EU Return to National Currencies Confirms More POM Thesis
By JC Collins
Since the BREXIT vote there has been a growing call within EU nations for a return to domestic currencies and the re-establishment of sovereignty. Both France and Italy have been openly expressing the need of returning to national currencies in order to increase manufacturing and revive their economies, while other EU nations are beginning to recognize the need for greater domestic monetary autonomy.
Longtime readers and commentators Dane and Dineen have reached out to me this morning with a link to an article titled IMF says EU on brink of collapse and ‘untenable’ Euro may have to be SCRAPPED. The link supports the POM conclusion that the EU nations will return to using their national currencies for domestic commerce and individual use. The euro currency would only be used to balance trade between member states and perhaps for central banks to issue bonds.
The best way to visualize this dynamic is through understanding the broader role of the SDR which is emerging towards the end of this year. The SDR will increase international liquidity through the issuance of bonds. China and the Bank for International Settlements have already expressed their intent to issue SDR based financial products and services. China will be issuing SDR denominated bonds and establishing an SDR-based borrowing platform before the end of the year.
More nations will come on board will issuing SDR bonds and using SDR to balance trade. All of these nations will continue to use domestic currency while using the SDR to balance trade and in other international transactions.
The same methodology will apply in the Eurozone. EU nations will remain in a modified version of the EU which will be based on the original concept of a shared economic zone and optimized currency area. The euro currency will serve the function of the optimized currency area, much like the SDR internationally, while each EU nation will re-introduce national currencies for domestic use.
The function of returning to domestic currencies will also allow each European nation to re-dominate their sovereign debt and write it down without increasing the risk on the multilateral function of the euro.
This re-denomination could align with a larger bail-out for European banks and force a re-negotiation of trade agreements such as the Transatlantic Trade and Investment Partnership (TTIP). This re-negotiation would open the door for a broader acceptance of the New Silk Road objectives of China and other BRICS members.
This would support the exit of Great Britain from the EU and the increasing promotion and planning for a more EU based defense force and shifting of influence within NATO members. Even Donald Trump is suggesting that EU members need to take on a larger role within NATO.
The rise of nationalist movements and protest worldwide are supporting a new modern nationalism which will provide the synthesis of global monetary and socioeconomic governance. This new modern nationalism will act as a Trojan horse for further consolidation. This consolidation will be hidden within the sovereignty movements which are increasing around the world from Germany to America.
More multilateral pieces are fitting into place and with each piece more of the POM thesis is being proven accurate. Here is a quote from Part Three of the SDR’s and the New Bretton Woods series subtitled The Real Global Currency Reset:
“We are seeing mass protests against governments for the sovereign debt problem which is threatening the world with total collapse. What is little understood by the majority of the people is that the sovereign debt problems are being caused and facilitated by the very same banks that will stand to gain from any global currency reset. The reset will be the solution offered in response to the reaction of the people, being the protests and revolutions, which stems from the problem of sovereign debt and currency collapse.”
This was written on February 3, 2014 and is reflective of what we are seeing happening in the world today. The whole monetary framework will shift as a response to growing economic and social disturbances. All the while the new framework has been developed in quiet and is now ready to implement in larger and larger pieces.
Waiting for the G20 Summit in September. – JC