Aloha from the South China Sea (FREEPOM)

Cultural, 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.

Hate Speech in Alberta, Canada

Cultural, 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

A North American Common Market will Increase US Power Globally

Economics, Geopolitical, Premium POM

And Golds Role in the New Monetary Framework

By JC Collins

With the rise of a multilateral and multicurrency monetary framework the hegemonic position of the United States will be reduced and diversified. The geopolitical and socioeconomic challenges to this necessary transformation are apparent and have materialized in the ongoing Syrian crisis, as well in the financial pressure which has been caused by a strengthening US dollar.

The need to rebalance the international monetary system and reduce the large accumulation of USD in the foreign exchange reserve accounts has begun taking place. This draining of USD liquidity has caused varying degrees of volatility in all markets.

Eventually the framework will shift towards a more balanced footing based on the multicurrency regime of the dollar, the euro, and the Chinese renminbi. Systemic instability in the financial markets and banking sector will eventually be addressed and reduced by the dynamic joint-functions of the three currency reserve mechanics.

Are We on the Eve of War? (FREEPOM)

FREEPOM, Geopolitical16 Comments

Is the US Leading Saudi Arabia Down the Kuwaiti Invasion Road?

By JC Collins

For the first time in a long time I feel concerned and worried about the prospect of war. The reaction of Saudi Arabia to the Russian intervention in Syria has always been the wild card in the shifting geopolitical power base in the Middle East. Turkey and Israel, along with Saudi Arabia are the three countries with the most to lose because of a strong alliance between Syria, Iran, Hezbollah, and Russia.

These three traditional American allies have been accustomed to Western support in regards to their own specific regional goals and ambitions. This support has been so staunch and counterproductive to regional stability that the growing comfort and alliance between Iran and the US should be both confusing and worrisome to Saudi Arabia and Turkey.

Persia and the Petro-euro

Economics, Geopolitical, Premium POM

Iranian Crude and the Multilateral Middle East

By JC Collins

Iran has recently announced that they will be accepting crude debt payments from foreign buyers in euros as opposed to dollars. New crude sales will also be denominated in euros instead of dollars. Many will remember that Iraq began selling crude in euros in the lead up to the American invasion. This fact has been presented as the main reason for that war.

The thought process is that the US most stop other countries from selling crude in anything but the dollar so that it can continue running up budget deficits back home. Though there is some supportive evidence for such a claim, the complexity of the second Iraq war, and any future war, would suggest a more diverse set of circumstances and casus belli for the ensuing death toll and humanitarian crisis.

The Petro-Renminbi Emerges

Economics, Geopolitical, Premium POM

China & Saudi Arabia to End Dollar Pegs + China’s New Crude Benchmark Index

By JC Collins

It would appear that an agreement of sorts has been reached between world powers over the last week or so. This would correspond with the annual World Economic Forum meetings in Davos, Switzerland. Not to mention that Chinese President Xi Jinping and King Salman of Saudi Arabia also met and released a communique titled “Comprehensive Strategic Relationship”, along with another “senior Chinese official” affirming that it is the intention of the People’s Bank of China to “decouple” the renminbi from the US dollar.

Over the last few days a list of interesting things has taken place on the geopolitical front. First, Saudi Arabia came out and stated its willingness to work with Iraq and Russia on making cuts to crude production. Second, Israel is throwing Turkey under the bus and openly stating that ISIS has benefited from oil sales to Istanbul. Third and fourth are the above mentioned Communique, and statement by a senior Chinese official in Davos, regarding the exchange rate arrangement with the US dollar.

Don’t Panic Just Yet! (FREEPOM)

Economics, FREEPOM, Geopolitical36 Comments

New Year Volatility and the Shifting Sands of the Middle East

By JC Collins

With the New Year well underway we are beginning to witness the next phase of volatility which will accompany the rebalancing of the international monetary system. This recent batch of volatility can be associated with the normalization of monetary policy by the Federal Reserve. Though most have come to the conclusion that there will in fact be this volatility, many do not consider that it has been accounted for, and a focused strategy has been developed to allow for its occurrence.

The international monetary and financial systems will wax and wane through the year as the Fed incrementally increases interest rates and China continues its transition to a consumer based economy. Each episode of decreases and increases will be met with equal portions of despair and euphoria. Commentaries and conclusions will be quickly drawn that the collapse is near, or that we are on the verge of a new bull market.

This One Event Signals the End of the Petrodollar Arrangement

Economics, Geopolitical, Premium POM14 Comments

But the US Dollar is Alive and Well

By JC Collins

Over the last few years there has been a lot of talk about the end of the petrodollar and the relevance of OPEC. Every time an energy deal was signed between Russia and China, or China and Saudi Arabia, or Russia and India, where the US dollar was not being used to balance the trade, it was considered another nail in the coffin of the petrodollar.

Many of these proclamations took the conclusions a step further and stated that the end of the petrodollar would be the death of the US dollar itself. This is in fact not the case. But the petrodollar arrangement is coming to end.

How the 13 Non-G7 Members of the G20 Are Reshaping the World

Economics, Geopolitical, Premium POM17 Comments

By JC Collins

Power and influence are never willingly relinquished or surrendered.

Such is the state of mind within the American geopolitical and socioeconomic complex. This paradigm of power is pronounced in both the reluctance of the US Congress to pass the supporting legislation for the IMF 2010 Quota and Governance Reforms, and the ongoing geopolitical turmoil in Eastern Europe and the Middle East.

As I have profusely written, the international monetary framework is in the process of transitioning to a multilateral construct which will be based not on the unipolar US dollar, but on a multi-currency reserve system, of which the dollar will still play an important role.