Global Currency Reset (SDR's and the New Bretton Woods; by JC Collins)

I am not attributing the 3-year bear market in gold to Russia. I am saying that the move from $1,220 on Oct. 28 to $1,140 on Nov. 5 was a result of Russian sales.
That move cannot be explained by normal buying or selling in the market.
With Ruble cratered versus dollar, yen, euro, pound sterling (which is the only way to measure a currency's strength/weakness) because Russian CB stopped defending it, the only recourse for Putin is his gold reserves.

Of course the Russian CB does not hold a news conference to alert markets to this move, so news this fresh will come out over time.
So let's employ Occam's razor, I find this scenario far more plausible with fewer assumptions, than your once-in-a-lifetime event that the dollar will cease to be the reserve currency.

Perhaps over the next few weeks or so one of your pundits will speak of how the "Rothchild's are punishing Russia for grabbing their Russian assets with sanctions to starve out Putin over the winter forcing him to sell his gold at 5-year low prices."

My background is as an award-winning financial journalist who speaks with market participants on daily basis to get the read on where any financial instruments are heading and why.

Oh and that old cable-stayed/suspension bridge you speak of being for sale? No thanks not interested. Been using it most of my life and it generates no income since there is no toll.

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Posted by Paul

lead/guide/bamboozle/whatever it takes the American people through this transition with minimum risk of serious revolution.

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If you attract "serious revolution" into your reality you will manifest it.
The options for timelines to manifest is beyond any imagination. If you imagine serious revolution and you desire it you will have it. Among those that share/attract this belief with you (mathematically called superposition).
Please respect that other people manifest their own reality.

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Posted by PathWalker

Please respect that other people manifest their own reality.

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Yes ... within limits. There is, in my firm view, a common and shared reality, of which we are all a part, but within which, we have far greater powers than we realize, and more powers than we could all, collectively, realize simultaneously ... except in so far as such are realized in a mutually consistent fashion.

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Posted by mgray

I am not attributing the 3-year bear market in gold to Russia. I am saying that the move from $1,220 on Oct. 28 to $1,140 on Nov. 5 was a result of Russian sales.
That move cannot be explained by normal buying or selling in the market.

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I agree that that move is not explained by normal buying and selling in the market.

I have not yet seen any evidence that any such large Russian sales existed or could explain that move, either.

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Posted by mgray

Oh and that old cable-stayed/suspension bridge you speak of being for sale? No thanks not interested. Been using it most of my life and it generates no income since there is no toll.

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Dang.

I've been trying to unload that albatross for decades now ... the only suckers wise investors I can find willing to buy it are too broke to pay the legal fees involved, much less meet my asking price.

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Posted by mgray

than your once-in-a-lifetime event that the dollar will cease to be the reserve currency

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That's the key ... we shall see :).

Thanks for this education, Paul and all associated with such deep knowledge of the variables involved.

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Posted by Paul

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Posted by mgray

than your once-in-a-lifetime event that the dollar will cease to be the reserve currency

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That's the key ... we shall see :).

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There are two camps in this debate, the epic collapse "event" camp and the "slow burn" camp. When I try and answer this question for myself, filtered through my own perspective, juxtaposed in subjective inference, collated with all information I have gathered, based on mathematical probabilities, using conjecture with variables which are difficult to decipher and collate, I am leaning towards, with a higher percentage of probability, the "slow burn", with an exponential curve and a categorical acceleration, with new variables entering the trajectory as the burn continues and accelerates, than the one time big collapse "event" scenario.

Either way, the end result is the same. The Keynesian economic paradigm based on fiat debt currencies free floating without ties to tangibles, growing exponentially consuming all assets and productivity worldwide, while consolidating all of the tangibles into the hands of the few who build massive interlinked corporatocracies, supported by massive military mercenaries to enforce global imperialism, while leaving the masses in debt and abject poverty, is unsustainable indefinitely, IMHO

I do enjoy this discussion, both Paul's take and mgray take. Its refreshing to read the debate and the friendly banter.

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Posted by gripreaper

I am leaning towards, with a higher percentage of probability, the "slow burn"

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My recollection is that the esteemed Catherine Austin Fitts is also in the "slow burn" camp, so you have fine company.

Myself ... I am leaning toward a mix of both. They'll sneak what they can past us, so that most folks don't realize they are like frogs sitting in water that's gradually heating up to a boil.

However some of what they want to ram down our throats, or shove up some other orifice, probably works "better" (from their perspective, not mine) when we're in a state of shock and awe, aka fear and panic.

They need to transition us Americans from being middle class citizens in the "Greatest Nation on Earth", the "Shining Beacon of Freedom at the Top of the Hill", to being (more blatantly) enslaved residents of yet another third world nation suffering under IMF austerity measures, willing to do almost anything for almost nothing in return, while our once great nation spends years struggling to get out from a gargantuan pile of debt.

Even as dumbed down as we are, that's not an easy sell.

In particular, the transition

from

thinking you have saved up value in savings, retirement funds, pension plans, home equity, social security, medicare, social benefits, insurance plans, and other stores of wealth and future income streams, all denominated in Federal Reserve Notes, with plenty of cheap imported goods at the local retail grocery, clothing, hardware, electronics and gasoline outlets ...

to

realizing those savings, benefits and incomes are devastated and those plentiful cheap goods are in scarce supply and increasingly expensive, and denominated in new US Treasury Notes that you just got in exchange and that keep losing value rapidly ...

those are going to be a rough few weeks in the minds of those who didn't see it coming.

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Posted by gripreaper

Either way, the end result is the same. The Keynesian economic paradigm based on fiat debt currencies free floating without ties to tangibles, growing exponentially consuming all assets and productivity worldwide, while consolidating all of the tangibles into the hands of the few who build massive interlinked corporatocracies, supported by massive military mercenaries to enforce global imperialism, while leaving the masses in debt and abject poverty, is unsustainable indefinitely, IMHO

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The use of such Babylonian Money Magic ... debt based money ... to increasingly centralize power and wealth on this planet ... yes ... that is unsustainable ...eventually.

However, there's a difference between what can be sustained for another year, and what can be sustained for another millennia.

It would seem, to my jaundiced view, that the bastards are gearing up for yet another round of such money magic, as they have done so many times before. Once again, old debts will fail or be consolidated, into new forms, from yet more centrally controlled "banking institutions", exchanging purchasing power in the present market for a lean on larger amounts (due to accumulated interest) of future labor and ownership of property and the means of production.

Perhaps the one thing that will finally limit their "success" will be too much success itself. Once the entire planet is well under the control of debt-based money from Bankster institutions such as the BIS and IMF, then their traditional methods of gaining increasingly centralized control by means of conflict will become increasingly obsolete. The illusions of tribe fighting tribe, nation fighting nation, and such will become less compelling when we're all "one world."

I am not hopeful that this transition from the US Dollar to SDR's to denominate the most liquid debt instruments will fail. Rather I think it will succeed, for now.

But I am hopeful that this will be the "last hurrah" of the Babylonian Magicians, though I might not live to see the day that manifests.

a name you all love, "Charles" said according to his London insiders, the financial turmoil is going to be a rough ride until 2017...

has America dumped the Fed now that the 100 years are up? Was this planned?

Why the complete silence of Ron Paul?

Interesting twist...

Though perhaps just signs of a short term "economic war"

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The US Dollar increased to 42.31 Russian Ruble in October from 39.57 in September of 2014. Russian Ruble averaged 24.48 from 1993 until 2014, reaching an all time high of 42.31 in October of 2014 and a record low of 0.98 in August of 1993.

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http://www.tradingeconomics.com/russia/currency

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Posted by Paul

It would seem, to my jaundiced view, that the bastards are gearing up for yet another round of such money magic, as they have done so many times before. Once again, old debts will fail or be consolidated, into new forms, from yet more centrally controlled "banking institutions", exchanging purchasing power in the present market for a lean on larger amounts (due to accumulated interest) of future labor and ownership of property and the means of production.

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And this transition is going very well from the banksters point of view as highlighted in another thread here today, 85 of the richest on this planet hold more wealth than the lowest 3.5 billion. In the once "beacon of freedom" known as the Unites States, which was engineered to be the catalyst for development and expansion of the globalist agenda, and allowed to prosper and create wealth in the last 80 to 100 years, is now being dismantled and retooled.

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Posted by Paul

They need to transition us Americans from being middle class citizens in the "Greatest Nation on Earth", the "Shining Beacon of Freedom at the Top of the Hill", to being (more blatantly) enslaved residents of yet another third world nation suffering under IMF austerity measures, willing to do almost anything for almost nothing in return, while our once great nation spends years struggling to get out from a gargantuan pile of debt.

Even as dumbed down as we are, that's not an easy sell.

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With the populace vested in the notion that they hold assets, have tangible wealth and capital resources to fund their needs and desires, all supported by the military industrial complex which they helped build, its going to be difficult for them to extricate themselves from those notions and recognize the larger dynamics in play, even though a large percentage of those affected are already in poverty, there is still contingent who still believe they hold wealth.

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Posted by Paul

I am not hopeful that this transition from the US Dollar to SDR's to denominate the most liquid debt instruments will fail. Rather I think it will succeed, for now.

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I would tend to agree. The lie runs deep and is so deeply vested in the current paradigm, it is speculative to postulate what it would take to shift the mass consciousness towards an equitable system. The variables which would help catalyze such a transition would be the breakup of the oil and electric cartels, due to the release of Tesla's wireless earth based energy systems, en masse. This would shift the power base dramatically as those who had the wherewithal could and would produce energy locally and individually.

Power is held in the hands of the few who control all of the natural resources and the means of production and distribution, all held in place by these energy cartels.

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Posted by Paul

But I am hopeful that this will be the "last hurrah" of the Babylonian Magicians, though I might not live to see the day that manifests.

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I'm hopeful too, and I would like to be around to see it and experience the shift.

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Posted by gripreaper

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Posted by Paul

But I am hopeful that this will be the "last hurrah" of the Babylonian Magicians, though I might not live to see the day that manifests.

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I'm hopeful too, and I would like to be around to see it and experience the shift.

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One of the main spells / paradigms artificially created by the sand castle empire is the deployment of subservience mentality to 'legal' authority. Who accompanies the Rod Class case in the gripreaper topic (Rod Class ordered for Psych Evaluation) is seeing how deep this spell is rooted in the psyche of the individual and collective reality of each of us.

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Magian or Magus or Magusean or Mage is a term from Greek, Roman and other Hellenistic vocabulary with two inter-related meanings: a) for a Zoroastrian priest, and b) for a particular group of practitioners of mágos, i.e. magic, to include astrology, alchemy and other forms of esoteric knowledge. The two meanings overlap: in the perception of the Greeks and others, (Pseudo-)Zoroaster is both the "founder" of the magian religious order, as well as the "Chaldean" "inventor" of both astrology and magic. Thus, to the Greeks and others, a magian was a member of the particular religious order that was perceived to have been "founded" by Zoroaster, and whose special expertise was imagined to be the practice of astrology and magic.
Source: http://en.wikipedia.org/wiki/Magi

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My perception of this 'spell' occurs through the hammering that my paradigm is receiving as we advance further into the depths of slime.

Even knowing that I am attracting the portion of karma on the frequency of that thought, I must say that wish I could see some ass being kicked.

Thank you.

Naste.

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Posted by Paul

Perhaps the one thing that will finally limit their "success" will be too much success itself. Once the entire planet is well under the control of debt-based money from Bankster institutions such as the BIS and IMF, then their traditional methods of gaining increasingly centralized control by means of conflict will become increasingly obsolete. The illusions of tribe fighting tribe, nation fighting nation, and such will become less compelling when we're all "one world."

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Posted by gripreaper

I would tend to agree. The lie runs deep and is so deeply vested in the current paradigm, it is speculative to postulate what it would take to shift the mass consciousness towards an equitable system. The variables which would help catalyze such a transition would be the breakup of the oil and electric cartels, due to the release of Tesla's wireless earth based energy systems, en masse. This would shift the power base dramatically as those who had the wherewithal could and would produce energy locally and individually.

Power is held in the hands of the few who control all of the natural resources and the means of production and distribution, all held in place by these energy cartels.

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From my novice perspective, but having read all of the articles that Paul has been citing, every post in this thread and some associated links - as well as having just a bit of familiarity with the topic through these last few years of being here at PA - it seems to me that the end game of one world government and economic system is preparation for what is to come next.

From the general flow of meaning as proffered by the last few years of Avalonians, that might seem to be preparation for official and public ET contact and formal relations with extraterrestrial civilizations. Global governance is a prerequisite. The subjugation of the world in this manner, through the upheavals sure to occur in the next couple or few years, besides making us One world officially, will also result in our many tribes recognizing what the Controllers who will seem as the inevitability of this consolidation of power under the pyramidal control model.

The shift from fossil fuels to sustainable fuel modes can be maximized once competing interests have been overwhelmed by the ponderous forces of ecological necessity. Since genocide and war are an inescapable part of this entire paradigmatic shift, the decimation of the 7 billion to perhaps 2 or 3 would indicate an horrific period ahead of us, one that is unnecessary as the earth can support many more than 7 billion humans, but that is part and parcel of the Illuminist mindset it seems and mandatory to their unnatural selection of those they believe to be the truest representatives of Terran Humanity prior to this open inclusion in galactic society.

With the increasing release of methane hydrates up in the Arctic and the seas above 60 degrees north latitude, the continuing warming of the oceans, climate change is about to wreak serious havoc upon the coastal populations, drought and super-storms will contribute to the decimation in population as well. The wars and attrition due to these "natural" causes will be costly. Weather modification practices may be able to mediate some of this, but that would necessitate the deliberate cooling of the planet in order to counteract the warming currently occurring, whether by anthropogenic (co2 emissions yadayada) or natural means matters not atm.

By the time all is said and done, the Singularity has been realized and the hidden technologies have been revealed and put to work healing Terra, clean and sustainable energy will be ubiquitous and serving a population tested by the fire of earth and societal changes.

Then AI and ET can team up with the Elite in a perfect paradise of their own horrific co-creation.

Just wonderful.

I still haven't gotten around to finishing JC Collin's original 10 part series on SDR's and the IMF ... but he continues to post excellent articles on this on his website PhilosophyOfMetrics.com. His latest post of today lays out in as straight forward and compelling a fashion as I've seen how the global currency reset is playing out, and what's in store.

It is more detailed, less dramatic and more focused on the international foreign exchange and debt markets than most such discussions, so I am aware that many will not find this interesting.

But for those who are interested, from Renminbi 人民币 and the Alternative IMF Reforms:

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With the recent announcement of the renminbi BSA’s with Qatar and Canada, and the upcoming G20 Summit in Australia at the end of this week, it is prudent to review some of the available information about alternative measures for IMF reform and a review of the renminbi internationalization process.

The growing number of RMB Bilateral Swap Agreements between the People’s Bank of China and central banks around the world is increasing the internationalization of the yuan. The fact that central banks like the Bank of England and the Bank of Canada are participating in this internationalization is providing us with some extremely valuable information when held in contrast to the reluctance of the US Congress to pass the 2010 IMF Reforms.

Whatever is intended with the political game of brinkmanship by the Republicans in Congress is open to interpretation, but if no agreement or negotiations are concluded on the 2010 Reforms by the end of this year, a course of action by the G20, including the BRICS countries, and the US Administration and Treasury, are being planned and will be implemented whether Congress agrees or not.

In an article from Russia Beyond the Headlines, Russian G20 Sherpa Svetlana Lukash is interviewed by reporters and makes the following statements in regards to the upcoming G20 meeting and the intent of the BRICS countries to propose alternative solutions to the IMF Reforms if the US Congress doesn’t pass the supporting legislation by the end of the year.

“We are expecting Russia, as well as our BRICS partners, to propose serious concrete solutions on how to reach alternative solutions, if the U.S. does not ratify this decision before the end of this year.”

“One of the simplest options is “to untie the decision (over the IMF reform of 2010) into various parts. Since the 2010 resolution is a complex packet of agreements, which includes, among other things, amendments to the IMF charter and a decision to double its capital, and each such decision, according to the IMF rule, requires a certain number of votes for them to become effective.”

“These two decisions can be untied, i.e. this packet can be split into several ones, without an approval of the U.S. Congress but at the administration’s decision. We will break up the packet and start implementing its parts accordingly, so that all agreements come into force.”

From these quotes we can gather that the American Executive Branch, being the Obama administration and the Treasury, are willing to work with the IMF and BRICS countries on fragmenting the 2010 Quota and Governance Reforms into smaller segments which can then be individually implemented by the Obama administration without the approval of Congress.

It also confirms for us that any proclamations from specific researchers and analysts that the BRICS countries seek to overthrow the western or international bankers is nothing but the hogwash we have been saying it is all year. Based on the evidence which continues to build, from world events and the statements of the BRICS countries themselves, the character and analytical abilities of these researchers and analysts should draw serious doubt as they continue to press the story of a BRICS rescue.

In fact, so obvious is the misleading nature of the storyline that the true motives of the individuals promoting it should be seriously questioned.

The urgency in having the IMF reforms implemented is also found in the urgent internationalization of the RMB. The connection between both can be found in the emerging liquidity crisis. The intent of internationalizing the RMB is not to bypass the International Monetary Fund but to embrace it and have the renminbi added to the composition of the SDR basket by next July.

The storyline is already being constructed that no one country or reserve currency, such as the USD, EUR, JPY or GBP, will be able to provide the required liquidity to offset the next financial crisis. This also goes for the RMB as it will be unable to meet this liquidity challenge on its own, which is another reason why the BRICS are not about to overthrow the system.

Only a composition of the currencies, which is found in the SDR basket, can meet the liquidity shortage which is coming. With the RMB added to the SDR basket the IMF can increase global liquidity by issuing SDR denominated bonds. This is the main reason for the internationalization of the renminbi and why central banks around the world are participating in the BSA’s with the PBoC.

So let’s take a closer look at the RMB and understand its internationalization process further.

China’s currency is called both the renminbi and the yuan by media in the western world. The reason for this is easy to understand. Renminbi is the name of the currency and yuan is the unit of measure. Just like the British sterling is the name of the currency and the pound is the unit of measure.

The confusion over this in the western world is found in the way China describes currency numbers. Yuan equates to dollar and dollar is used in the west as both the name of the currency and the unit of measure. So when Chinese amounts are translated into English it is often stated as say one million renminbi yuan, which leads to the confusion over the name of the currency.

Additionally, the RMB is broken into offshore usage and onshore usage. RMB that is traded offshore is known as CNH, and RMB that is traded onshore is known as CNY. Both have different spot rates and yield curves.

The internationalization of the RMB is a part of a broader plan to reform the IMS, or International Monetary System. This reform is intended to reduce the imbalances in the IMS. This imbalance is represented as the accumulation of USD’s by countries around the world, and this accumulation leads to the imbalances with the accumulating countries running serious account surpluses.

The internationalization of the RMB as defined in the increasing number of BSA’s with the central banks around the world can help stimulate and contribute to the reforms of the IMS. As such, the main reasons for the internationalization of the RMB can be stated as:

1. reduce currency risks for both importers and exporters.
2. reduce China’s exposure to USD exchange rate volatility.
3. add RMB to reserve currency list and include in SDR basket.

Based on the above information and the correction of imbalances in the IMS, we can expect that in the coming years China’s rate of USD accumulation will slow and eventually reverse. This will be likely realized when the RMB becomes fully convertible, which may happen sooner than most expect.

Other inevitable outcomes from this internationalization will see a full or partial re-denomination of China’s commodity trade into RMB. The recent bilateral swap agreement with Qatar is very reflective of this re-denomination, as will the eventual BSA with other oil producing nations, such as Saudi Arabia.

It’s important to note that any agreements between China and Saudi Arabia does not mean an end or total collapse to the US dollar. It only means that the RMB is being internationalized and the International Monetary System is being balanced. Any commodity and energy trade between the US and Saudi Arabia will still be denominated in USD.

We are also likely to see commodity derivatives denominated in RMB as well. This will help hedge against commodity price moves and fluctuations in the FX markets.
The BSA’s are all signed for 3 years with some of them already being extended before the date of expiration. These BSA’s will help stabilize RMB liquidity so it can be added into the SDR basket and help stabilize the macro liquidity of SDR bonds. And that is the main reason why these BSA’s are being signed and central banks around the world are re-denominating portions of their foreign reserves into RMB.

The BRICS Development Bank and Contingency Reserve Arrangement which were implemented earlier in the year are not signs of a BRICS overthrow, but are only signs of the development of broader infrastructure meant to support the internationalization of the RMB. This infrastructure is meant to facilitate the clearing of RMB.

CIPS, or China International Payment System is another example of this infrastructure and will be fully operational by 2015. This will ensure global RMB liquidity and help reach the goal of having 6% of global commodities re-denominated in RMB by 2020, or sooner. The 6% could increase dramatically in the event the IMF 2010 Reforms have to be fragmented and implemented individually.

And there we have the strong case for the internationalization of the RMB and the G20 support for the required reforms to the International Monetary Fund. It is the engineered solution to the expanding liquidity problem, with the CSI, or Cultural and Socioeconomic Interception of our mainstream news and some alternative news sources acting as the reaction component of the Hegelian Dialectic.

This week is a focal point of this transition to the Multilateral Financial System as the G20 Summit approaches and the world awaits the US congressional action on the IMF 2010 Reforms. Whatever the outcome is, change is certain, as is the required liquidity crisis. – JC

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My executive summary:

• Dollar based debt will be replaced by SDR denominated debt, as the world's most liquid debt paper.
• Multiple major national and regional currencies will co-exist, each with major facilities for supporting trade and financial operations and investments.
• As "always", money is lent into existence ... and soon the primary lending will be in SDR denominated bonds, and in a variety of major currencies that are exchangeable with SDR's, at Forex rates established within ranges and "guidelines" set by the IMF and BIS.

The fundamental thing required in a debt-based monetary system (aka Babylonian Money Magic) is not the money or other resources to lend. Lending is not letting someone else use what you have in that sort of system.

Rather the fundamental thing required in such a system to lend money is sufficient power to extract income streams, property and resources, in the future, to ensure that the debt is paid back, with interest.

Such a system depends on always having an increasing quantity of production and available resources, extending forever into the future. The future always promises to pay back more than is available in the present.

Such a system repeatedly runs out of steam, whenever there is a decline in what can be taken in the present, to pay the debts acquired in the past.

This recurring problem is solved, not with a Debt Jubilee (forgiving of debts), but by assembling even greater power and authority to extract even more production and resources.

Once again ... this time it is the US being replaced by some global institutions which all the major nations (except for the US, so far) are supporting.

JC Collins primary point in the above post:

China is not intending to replace the US Dollar with its own currency as the world's reserve currency. Rather it is intending to provide one more, major, leg supporting the new, global, monetary system, founded on SDR denominated debt, currencies, rules and regulations.

This will proceed, in an increasingly obvious (even to Americans) fashion, over the next year, even if the US Congress continues to balk.

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Posted by Paul

JC Collins primary point in the above post:

China is not intending to replace the US Dollar with its own currency as the world's reserve currency. Rather it is intending to provide one more, major, leg supporting the new, global, monetary system, founded on SDR denominated debt, currencies, rules and regulations.

This will proceed, in an increasingly obvious (even to Americans) fashion, over the next year, even if the US Congress continues to balk.

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Posted by kevlor

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Posted by Paul

JC Collins primary point in the above post:

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Were you quoting this with the intention of commenting on it ... or just to highlight it ?

yes PAUL, the powers that be, would love to see jc collins' approach to solving the worlds problems implemented. all in a timely and orderly fashion.
however, humans are just that - human. with all their vices - greed, hubris, arrogance, pride, power, the list goes on and on. unfortunately the current leaders in this field, that is the western developed world leaders (seen and unseen) have shown they possess all these vices in abundance.

"the best laid plans of mice and men" come to mind.

i have no doubt our transition is going to be long and painfull, with many twists and turns. as always the biggest loosers are going to be the ordinary citizens of the world.

the attached is taken from - the miles franklin - website. bill holter, a canadian, expresses my fears better than i could ------------





Very “quietly” the world’s 20 largest economies will meet in Brisbane, Australia later this coming week. I use the word “quietly” because here in the U.S. almost no mention of the upcoming meeting has been made. I even searched for news on the event and almost could find none. Strange? Well yes and no, quite strange because it surely is big news especially with all that has been going on but not strange because here in the U.S. we must keep a happy face on things which very well may not be the outcome this time around. I wasn’t sure how I was going to write this piece but I guess it’s just easiest to tell you what I think the result will be and then explain why.

In my opinion, once this meeting is over next Sunday all hell could break loose financially. I say this because much has already been put into place ahead of time and it is my expectation the U.S. and her dollar will at a minimum be taken off of “the top shelf” or at least be pushed back from the front. Let me put forth some of the many available dots and see if they can’t be connected.

First, if you remember last year’s summit, President Obama was not pictured in the center as the U.S. has always been at nearly all meetings such as these traditionally. If I recall, I believe I commented that he was positioned on one of the ends and I took it as “not a very good sign” at the time. This time around, President Obama will arrive as a “neutered” force after the Democrats lost total control of Congress. This fact is not lost on the world, they now know President Obama has no collateral nor clout left and will be the lamest duck president in history. One could argue this point but he has lost Congress while having the lowest public approval rating of any U.S. president.

We also know that China has been making business deals, setting up renminbi currency hubs, and either preparing for or actually doing trade in local currencies or their own all over the world. The Chinese have been forming these deals WITHOUT the use of dollars. Russia, who for the last 5-6 months have been the focus of “Western sanctions” have also been active in doing trade deals, particularly with China. If you recall, Russia achieved their “Holy Grail” gas deal earlier this year with China worth an estimated $400 billion. Mr. Putin announced this past Friday a 2nd deal with China which will further intertwine the two nations in trade. Please also remember that Russia has recently made moves on Arctic energy reserves while U.S. “majors” such as Exxon/Mobil will not be able to participate in unless they break Mr. Obama’s sanction rules. Are the sanctions “good” for American business?

Before the upcoming G-20 summit there will also be two other meetings scheduled early this week, APEC (Asia Pacific Economic Coordination) and also a BRICS meeting. President Xi of China released a statement this past Sunday regarding the upcoming APEC meeting by saying “China wants to live in harmony with all its neighbors.” Please understand that this is not just a “flowery” comment, it is the way China thinks and does business. The world understands this and also understands how the U.S. has been doing business for years. The BRICS “pre G-20 meeting” has already announced goals including the launch of new BRICS bank, its funding and also the restructuring of IMF quotas.

I would like to speak of “the timing setup” before going any further. There will be these two pre meetings and then the G-20 meeting itself… and also another piece of breaking news which I find VERY curious! It has been announced out of London that UBS has agreed to a fine for …wait for it …wait for it…”manipulating the prices of gold and silver!!!”

First off, we have been told every single day for over 15 years that we are wacked out, tin foil hat wearing conspiracy freaks forever even uttering such nonsense, now we find out it was true…all along …and we are not so crazy after all! Secondly, other banks are reported also to follow UBS in ‘fessing up so it was a “conspiracy,” only it wasn’t “theory,” it was FACT! (I wonder what ole’ Martin Armstrong, Doug Casey and all the other apologists will have to say about this?). I plan to speak about this more, later in the week.

I’ll bet you thought I was done with “timing” since the above paragraph was so long? No, there is more. I would like to add in several other “aligned stars.” We now know that GOFO forward rates are now more backward than any time in the last 10 years, the Shanghai physical silver inventory is nearly depleted, mints all over the world have gone “back order” and last but not least, December COMEX silver is currently contracted to deliver nearly 10 ounces of silver for every registered (available for delivery) ounce they say they have! One other little tidbit will be next Monday the 17th, Hong Kong and Shanghai plan on “linking” their exchanges, curious timing?

OK, so that’s the back ground leading up to the G-20 meeting which concludes next Sunday. Just looking at the two “pre” meetings alone can give you a flavor as to what will be discussed and very possibly agreed upon. The U.S., no matter what the outcome will certainly lose clout. The possibility however does exist and the stars are currently aligned for the U.S. to be isolated, berated and punished. In my opinion, China will not allow a sledge hammer financial blow to the U.S. and will probably allow at least some “grace” in its exit from “reserve currency status.” China has spent years positioning herself. The BRICS and APEC have made deals, set up settlement infrastructure and now will begin “funding.” The U.S. on the other hand has spent the last five years adding another $8+ trillion to her balance sheet while the Federal Reserve levered itself up to nearly 80 to 1 while quadrupling its balance sheet. We fiddled while China methodically positioned herself and the world to move away from the dollar.

Could this be it? Could it really be “over” for the American fiat experiment? Will the world tell a politically neutered president of the biggest bankrupt nation in history what the rules are rather than being dictated to as has always been the case in our lifetimes? Will China quietly assume the role of “fair arbiter” of international disputes? Will China assume the role as the center of the financial world? Will China assume the role as the chief financier of trade? Will power really shift from New York/London to Shanghai/Beijing? I think at this point it is a given, the only question is “how, how fast, and when?” The conditions now exist for the answer to be “overnight and after next weekend”. Our (western) world is about to change, maybe even violently in overnight fashion, do not be taken by surprise because by now it should not be!
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so true, we live in very interesting times ... kev

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Posted by kevlor

yes PAUL, the powers that be, would love to see jc collins' approach to solving the worlds problems implemented. all in a timely and orderly fashion.
however, humans are just that - human. with all their vices - greed, hubris, arrogance, pride, power, the list goes on and on. unfortunately the current leaders in this field, that is the western developed world leaders (seen and unseen) have shown they possess all these vices in abundance.

"the best laid plans of mice and men" come to mind.

i have no doubt our transition is going to be long and painfull, with many twists and turns. as always the biggest loosers are going to be the ordinary citizens of the world.

the attached is taken from - the miles franklin - website. bill holter, a canadian, expresses my fears better than i could ------------

...

Could this be it? Could it really be “over” for the American fiat experiment? Will the world tell a politically neutered president of the biggest bankrupt nation in history what the rules are rather than being dictated to as has always been the case in our lifetimes? Will China quietly assume the role of “fair arbiter” of international disputes? Will China assume the role as the center of the financial world? Will China assume the role as the chief financier of trade? Will power really shift from New York/London to Shanghai/Beijing? I think at this point it is a given, the only question is “how, how fast, and when?” The conditions now exist for the answer to be “overnight and after next weekend”. Our (western) world is about to change, maybe even violently in overnight fashion, do not be taken by surprise because by now it should not be!
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so true, we live in very interesting times ... kev

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For others who may be interested, here's a link to the above post of Ben Holter's:

They’ll Call It “The G-20 Massacre!”

What Holter writes of, in detail, is happening now, as we speak ... of that there is no doubt in my mind.

But I only partially agree with his conclusions. He asks:

Is it "over" for the American fiat experiment?

I agree with Holter on this -- America's reign as the issuer of the world's reserve currency, as "King of the Hill", is coming to an end.

Will China assume the role as the center of the financial world?

Here I disagree. JC Collins presents ample evidence, with which I do agree, that China is not aiming to replace the US as issuer of the world's reserve currency, but to join the "top tier" of nations, under a global monetary system that is conducive to trade with all.

There is an aspect of the debt-based monetary systems under which we have been living for thousands of years now that is fundamental, but seldom noticed.

Money is not simply printed by the banksters, but rather issued in exchange for debt paper, promising to return a larger amount in the future. That much is fairly well known (though less commonly than the meme that "they just print it.")

But what is seldom noticed is that the value of that debt paper, of that promise, is entirely dependent on having sufficient power, in the future, to collect on that promise. That is perhaps the essential reason that the American Police, Intelligence, Black Ops and Military operations are larger than the rest of the world's combined. We needed the clout to collect on the largest issuance of debt in (recorded) human history, whether from tax and mortgage payments from American citizens, or from austerity programs imposed on other nations, or from outright invasion and theft.

We (Americans) can no longer collect. The pile of issued debt exceeds the world's capacity to service.

That's is the inevitable consequence of such a debt based system. It only works so long as productive capacity and resources keep growing.

A personal example might drive that point home:

It made perfectly good sense for me to borrow $10,000, back in the 1970's, to get a computer degree that would enable me to earn $50,000 / year ... the debt was quite easy to pay off. It makes no sense for my son to borrow $100,000 now, in order to get a degree that might earn him a $12,000 / year job flipping hamburgers. His after tax income might not even cover the interest.

• Debt only works in a rising economy, and no economy can rise forever.
• Debt grows, and grows, and grows ... until it fails suddenly.
• Our Babylonian Money Masters are determined to cycle this debt magic once again.
• Debt is only worth what you have the power (the sufficiently overwhelming force) to collect.

We now need a bigger hammer. There is more debt to be collected than the entire US government, by hook or by crook, has the power to collect.

The debt, including promises to pay out on future retirement and social benefit programs and the promise of paper gains in the stock market and in home equity values, student loans, as well as the debt of various nations and corporations, and on and on ... must be refinanced, restructured and in many cases defaulted.

But human kind has no "bigger nation" to provide the necessary muscle to collect on the next round of debt. That's where a global monetary system, which holds all nations by their economic balls, comes in. That provides the bigger hammer.

JC Collins is spot on in my view. China does not look to replace the US as King of the Hill. Rather they look to join the US, as one of the favored princes, of a global monetary system, featuring several regional and national currencies, regulated and interchangeable in accordance with the dictates of a single global monetary authority.

That global authority need not directly control any substantial military force ... because it controls the lending to all military forces.

the above writing from bill holter of franklin mint, may indicate he thinks that china wants to replace the USA (or should i use small - usa) as the world top dog currency. this is not the case, and china itself has made clear, that is not what they want. as you rightly say, for some time they and the BRICS countries have been pushing for the IMF to go the way of special drawing rights - SDR.

my concerns about a new monetry system centred around the IMF and SDR system, backed by real assets (including gold) are:-

1. the inability of the usa (note small type), to accept this embarrasing position. again a saying "pride and ego go before a FALL".
history shows, that in just about every case, before the fall happens, the loosing party uses all their available force to maintain their erodiing position. its my personal belief that, that is whats been happening for many years now.
as an outsider looking in (i am australian) i have been watching america go the way of the roman empire for many years, and its only just recently this comparison has been getting more print time.
wouldnt it be wonderful if, this time around, the americans and their western partners(including australia) in this crime of outlandise debt didnt resort to great war. unfortunately thats not what i expect to happen.

2. even if america were somehow able to overcome their wayward ways ie. - war mongering, financial manipulation, rigging government stats like unemployment and GDP, pulling the private bank of the federal reserve into line, takeing the FDA out of the hands of financial companies control,
pulling their head in re GMO crops, freeing up patents from the control of current big oil/electric and corporate control, ( there is more but i think you get the message) would the rest of the world accept that they have in fact cleaned up their act?
again, as an outsider, i see america has pushed its luck too far. the great majority of the world now understands how you have been on the gravy train for far too long and abused it, simply because you could. your leaders have pushed their luck way too far.
i dont see the opponents of NATO trusting all this to take place peacefully, so yes, they will keep on negotiating in the hope the transition is relatively benine, but their is no more TRUST to be had.

rant over

sorry to rave on, but i have been watching this all deteriate for a long time, the future to me does not look too rosy ... kev