With the first month of 2015 in the books, the year, thus far, has met the expectations of the volatility which has been previously discussed amongst us here on the site. So many readers and contributors have written and shared links to massive amounts of material that it leaves very little for me to write myself.
Which is something of a good thing lately as my work has completely consumed me. The last few weeks have been full of travel and meetings and strategy sessions on how best to deal with the changing labor and materials markets surrounding Canadian energy production.
It’s somewhat exciting as the company which employees me is likely to see some growth in this downturn and potentially some major moves into new and developing markets around the world. The downside is that many around me are beginning to feel the crushing force of massive deflation.
This deflation has been held back since 2008 by all governments and central banks around the world.
When it comes to philosophyofmetrics.com and the analysis we have been building here for the last 13 months, it fills me with an odd sense of achievement that so many of the macroeconomic scripts and methodologies presented here are in fact manifesting as expected and discussed.
The exchange rate volatility and growing sovereign debt crisis, alongside the broadening civil unrest, such as in Spain, Greece, and elsewhere around the world, has been happening as expected. This procedure and scripting continues to match the Hegelian Dialectic and CSI engineering which I have presented throughout the SDR’s and the New Bretton Woods series, as well as endless articles since.
As is starting to become apparent in the unfolding Greek drama, any talk of debt reduction or forgiveness is being slowly shifted into a debt restructuring or debt swap script, exactly as discussed here over and over. The IMF will soon present the SDRM, or Sovereign Debt Restructuring Mechanism, back into the macroeconomic framework which is being constructed around the collapsing USD framework.
There will soon be the beginnings of a debt exchange for SDR liquidity. The BRICS institutions will lead the way with the western institutions taking up the rear positions as the restructuring closes formation. As presented in the post The SDR Purpose of BRICS.
Any European crisis, or any other crisis, such as currency crisis, sovereign debt crisis, bond crisis, equity crisis, etc., will all direct the shifting international financial architecture in the direction of the multilateral framework, which, for the most part, has been negotiated behind the scenes of the geopolitical and economic events over the the last 6 years.
The separate oil pricing platforms, such as WTI and Brent, will soon be consolidated and pricing fixed in SDR, but not before the valuations continue to spike and crash back down in a repeating pattern of cyclical economic punishment.
International volatility will create the demand for the stability which is being engineered in the multilateral framework of the supra-sovereign SDR.
The year has just started and we are in for much more.
Sorry for not writing more lately or being further engaged with the comments. Many of you are doing a fantastic job of keeping the conversation going, and for that I thank you. Hopefully I will be able to write more over the next few weeks. – JC