SDR & the New Bretton Woods - Part Four

FREEPOM, SDR's and the New Bretton Woods23 Comments

Archaic America and Oil Wars

This is really an old lesson for a new era. At such a momentous time as this, we need to choose the ethos of 1944 over 1914. We need to rekindle the Bretton Woods spirit that has served us so well.

-          Christine Lagarde, Managing Director of the I.M.F. Feb 3, 2014.

As young boys my brother and I delivered newspapers in our neighborhood.  There was one house in particular that always stood out to us.  In this home lived a man with no legs.  The house was your standard suburban build of the 1970’s and had a ramp running up the width of the front. The man in his wheelchair would often be parked at the small area at the top of the ramp.  It was a short landing from which he could enter the house.

Bad feelings always came over me every time we delivered the newspaper there.  My memory tells me that the man wasn’t very nice, though I’m sure he was and that’s just how I remember it based on my own feelings of uneasiness.

When we see a man in a wheelchair we often think of war vets.  In this case the man had lost his legs in a mining accident.  There is a giant mining machine called a bucket wheel.  It’s exactly what it sounds like, a large wheel made up of many buckets which dig into the earth as it turns.  This man had the unfortunate accident of being in a pickup truck that came into contact with the mining machine.

Our father also worked at the same mine and over the years of our childhood there were many such accidents, some ending in deaths and others causing life altering trauma like the man on the porch. Fear was something I often felt as I stared out the window and watched my father walk off to catch the bus which transported all the workers to the mine site.  The thought of my father being one of the men who didn’t come home was unbearable.

As dangerous as it was, my father worked hard and provided for his family.  We had a good childhood.  A good life.  Though I didn’t understand it at the time, the world needed energy and my father helped provide it by exacting his own energy.  My brother and I didn’t put out as much energy delivering newspapers because we were lazy, as children are want to be, but we would eventually get paid for what little energy we did exert.  That’s how it works right, exert first and earn after.

Along with listening to ABBA songs for the better part of the early 1980’s, I also watched the endless Iraq and Iran war on television.  The ability to fully comprehend what it was all about only came to me when I was much older.  The concept of the petrodollar was kept out of the media at all costs.  The fact that the American military would support one oil producing country to attack another oil producing country was too complex a thing to grasp while the song Waterloo spun on the record player.

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For those who don’t know, the petrodollar was an agreement between the Federal Reserve and Saudi Arabia to price and sell oil in U.S. dollars.  This scheme came about after the dollar was disconnected from its 30% gold peg in 1971.  By 1973 the scam was on and most of the oil producing countries fell in line.  Unfortunately Iran didn’t get the memo.

We’ll avoid a long history of oil shenanigans and military occupations.  Please feel free to research and filter all Middle Eastern conflicts through the petrodollar smoke screen.  I would include the Caspian Basin and Bosnian conflict in this as well.

Two nights ago Christine Lagarde of the International Monetary Fund was giving a speech in London.  In that speech she made many references to the outdated system that has been in place since the Bretton Woods agreement of 1944.  She explains how that agreement has served us well for the last 70 years but it is now time to move on with a new multilateral system, a “financial system for the 21st century”. Near the end of her talk Ms. Lagarde boldly states that a new multilateralism is “non-negotiable”.

What she is saying is that both the old Bretton Woods arrangement and by default the petrodollar scheme are dead and over.  Like the British Pound before 1944, the reserve status of the American dollar is over.  It’s just that American’s have not accepted it yet because the leaders of the country have not told them about it.

There are too many currency swap agreements which have been made over the last few years to even mention.  The function of these swap agreements have been to avoid using the dollar in trade.  The emerging economies have planned their counter to QE tapering like a general strategizing a flank maneuver.  If it was not for these currency swap agreements the emerging markets would be suffering more right now.

But let us kept our eye on the moving ball here and remember the problem, reaction, solution technique we have been discussing in previous posts.  Since we are suggesting that all sides are reading from the same script, I will put forward that the script is in fact the 2010 I.M.F. Code of Reforms.

The United States is the last hold out on the Reforms.  The Congress has to pass the legislation in order for the 2010 Code of Reforms to be fully enacted and the required changes to the Executive Board of the I.M.F. completed.  As some of you may have already guessed, and not to put too fine a point on this, the Reforms will allow for the following things to happen:

  1. Restructure U.S. sovereign debt. (other countries as well)
  2. Final payout on historical bonds.
  3. Revaluation of currencies.
  4. Preliminary SDR bond agreements.
  5. Soft landing for stock markets.

From there the real work will begin as SDR allocation sites are strategically located.  As stated previous, the “restructured” Fed will issue SDR securities along with the World Bank, European Central Bank, and the BRICS Development Bank.  There will be others but those are the core institutions.

SDR compositions for each country and economic zone will continue to be analysed and negotiated as trade shifts and settles to the new paradigm.  Gold will obviously be a vital component of most SDR compositions, especially in Asia, where strategically located gold vaults are now being set up in China, Vietnam, Indonesia, etc.  This was explained with more detail in “America’s Karma and World War Two Gold Theft”.

Commodities other than gold will also factor into SDR composition weights.  One of these is oil.  With oil comes different challenges than some of the other weights.  Let’s take the relationship between the United States and Canada as an example.  Oil is pumped or mined in one place and after initial processing, is shipped elsewhere for further processing for a market grade product.

This is where the Keystone XL Pipeline comes in.  The purpose of the pipeline is to transport semi-processed oil from the Canadian Oil Sands to the refineries in the gulf region of America.  There is much to do about nothing over this “proposed” pipeline.  Just as there is about the Oil Sands in general. Why do you think this is?  It’s a negotiation over what percentage of the produced oil will be applied to the SDR composition of each country.  Should Canada get more for mining and partial processing?  Or should America for bringing it to market?

All along, even with the delays and drama over both the pipeline and the oil sands, Keystone is in fact moving ahead with major portions of the line already completed.  The so called Obama drag on this is only for show.

keystoneXL-map

In addition to Keystone, Canada is also building what is called the Northern Gateway Pipeline to transport oil from Northern Alberta to the Pacific coast for shipping to the Asian market.  This is why China is becoming heavily invested in Canadian oil and its related infrastructure.

Intangible SDR trading is already going on outside of the U.S. dollar.  The exact same thing happened to the British Pound in the years leading up to its official demise as the reserve currency of the world.

Let’s move on to Iraq and Iran.  It was reported on January 30th that Iraq and Iran where planning on joining forces and cutting world oil prices as a form of economic warfare on Saudi Arabia.  The purpose is to destroy OPECs control over the world oil market.  As usual, things are not as they appear.  OPEC is already dead for the most part and Saudi Arabia is aligning itself with China.

This is major news that is lost on not only Americans but many other regions as well.  With the shattering of OPEC who will dictate the price of oil?  There are a few different exchanges which price oil and I would suspect that eventually there will be just one in order to facilitate more accurate SDR compositions for oil producing nations.

The bigger question to ask here is how do two countries that fought a war with each other for almost a decade suddenly decide that they will become the dynamic duo to fight the evil Saudi sheiks?  There’s a micro problem, reaction, solution taking place here.  I propose that the Middle East will be split into two economic zones with the Lower Middle East encompassing oil production from Saudi Arabia and Northern Africa, while the Upper Middle East will consolidate not only Iraq and Iran but most likely the Caspian region as well.  Remember, civilizations are transformed through revolutions.  There is more to the Arab Spring than many realize.

Though the world’s countries will maintain their individual autonomy, their economic sovereignty will be passed to the Executive Board of the I.M.F. under the 2010 Code of Reforms.  As such, the oil produced from the economic zones will not apply directly to the individual countries SDR composition but to the regions composition.  Both Iraq and Iran are oil rich in resource but the ability to bring it to market, especially in Iraq, is still fraught with challenges.  The world will not wait for stability in Iraq before implementing the Code of Reforms which will in turn lead to the Global Currency Reset and the Great Consolidation.

Iraq’s currency, the Dinar, will be revalued, of that there is no doubt.  But not anywhere near the exchange rate that many are predicting.  Like my brother and I delivering newspapers, we could not get paid until the papers were distributed and payments collected.  The dinar will not be revalued at a rate that cannot be supported by the actual production of the oil.  Both Iraq and Iran are looking forward to 2020 to even come close to the barrels per day production that Saudi Arabia has now.

In addition, I would suspect that a regional dinar currency will be developed to support the economic zones SDR composition.  And that is good news for many that hold dinar.  It will be revalued sooner rather than later and it will offer a great return, but only as the micro of a larger macro and regional dinar scenario.

I encourage everyone reading my blog posts to educate yourself and research as much as possible.  Everything we need to know in order to understand what is coming is published and available. The reset is real, as is the consolidation.  The centralization of economic power is worrisome but I fear the alternative at this point in history offers a less desirable outcome.  How we handle ourselves as human beings will dictate how we challenge that centralization.  Do we fight as desperate and divided buffoons who are lost in the ignorance of the past?  Or do we become knowledgeable and stare the system in the face and challenge it to become better?

The latter is much preferable as far as I’m concerned.  And we accomplish this by challenging ourselves first.  Like I wrote of in my post “The Failed Alchemical Process of America”, the failure of America is the failure of us all.  The journey from base metal to gold is the responsibility of each one of us.  How do we expect a system based on greed to change when we ourselves are consumed with our obsession over matter?  It matters not what the I.M.F. or any other organization does.  We are the solution we’ve been looking for.  Exert your energy for the wealth of knowledge.

In the next part we will continue with the SDR compositions but also start to touch on some of the cultural ramifications of the Great Consolidation.    – JC

SDR's and the New Bretton Woods - Part One

SDR's and the New Bretton Woods - Part Two

SDR's and the New Bretton Woods - Part Three

Supplemental:  The Failed Alchemical Process of America

Supplemental:  America's Karma and World War Two Gold Theft

23 Comments on “SDR & the New Bretton Woods - Part Four”

  1. Another centralized banking regime is likely in the cards, but I'm not so sure the plebs will fall nicely in line. Nothing will occur seamlessly. Many people will lose paper fortunes, the lower classes will suffer the fate of poverty, and people in between will be whipsawed. We are also nearing the end of an old human paradigm, and the energy needed to hold it together is fading. Humanity is ready for something different. I'll put my money on chaos. A big reset is coming. Sorry, nobody gets out alive without getting hammered somewhere along the line.

    1. Everything will have a new value assigned to it. The process of calculating the value will be a reflection of the priorities of the new paradigm. We no longer agree on what is worth what. It will all be dismembered before it can be re-evaluated. The world will wake up to a new day and have to look at all our values.

    2. There is a strategic "revolution" that is being prepped in America with the divisions being drawn up and tensions going everywhere. The "fool" Obama is playing the role of hated leader for America. Is it any wonder they chose an african american to serve as president during this time? What better way to divide a nation and set it up for in-fighting?

      With every offensive move Congress and Obama makes the people of America are whipped more and more into a frenzy. They want emotions high and clarity of mind at a minimum and when China is done positioning itself to take over control of most of our economic power they will initiate a stock market crash in which all assets will plunge into the depths.

      After the crash, just like every other crash in history, American assets will become worthless and those holding the most percentage of dollars--China, will be move in like a golden dragon and buy up America at pennies on the dollar. This will be the great attack on freedom in the world and it's going to come from the chinese dragon.

      Will it suceed? As we know even if they do this and try to do it as covertly as possible...they still don't control the personal armory of America...a.k.a. the 280 million private firearms owned by them.

      This is a wild card if ever there was one. Eventually American's will revolt. But the only strategy available is to crash the U.S. markets so badly that they are too busy trying to survive to actually fight....

  2. Excellent writing and research JC!

    I've been listening to a guy named Phoenix3333 for the past few years. His wife has researched extensively and posted supporting articles about Biden's '3 State Solution' for Iraq, the Gulf regional Dinar, and everything else you have expressed up to this point on their blog http://www.goingglobaleastmeetswest.blogspot.com.

    The one new piece of interesting information that you brought forward is the regionalizing of oil production by Iraq and Iran to balance the new SDR basket for the area... (This is probably why sanctions on Iran have been loosened). Is there a source where I can confirm this to be true?

    Thank you!

  3. Vanessa, there is no VNN as far as I'm aware. Its VND. If they issue a new currency and call it VNN then it will have nothing to do with the old VND. And if they do issue a new currency it will not turn out good for the holders of VND, as that would mean the currency was demonetized.

    In regards to timing, I have no answer. My best analysis is that its tied to the 2010 IMF Reforms which are held up in Congress. The IMF was a product of the Bretton Woods agreement and as such, controlled by the US for all these years. Once Congress passes the reforms it will relinquish control of the IMF Executive Board. This will allow other countries such as China, Vietnam, etc., to have their currencies revalued through the IMF.

    If the US doesn't pass the reforms than we could possibly find ourselves in a situation where countries such as Iraq and Vietnam may demonetize their present currencies and issue new ones, such as the so called VNN and IQN. This would be supported by the rest of the world and would side step the US dollar and its control over the IMF.

    Congress passing the reforms is preferable. Unfortunately the IMF SDR structure appears to be the best way forward. It has been set up that way on purpose. - JC

    1. Thanks for the prompt response.I meant to put VND. I've been hearing a lot about the VND and Dinar Rv at the same time. I cant figure out how they are connected. Any suggestions?

  4. They are connected through the IMF Code of Reforms. Its not just those two currencies, its many others as well, along with specific numbered historical bonds and sovereign debt consolidations. When the US relinquishes control of the Executive Board we will start to see the economic world restructure. Lets see how it plays out over the next few months.

    1. JC,
      Thanks for sharing your fascinating work. Any updated assessment of how/when matters will progress following the US Congress's vote last month against approving the IMF 2010 Quota reforms, please?

  5. Hello JC,
    Thank you for the insights. Huge learning curve here. I'm guessing that like me, other readers here rank little above novice level (if even that) in the study of global financial and geopolitical science. All I can do is corroborate what you present with what I've learned & continue to learn from other alternative media sources. I'm at this point because it is clear the mainstream media is a tool of the 0.01% that have guided this planet to the brink of multifaceted destruction with their unbridled greed (enabled by the masses, of course). While occasionally we're thrown a morsel of truth, we aren't getting the full story from the MSM.

    What you touch upon at the very end with the metaphor of alchemy strikes my core as true. Whatever "reforms" we have, they will do no real good for humanity or the welfare of our planet as long as there exists within us untempered ugliness, especially greed or complicity with acts of aggression abroad (like drone strikes on supposed "terrorists"--just not in our back yard). As long as we're ok with deplorably impoverished conditions elsewhere in order to support comfort at home, we only guarantee poverty for ourselves. As long as we're immersed in and divided by materialism, we cannot and will not overcome the forces that ensure our destruction.

    We're being challenged to evolve to less materialistic and more loving ways, and for a number of people that is going to mean experiencing some unprecedented humility.

  6. Great piece JC - certainly covers the relative immediate. BUT you have not mentioned the supressed and (not so) new energy technologies that will challenge oil, without doubt. We know that these technologies exist and that 'they' are using them. Not immediate, but how do you see this playing out?

    how do you see this playing out??

  7. JC,
    Thanx for your great articles in this subject matter, I've read a lot about Bretton Woods and WWI-WWII goldgrabbing from the West etc.

    The SDR's where new to me but makes sense. I wonder how new energy devices and the thousands of suppressed patents will play into all of this?

    Rgs Oliver

  8. JC,
    In your list of events to occur you list as #2 "Final Payout of Historical Bonds". Could you please explain this factor? What is involved with this component of the time line and does it somehow relate to gold?

  9. @JC Collins- Will the Elite use the massive bank derivatives positions to crash the system in order to bring in SDR's as the one world currency?

  10. So, I'm looking at a chart showing daily oil production of the various nations. Kuwait is producing 2,450,000 bbls/day. Iraq is producing 2,642,000. The Kawaiti dinar is currently worth $3.55. What would you think a reasonable reval would be for the IQD? What do you think the general expectation is?

    1. Lest we forget the social and political stability in Kuwait, lets also take a look at Saudi Arabia. They produce 10.3 million barrels per day. The exchange rate of the Saudi Riyal to the U.S. dollar is $3.75. And as you stated, the Kuwait Dinar to the U.S. dollar is $3.55, with only a 1/4 of the oil production of Saudi Arabia. So we can conclude that there are other factors or weights, outside of oil production only, to consider when calculating the potential of a specific country. Do you think maybe the Kuwait dinar is unreasonably high? What do you think will happen when the dollar is devalued 30% to 50%? Its recommended that readers go to http://www.tradingeconomics.com and study the economic indicators of each country they are interested in. Straight arrow comparisons are to be avoided as they are not an accurate portrayal of metrics.

      As for your question, what I would consider a metric oriented rate for the Iraq Dinar, based on current dynamics and performance, somewhere in the range of $0.35 to a devalued dollar. One will not increase without a decrease in the other. In regards to expectations, life has taught me one thing, what we expect and what actually happens are never the same thing. - JC

  11. Hi JC:
    I had the same question as both Sleazkey & Oliver with regard to the energy technologies and the multitude of patents the US holds(up) but have yet to utilize? How do you see these un-factored variables impacting the "composition" (assuming they "play" that card)?

    And, I'm by no means versed in Global Economics and/or Geo-politics, but with what I've come to understand so far, the US has the ability to enjoy "Energy Independence" via exponentially improved technologies which until now have been "cloaked" --I'm guessing because it benefited "the rent seekers" more with the "petro-dollar" yielding greater profits and enjoying grand power. However, now, if the US (and it's bosses) is losing that "commodity" would it not serve them all well to "allow" for the use of these technologies/capabilities which could actually "trump" as the greatest commodity?

    I'm thinking: 1) with this much greater, not to mention "easy" to transport/export, multi-layered beneficial (Planetary, Global, National, Societal, Cultural-environmentally & economically, etc) energy technology would hold their weight in the SDR basket {Micro}, 2) even if it's an unintended consequence, this may enable the reassessment of each persons true "wealth" allowing as Erika stated above, "...evolve(olution) to less materialistic and more loving ways,..." and therefore begin a new pattern to be echoed around the globe.
    I may have gone to deep into my hopeful vision for humanity here... but I'm sure you get what I mean.

    I'd really like to know your perspective on the impact of the energy technologies...

    Best regards,
    E

    1. In regards to alternative energy technologies, the argument could be made that any release or utilization of said technologies would realize the greatest return, both economically and culturally, if and when there is a balanced multilateral financial system in place. The temptation for a single monopoly power, such as the U.S. holds by way of reserve currency status, to take advantage of lessor countries and economies would be too great. This would also contradict the purpose of such technologies in the first place. Alternative and advanced energy or other technologies would create a more level playing field and a multilateral system of commerce would facilitate the implementation and growth of such technologies. There is so much unknown about this area that I would hesitate to speculate further. Though I think the announcement last year of the hyper-loop transportation system is a good sign that the slow reveal and implementation of the technologies will be forth coming as the financial system makes its transition.

  12. Hi JC Collin,
    Thanks for taking time to give us brief explanation of how international banking systems operated. It's a best writing I've ever read. After reading four SDR's and Bretton Wood essays I have a question to you.
    Why are US and/or US congress trying to hold up the Code of Reform and what are they afraid of if they move forward with this reform?
    Thanks for your reply.

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