The Dollar and World on Oct 2, 2016 (FREEPOM)

JC CollinsEconomics, FREEPOM9 Comments

Internet Control Passes to the United Nations

By JC Collins

We are only 12 days away from the effective date of the new SDR.  Coincidently this is also the date when the United Nations takes over control of the internet.  The US Administration has controlled the internet since its inception through the Internet Corporation for Assigned Names and Numbers (ICANN).  This control will now be passing over to International Telecommunications Union (ITU) which is administrated by the UN.

Such a shift in control and influence is reflective of the transformation which is taking place in the international monetary system.  Adjustments to the flow and control of capital has always been the predecessor to broader socioeconomic and geopolitical changes.  The trends of today and tomorrow will also follow this undeniable logic.

For the last 72 years the United States has maintained a high level of global hegemony through the use of its domestic currency as the international reserve asset.  Since 1944 the USD has accumulated in vast quantities in the foreign exchange reserve accounts of central banks around the world.  This has given the US government immense influence and control over nations and whole regions.  New technologies, such as the internet, were managed and distributed by the US, and most geopolitical issues between nations were settled in a manner that considered the wants and needs of America and western corporations.

This is now all changing, and the world events which are unfolding in Eastern Europe, the Middle East, and South China Sea are a testament to the reality of this shifting influence.

The SDR (Special Drawing Right) is a basket of domestic currencies which is used by the International Monetary Fund to manage quota amounts and allocations of funds for member nations.  The basket has went through various alternations since its inception in the late 1960’s.  The current composition of the SDR includes the USD, British pound, Japanese yen, and euro.

On October 1st a new composition comes into effect which will include the Chinese renminbi.  China’s domestic currency has been on an upward trajectory towards official reserve status amongst the G20 nations.  This internationalization took on a new dimension after the financial crisis of 2008. At that time it was recognized that the imbalances in the world monetary framework, much like the imbalances in the geopolitical realm, was caused by the large accumulation of USD in the foreign exchange reserve accounts.

The global community, through governments, central banks, international institutions, and think tanks, began to develop multilateral processes and mechanisms which would nudge the systems of the world from the unipolar American framework to an architecture which would effectively meet the wants and needs of the international realities.

For three years I have contested that the US dollar would not suffer a horrible death and collapse as some have repeatedly stated and promoted.  The ebook I provided titled Re-Engineering the Dollar made the case that the US currency would be slowly altered and adjusted to fit within the multilateral framework and function in a more efficient capacity as a domestic currency, meeting the economic needs of the American people and business, which it has failed to do for decades.

Even the most hardened sceptics and promoters of the “death of the dollar” script are now admitting that the dollar will not die, and will in fact fit within a larger multilateral mechanism.

These adjustments will require some level of volatility as both SDR and renminbi liquidity increases internationally and USD liquidity decreases.  The shifting sea of capital flows will require the normalization of monetary policy in all western nations which have utilized low interest rates and quantitative easing practices.

The Federal Reserve in the US has accomplished one interest rate increase so far and others are expected.  Whether the second increase comes next week or not, the trend towards a multilateral framework is well defined.  Each increase has to be timed and coordinated with China and the expansion of alternative liquidity measures to US Treasuries.

At some point in the near future China will further widen and extinguish its exchange rate pegging mechanism with the USD.  Like interest rates, this will have to be coordinated and managed to minimize volatility and ensure capital flows do not adjust too swiftly.

What this all means for the dollar is that on the morning of October 2nd things will continue much as they have.  No big news stories will break that morning stating that the dollar is crashing and the world is ending.  It is only a point in time.  The shift has already been happening for years and will continue to happen for many more.

At some point the dollar will depreciate against the currencies of its largest trading partners.  It is important to understand that this depreciation will be beneficial to the dollar as it will help increase American exports and create jobs.  All things which American’s have suffered under the reserve capacity of the dollar.  – JC

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9 Comments on “The Dollar and World on Oct 2, 2016 (FREEPOM)”

  1. The adjustment will not be a crash of the US system, but a rebalancing. Still, to those accustomed to living above the means of their nation, it will still feel like a crash. It’s been so long since normal was seen. Few would even recognize it. But this is the path to recovery; imbalances are always corrected. It is natural law.

  2. An apocalyptic collapse would have been way more exciting. Instead we get to watch as the West gets thrown under the bus without the power to do anything about it.

    The committee of 300 from the early 90’s already shows how much these elite have their hands in everything. Thousands of organisations and think tanks collaborating all together at once. You can’t beat this system. All you can do as a peasant is create your own protective bubble and live with what they choose to happen next.

    1. 60/288. The United Nations Global Counter-Terrorism Strategy adopted by the General Assembly on 8 September 2006.

      https://documents-dds-ny.un.org/doc/UNDOC/GEN/N05/504/88/PDF/N0550488.pdf?

      On page 6 the following is outlined.

      “(a) Coordinate efforts at the international and regional levels to counter terrorism in all its forms and manifestations on the Internet;
      (b) Use the Internet as a tool for countering the spread of terrorism, while recognizing that States may require assistance in this regard;”

      Then this article kind of consolidates a lot of movement in this area.

      “In an effort to increase the legitimacy and add coherence to the UN’s efforts, the UN General Assembly unanimously adopted in 2006 the Global Counterterrorism Strategy(GCT). Although the GCT provides an important normative and operational foundation for counterterrorism work at the UN, a report (PDF) by the Center on Global Counterterrorism Cooperation released ahead of the 2010 review conference notes that the strategy’s potential to “provide for collaborative, holistic counterterrorism efforts is either unknown or largely overlooked beyond New York, Geneva, and Vienna.” That is, it has earned little attention or traction even among most UN member states.

      The main onus of implementing the GCT is with member states, but its institutional operation is supported by the Counterterrorism Implementation Task Force (CTITF)—a partnership of bodies created by UN secretary-general Kofi Annan in 2005, which now includes more than thirty UN entities plus INTERPOL, to streamline and coordinate counterterrorism efforts within the UN. In addition, the CTITF has nine working groups that focus on specific elements of the UN counterterrorism work, such as countering terrorist use of the Internet and integrating human rights concerns. Because the CTITF is composed of representatives from different agencies within the UN system, each agency’s mandates and priorities often take precedence, undermining the goals and effectiveness of the task force. Therefore, despite being created to help coordinate, coherence remains elusive.”

      http://www.cfr.org/terrorism/global-regime-terrorism/p25729#p5

      Our fellow commenter Alan provided some links the other day. Within those links where the following links.

      “UK Cert Body Crest Signs NSA MoU” (A MoU is a Memorandum of Understanding.)

      http://www.infosecurity-magazine.com/news/uk-cert-body-crest-signs-nsa-mou/

      “Crest to Take Over NSA’s Incident Response Assistance Accreditation Program”

      http://blog.executivebiz.com/2016/09/crest-to-take-over-nsas-incident-response-assistance-accreditation-program/

  3. Hopefully they (UN) will catch the corrupt bad guys. The people are getting tired of B.S.

    http://awarenessact.com/ex-cia-agent-every-terrorist-attack-in-us-was-a-false-flag-attack/

    Of course the above link could be B.S. The use of discernment or critical thinking is advised to separate the wheat from the chaff.

    Theoretically the UN could stop all finger- pointing that points to the establishment on the net while allowing all finger-pointing from the establishment that points to the sometimes corrupt disorganized masses whom can barely handle the logistics of a Sunday picnic.

    https://www.youtube.com/watch?v=qPfGC2-f5x0

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