US Dollar Will Devalue by 20% to 30% (FREEPOM)

Economics, FREEPOM, Geopolitical

Interest Rate Increases & Continued Gold Devaluation

By JC Collins

I’m just going to come right out and state it with absolute clarity. Gold will continue to depreciate.

Not only that, but the Fed will continue with the planned incremental interest rate increases which are set to begin at any time now. The normalization of monetary policy is considered impossible by many analysts and economic commentators. This is mainly because the larger play, being the transformation of the monetary framework, is not fully understood.

The incorrect assumption is that the US dollar will be replaced as the international reserve currency by the Chinese yuan, which in turn will cause the USD denominated assets (Treasuries) in the foreign exchange reserve accounts around the world to be “dumped”, leading to a flood of dollars coming back to American shores and causing the ever-threatened and often-predicted hyper-inflation.

The Sovereign Debt Complex

Economics, Geopolitical, Premium POM

How China and America Are Waging a Quiet War over Sovereign Debt Restructuring

By JC Collins

Note: This large article of 2300 words is one of the most important pieces I’ve written on the multilateral transition, as it ties much of the previous material together to present the reader with a conclusive and realistic analysis of what is happening internationally, both economically and geopolitically.

The most pressing issuing facing the international monetary order today is the threat of sovereign debt defaults and the loss of confidence in sovereign bonds. The sovereign debt crisis is growing at a brisk pace with most of the attention on Greece. But many other countries could quickly slide into the limelight and steal the show. Some of these countries are Spain, Italy, Ireland, and even the United States.

If China can successfully cut the United States out of the South China Sea, than it would put immense pressure on Japan, another larger holder of US debt, to support the SDRM solution to sovereign debt restructuring. Japan, a country on the verge of its own sovereign debt crisis, much like Greece, cannot hold out much longer before a solution will need to be implemented. Both Japan and Greece will take the world with it, including China and the United States.

China Gold Deposits to the IMF

Economics, Geopolitical, Premium POM

The world has never used a supra-sovereign (non-domestic) currency as the global reserve asset, and as such, there are some unknown factors which could swing valuations and volumes. The agreement between all countries and global institutions on a multilateral framework has been in negotiations since at least 2009, if not earlier. Many of the geopolitical and macroeconomic adjustments (such as the tension with Russia and the Swiss franc depeg) are symptomatic of the challenges presented by attempting to draw all countries into a multilateral framework.

There are so many moving pieces to this transition, but some semblance of pattern is beginning to take shape. Based on the demand of China to have their own domestic currency added to the SDR composition, and the agreed upon accumulation of gold by China, along with the “multilateralization” of gold exchanges, such as in London, and the rise of the yuan denominated SGE, can be interpreted as early indicators of the intent of Chinese authorities to place a large amount of gold on deposit with the IMF, in anticipation of the implementation of the SDR as the global reserve asset.

Conflict and Commonality Between Multilateralism and Democracy

Cultural, Economics, FREEPOM, Geopolitical, Premium POM

By JC Collins

With the increasing socioeconomic tension in the United States, it is reasonable to expect that the population could begin to see the scaling back of police state methodology and the beginnings of a more democratic process which reflects the growing demand for fair and equitable representation.

Whether its protests and rioting against the abuse of power by police, or legislative bills demanding an audit of the Federal Reserve, the pattern of reversal is beginning to take shape. Some assumption can be made and discussed regarding the rise of multilateralism and the effects of a waning unipolar American world.

The (Un)Inevitability of War Between China and America

FREEPOM, Geopolitical, Premium POM

And the Destabilization of North Korea

By JC Collins

As the world continues the shift from a unipolar American dominated world to a multilateral world based on the fair political and economic representation of all countries, there remains flashpoints of tension and possible conflict in regions of the world which have acted as hinges, or gateways, for American hegemony.