Global Rebalancing Begins as China Opens Up Massive $9 Trillion Dollar Bond Market

JC CollinsEconomics, Premium POM

The internationalization of the Chinese renminbi has been the foremost objective which needs to be realized in order for the rebalancing of the international monetary system to take place. The plethora of policy adjustments and reforms to global institutions have all been building towards lower demand for USD denominated assets and increasing demand for RMB denominated assets.

Those working towards transforming and rebalancing the international monetary system have been managing in the direction of creating a framework which will be based on a multi-currency reserve system. This system would utilize predominantly the USD and RMB to achieve this rebalancing, with other currencies taking up the responsibilities which come with minor reserve positions.

One of the core methods by which these objectives can be reached is by China opening up their massive $9 trillion dollar bond market to foreign investors. This would create the dollar alternatives which will assist in shifting the wealth of the world. This shift will free the USD up for some much needed devaluation. It will also assist in stabilizing the renminbi and encouraging a much needed appreciation.

The Worlds Waning Appetite for the USD

JC CollinsEconomics, Premium POM

So much has changed so fast. These changes haven’t been discussed on the evening news and broadcasted across the airwaves. They haven’t been streaming on YouTube with millions of views and subscribers, nor have they been used as political platforms. But the changes have happened and most of us go about our lives with little, if any, knowledge and awareness about them.

The need for these changes has been building for decades and has now become one of the most important aspects of international relations. Economic and monetary specialists have been warning for a long time that imbalances are developing in the international monetary system. These imbalances are a direct result of the role of the American dollar as the primary reserve currency used in global trade.

When the post war dollar system was established at Bretton Woods in 1944 the United States had a larger percentage of the worlds GDP. It is estimated to have been at 50% and made the case for the use of the dollar as the primary reserve currency all the more reasonable. Nations began to accumulate large amount of US dollars in their foreign exchange reserve accounts.

Vietnamese Dong and a Possible Currency Crisis

JC CollinsEconomics, Premium POM

A Pretext for Exchange Rate Adjustments

The Asian Development Bank Institute (ADBI) published a working paper which suggested there was an increased probability of a Vietnamese currency crisis in the event there were sudden international financial shocks or changes in monetary policy. The paper detailed a broad scope of economic parameters and monetary fundamentals to support the thesis of potential overvaluation. Missing data sets included capital flows and changes to the exchange rate arrangement which the dong holds against the US dollar.

It is difficult for the ADBI to make firm conclusions without including information which determines capital flows, such as foreign direct investment, foreign portfolio investment, worker’s remittance, and official development assistance in the nation. None of this was included in the report, so we must consider the conclusions of enhanced overvaluation risks associated with a currency crisis to be somewhat speculative.

Still, there are some patterns which can be assumed based on the Asian Financial Crisis of 1997 and 1998. That crisis was sparked by a strong dollar which put additional stress on the emerging markets in Asia. The incremental and methodical interest rate increases by the Federal Reserve is once again causing concern as it could lead to a stronger dollar and a repeat of the 1997 scenario.

The ASEAN nations and trade bloc have taken some steps to minimize the repeat of such impacts but whether they are enough is not known until the time comes. This is where a currency crisis becomes possible.

The Trump pull out of the TPP (Trans Pacific Partnership) trade deal with the ASEAN nations has forced a restructuring amongst the regional trade group. Vietnam, who was one of the strategic and broad particpants in the TPP, is now forced to look towards deeper integration within the ASEAN bloc to ensure it has access to foreign markets for its exports.

Free Speech or Revolution

JC CollinsCultural, Premium POM

Islamophobia vs the Abuse of First Nations

During the French Revolution in 1789 the Declaration of the Rights of Man and of the Citizen made it very clear that freedom of speech was an alienable right afforded to all. It specifically stated the following:

“The free communication of ideas and opinions is one of the most precious of the rights of man. Every citizen may, accordingly, speak, write, and print with freedom, but shall be responsible for such abuses of this freedom as shall be defined by law.”

The right to free speech and expression is also recognized as a human right under Article 19 of the Universal Declaration of Human Rights as well as the International Covenant on Civil and Political Rights. It is without a doubt one of the most important methods by which citizens can articulate opinions and ideas without the constraints of censorship, social exclusion, or government punishment.

But how do we define the abuse of freedom of speech?

It is widely agreed that speech which incites violence and hatred would be considered an abuse of this right. But doesn’t this stand in opposition to the very nature of free speech? Yes, it does.

There is still a moral authority for all to use good judgement and temperament when considering the use of words and language in human communication. As an example, a case could be made that the title of this article is testing the waters on the abuse of free speech by suggesting that there could be a revolution if free speech is threatened or restricted.

Does this constitute an incitement of violence?

Depending on your political leaning a case can be made either way. This would suggest that human interpretation and emotional intelligence can play a huge role in how we make our determination of what is an abuse of free speech and what isn’t. But interpretation can be used as a scapegoat for the restriction as well.

Pop Culture as a Leftist Weapon

JC CollinsCultural, Premium POM

How the Liberal-Left Establishment Exposed their Strategic Position

A fundamental truth which has emerged since the election of Donald Trump is that the cultural divisions between the left and right have become more pronounced. Though it is possible that the elite establishment which controlled Western nations for decades has been pulling the puppet strings of both ideological positions, the election of Trump has taken back control of the right Republican Party in America and subsequently the nation.

The expressions of outrage and hostility which are being encouraged throughout the West against this massive shift in the political framework and cultural orientation are disproportionate to the actual circumstances and objectives of the new American administration.

The voters who participated in this massive shock to the political system, both through the BREXIT vote in Britain and the election of Trump, are having a challenging time understanding the counter argument of the leftist expression of resistance. This disconnect between what is being portrayed in the mainstream media and what is common knowledge on the ground is expanding at an increasing rate.

The more the media hammers the point that Trump and the new modern nationalism are fascist movements which are leading the world to another Nazi type environment, the more those voters are beginning to notice the huge gap between the left and right in our pop culture.

The Trump administration is encouraging job growth and a return to fiscal responsibilities which have been discarded for generations. It is setting up a framework to protect American heritage and cultural identity which has provided the bedrock for a large segment of Western civilization as a whole. These ideals and objectives are not racist or any other negative label. They are exactly what the majority of American people want.

Once cherished actors, musicians and popular personalities have come forward in opposition to the Trump agenda. These famous individuals have provided the core function within our pop culture. For seven decades this pop culture has expanded and intruded further into

The Impossible Interest Rate Increases

JC CollinsEconomics, Premium POM

Japan QE Tightening & the Trump Xi Jinping Meeting

The idea of the Federal Reserve increasing interest rates was considered by some to be impossible. It was speculated that if interest rates were to climb it would tank the whole system and cause a stock market crash. Though such statements and conclusions make for frightening headlines and increased website traffic the reality of the situation has been far less dramatic.

The semi-logic of such expectations does follow a sort of fundamental pattern. Interest rate increases cause the costs of debt management to escalate. The system has a lot of debt and has been in a growth contraction for some time. In such an environment it is understandable to consider rate increases as a bad idea.

What if the environment changed? How would this cause debt management to become more sustainable and allow for incremental interest rate increases over a period of time?

This is what we are dealing with now as the world continues to change and past assumptions are discarded for new realities. It was widely considered that the Fed couldn’t end QE and it did. It was assumed that the Fed would never begin the process of increasing interest rates and it did. It was said that Trump would never get elected and he did.

Now we are entering into a time period where even Japan is openly talking about ending and tightening Quantitative Easing. It is being considered that the Federal Reserve may even be increasing the frequency and amount of rate increases as job performance increases and the economy in America begins to improve.

The Convenience of the North Korean Threat

JC CollinsGeopolitical, Premium POM

It has been said that obvious is not so obvious when observed through the lens of the absurd. This is what we have been experiencing with the ongoing threat of North Korea. The very existence of North Korea is both serious and comical at the same time. Its existence is the number one reason for the American establishment military presence in that part of the world.

Last year I published a post titled Is North Korea and American Puppet State?. In that post we reviewed the possibility that the nation was indeed a tool of this “deep state” within the American governance structure. The article gave numerous examples which supported this claim.

Since that time we have witnessed even more bizarre situations with North Korea. Its nuclear and missile tests are always conveniently timed to correspond with some American interest or another. China makes economic and geopolitical moves. North Korea acts up. Japanese begin to demand that the US military pack up and leave the country. North Korea acts up.

Conflict Revolution on Social Media

JC CollinsCultural, Premium POM

The Transformational Relationship between Simulated-Proximity & Material-Distality

The simulation of human conflict on social media is contributing to the further erosion and fragmentation of cohesive culture and sustainable civilization. This simulation is not the human conflict, in the traditional sense, which has developed over thousands of years around physical proximity, or distality, and material aggression.

Human conflict in the past has been based on the fundamental tribal fault lines found in varying levels throughout culture and individual lineages. The survivability of the human individual was a structural part of the material success of such tribal and lineage systems. The more distality which existed between large groups ensured a reduced material threat and increased survivability.

The Mole Inside the Bank for International Settlements

JC CollinsEconomics, Geopolitical, Premium POM

Winning Back Control of America was Only the First Step in Trumps Grand Plan

By JC Collins

Taking control and transforming the systems of the world is no small undertaking. A clear strategy would need to be implemented which could leverage the existing frameworks while encouraging the enemy (the existing power establishment) to develop and implement the additional frameworks and mechanisms which you would later hijack and turn to your own advantage.

The status of the United States on the international stage is indisputable and undeniable. Both its economic and military prowess assures that whomever controls the gears and levers of power within the American establishment has the ability to direct and steer the course of world events.

The Last Days of the Cultural Civil War

JC CollinsCultural, Premium POM

By JC Collins

Do you think a cultural civil war is fast approaching? Do you feel like the vast differences between the left and the right ideologies in our western cultural are reaching a critical point? Is our cultural now so divided that bloodshed is the inevitable outcome and solution to put it all back together?

If you think the answer is yes than you haven’t been paying attention and your entire life has been spent in a state of semi-comatose cultural indifference. Don’t worry, you’re not alone.

But how could we have been in a war this whole time and no one noticed? Where are the victims? Which side is winning? Where and when have the major battles been fought?