The New SDR is here! (FREEPOM)

JcollinsEconomics, FREEPOM28 Comments

And Why Philosophy of Metrics is the most Accurate Source on the Internet

By JC Collins

The historic moment which we have long discussed has arrived.  As of October 1, 2016, the Chinese renminbi is a part of the weighting composition of the Special Drawing Right (SDR) of the International Monetary Fund (IMF).  The RMB joins the USD, British pound, euro, and Japanese yen in the SDR basket, and will see its international status develop even further as the once unipolar USD dominated international monetary system begins its transformation into a multilateral framework.

Researching and presenting information on this process has been one of the core tenets of Philosophy of Metrics (POM).

There are many who would deride me for this post.  I don’t care.  Let’s call a spade and spade and not mince words when it comes to such important matters as your financial knowledge and understanding about how the monetary world functions.

From the moment I began writing about the transformation of the international monetary system the approach I took was one of accountability and integrity.  If I was to be writing about such important matters it was vital that the information presented was accurate and well researched.  Boomerang karma was not something I was interested in.  As such, it became a personal responsibility of mine to ensure the information was accurate and all predictions could in time be proven and validated.

After almost three years of researching and writing I stand here now feeling fantastic about both my approach and my intent.  It was never my desire to attempt getting rich of POM or continue to grow a readership based on lies and misleading fear based presentations.  As others continued to promote fear and destruction surrounding these important topics, I stayed grounded and continued on the course of logical and provable conclusions.

Every once in a while I would push the boundaries of my own morality and write a post with a touch more flare and excitement.  Such posts were often picked up by larger sites such as Zero Hedge.  At times I would even bait certain online demographics with posts such as “Why You Should Stop Listening to Jim Willie”.  I did these things with the full knowledge that the thesis which I was presenting here on POM was accurate and would in time validate my other semi-pompous pronouncements exposing the promoters of fear and ignorance.

Many expressed their dislike when I turned the site into a subscription based service.  Such concerns are understandable but also stand in stark contrast to the ideals of human worth and capitalism. Should I research and labor for free?  The small amount of remuneration which the subscriptions accumulate is nothing compared to what I could have gained if I had succumbed to the temptations of fear promotion and developed misleading scripts for personal gain and increased readership.

The accuracy of the information which I have worked hard to research and present here for those interested stands as the validation of my intent and purpose.  The large majority of the online alternative financial and economic community have continued to follow the falsifications of those who promote a fear of what isn’t easily understood.  I have attempted to shed light and bring understanding, and I thank all of you who have traveled thus far with me.

With that being said, below is a short list of the major predictions and aspects of the POM thesis which have been validated over the last three years:

  1. The Chinese renminbi has been added to the SDR composition effective October 1, 2016. This has been predicted here for three years and has been a staple of the POM thesis.
  2. International institutions, such as the World Bank and the China Development Bank, are issuing SDR bonds, with more to come. This has also been a staple of the POM thesis since the first installment of the SDRs and the New Bretton Woods
  3. The long delayed IMF 2010 Quota and Governance Reforms were ratified by the US Congress. When so many said it would never pass, POM maintained that the script moving forward would suggest that these reforms would eventually be implemented, and they were.
  4. China created an alternate composite exchange rate for the renminbi within the Bank for International Settlements. This amounts to a partial de-facto unpeg from the USD.  We have reviewed on multiple occasions the strategy which China will need to follow in order to effectively adjust the exchange rate regime which it maintains against the USD.
  5. Against the predictions of so many, the Federal Reserve began the process of increasing interest rates. No doubt there has only been one moderate increase so far, but further internationalization of the renminbi and reserve diversification will allow for additional increases in the months and years to come.
  6. China International Payment System (CIPS) was launched last October and is now entering into the second phase of its implementation. Phase Two will allow for a further widening of the trading band between the RMB and USD, which will in turn give the Federal Reserve additional room to raise rates.  I predicted almost two years ago that CIPS would not overthrow or compete with the USD dominated SWIFT.  I suggested that both platforms would share a base code and would work together to transform the monetary framework.  That is exactly what is happening.
  7. China strategically stated their gold reserves for the first time in 6 years in the lead up to the SDR announcement last year. This exact strategic announcement by China was predicted here on POM.
  8. The BRICS institutions are moving forward on integration with the World Bank and IMF. This particular prediction is loaded with insight as the majority of the alternative media covering financial matters and the international monetary system completely rejected the idea that China, and to a larger extent the BRICS nations, would align with the “western dominated” institutions.  All of those who openly expressed such a conclusion did not, and do not, have a functioning understanding of the mechanisms which were, and continue to be built, to support the multilateral framework.
  9. Renminbi internationalization and liberalization has picked up pace and will continue to be a driver of global growth in the months and years to come. RMB bonds and liquidity will continue to contribute to the rebuilding of global growth.
  10. China continues to shift away from a trade exporting model and towards a trade services model based on renminbi denominated products and increased domestic consumerism. This is now being openly stated in both western and eastern media.  One need only Google the shift in China’s economic strategy for the 21st
  11. The US dollar has not collapsed and died as so many widely known names have predicted, and in fact is being slowly re-engineered as stated here for the last 3 years. The US ending the 40 year crude export ban signaling the end of the petrodollar arrangement is further evidence of this re-engineering.
  12. We are in another October now and still the financial world has not completely crashed and World War Three hasn’t started. As predicted here.
  13. Another staple of the POM thesis is that the internationalization of the renminbi, and subsequent RMB and SDR liquidity, would contribute to a new commodities boom. So far in 2016 we have seen commodities begin to turn and an upward trend is now clearly defined.

commodities14. From the moment Donald Trump announced his candidacy for President of the United States I have expressed the opinion that he would win. When most considered it a joke or thought it was a longshot, we were discussing how the Trump script on ‘Making America Great Again” was completely aligned with the multilateral script unfolding in the international monetary system.

These are just the broad strokes and represent the major points which we have discussed.  The USD has had a moderate fluctuation throughout the year but will soon begin to experience scalable devaluations.  This is the other core tenet of the POM thesis, as it is based on the logical transition points which are required to shift the intentional monetary system towards a multilateral framework.

Once the composition of the foreign exchange reserve accounts around the world begin to be diversified with renminbi and SDR bonds the USD will be able to depreciate.  Demand for dollars has remained high because there has been no viable alternative which could help take some of the international burden.

The rise of the renminbi, and broadening of the SDR, has created the opportunity for this reserve diversification to take place.  As demand for the USD decreases the fundamentals will exist for moderate depreciations.

The overall depreciation will be in the 20% to 30% range.  This depreciation will take place against the major trading partners of the United States, and will allow for the eventual increase of American exports.  Increased exports means more domestic manufacturing and job growth.

As an interesting side note, Chinese investors have been busy over the last few years purchasing shutdown American factories and refurbishing old ones.  It’s almost like they’re anticipating an explosion in American manufacturing.

Donald Trump is right on mark when he says he will be the greatest jobs president the world has ever seen.  The status of the USD as primary reserve currency for the last 8 decades has put tremendous strain on the domestic economy.  Now that the RMB, and to a larger extent the SDR, will be taking some of the load, the American monetary authorities can allow the dollar to depreciate and begin the process of rebuilding jobs and the nation.

The other Trump talking points, such as having NATO and other allies begin to pay their fair share, is also a testament to the reality of this monetary transformation.  Once reserve diversification begins to take hold, the US will not have the additional dollars to contribute to international organizations like it has in the past.

The vast majority know nothing of this transformation of the international monetary system from what has existed since the end of WW2.  October 1, 2016 will come and go with little fanfare.  Some may begin to sense that something has changed, but exactly what that change is will not be well defined.  Hidden in the marsh of online commentary, and ignored by the mainstream media, can be found the monetary truth.  A truth which can no longer be denied.  – JC

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28 Comments on “The New SDR is here! (FREEPOM)”

    1. beachdude,

      I read the article but is far from the essence and vision that has COLLINS JC.
      The article is part of the BRICS propaganda, as a solution to economic problems created by the West.
      It is an analysis that deforms reality.

      Behind the economic power of China and Russia, are the same globalists who have been behind the US dollar and the West.

      China will in the future, the largest consumer market for Western capitalist system globalista- look at the ghost towns of China that is filled with consumers brought from rural areas.
      The buoyancy of the yuan in Western international markets, entry into the SDR basket, means that financial tiburrones will have a new area “hunting”.

      Russia also said through his economy minister, began the process of easing to the Rouble.
      Possibly the ruble come soon in the same basket IMF has come as the yuan.
      The NOM LIGHT is running …

  1. brilliant , simply brilliant .

    The cradle rocks above an abyss, and common sense tells us that our existence is but a brief crack of light between two eternities of darkness.

  2. If you subscribe to POM this is what you get access to:
    realtime analysis of current events, financial trends and developing multilateral relationships.
    – a unique library of research, backed by peer-review studies, whitepapers, official government documentation and many other well regarded scholarly articles.
    – direct links to those resources.
    – a vibrant community of inspired, knowledge seeking individuals.
    – an ongoing, interactive dialogue that explores our ancient esoteric past and integrates that understanding into our current world views.

    Congratulations JC on reaching yet another milestone in the POM analysis. It would be fantastic to see more and more people contribute to this website – just imagine what we will all know in another 12 months as we dive deeper, together, into the sea of knowledge that is presented here.

  3. You forgot to include your accurate call of Brexit, which few would expect, me included????!! The truth is we are blessed to have POM and you; so helpful in removing the veils for us to observe&experience many of the changes in our world. This is the only platform that quenches my thirst for a better understanding of human nature, make-believe world and human destiny by integrating many aspects of social engineering, politics and economics. Always looking forward to your insights, wish you&your family and loved ones all the best for years to come!

  4. JC discovers patterns and structure like no other. He has a very clear and direct way of describing these patterns and has build an accurate superstructure of the dynamics and development of the Global Financial System and Geopolitical substructures. To him, the predictions simply derive from the superstructure and patterns he sees.

    In that sense, JC is a true scientist who describes a theoretical pattern and makes accutrate predictions based on the theory.

    So far, JC’s Model of Global-Financial and Geopolitical Dynamics stands undisputed and is the most accurate predictive model around.

    Excellent work, JC!

  5. Undoubtedly, the blog tomorrow celebrate “his birthday” its reason to exist – the expected entry Yuan official in SDR basket.

    It is a victory that is shared intre all, but you Jared, you are the main hero lol.
    When most or speak of SDRs, are they not know that, you opened the way of understanding about what it means changing the financial system.
    It’s nice to see how everything is fulfilled.
    It is comforting to see how the propagandists of the disaster and the economic colaps, acknowledge that they have been carried by currents misleading information.
    Geopolitico some commentator and analyst, to muddle he says the yuan in the basket, means that China, sent on the IMF lol.

    I asked, sends China on the Bank for International Settlements?
    Because the bond issue SDR does the World Bank in the Chinese market?
    They have not answered me.
    For FRIEND CONGRATULATIONS FOR YOUR WORK AND YOUR ANALYSIS TO BE GIVEN IN THE NAIL.
     
    A cordial greeting !

    Daniel-Grig- Rumania

  6. Mr. Collins:

    I began following your posts regularly two months after your started.

    I have always appreciated your labors and research.

    I have had no issues with being a supporting subscriber. The information and important notes obtained from you and the commenters are easily worth the annual subscription fee.

    Congrats! Again, an excellent production. Very well done.

    Thank you for your labors and service to enlightenments.

    Warmly your and best regards from a fellow traveler,

    Oz

  7. – Syria is the site for WWIII & some might argue that WWIII has already begun.

    – Trillions of dollars in derivatives debts will not be fixed by the SDR. It is impossible for the FED to raise interest rates because payments to service the debt will become impossible.

    – Your post fails to reference the time bombs inherent in the massive amounts of debt & illiquidity of Deutsche Bank, the Italian banks, Santander & other Spanish banks, etc. How can you discuss global monetary policy while ignoring debt that is 6 times the level of global assets?

    Your worldview fails to explain how the massive debt and massive bubbles (I.e. Student loans, real estate & the stock market) are managed. A 20-30% devaluation in the dollar is not going to resolve these significant issues, particularly in the U.S.

    You appear unrealistically optomistic. However, I will definitely revisit your page in a month to see if your confidence levels remain high once Deutsche Bank defaults & pulls down the global banking system with it.

    1. Hi Expat and welcome.
      Syria is the site for WWIII.

      What’s interesting about your comment is that it seems to be based on a presumptive Clinton presidency and her policy of a “no-fly zone” over Syria which she first argued for in October 2015 and which would require going to war, according to the Chairman of the Joint Chiefs of Staff, Gen. Joseph Dunford. It could be debated that a presumptive Trump presidency argues for a working relationship between the US and Russia to strike at ISIS in Syria. Interesting times Expat, I hope peace prevails.

  8. Hi Alan. Thank you. The January 2016 Rotschild-owned cover of “The Economist” showed us that the Elite chose Hillary for President. “The Economist” annual January cover is used to foreshadow that year’s coming global events. If the Globalist can not rig the U.S. election for Hillary, I do not believe an election will be held. A Continuity of Government, a recent EO by Obama, will likely kick in. What amazing foresight by our Globalist-controlled puppet!

    Study economics & history. When the economy is crashing, war is started to improve the economy. The U.S. Is bankrupt & Keynesian economics is being revealed for what it truly is…smoke & mirrors. Now that QE is yielding minimal assistance in propping up economies & keeping governments solvent, war is the only option for the U.S.

    Incidentally, I would argue that the Chinese are buying up manufacturing because they, along with the Russians, will invade & take over our nation after it has been further weakened. Obama’s Cloward & Piven strategy coupled with use of The Fifth Column & destruction of the spirit & integrity of our once amazing military along with inviting the Chinese & Russia to observe our EMP defense exercises have ensured America’s days are numbered.

    Regardless, Deutsche Bank or the Italian banks are on life support & even if all the world governments would all agree to resolve the derivative time bomb, they lack the resources, even if BAIL-INS were done globally & can not fix this predicament. There is no way to save the current financial system. It will be demolished. Great article – http://stateofthenation2012.com/?p=50698

  9. Expat, you’re being very presumptive that people here don’t study economics and history. But I’d like to offer some links as a quick response as I am short on time this morning. As part of that I’d like to mention that earlier this year in June, the IMF completed a financial sector assessment of the German banking system which they published here.

    Germany is deemed by the Fund to have a systemically important financial sector and the stability assessment under this FSAP is part of bilateral surveillance under Article IV of the Fund’s Articles of Agreement.

    The IMF assessment recognized Deutsche Banks “…involvement in the systematic manipulation of benchmarks, misleading regulators, and violating U.S. restrictions on conducting business with sanctioned countries…” and that such activities had “…hit Deutsche Bank’s bottom line…”.

    The German banking system, says Christine Lagarde, “…is a system that is critically important with some systemic players. Deutsche Bank is certainly one of them. So I think we all have a stake in making sure that this situation is addressed, that the right measures are taken, that we don’t fall into over dramatisation either. But I trust that these measures will be taken.”

    Perhaps the international financial system is not as fragile as is expressed in many blogs.

  10. Well, woopie do for you Shamoo and tell yourself, ‘what a good boy I am.’ I often think of you and our contributors as I study ‘The Book of the Damned ,’ And I notice the people here on our site seldom if ever use profanity. I thank you all for that , I thank you very much.
    PTM

  11. Thanks for new POM and useful information.

    In exchange some news in EXOPOLITICS

    Published on Sep 27, 2016

    GoldFish Report No. 63, ExoPolitics RoundTable 4 “EVERYTHING IS ENERGY- PART 1”

    https://www.youtube.com/watch?v=UtpSRhtyLZI

    On GoldFish Report No. 63, ExoPolitics RoundTable 4 ‘EVERYTHING IS ENERGY PART 1″. In this Part 1 of ‘Everything is Energy”, the Ambassador welcomes guests Capt. Randy Cramer, USMC,s.s., CIA Augmented Asset Duncan O’Finioan and A’drieiuious from New Lyra, and in Part 2, COBRA will be joining us so please watch for this. This discussion focused on energy, free energy, photo-radionics, psionics, cymatics, Chi Energy, Time Travel, electromagnetics, humans as energy, schumann frequency and much more. Please share this on facebook and youtube and spread far and wide.

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