
    With this switch towards the RMB commencing, what time frame do you see for the depegging of the RMB to the USD? What do you believe has to happen before the Chinese are ready to take the full leap?

  2. “The current composition of the EU foreign exchange reserves are in USD, Yen, gold, SDR and now RMB. ” Forgive me, but isn’t the composition now the US dollar, the euro, the Japanese yen and the British pound?
    Love this quote “…….. as opposed to sanctions and military interventionism.”
    God Bless

  3. Hi JC,
    you state:
    “Outside of Eurasia the dollar will still reign supreme but the ability of the Anglo-American establishment to control and direct the course of the world will now be shared with other partners and through new alliances, as opposed to sanctions and military interventionism”.

    And I fully agree, but my question is if you think that those new alliances will bring big tensions between the world super powers, or do you think that the transition will be a pretty smooth one.

    Thanks in advance.

  4. “A Wind of Secularism Blows Over the Muslim World.”
    (Right Before Our Eyes.From 9/11 to Donald Trump.)
    This from Thierry Meyssan,

    “A gigantic displacement of forces and alliances has begun. If this movement is to continue, the region will organise itself around a new fissure. The question of the struggle against imperialism will wither and giveway to the struggle against clericalism.”

    “A new dawn seems to be rising over the region.”

    I believe the rest of this article by the great Thierry Mayssan to be interesting and appreciate how it describes and compares the geo-politics of this small but very important part of the world, with the things discussed here on the POM.

    BTW JC, another great post on your part. I believe I’m starting to get a bit of a feel for for what we are talking about here.

  5. Hello Pieter,

    I agree with your post regarding Thierry Meyssan’s excellent article about the wind of change in the Mid-East and Islamic world. I think you are absolutely right about JC’s excellent articles and the way things are going forward.

    One thing that very few people are paying attention to is the symbolism hidden in plain sight of the buildings and the messages they project to people. If you search for the modern buildings in Iran post-1979 Islamist revolution, you will arrive at a curious question. That is why the shape and embedded symbols of landmark buildings are either Pyramids shape or are outright of Pyramid! In the past 2500 years history of Iranian Imperial dynasty architecture, you will never ever come across a pyramid whatsoever.

    I have included two photos of a simple google search below where you can clearly see Pyramids inside Khomeini’s newly opened £20 Billion mausoleum , in 3D, which is visible from any angle! The other being the Islamist Parliament of Islamic Republic.

    I think Freemasons role in bringing in secularism in history is not a secret but the question is the Pyramid is neither a classic element of Iranian nor Arab-Islamic symbolism. So why is it so prominently displayed is a good question to ask!

    Khomeni’s tomb:

    Iranian parliament:

    1. My Carpe Diem, benevolence.

      Thanks for the the links, one just simply cannot discount in anyway the presence and effects of sacred geometry, wherever it’s found. Case in point your links took my mind immediately to Astana, Kazakhstan. I hadn’t visited Astana since JC provided a link awhile back. So I hopped on my virtual space ship for an overdose of sacred g. I’ll attempt to provide a link.
      Astana – The worlds weirdest capitol city

      What has been accomplished there in what seems like less that 20 years is astounding. What it all means? One can only contemplate in concentrated wonderment.
      Thanks again.

  6. From “The Italian Centre for International Development”.

    “There is growing debate around the future of international development institutions and the consequences for multilateralism. The current governance of the historically most important international economic institutions, primarily the IMF and the World Bank (but also most of the regional economic institutions) is still rooted into the Bretton Woods Agreements of 1947.

    A major, albeit insufficient, shift proposed in 2010 for the IMF governance is yet to be ratified by the major shareholder. For several years, most of the new key players in the world economy have been complaining about this painful state of the art, soliciting a governance reform. These efforts, aiming at changing the IMF from within, seem to have produced little results so far. However, in the last couple of years a new approach seems to be emerging, based on a sort of “substitution strategy”, i.e. envisaging the development of a new set of global institutions, in clear competition, despite the formal statement, with the old Bretton Woods arrangements.

    Research in this area will be critical to ensuring successful outcomes from this debate.”

    That word “Africa” strategically placed between the USD and RMB in the essay picture is curious. Looks like an old map of sorts. And a gold nugget resting just above it?

  7. Hello, My Man Dane;
    Great catch! I like to think I study JC’s essay pictures closely. I completely missed that, I must be slipping. Thanks for pointing it out, the picture with “Africa” in the middle as with all of JC’s choices of art, always add depth and some deeper understanding to the POM.
    Thanks again

    1. Hi Pieter and Thank you for the Astana’s clip,

      It looks hideous and at best it is a bad replica of Disneyland. I notice at 3:46 the front of some sort of building with “MEGA” in red and thought if they had asked Trump, he may have let them use his MAGA (Make Astana Great Again) but they probably couldn’t convince Trump and make a “Deal” with him on that 🙂

      I think the next regime should arrest the architect immediately and make him clean up the mess and the diabolical design and paint over the loud colors. I still can’t get over the fact a backward country as Kazakhstan to have such a big ego that matches that of the Saudi and UAE folks. The UAE Minister for Space exploration a while ago announced that UAE will travel to Mars! Here is their propaganda website:
      Too much sun does make people insane.

  8. JC,
    At one point you felt that Trump would de-value the dollar. It appears that this will not be the case as the central banks “shuffle” their reserve allocations. Thus, devaluing the dollar via supply and demand. Your thoughts?

    1. It will be a combination of both likely. Pull and nudge over an extended period of time. Demand for the USD will decrease over time but may be offset by increasing interest rates. This is where the Treasury may have to step in and take action on some level of devaluation. The Trump administration has made it clear they belief the dollar to be overvalued.

  9. JC,
    Yes. Makes sense. Just depends on how many interest rate increases are planned I guess? Along with market stability objectives. Probably depends a lot on how quickly Trump needs the dollar de-valued as well from a political standpoint? As always, thanks for your thoughts.

    1. Watch for scripting around the negative effects of a strengthening dollar. A stronger dollar will hurt both the domestic American economy as well as the economies of the emerging nations. Everyone will get aligned on a new dollar policy to prevent instability across the monetary system.

  10. I found this short animation and the message in this artform is very powerful. It is about the new toy we each have and how this little toy has changed our consciousness. I could not decide under which posting to put this comment but since JC’s article is about “transformation” I hope this may be interesting to the discussion.

    Wish you all a happy 4th July weekend,

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