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

ThePythonicCow

1st November 2014, 14:06

In January through April of this year, 2014, JC Collins of philosophyofmetrics.com (http://philosophyofmetrics.com/2014/01/21/sdrs-and-the-new-bretton-woods-part-one/) published a ten part series on his most excellent blog, describing in some detail the mechanics of the upcoming (already in progress, actually) Global Currency Reset.

This is some of the clearest, most compelling, analysis I've seen to date on this.

In this thread, I will present a synopsis of each of these ten parts, as I read them more closely myself, one part per post.

I have already posted, as a one-liner, in a couple of relevant posts, my summary of this work:

Where goes control of the world's most senior debt paper ... there goes control of the world's major political and corporate institutions.
Since the Bretton Woods Conference (July 1944) (http://en.wikipedia.org/wiki/Bretton_Woods_Conference), the most senior debt paper on the planet has been US Treasuries. This is changing. The new senior debt paper will evolve from SDR's, the debt paper of the International Monetary Fund (IMF) (http://www.imf.org).

===

First, a bit of background on the relation between the IMF, the Bank for International Settlements (BIS) (http://www.bis.org/), and the World Bank (http://www.worldbank.org/) may be helpful.

Positioning: IMF vs. the World Bank and the BIS (from bibliotecapleyades.net) (http://www.bibliotecapleyades.net/sociopolitica/sociopol_globalbanking02.htm):

There is a triad of monetary powers that rule global money operations:

the IMF (http://www.imf.org/)
the World Bank (http://www.worldbank.org/)
the Bank for International Settlements (http://www.bis.org/)

Although they work together very closely, it is necessary to see which part each plays in the globalization process.

The International Monetary Fund (IMF) and the World Bank interact only with governments whereas the BIS interacts only with other central banks. The IMF loans money to national governments, and often these countries are in some kind of fiscal or monetary crisis.

Furthermore, the IMF raises money by receiving "quota" contributions from its 184 member countries. Even though the member countries may borrow money to make their quota contributions, it is, in reality, all tax-payer money.

The World Bank also lends money to governments and has 184 member countries.

...
The BIS, as central bank to the other central banks, facilitates the movement of money. They are well-known for issuing "bridge loans" to central banks in countries where IMF or World Bank money is pledged but has not yet been delivered. These bridge loans are then repaid by the respective governments when they receive the funds that had been promised by the IMF or World Bank.

The IMF has become known as the "lender of last resort." When a country starts to crumble because of problems with trade deficits or excessive debt burdens, the IMF can step in and bail it out. If the country were a patient in a hospital, the treatment would include a transfusion and other life support measures to just keep the patient alive -- full recovery is not really in view, nor has it ever happened.

One must remember that rescue operations would not be necessary if it were not for the central banks, international banks, the IMF and the World Bank leading these countries into debts they cannot possibly ever repay in the first place.
===

The above, however, reflects the past more than the future. While the US Dollar (and US Treasuries, denominated in Dollars) has been king, the IMF, BIS and World Bank have played a less public role.

With the crash of 2008, the accumulated debt of several major US institutions and corporations was one way or another defaulted. The primary result of the Federal Reserve's quantitative easing over the subsequent years has not been "printing dollars" into the main economy (hence has not caused serious inflation) but rather the result has been the exchange of the illiquid (defaulted) debt paper of failed institutions and corporations for more US Treasury debt paper.

In 2008, major banks held this illiquid debt paper. Now the US Federal Reserve has that failed debt paper on its books, and the major banks have US Treasury debt paper on their books. The exchange is essentially complete ... that is the real meaning of the announcement three days ago by the Federal Reserve that they are ending Quantitative Easing (http://rt.com/usa/200523-quantitative-easing-end-yellen/).

So now ... the Federal Reserve is defacto bankrupt ... holding massive quantities of illiquid and defaulted assets.

We are watching a controlled demolition of the current US Dollar based world monetary system, and the wiring and explosives are now in place.

===

That's enough for my opening post. I intend to post a summary of each part of this series of JC Collins', below, over the next day or two.

jake gittes

1st November 2014, 14:29

The International Monetary Fund (IMF) and the World Bank interact only with governments whereas the BIS interacts only with other central banks.

In other words, they're each criminal cartels.

Camilo

1st November 2014, 14:42

China launches World Bank rival in Asia

http://news.yahoo.com/china-20-other...--finance.html

Beijing (AFP) - China and 20 other countries moved forward on Friday towards setting up an Asian infrastructure lender seen as a counterweight to Western-backed international development banks.

The signatories put their names to a memorandum of understanding to establish the Asian Infrastructure Investment Bank (AIIB) at a ceremony in the Great Hall of the People in Beijing.

The institution, whose development has been driven by China, will be based in Beijing according to the official news agency Xinhua, and is expected to have initial capital of $50 billion.

It is intended to address the region's burgeoning demand for transportation, dams, ports and other facilities, officials say.

"In China we have a folk saying," Chinese President Xi Jinping told delegates after the signing ceremony. "If you would like to get rich, build roads first, and I believe that is a very vivid description of the importance of infrastructure to economic development."

China's rise to become the world's second-largest economy has been accompanied by a desire to play a greater role in international organisations, such as the International Monetary Fund, the World Bank and the ADB, which have been dominated by Europe, the United States and Japan.

But other than China, among Asia's 10 largest economies only India and Singapore signed the AIIB memorandum, with three of the top five -- Japan, South Korea and Indonesia -- notably absent.

The Japanese head of the Asian Development Bank, another regional lender, said after the signing ceremony that questions remained over the AIIB's structure and that it needed to adhere to international standards.

"It is vitally important that AIIB adopt international best practices in procurement and environmental and social safeguard standards on its projects and programmes," ADB President Takehiko Nakao said in a statement.

The Japanese government has expressed concern, while the United States is reportedly fiercely opposed to the AIIB.

- 'Good practices' -

China maintained it is open to more countries joining, and said it was still in talks with the US and Japan on the issue.

"We have maintained communication with the US, Japan, Indonesia and other countries," Chinese foreign ministry spokeswoman Hua Chunying said at a regular briefing.

"We welcome the participation of other countries in the process, and we will stay in contact with all relevant parties."

Xi moved to reassure after the signing. "For the AIIB, its operation needs to follow multilateral rules and procedures," he said.

"We have also to learn from the World Bank and the Asia Development Bank and other existing multilateral development institutions in their good practices."

The MOU signatories will negotiate the bank's specifics in the coming months and expect to finish by the end of next year, according to a statement from Singapore's finance ministry.

World Bank President Jim Yong Kim said in July that estimates for infrastructure needs in developing countries are at least $1 trillion annually, far beyond the current capacity of his institution and private investment to handle.

"We think that the need for new investments in infrastructure is massive and we think that we can work very well and cooperatively with any of these new banks once they become a reality," Kim told reporters in Beijing.

ghostrider

1st November 2014, 15:53

global debt is over 150 trillion , printing money and propping it up with illusions leads to only one ending ... the more they print the less it's worth ... they cannot hold the ship afloat much longer ... the collapse is on purpose to lead to a one world global currency ... the revival of the Roman Empire ... When the U.S. borrowed five trillion from China , I knew we were in big trouble ...https://www.youtube.com/watch?v=YxhberGtKVM&list=UUpwvZwUam-URkxB7g4USKpg https://www.youtube.com/watch?v=gTiSpKxOML0&list=UUFjOi1ZpZVErr8EYxg8t1dQ

ThePythonicCow

1st November 2014, 18:12

There are, in my view, and apparently in the view of JC Collins, the author of this series of posts, some popular misconceptions, as well as some little known realities, about our world monetary situation.

The BRICS nations, including in particular China, are not (in our view) building up alternative monetary systems, such as clearing houses and investment banks, in order to replace the US Dollar with the Chinese Renminbi as the world's sole reserve currency. Rather they are cooperating in building up such agencies as can be used to replace Dollar denominated facilities with multiple major national and regional currencies, which draw their most senior debt as SDR's from the IMF, not as US Treasury debt from the Federal Reserve, and which by default denominate major international contracts in SDR's, not in US Dollars.

The US Federal Reserve has not been "running the printing presses". There is more deflation in the US than inflation. Fewer people have jobs, and what jobs there are pay less. The average American home can no longer be used as an ATM (drawing out money from increasing home equity.) Major store chains are closing outlets, even going bankrupt, because there is less money to spend. Car sales and housing starts are down. Price increases tend to be in the more essential goods, like food staples, because increasingly desperate companies are squeezing out what money they can, where they can. The Dollar prices of two benchmark resources, gold and oil, are declining, not rising.

For the short term, I expect that deflation will become more pronounced in the US, with the price of oil and gold continuing to decline, and with more economic stress from a shortage of money. The resulting depression will justify the beginning of actual, substantial inflation of the public money supply, which will then generate public support for a more globalized, BIS/IMF/SDR based, system of senior debt and control of the national central banks, including subordination of the Federal Reserve to the this global regime.

The Federal Reserve's increase of M1 money supply has not resulted in a substantial increase in money flowing to the public economy, but rather, as I noted in the first post of this thread, the Federal Reserve has been exchanging highly liquid debt paper (US Treasuries) for illiquid debt paper (failed mortgage bonds and such.) The "bad" paper has been moving from the major banks to the Fed, while the "good" (US Treasury) paper has been moving from the Fed to the major banks.

The money supply "on the street" is declining. The nominal quality of the assets on JP Morgan's balance sheet has been increasing.

In Part One (http://philosophyofmetrics.com/2014/01/21/sdrs-and-the-new-bretton-woods-part-one/) of JC Collins series, he goes over the history of the Federal Reserve, and documents the increasing debt burden of the U.S. Treasury and Federal Reserve tag team has been increasing dramatically over the last several decades. Just as the British pound slowly lost its world dominance a century ago, so is the US Dollar losing its dominance now, under an increasing debt burden.

Quoting JC Collins: "The central banks of the world were buying up U.S. treasuries before the British even accepted that there was a problem with the pound. The same is happening today with the dollar. In fact, most of the world outside the United States has already accepted the demise of the dollar as fact. But the idea is unfathomable to the average American."

That much, the first half of Part One (http://philosophyofmetrics.com/2014/01/21/sdrs-and-the-new-bretton-woods-part-one/) of this series, is likely fairly well known and accepted by most readers of this material.

The second half of his Part One (http://philosophyofmetrics.com/2014/01/21/sdrs-and-the-new-bretton-woods-part-one/) introduces a key new (to my reading) focus, which will be essential to understanding the rest of this series.

Pay close attention to the following ... it's key. I quote JC Collins again:

On January 9, 2014, I.M.F. Deputy Spokesman William Murray was giving a press briefing. With zero coverage of this briefing in the western media, it’s important to relay what happened when the questioned was asked about the implementation of the 2010 Code of Reforms, or Governance Reforms. Mr. Murray answered by stating:

“The legislative process is underway right now. We want the reforms to be adopted expeditiously. It’s really the U.S. Treasury, Jack Lew and his team that’s taking the lead on getting these measures through the U.S. Congress that are required to implement the 2010 reforms.”

It seems both the U.S. Treasury and the I.M.F. are very anxious about these reforms. So what are they?

“Just to remind you what those are, the 2010 reforms do a couple things. One, they bring four dynamic emerging market countries into the top 10 shareholder ranks or what we call quota ranks of the institution. China, Brazil, Russia, India. It also doubles our permanent capital, the quota. And it also creates a fully elected Executive Board.”

This tells us a few important things. One, the influence of the BRICS countries within the structure of the I.M.F. is going to be greatly expanded. ...

Second, it’s telling us that the BRICS countries are bringing capital with them. Enough capital in fact, to double what the I.M.F. presently holds on reserve. ...

Thirdly, expanding the influence of the BRICS countries within the structure of the I.M.F. also “creates a fully elected Executive Board”. ...

On August 5, 2013, the Peoples Bank of China called for a “New Bretton Woods” system where the U.S. dollar would be removed as the world’s primary reserve currency. It also called for an expanded usage of the SDR and for the new system to be supported by gold.

There you have it, hiding in plain sight ... the expansion of the IMF facilities, with major support from China, to provide the new "senior debt" paper for this planet's monetary system.

The key message (in my words):

Babylonian Money Magic continues to be a central mechanism for controlling humanity. It depends on creating money as debt that encumbers the future labor and property of humanity, and that debt must be restructured periodically, using the excess debt burden on existing public governments and corporations to control, even crush, them and using the creation of new, more senior, debt by a more global agency to refinance the failing debt and to further centralize control over humanity.

naste.de.lumina

1st November 2014, 18:31

exchange of puppets

ThePythonicCow

1st November 2014, 18:35

The role of gold in all this ... gold is the primary marker of the "top dog lender".

For example, during the 1930's and early 1940's, Japan sucked up much of the gold in the Orient and Germany sucked up much of the gold in Europe. Then the US defeated Germany and Japan and sucked up the combined gold. Immediately thereafter, Bretton Woods was held, and the US Dollar became the world's reserve currency, and more importantly, the US Federal Reserve / US Treasury became the issuers of the most senior, most liquid, debt paper on the planet.

To expand my one-liner from above:

Where goes the gold, there goes the control of the world's most senior debt paper, and then there goes control of the world's major political and corporate institutions.
More tersely, the famous bastardization of the Golden Rule:

He who has the gold, rules.The gold would now seem to be flowing to the BRICS nations, especially China and Russia. However they are collecting this gold in order to "fund" a major role in the IMF, with the intent of supporting a dominant global role for the BIS/IMF. The gold is only en route, to the BIS/IMF global monetary control agencies.

Gold bugs (and silver bugs ... I've a silver coin myself, that keeps losing value) may be in for a surprise. The gold in private hands is no longer a substantial and reliable means of preserving wealth. It likely will not rise (in nominal US Dollar price) as much as hoped, and what nominal profits there are risk being taxed. If the $US price of gold rises from $1200 to $2400, due to the worth of the US Dollar falling in half, and if they institute a 50% "wind-fall" profits tax on that increase, then the gold bug risks getting back only $900 in constant 2014 dollars for his $1200, after all is said and done.

Even former Fed Chairman Alan Greenspan said "gold is a good place to put money these days" a few days ago, here (http://online.wsj.com/articles/former-fed-chief-greenspan-worried-about-future-of-monetary-policy-1414597627).

The reasons for all the alternative media "buy gold" propaganda in recent years are in my view not so obvious, and include:

Sowing the meme of economic/financial/monetary collapse, in order to "make it so."
Sucking gold out of the West, as part of forcing its collapse.

So long as most of the gold went to the BRICS nations, it didn't matter that a few coins here and there got stacked elsewhere ... any gold in the hands of small-fry can be taxed or confiscated easily enough, whenever it is so desired.

gripreaper

2nd November 2014, 06:06

And if just one state, such as California, had the wherewithal to institute its own state currency like North Dakota has done, that move alone would be enough to trigger a default of the debt and stabilize trade in that region. California's economy is larger than most nations, and is one sixth of all of the US market.

You see, debt is a fabricated obligation designed to suck out all of the energy of the population in exchange for presumed assets, which are not lawful equity, but only posessionary, IF we adhere to the fiat system of debt and slavery.

The answer is for a remnant, about 15% of the population, to refuse to support the system any longer and to develop their own system of trade. This could be facilitated once we are no longer bound to the oil and electric cartels and the ususry associated with these monopolistic cartels, the same banksters who instituted the fiat system.

The challenge is, most of the world is vested in this system and has poured all their energy into it, and continues to support the debt and war paradigm of the military industrial complex, for fear of losing what they still perceive as assets. Once they realize there ARE NO assets, then they will have nothing to lose...

And as Gerald Celente so eloquently states: "When people have nothing to lose, they lose it" People are starting to lose it because they are so squeezed, as Paul has stated, the additional debt currency has gone to shift the power amongst the globalists chess pieces and has not flowed into the economies for value added, or for consumption of value added, and this creates consternation amongst the populace.

This is also by design. How we react to this will ultimately determine what kind of future we get. We do not have to sign up for the new global Special Drawing Rights system being implemented by the United Nations and the IMF. If we could figure out who the top 13 families are who run things and we could tap into the astral where they get their marching orders, we could usurp their power, but we must wake up and we must see the big picture, at least enough of us to shift the energetics of the curse "trusts" holding this hologram of debt and slavery in place. It could go exponential at that point.

Very good synopsis Paul and very well laid out for all to see.

Vangelo

2nd November 2014, 14:03

The role of gold in all this ... gold is the primary marker of the "top dog lender".
...
So long as most of the gold went to the BRICS nations, it didn't matter that a few coins here and there got stacked elsewhere ... any gold in the hands of small-fry can be taxed or confiscated easily enough, whenever it is so desired.

I guess holding gold or silver is not the answer for the general public? Then I presume that means the wealthy are not holding it either. Is that correct? If not, what are they going to do with their wealth?

ThePythonicCow

2nd November 2014, 15:54

I guess holding gold or silver is not the answer for the general public? Then I presume that means the wealthy are not holding it either. Is that correct? If not, what are they going to do with their wealth?
The very wealthy are likely holding some gold, and some property and some working businesses, and some natural resources (minerals, water, farm land, ...) and some homes and lord knows what else.

Much of their "wealth" is in their power over other individuals and organizations and entire societies, as passed on from generation to generation of family that have not been atomized like the families of most of us peons, and as supported by secretive organizations that have possess knowledge hidden (occult) from us peons.

Not all the very wealthy will remain very wealthy, and no doubt some of the very, very wealthy have a better inside scoop on what's really going down and its timing, so can adapt better.

Gold and silver might still be a useful "answer" for the general population -- better than whatever is their present day national currency, and resilient in the face of high or very high inflation.

Think of this like going camping to an unknown destination. You actually don't know what you're going to need, so you take along a little bit of everything, for hot, cold, wet, dry, desert, jungle, moutain, plain, ...

ThePythonicCow

3rd November 2014, 16:28

In Part Two (http://philosophyofmetrics.com/2014/01/23/sdrs-and-the-new-bretton-woods-part-2/) of JC Collins series, he begins with a story about a farmer, working hard with a shovel, handing some coins to his son, noticing that he's working harder and his money buying less. This is a symptom, that the farmer could not explain, of the natural birth-death cycle of monetary systems based on debt-money -- money lent into existence.

As the debt accumulates, it becomes more than can be paid back from the labor and resources of the borrower, and must be repackaged. The "debt eventually needs to be consolidated and repackaged as new securities instruments". This happened to Rome, as its currency was debased and the empire collapsed. It happened to the British pound, and it's now happening to the US Dollar and Treasury debt. That is the natural birth and death cycle of such monetary systems.

What was once the macro lender, the creator of the most senior and liquid debt paper, becomes another micro lender, borrowing from the new macro lender.

For the last half century, nations other than the US have typically borrowed money by issuing US Dollar denominated bonds, but used various national currencies internally. This will now happen to the US as well. The existing US Federal Reserve / US Treasury debt will be refinanced by borrowing from the IMF in SDR denominated debt, and a new US Treasury issued national dollar (what Jim Willie calls the Scheiss Dollar (http://news.goldseek.com/GoldenJackass/1392039918.php)) will be used internally within the US.

This is changing. That change is reflected in the changes occurring in the IMF. The IMF has been dominated by the US for the last half century.

The US held veto control over IMF actions will come to an end. Executive control of the IMF will reside in an entirely elected board of IMF directors.
The basket of currencies which determined the value of SDRs contained just four currencies, the U.S. dollar, the Euro, Japanese Yen, and the British Pound, will be extended to include the currencies other major nations, in particular the Chinese Renminbi and the currencies of some other BRICS nations.

With the acceptance by all nations (except so far the US, but that acceptance will surely come soon) of the 2010 I.M.F. Code of Reforms, this all changes. The US will no longer dominate either the executive control of the IMF, nor the composition of its "basket of currencies".

The major existing imbalances and unpaid debt and resources are being balanced out, in terms of the new "macro" (SDR) senior debt. Resource rich countries such as Canada and Australia will see stronger currencies. The main holders of US debt, especially China, are receiving much of the central bank held gold, while various US institutions are being stripped of that gold.

Quoting JC Collins:
But before these [SDR denominated] bonds can be issued, accounts require balancing. This is what we are seeing in the world right now. The gold is going east to China. New oil and gas deals are being brokered.

...The U.S. owes a great debt to China and because of this China is allowed to import all the gold. This gold will ensure the transfer of Fed liabilities to the Renminbi composition. The Renminbi will be international, the Yuan in house. Just like the dollar will be split into an international exchange and an in country exchange. The Treasury being severed from the Federal Reserve. The micro [US internal dollar is] being severed from the macro [the new macro, the IMF issued, SDR denominated, debt.]
The life and death cycle of debt based monetary systems continues, as the once dominate "macro" (most senior) currency is subordinated and consolidated, becoming "micro" to the new "macro" currency.

ThePythonicCow

3rd November 2014, 16:38

Last week, I wrote in another thread (http://projectavalon.net/forum4/showthread.php?76355-The-Disclosure-War-David-Wilcock-Oct.-24-2014&p=893624&viewfull=1#post893624):

"They" are waiting ... for the right time to use the mass fear of a global Ebola pandemic to assist in the transition to a new monetary/financial system. That time appears to becoming early next year, in my view. See further this article of JC Collin's for how that can play out: Global Pandemic and Quarantine -- A Very Convenient Ebola Outbreak (http://philosophyofmetrics.com/2014/08/02/global-pandemic-and-quarantine/).

I predict that by early 2015 either the US lame duck Congress will have passed the long stalled 2010 IMF Code of Reforms, as explained in JC Collin's A Global Currency Reset -- Changing the Architecture of the Financial World (http://philosophyofmetrics.com/2014/08/02/global-pandemic-and-quarantine/), or
the manipulation of the price of Gold and Silver will end, with China offering to purchase gold at a price perhaps twice that of the current price, as described in this article at "Adask's law" blog (http://adask.wordpress.com/2014/09/11/harvey-organ-predicts-manipulation-of-goldsilver-to-end-this-year/).
There are two key errors in that Adask Law blog article -- the Youtube video at the end of the article is the wrong one, and the link to Harvey Organ's long standing and highly respected blog is no longer working, because Harvey Organ's blog was taken down, by secret court order, totally and suddenly, without notice, shortly after he posted this prediction that China would end the manipulation of the price of Gold and Silver in the coming months.

ThePythonicCow

4th November 2014, 16:17

In Part Three (http://philosophyofmetrics.com/2014/02/04/sdrs-and-the-new-bretton-woods-part-three/) of JC Collins series, he provides a quick review of past IMF and BIS actions that led (intentionally) to the current situation.

The key actions were the three Basel Accords, Basel I (published 1988) (http://en.wikipedia.org/wiki/Basel_I), Basel II (published 2004) (http://en.wikipedia.org/wiki/Basel_II), and Basel III (published 2010) (http://en.wikipedia.org/wiki/Basel_II), and the 2010 IMF Code of Reforms.

The Basel Accords impose increasingly strict regulations and minimum capital requirements on banks, and the 2010 IMF Code of Reforms set the stage to replace US Dollar denominated debt with IMF SDR denominated debt, and for SDR's, not US Dollars, to become the typical monetary unit in which major international contracts are denominated. The SDR will replace the Dollar in these roles.

The Basel Accords (likely deliberately) contributed to the crash of 2008. The U.S. Gramm–Leach–Bliley Act of 1999 (http://en.wikipedia.org/wiki/Gramm%E2%80%93Leach%E2%80%93Bliley_Act) allowed banks to invest in securities and derivatives. This supported the immense accumulation of mortgage backed securities, and bundles of those securities, and derivatives of those securities ... in the early 2000's. Then the Basel II Accord of 2004, which took effect primarily around 2008, clamped down on banking reserve requirements, helping to provoke the crisis. Fatten the turkey, then chop the fat.

The major US banks have complied with Basel II by swapping their illiquid mortgage backed securities and derivatives with the US Federal Reserve, for US Treasuries. That is what Quantitative Easing has been all about, not about inflating the supply of US Dollars lent into the general economy. Now the US Federal Reserve has an enormous pile of illiquid securities on its balance sheet, which it will liquidate over the next few years by issuing SDR denominated bonds

The IMF will become the controlling agency for the exchange value of SDRs, as a "basket" of major currencies, plus gold and perhaps a couple other items. Central banks, including the US Federal Reserve, will issue senior debt denominated in SDR's, rather than the current "reserve currency", US Dollars.

Problem: Over the last two decades, the amount of debt held by Europe, Japan, the US, and Western allies has expanded enormously, culminating in the subprime mortgage crisis of 2008.
Reaction: Tighter Basel III accords imposing increasingly strict regulations and minimum capital requirements on banks.
Solution: World senior debt and major contracts denominated in SDR's, as defined by the IMF, rather than Dollars, as defined by the US.

(Well, that might count as a "solution" if you're one of the bastards in power, intent on controlling the world, including the US, using Babylonian Money Magic ... but I doubt that most Americans will think much of this "solution".)

The IMF goes from being controlled by the US, to being controlled by a board of governors elected by all the major economies, including China in a major role. In turn, the IMF controls lending to member nations, and controls the value of the SDR as a basket of gold and several major currencies. Both IMF lending to member nations in debt (such as the US) and the lending of major central banks of regions and large nations, will be denominated in SDR's, not US Dollars.

Funding to the IMF will increase substantially from member nations, especially from China and Russia, which now have large gold reserves. This will increase the lending capacity of the IMF substantially, and the US will soon enough become the largest borrower of SDR denominated debt, while China will become the largest lender of such.

Many another nation, including Argentina multiple times, has learned how painful it is to borrow in a currency the value of which is controlled by forces (bankers) outside that nation. If the ability of that nation to earn export credits in that external currency weakens, then it can force painful austerity on them, trying to earn the "foreign" currency required to pay their debt. The US will be learning this first hand. It will no longer be in control of the currency in which it owes money. The US Treasury will have to borrow money from the Federal Reserve in SDR denominated bonds, but will pay the bills and "social benefits" of the US government in national, US Treasury issued, dollars, and will collect taxes in those same Treasury dollars (what Jim Willie calls the Scheiss Dollar (http://news.goldseek.com/GoldenJackass/1392039918.php)).

The weaker the foreign exchange value of those US Treasury issued dollars, the more difficult it will be for the taxes collected in US Treasury dollars (now a mere national currency) to cover the debt payments of the US government, when converted to SDR units.

Recent migrants to the US from Argentina (or a host of other nations) will feel right at home.

The US will "surrender [its] economic sovereignty" to an IMF which it no longer dominates.

A key marker for this surrender will be the US acceptance of the 2010 IMF Code of Reforms, which double the funding of the IMF from member nations, which remove the US from its controlling role in the IMF, and which elevate China to one of the top three (in voting and funding weight) nations in the IMF.

That US surrender will, I forecast, come in the lame duck session of the US Congress, in November or December of 2014, or early January 2015, at the latest. If the US Congress doesn't accept this subordination of sovereignty to the BIS/IMF, then severe pressure can be put on the big Western banks, by China offering to buy gold for perhaps double the current US Dollar price set by the West.

ThePythonicCow

4th November 2014, 16:43

A side bit of research - the IMF quotas, which 2010 IMF Code of Reforms adjust to give higher weighting to emerging markets, including to China, are nicely described on this IMF factsheet:

~~~~~~~~~~~~~~~~~

IMF Quotas (October 3, 2014) (http://www.imf.org/external/np/exr/facts/quotas.htm)

When a country joins the IMF, it is assigned an initial quota in the same range as the quotas of existing members (http://www.imf.org/external/np/sec/memdir/members.htm) of broadly comparable economic size and characteristics. The IMF uses a quota formula to help assess a member’s relative position.

The current quota formula (http://www.imf.org/external/pp/longres.aspx?id=4235) is a weighted average of GDP (weight of 50 percent), openness (30 percent), economic variability (15 percent), and international reserves (5 percent). For this purpose, GDP is measured through a blend of GDP—based on market exchange rates (weight of 60 percent)—and on PPP exchange rates (40 percent). The formula also includes a “compression factor” that reduces the dispersion in calculated quota shares across members.

Quotas are denominated in Special Drawing Rights (SDRs) (http://www.imf.org/external/np/exr/facts/sdr.htm), the IMF’s unit of account. The largest member of the IMF is the United States, with a current quota of SDR 42.1 billion (about $65 billion), and the smallest member is Tuvalu, with a current quota of SDR 1.8 million (about $2.78 million).

Quotas play several key roles in the IMF

A member's quota determines that country’s financial and organizational relationship with the IMF, including:

Subscriptions (quota share). A member's quota subscription determines the maximum amount of financial resources (http://www.imf.org/external/np/exr/facts/finfac.htm) the member is obliged to provide to the IMF. A member must pay its subscription in full upon joining the Fund: up to 25 percent must be paid in SDRs or widely accepted currencies (such as the U.S. dollar, the euro, the yen, or the pound sterling), while the rest is paid in the member's own currency.

Voting power (voting share). The quota largely determines a member's voting power in IMF decisions. Each IMF member’s votes are comprised of basic votes plus one additional vote for each SDR 100,000 of quota. The 2008 reform fixed the number of basic votes at 5.502 percent of total votes. The current number of basic votes represents close to a tripling of the number prior to the implementation of the 2008 reforms.

Access to financing. The amount of financing a member can obtain from the IMF (its access limit) is based on its quota. For example, under Stand-By and Extended Arrangements (http://www.imf.org/external/np/exr/facts/howlend.htm), a member can borrow up to 200 percent of its quota annually and 600 percent cumulatively. However, access may be higher in exceptional circumstances.
~~~~~~~~~~~~~~~~~

PathWalker

4th November 2014, 20:34

ThePythonicCow

5th November 2014, 11:34

Thank you Paul for the briefing.
I find them most informative.

Personally I do not believe the financial entangled power hungry elite, will ever survive the coming collapse. Due to their inner fighting and greed. They live by greed and fall by greed. It is a law of nature.

I am waiting for the domino effect to start. Once it crumbles, the system will lose its confidence. Any trade/financial system is based on confidence/trust.

Something new and fresh will rise from the ashes. And the new system is not planned by the elite, nor controlled by them (yet they try, they must).

My current view is that, at one level, the financial bastards will lose, but at a "higher" level, the world's financial/monetary/economic system is being reconstituted, once again, on a grander, more unified, scale. Some Rothschild/Rockefeller minions are walking off tall buildings and committing nail-gun suicide, but in no way are we heading toward a system not planned and not controlled by some elite.

Rather, once again, as has happened so often before, the system is being reconstituted in a more integrated fashion, this time with more evident global institutions and agreements replacing the hegemony of the US, which it had inherited from the British empire. Old debts, including sovereign debt on a grand scale, will be defaulted or reissued or otherwise adapted to the new global monetary system.

But I'm just re-stating JC Collin's position ... with which I mostly agree ... for now.

naste.de.lumina

5th November 2014, 11:55

Redstar Kachina

5th November 2014, 12:53

..........

ThePythonicCow

6th November 2014, 08:52

In the blog post A Time to Harvest (http://philosophyofmetrics.com/2014/11/03/a-time-to-harvest/) a few days ago, JC Collins summarized where he sees this heading better than I can:

~~~~~~~~~~~~~~~~

... we are seeing the CSI, Cultural and Socioeconomic Interception, of deflation begin to broaden as the economic policies of central banks around the world further deepen the monetary challenges. These challenges will continue to herd the countries of the world into the liquidity crisis and solution to the liquidity problem by way of SDR denominated bonds.

As Russia’s Putin recently stated about the west, “playtime is over”. ...

Wealth is being consolidated on a massive scale which is why there are so many distractions to divert the attention of the disorganized masses away from the process. The harvest of our time and labor is about to be trucked away in the dumps of deflation.

This will be followed closely by the new liquidity of SDR bonds. Every country in the world is on the verge of collapse, herded to the precipice of disaster, by the machinations of the Bank for International Settlements. Nothing has been left to chance. Resistance in actualization is non-existent, and only fabricated stories of pointless complexity keep feeding the gossip vine of the disorganized masses.

The harvest is upon us.
~~~~~~~~~~~~~~~~

That's a fine turn of phrase: "fabricated stories of pointless complexity". There are no doubt a few such stories to be found even on this August forum.

Then in another blog post The Ottoman Multilateral Model (http://philosophyofmetrics.com/2014/11/05/the-ottoman-multilateral-model/), JC Collins continues in this vein:

~~~~~~~~~~~~~~~~

But we have also discussed how all things eventually corrupt and we will likely see the SDR liquidity system turn into a monster of what we have experienced over the last 5 years. A debt based liquidity system is fundamentally flawed in that the purpose of liquidity is to service debt and not promote production.

Perhaps the world can maintain a level of multilateral functionality for decades, bringing purpose and inclusion to all the cultures and peoples on the planet. And perhaps even the self-limiting of the rent seeking elite can be maintained. But it’s difficult to imagine how this can be sustained for the long term. Eventually someone or group of interests will find away to create imbalances in the bi-directional wealth transfer. And perhaps even the austerity and broader mandates of the system are meant to create a deeper imbalance than what exists today.

What is for certain is that the world is becoming smaller and more multilateral. Beautiful architecture and structures around the world, like the Blue Mosque of the Ottoman’s in Turkey, attest to the wonderfully diversity of people and culture. The unipolar world of US dollar hegemony is over and a new multilateral model is unfolding in real time. Don’t blink, because we are on the verge of a “fall of the Berlin Wall” moment.

~~~~~~~~~~~~~~~~

My understanding of all this keeps shifting (some might say that shifting is required to adapt to my continuingly failing forecasts <grin>) ... but my present understanding is that the above comments of JC Collins are the clearest and most prescient comments that I've seen on our present monetary/financial/economic situation and evolving events.

ThePythonicCow

6th November 2014, 11:09

Conflict in the Middle East culminating in an 'Event X' scenario is expected to result in a hard reset of the global economy.

http://event-x.blogspot.com

They need to stampede this herd of buffalo (Americans and close allies) over the cliff of the demise of the US Dollar as the world's reserve currency, onto the Great Plains of world-wide debt instruments that are denominated in world central bank controlled monetary units and administered by world central bank regulated institutions.

The US Congress and President will accept the 2010 IMF Code of Reforms, likely in December 2014.

That will signal the next sequence of events, resulting in

whatever chaos is required to get Americans to turn in their Federal Reserve Notes (FRNs) for US Treasury issued notes, and
whatever funding shortage (others not willing to purchase US debt denominated in FRNs) is required to get the US Federal government to start borrowing SDR denominated bonds instead.

This leads to the end of Americans paying for the goods and services of the rest of the world with bombs and bullets (whether exploded or exported), with stolen oil, gold and heroin, with bonds payable in the nation's own currency, and with full spectrum surveillance. The Babylonian Money Magic (debt-based money) and surveillance will of course continue, but to serve a "higher" master.

The above entails the restructuring of the Federal Reserve's balance sheet, from US Dollar denominated debt (much of it illiquid mortgage backed securities picked up during various "Quantitative Easing" programs) to SDR denominated debt. We will then see why Congressman Ron Paul was permitted to sow the meme of auditing and restructuring the Federal Reserve.

We will first see further deflation, including restricted lending to individuals, businesses and governments, a resulting shortage of money and declining spending, declines in the stock and bond market (hence rising Treasury interest rates), failures of various retirement and insurance plans, failures of various financial institutions, and declining real value of Social Security, Medicare and Obamacare funding.

We will then see inflation, as new SDR denominated US government debt funds an increase in issuance of US Treasury "printed" currency.

That will lead, as has happened so often in other nations that got overly indebted to IMF controlled instruments, to austerity within the US, for several years, as we struggle to get out from under the excessive debt burden.

I do not anticipate an -actual- massive and near extinction Event X. Rather the "stampede" of the American population and its financial institutions will be whatever is sufficient to ensure the intended result, which is the subordination of the US monetary system to BIS rules and IMF defined SDR denominated debt. The overall destruction and murder need not be massively greater than necessary to achieve that end.

Mostly, they will be distracting us six ways from Sunday with a variety of "impending disasters and scary news events", sufficient to ensure that they maintain control and we remain confused and afraid. Tens of thousands, or at worst tens of millions, will die catastrophically, but not the six billion forecast on the Georgia Guidestones

They have long since demonstrated their robust capacity to keep us thus confused and afraid.

The distractions on the Nightly News, Alternative Media and Web "Conspiracy" Forums will continue for several years at a minimum, more likely 10 or 20 years, before America emerges from this tumultuous period.

The fall of the Soviet Empire will be the most useful precursor event to understand, not the Rise and Fall of the Third Reich.

ThePythonicCow

6th November 2014, 11:28

Hello Paul.
Thanks for the intelligent analysis.

Perhaps that information posted by a friend GoodETxSG in the link below will influence future analyzes.

http://projectavalon.net/forum4/showthread.php?65952-Why-Are-the-Bankers-and-Ex-Intel-Types-Running-For-Their-Lives--Confirmed-for-MONTHS-by-my-vanishing-sources-&p=897301&viewfull=1#post897301

Global Debt Facility Accounts in Taiwan (https://s3.amazonaws.com/khudes/Twitter11.4.14.pdf)

Thanks for the kind words. With my apologies, I can not do as well :).

In my present estimation, the recent work of Karen Hudes, such as these details of the "Global Debt Facility Accounts in Taiwan", are an example of the "fabricated stories of pointless complexity" that I spoke of in a more recent post, just above.

Such stories are usually not entirely fabricated ... they weave strands of truth with glittering distractions, with intent to deceive on a grand scale (perhaps not Karen's intent ... but someone's.)

mgray

6th November 2014, 11:49

ThePythonicCow

6th November 2014, 12:09

Thanks Paul, interesting thoughts but a bit too draconian and too quick in implementation from where I sit.

As I mentioned last year, an intermediate step would involve a jubilee or debt forgiveness globally to reset astronomical sovereign and corp. debt levels globally. Personal debt may get a smaller haircut than sovereign and corp. debt. This could lead to US nationalistic fervor with tax holiday for US corp. to repatriate overseas funds back to US at a low tax rate.

The US has been in austerity mode for the last 4 years. No wage or job growth and no interest paid on savings accounts.

A move to SDRs is also hampered by the inability to trade its debt on open markets. US bond market (corp and treasuries) is larger than most global equity markets combined. An illiquid (or nonexistent) debt market is what is holding back a BRICs-based currency as well.

See what EU does this AM, if Draghi sits on his hands without doing anything to pull Europe out of the recessionary spiral it is in, strong dollar will rule the day until year end.

I really doubt we will see a debt jubilee. Rather I figure that JC Collins is right on this point, that we will see a restructuring of major debts into SDR denominated instruments.

SDRs are being reconstituted to become tradable, and to be issued by the various central banks of the world. That's part of the major expansion of the role of the BIS and IMF. Within the next two months, the last major holdout to the IMF 2010 reforms, the US, will consent to those reforms, and to the end of the effective dominance of the IMF by the US.

Yes, the SDR of the past (and of the immediate present) is quite insufficient to such a task. Those limitations will not last much longer.

Yes - the dollar will become increasingly strong in the short term. It's the "bottom dollar" ... the ground floor of the current world monetary system, to which all else collapses. The question will be whether the world monetary system is rebuilt once again on the basis of the US Dollar, or on some other basis. I expect we'll soon enough see the end of the US Dollar as the world's reserve currency. The Dollar rose from the dead once, in the 1970's, when it transitioned from a gold-backed currency to an oil (and opium and guns) backed currency. That will not happen again this time.

ThePythonicCow

6th November 2014, 12:15

Someone asked me privately what the above means for oil, energy, fracking (which my home town of Denton, Texas, just banned in the elections of this week) and the release of free energy.

He speculated that fracking bans such as just passed in Denton would not last for long, when the official world petroleum reserves ran short in a few years.

My response to him, reformatted for here:

~~~~~~~~~~~~~

Once the global monetary reset has mostly occurred, then it might be that "free energy" capabilities can begin to be more visible, along with less reliance on the "petro-dollar" to control the world monetary system.

Unfortunately, oil will continue to be one of the major exports of some important nations, and as such will partially determine the SDR weighting of that nation. Also a few major corporations are still up to their neck in petro-related investments. So I would not expect an avalanche of "free energy" capabilities to be released.

Fracking is only stopped in one modest city in Texas .. the rest of Texas is still the Wild West of Fracking, along with many, many, other places

More likely, I'd guess, shale oil from Canada and Arctic oil from Russia and Alaska, will once again bolster world oil reserves. As well, a world wide economic depression, as part of the global currency reset, will depress demand
~~~~~~~~~~~~~

naste.de.lumina

6th November 2014, 18:53

A very good explanation: how the manipulation of the gold price is being done to help maintain the dollar value.

American Financial Markets Have No Relationship To Reality — Paul Craig Roberts and Dave Kranzler (http://ausbullion.blogspot.com.br/2014/11/american-financial-markets-have-no.html)

bearcow

6th November 2014, 20:26

ThePythonicCow

6th November 2014, 20:56

Some interesting things are happening lately in the currency and commodity markets. Silver, Gold and all the precious metals are generally trading at 4 year lows right now while the dollar is approaching its 4 year high against the euro. This suggests that the markets are predicting a generally good economic environment in the USA for the foreseeable future.
The US Dollar is the foundation, the base asset, in the current monetary system, which uses the US Dollar as the reserve currency. When stress increases, other assets tend lower in price and the Dollar is "bought".

Also, applying market logic to this "market" is likely misleading, given the massive degree of price rigging and fraud present.

Monetary systems collapse from the outer, weaker edges, riskier investments, less financially sound companies and countries, inward, to the core currency of the core nation.

The US Dollar will get stronger ... until a recovery of other assets ... or until a global currency reset.

What JC Collins has been presenting for the last 10 months, that I've captured a little of on this thread, is compelling evidence that a global currency reset is in store, and will become evident to most of us, fairly soon. Extensive and detailed plans, involving pretty much all the nations of the world, have been made over the last several years, for this imminent reset.

ThePythonicCow

6th November 2014, 22:22

Here's a delightful lesson in how reality (which by my current view is well represented by the posts of JC Collins), and fantasy is woven together to create a plausible story for a wider audience, who don't relate well to the sort of IMF/BIS arcania I have been posting above.

Compare the "story" told in this IMF/BIS thread with the "story" told in this new video by Foster and Kimberly Gamble: Is the Value of your Money About to Change? (http://projectavalon.net/forum4/showthread.php?76734-Is-the-Value-of-your-Money-About-to-Change).

The two stories told are quite different in texture, and half different in detail, but share common overlap in general direction.

I'm guessing that Foster Gamble is working, along with many others, to try to lead/guide/bamboozle/whatever it takes the American people through this transition with minimum risk of serious revolution.

ThePythonicCow

6th November 2014, 22:42

Back to JC Collins Global Currency Reset posts ...

In Part Four (http://philosophyofmetrics.com/2014/02/06/sdrs-and-the-new-bretton-woods-part-four/) of JC Collins series, he examines the end of the petro-dollar, the restructuring of sovereign (US and other) debt into SDR bonds, the revaluation of various national and regional currencies, and the inclusion of gold and major resources, such as oil, into the formulae used to calculate the net contribution of each region to the world's economy, and hence of the quotas of each nation in those regions. For example, the Iraqi Dinar will likely gain some value, based on the oil exports of Iraq, but not what some are hoping for. Australia and Canada are already seeing their currencies being accumulated by other central banks, based on their abundant natural resources. The initial settings of these quotas and formulae are a key element of the ongoing negotiations that remain, for now, mostly behind the scenes.

In Part Five (http://philosophyofmetrics.com/2014/02/12/sdrs-and-the-new-bretton-woods-part-five/) of JC Collins series, he observes that the US Congress has been delaying accepting the IMF 2010 Code of Reforms, because "once the reforms are passed and the board restructured the quotas for each country will change and the dollar will be stripped of its reserve currency status." Both the US Dept. of Treasury and (less surprisingly) the IMF are pushing hard to get the US Congress to accept these "reforms". As I've noted above, JC Collins, and myself, expect Congress will do this, within the next couple of months. Meanwhile, other nations have been putting in place workarounds, in case the US Congress delays further. The SDR quotas and composition for each country will be determined by several metrics: GDP – Self Explanatory
Human Development – Research how China engineered a middle class to fill the empty cities they built over the last ten years.
Ecological Sustainability – Programs through the United Nations make more sense now.
Concentration and Diffusion of Assets – Investigate precious metal price manipulation.
Income – Examples include the growing middle classes of not only China, but also Vietnam and other emerging economies.
Demographics – Immigration and the mass movement of people are directly related to the planning of the new system. These calculations will be consolidated on a regional basis, with the regions being perhaps: Asia and Pacific Region
Europe
Lower Middle East and Northern Africa
Upper Middle East and Central Asia
Western Hemisphere
Southern Africa
South AmericaThe macro (high level)SDR compositions of each country’s currency will be: 25% Production Commodities (such as oil, gas, rice, wheat, iron ore, etc…)
25% Foreign Reserves and Precious Metals
50% Fiat – Pegged to increase and/or decrease based on the fluctuating values of the above 2 factors.

...

Parts six through ten still to review.

Rocky_Shorz

6th November 2014, 22:44

ThePythonicCow

6th November 2014, 22:53

imagine Brandon from Virgin pissed they blew up his toy, buying a bunch of reactors from General Atomics to burn radioactive waste, payment for disposal and storage of the toxic waste, pays for the unit. Offer free electricity to the general public for as long as the unit runs, so cheap gas, coal and oil start shutting down powerplants...
If he tried that before "it was time", it would be more than his space rocket and test pilot that blew up :).

Taurean

7th November 2014, 00:08

I've just come across this which makes interesting reading in connection with all the foregoing.

Gold and Economic Freedom

by Alan Greenspan

July, 2001
SPECIAL REPORT
_________________________________

Editor's note
-
It may surprise more than a few gold devotees to learn they have an ideological friend in none other than Federal Reserve Board chairman Alan Greenspan. Starting in the 1950s, in fact, Greenspan was a stalwart member of Ayn Rand's intellectual inner circle. A self-designated "objectivist", Rand preached a strongly libertarian view, applying it to politics and economics, as well as to religion and popular culture. Under her influence, Greenspan wrote for the first issue of what was to become the widely circulated Objectivist Newsletter. When Gerald Ford appointed him to the Council of Economic Advisors, Greenspan invited Rand to his swearing in ceremony. He even attended her funeral in 1982. In 1967, Rand published her non fiction book, Capitalism, the Unknown Ideal. In it, she included Gold and Economic Freedom, the essay by Alan Greenspan which appears below. Drawing heavily from Murray Rothbard's much longer The Mystery of Banking, Greenspan argues persuasively in favor of a gold standard and against the concept of a central bank.

http://www.usagold.com/publications/greenspan.pdf

ThePythonicCow

7th November 2014, 11:17

Some interesting things are happening lately in the currency and commodity markets. Silver, Gold and all the precious metals are generally trading at 4 year lows right now while the dollar is approaching its 4 year high against the euro. This suggests that the markets are predicting a generally good economic environment in the USA for the foreseeable future.

The US Dollar is the foundation, the base asset, in the current monetary system, which uses the US Dollar as the reserve currency. When stress increases, other assets tend lower in price and the Dollar is "bought".
Listen to the first 3 minutes, 10 seconds of Jim Willie in this interview from last week. He spells out clearly what's happening with the US Dollar.

9bmRYIb6lPQ
Jim Willie summarizes it from 1 minute, 10 seconds to 2 minutes, into this interview, saying:
We're in the end game here where the Dollar is rising and this rise in the Dollar, and fall in gold, does not mean Dollar strength. It means that the Dollar is being used as a weapon and foreign nations are suffering tremendous damage. They cannot compete with the United States that prints money. They cannot do that themselves, so they hunker down with Dollars, and before you know it, you see people in [France?] say "I'm just going to abandon my Euro and buy more Dollars with my savings. I want to preserve it. The Dollar is the Reserve."

Well, the Dollar is going to rise, and rise, and rise, and then die suddenly. I've been saying this for two or three years. It sounds paradoxical. You'd think that a rising Dollar means strength. It doesn't. You've got a lot of different nations and individuals trying to preserve their life savings, their business treasuries, and they are hunkering down in Dollars because their nations cannot compete with the United States that prints money.

ThePythonicCow

7th November 2014, 11:36

I've just come across this which makes interesting reading in connection with all the foregoing.
Yes - "they" are about to make a difficult transition in the world monetary system. "They" also have immense power and wealth invested in that system, so they don't want it all to just collapse into another "dark ages", or blow up in a nuclear winter. They want a functioning world economy to come out the other side.

So it seems that "they" are guiding as many people as they can through the transition, without actually empowering any non-elites sufficiently to throw a monkey wrench into the overall plan.

Earlier this was done with more idiosyncratic "flakes and oddballs" that only spoke to a small audience, so as not to cause mass disruption ... spokesman such as Lindsey Williams speaking to US Bible Belt Christians, or a variety of "Gold Bugs." Recently spokesman closer to the main stream, such as Forest Gamble (see my Post #28 (http://projectavalon.net/forum4/showthread.php?76591-Global-Currency-Reset--SDR-s-and-the-New-Bretton-Woods-by-JC-Collins-&p=898200&viewfull=1#post898200), above) or Alan Greenspan (as you posted), are speaking out ... these people are closer to the establishment, but not speaking in any current "official capacity".

In each case, those speaking out are conveying a blend of good insight, useful guidance, and (dis/mis/non)-information, tailored to some particular audience, easily ignored by most others.

mgray

7th November 2014, 12:20

ThePythonicCow

7th November 2014, 13:09

jackovesk

7th November 2014, 14:01

There's also a real word answer to the dramatic drop in gold and crude oil prices.
The US is trying to cripple Putin and Russia for Crimea aggression by having Saudi Arabia flood the market with sub $80 oil. Russia needs $90-$100 oil to make a profit. Saudi needs $15 - $20 oil to make a profit
So Putin is forced to sell gold to make up shortfall in revenue in order to bring in food for the winter.

The main beneficiary of low Saudi oil prices has been China -- which has been the main buyer of that price discounted Saudi oil: Mysterious Chinese Buyer Of Record Crude Oil Cargoes Revealed (http://www.zerohedge.com/news/2014-10-29/mysterious-chinese-buyer-record-crude-oil-cargoes-revealed). My hunch is that neither the Saudis nor the Chinese were surprised by this, and that the Saudis are covertly shifting their allegiance from the US towards China and the BRICS.

I have not seen any evidence or even hint of evidence that Russia is selling gold, quite the contrary. Nor have I seen any evidence that the dropping price of gold and silver is due to Russia selling gold. Rather, as I posted a couple of posts up, what we're seeing is the final gasp of the US Dollar (as you know, a strong dollar correlates with weak dollar prices for key commodities and monetary minerals.)

Do you have any such evidence ?

Don't forget 'Lindsey Williams' intel on this very subject back in 2011...:noidea:

How the "Dominoes Will Fall"?

http://us.cdn3.123rf.com/168nwm/volk65/volk651106/volk65110600024/9791901-a-strong-businessman-manager-supporting-falling-dominoes-3d-render-with-poser-model.jpg

Brief History Lesson (OPEC) Oil is the World's Currency, Not the $USD!

Between 1977 - 1980

Henry Kissinger Cut a Deal with the Middle Eastern Oil producing Nations (Opec), which stated the US would buy Oil from them ONLY if part of the payment was in US Federal Reserve TBills & Securities.

NWO 2012 (Strategic Plan)

Remember Ken Fromm's (Now Dead NWO Insider) statement he made to Lindsey Quote: "If it's written on a piece of paper, then it's only worth the piece of paper it's written on"!

The current Middle Eastern Crisis (Partially caused by the NWO backed Muslim Brotherhood) will continue to exacerbate throughout Egypt, Lybia, Yemen, Turkey, Morroco, Saudi Arabia, etc.

Oil will increase to around $200 USD per Barrell affecting Cars, Trucks, Airlines & Military leading to 'Massive Increases' to the cost of Food, Transport and Cost of Living.

This is when the Middle Eastern Oil producing Nations will be "DOUBLECROSSED" by the NWO/Elite by collapsing the $USD, therefore rendering all the US Federal Reserve TBills & Securites held by these Countries 'WorthLess'!

Once this transpires there will be a 'Huge Backlash' and the Oil will cease to flow to the US!

Summary from Left to Right:

Middle East (Crisis Escalating) - Oil Price $200 USD/Barrel - NWO/Elite "DoubleCross' Collapse of the $USD - Middle Eastern Countries Economically ruined.

Conclusion:

Once the above has 'Transpired' the NWO/Elite will open up it's own Oil Reserves (Known about for the last 50 years) i.e. North Slope of Alaska, Gull Island, including Bracken Rigde which sits under the Rocky Mountains and holds upwards of 2 Trillion Barrels (announced by George W.Bush in 2005).

Once this has been done Americans will be forced to pay upwards of $7-8 per Gallon! Combined with the $USD Collapse, this is when the NWO/Elite will bring in their "One World Currency"!

There will be 'NO' Food Shortage! The Grocery shelves will be fully stocked. BUT most people will not be able to afford it!

China and Russia?

Ken Fromm Quote to Lindsey " China is the Big One"!

China 'WILL NOT BE AFFECTED' by this 'Oil/Middle East Crisis' because it has signed an Exclusive deal with Russia to buy all the Oil & Natural Gas they want from them!

Hope this information helps you all prepare for what may be yet to come! Depending on how many people find out this NWO/Plan before it's too late!

Can I suggest you send this to all your family and friends so they too can help Prepare and/or Prevent the NWO/Elite's Final Agenda.

Thanks for reading this...

PS - I recommend you watch listen to all 5 clips below as the 'above info' is only a summary. I didn't have time to include all the information...

Part 1 - Introduction & Historical Overview of NWO Plan
http://www.youtube.com/watch?v=U-kmI1hzbI0&feature=mfu_in_order&list=UL

Part 2 - NWO Strategic Plan & Secret backing of 'Muslim Brotherhood' (Next Steps)

http://www.youtube.com/watch?v=pa2zhJh2s3E&feature=mfu_in_order&list=UL

Part 3 - NWO Strategic Plan & "Arab Nations NWO DoubleCross" (New Information)

http://www.youtube.com/watch?v=sJNIuZOTReg&feature=mfu_in_order&list=UL

Part 4 - NWO 2012 Timeline, George Bush Snr (China)

http://www.youtube.com/watch?v=JcsoWO4fctg&feature=mfu_in_order&list=UL

Part 5 - Callers on Arab DoubleCross, Lindsey Williams & Alex Jones (Summary)

http://www.youtube.com/watch?v=QdBtU6lb5AE&feature=mfu_in_order&list=UL

ThePythonicCow

7th November 2014, 14:27

Don't forget 'Lindsey Williams' intel on this very subject back in 2011...:noidea:
Oh ... I haven't forgotten Lindsey :).

I've been posting some of his material here for years. I mentioned him just four posts earlier in this thread, in Post #34 (http://projectavalon.net/forum4/showthread.php?76591-Global-Currency-Reset--SDR-s-and-the-New-Bretton-Woods-by-JC-Collins-&p=898457&viewfull=1#post898457)

===

Like all such intel, including my own, it has not been perfect. One has to sort through the garage sales to find the treasures, and often a bit of work is needed to restore even that.

mgray

8th November 2014, 03:22

ThePythonicCow

8th November 2014, 06:39

The cheap crude price is for the US market, Saudi oil ministers announced this in the beginning of Nov.
http://online.wsj.com/articles/saudi-oil-price-cut-upends-market-1415063053
It works on many levels. It reduces oil fracking since the price to bring fracked oil to surface and ship to refineries is north of $90.
It punishes Russia which loses money on every barrel sold under $95-$100.
And although it back fired reduces US gas prices just prior to the mid-term elections.
That Wall Street Journal article is behind their paywall. Likely you're a subscriber, but I am not, and likely many others of those reading this are not. Perhaps the article at the following link is a copy of that article: Saudi price cut upends oil market (https://seeker401.wordpress.com/2014/11/06/saudi-price-cut-upends-oil-market/).

Yes, according to that article, the Saudi's are selling oil cheaper to the US (making US fracking less profitable), while charging more for oil going to other locations, including Asia, after having cut those prices for the previous four months.

The disconnect between dollar, oil and gold shows there's a big seller in the market. Russia suffering from EU sanctions as winter rolls in needs to have supplies and cash to pay. The ruble is cratering so they are bartering with gold.
They have the 5th largest supply of gold on the planet.

Today's $35 jump was off of Greenspan's comments to CFR on gold's value as a currency. His statements were allegedly redacted from transcript.

You make outlandish statements from someone pitching gold on YouTube and you ask me for proof. lol
See link above.
Stronger US Dollar, lower Dollar denominated prices for oil, gas and (I presume) other items ... that is not so much a disconnect, in my view, as it is a connection -- one very essence of a stronger Dollar is lowered Dollar denominated prices (though "stronger Dollar" also often refers to Forex rates, relative to other major currencies.)

You answered my question as to whether you had evidence that Russia was selling gold with a repeat of that assertion and a (mild mannered) slam of my links as being from someone pitching gold. To which link did you refer? None of Zerohedge, Jim Willie or JC Collins sell gold, to the best of my knowledge. (But, given your bullish avatar and long standing interest and viewpoints on topics such as these, I presume that you do have a financial interest in some aspect of "Wall Street" ... should I discount your analysis on that account? <grin>)

I actually was interested in evidence that Russia is selling gold. The US Dollar denominated price of gold has been in general decline for over three years now, falling from a peak of over $1880 in August 2011, to a low of about $1133 earlier this week. I doubted that Russia has been selling gold for most of that time.

So I went looking myself for further data.

According to the following articles (one of which is a site selling gold), it seems that Russia has been buying gold in large quantities for years, and then sold a little in September.:

As Russia Dumps A Record Amount Of US Treasurys, Here Is What It Is Buying (Zerohedge; May 2014) (http://www.zerohedge.com/news/2014-05-21/russia-dumps-record-amount-us-treasurys-here-what-it-buying)
Currency Wars Intensify As Russia Buys 18.6 Tonnes Of Gold In June (Goldcore, via Zerohedge; July 2014) (http://www.zerohedge.com/news/2014-07-29/currency-wars-intensify-russia-buys-186-tonnes-gold-june)
Russia’s Gokhran Buying Gold Bullion In 2014 and Will Buy Palladium In 2015 (MaxKeiser; Sept 2014) (http://www.maxkeiser.com/2014/09/russias-gokhran-buying-gold-bullion-in-2014-and-will-buy-palladium-in-2015/)
Russia added to gold reserves for 6th straight month in Sept -IMF (Reuters; Oct 2014) (http://www.reuters.com/article/2014/10/28/gold-imf-holdings-idUSL1N0SN33S20141028)

From the above articles, it seems that the following graph (posted on the above MaxKeiser link) reasonably reflects Russia's gold holdings over the last 20 years, up to August 2014:

http://thepythoniccow.us/goldcore_bloomberg_chart1_25-09-14.png
~~~~~~~

Bucking the above long term trend, Russia did sell a little of their gold in Sept 2014, for the reasons you stated: Central Bank Gold Buying Slows, As Russia Sells Precious Metal In September: IMF Data (International Business Times; Oct 2014) (http://www.ibtimes.com/central-bank-gold-buying-slows-russia-sells-precious-metal-september-imf-data-1445398):
Gold buying by the world’s central banks has slowed so far this year compared to last year, though central banks as a whole remain net buyers of the metal, the latest International Monetary Fund (IMF) data shows.

But the surprise is that Russia, a key and consistent buyer in recent years, sold 12,000 ounces of gold in September.

Still, the country now owns 32 million troy ounces of gold, up from the 20.8 million it owned in 2009.
If you're suggesting that the recent decline in the price of gold, continuing the declining trend of the last three years, was due to that (puny) sale of 12,000 ounces ... I have an old cable-stayed/suspension bridge for sale ... perhaps you'd be interested :).

mgray

8th November 2014, 12:13

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.

PathWalker

8th November 2014, 13:09

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

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.

ThePythonicCow

8th November 2014, 15:04

Please respect that other people manifest their own reality.
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.

ThePythonicCow

8th November 2014, 15:10

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.
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.

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.
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.

ThePythonicCow

8th November 2014, 15:16

than your once-in-a-lifetime event that the dollar will cease to be the reserve currency
That's the key ... we shall see :).

Mark

8th November 2014, 18:14

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

gripreaper

8th November 2014, 19:50

than your once-in-a-lifetime event that the dollar will cease to be the reserve currency
That's the key ... we shall see :).

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.

ThePythonicCow

8th November 2014, 20:36

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

ThePythonicCow

8th November 2014, 21:28

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
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.

Rocky_Shorz

8th November 2014, 21:43

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?

TargeT

8th November 2014, 22:04

Interesting twist...

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

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

gripreaper

9th November 2014, 02:22

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.

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.

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.

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.

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.

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.

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.

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

naste.de.lumina

9th November 2014, 04:04

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.

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

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 (http://projectavalon.net/forum4/showthread.php?68235-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.

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

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.

Mark

9th November 2014, 20:00

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 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.

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.

ThePythonicCow

11th November 2014, 23:39

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 (http://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 (http://philosophyofmetrics.com/2014/11/11/renminbi-人民币-and-the-alternative-imf-reforms):

~~~~~~~~~~~~~~

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:

reduce currency risks for both importers and exporters.
reduce China’s exposure to USD exchange rate volatility.
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

~~~~~~~~~~~~~~

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.

kevlor

12th November 2014, 02:20

.

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.
.

ThePythonicCow

12th November 2014, 02:30

JC Collins primary point in the above post:
Were you quoting this with the intention of commenting on it ... or just to highlight it ?

kevlor

12th November 2014, 02:35

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!
---------------------------------------------------------------------------------------------------------------

so true, we live in very interesting times ... kev

ThePythonicCow

12th November 2014, 03:42

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!
---------------------------------------------------------------------------------------------------------------

so true, we live in very interesting times ... kev

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!” (http://blog.milesfranklin.com/theyll-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.

kevlor

12th November 2014, 11:40

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

ThePythonicCow

12th November 2014, 12:04

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

Actually, I rather agree ... it risks getting quite messy. A predator animal is most dangerous when it faces imminent death.

My above discussion of pleasant sounding drawing rights and banking regulations is not meant to preclude the possibility, even likelihood, of immense tragedy for and suffering by humans and other living beings.

mgray

12th November 2014, 12:18

Reality check: The renminbi would have a difficult time replacing the dollar as reserve currency.
1) Its value as a currency is tied or pegged to the dollar. Why? Because China knows it still cannot float its own currency on world markets, due to wild fluctuations in its value. The currency is not strong enough to stand on its own.
2) There is no bond market to speak of trading in the renminbi. So the renminbi is not robust enough to take on burden for business transactions.

I am trying to put this conversation into context. To say the dollar is not dead is not a matter of pride, it is a practical financial plumbing point.

You can't replace the dollar with anything right now, with possible exception of the euro, but those member states would never go for it.

One thing on SDRs. If the US stops funding IMF and World Bank in US dollars), those two institutions close their doors the next day because they can't pay the rent or make payroll. It's pure and simple. Look at the balance sheet of both of them.

So I don't see that as a viable alternative.

ThePythonicCow

12th November 2014, 16:54

Reality check: The renminbi would have a difficult time replacing the dollar as reserve currency.

...
One thing on SDRs. If the US stops funding IMF and World Bank in US dollars), those two institutions close their doors the next day because they can't pay the rent or make payroll. It's pure and simple. Look at the balance sheet of both of them.

So I don't see that as a viable alternative.
I entirely agree that neither the renminbi nor the SDR, in their present form, are an alternative to the US dollar.

I also entirely agree that the renminbi is not being setup as a replacement world reserve currency in the place of the US dollar, though quite a few others in the "gold bug commentary" community are expecting that.

However, as noted above in this thread, visible steps are being taken, in many nations, to transition from a US Dollar foundation to our world's debt-based monetary system (managed through such institutions as the US Treasury and the Federal Reserve) to an SDR foundation (managed through such institutions as the IMF and BIS.)

JC Collins work is good stuff ... I recommend going to his PhilosophyOfMetrics.com (http://philosophyofmetrics.com/) blog and reading more of him. I've only been able to pull over a modest portion of his work. He's only been posting since early this year 2014, so (unlike say the entire archives of Projects Camelot and Avalon) one could imagine reading a substantial portion of it, without Herculean effort.

A freight train of immense impact is coming down the tracks. It will doubtlessly not arrive gently in the night. As kevlor notes (http://projectavalon.net/forum4/showthread.php?p=900517#post900517), it will likely get very ugly. But if you put your ear to the tracks, perhaps by noting some of the events that JC Collins is relating to us, you too might find that the evidence is compelling that such a freight train, yet another major restructuring of the basis of the world's monetary system, is approaching rapidly.

The IMF's funding will soon be increased substantially, with the elevation of China and some other BRICS nations to top tier status in the IMF.

But also, as I noted a couple of posts above, it is not fundamentally the reserves of an institution that determine its lending power in a debt-based monetary system. Rather it is fundamentally the power available to that institution to collect on that debt, one of the payments promised,
the collateral put up as security, or
(unfortunately) whatever else can be begged, borrowed or stolen to keep the monetary base expanding.
Somehow, someway (and often such ways are very ugly) the monetary base of a debt-based system must keep expanding, forever and ever ... or until it collapses into a massive restructuring and reconstitution event .. whichever comes first.

No doubt some serious ugliness will be required, but if and when the US is forced to convert
from

using Federal Reserve Notes as both (1) its unit of national currency and (2) its self-issued unit of debt,
to

(1) using a US Treasury dollar nationally, and (2) borrowing in SDR denominated debt,
then this transition in the basis of the world's debt-based monetary system will be manifest for all to see.

ThePythonicCow

12th November 2014, 17:27

I entirely agree that neither the renminbi nor the SDR, in their present form, are an alternative to the US dollar.
One more thing should be made clear ... I do not anticipate that the SDR replaces the Dollar, in every way.

Trade, banking, investments, contracts, and so forth and so on, which are denominated in Dollars will in most cases continue to be denominated in Dollars.

Not entirely, of course, as China, Russia and other nations are quite busy negotiating bilateral trade agreements in other currencies, replacing many such uses of the US Dollar.

But, twisting some infamous words of US President Obama, "If you like your Dollar, you can keep your Dollar." Trade with Americans, and financial instruments and obligations within the US, will for the most part continue to be denominated in US Dollars (albeit Treasury issued, rather than Federal Reserve.)

However ... the foreign exchange value of those Dollars against other major currencies will be determined in substantial ways by the gnomes in Basel, Switzerland, rather than by "supposed" market forces, with considerable covert manipulation by such institutions as the Exchange Stabilization Fund.

ThePythonicCow

12th November 2014, 19:18

Matthias Chang, a former key advisor to the Prime Minister of Malaysia, is taking much the same position as Jim Willie, anticipating a global currency reset, with the "starting shot" being a reset of the price of gold.

~~~~~~~~~~~~~~

From noliesradio.org (http://noliesradio.org/archives/91487)

http://noliesradio.org/archives/KB-TJ_2014_1112_chang_ web.mp3

Source: http://noliesradio.org/archives/KB-TJ_2014_1112_chang_ web.mp3
In this interview, Matthias Chang says the beginning of the end of the US dollar will likely be evident by the first half of 2015. That’s only a few months away! He expects a “reset” as monumental as what happened at Breton Woods in 1944.

The problem is that the US dollar is dying, America’s dollar debt can never be repaid, and the world has caught on to the scam. Yet the Chinese and other major dollar holders can’t just cash in their greenbacks all at once and crash the dollar system, because they too would go down in the cataclysm.

So rather than continue to prop up the worthless dollar forever and throw bad money after good, the world’s economic movers and shakers will hit “reset.” Matthias expects they’ll follow Alan Greenspan’s recent lead and re-peg the dollar to gold – but at a vastly higher gold price than today’s. So if you have spare dollars sitting around, you might want to trade in some of them for physical gold at today’s artificially-suppressed prices.
~~~~~~~~~~~~~~
In Post #12, above (http://projectavalon.net/forum4/showthread.php?76591-Global-Currency-Reset--SDR-s-and-the-New-Bretton-Woods-by-JC-Collins-&p=896768&viewfull=1#post896768), I repeated my earlier prediction of two weeks ago (http://projectavalon.net/forum4/showthread.php?76355-The-Disclosure-War-David-Wilcock-Oct.-24-2014&p=893624&viewfull=1#post893624):

I predict that by early 2015 either the US lame duck Congress will have passed the long stalled 2010 IMF Code of Reforms, as explained in JC Collin's A Global Currency Reset -- Changing the Architecture of the Financial World (http://philosophyofmetrics.com/2014/08/02/global-pandemic-and-quarantine/), or
the manipulation of the price of Gold and Silver will end, with China offering to purchase gold at a price perhaps twice that of the current price, as described in this article at "Adask's law" blog (http://adask.wordpress.com/2014/09/11/harvey-organ-predicts-manipulation-of-goldsilver-to-end-this-year/).
Perhaps I should predict -both- the passage in the US Congress of the 2010 IMF Code of Reforms, -and- a sudden and sharp rise in the price of gold, not just one or the other.

;)

ThePythonicCow

13th November 2014, 02:26

Brandon Smith, one of the sharpest young American market analysts I know of, has just posted another one of his delightful articles, with much the same view: The Economic End Game Explained (http://www.alt-market.com/articles/2403-the-economic-end-game-explained).

Here is a portion of his article:

~~~~~~~~~~~~~~

What do the elites hope to gain by creating a facade of recovery?

They have openly admitted to the public on numerous occasions EXACTLY what they want — namely, the institution of a truly global and centralized economic system revolving around a highly controlled world currency framework and dominated by a select cult of banking oligarchs. Anyone who claims that this is not the goal is either a liar or an uneducated fool.

I have covered the evidence supporting this program many times in the past, but it would seem with the precariously surreal nature of our world today that much needs repeating. In 1988, the financial magazine 'The Economist' published an article titled “Get ready for a world currency by 2018,” (http://socioecohistory.wordpress.com/2014/07/26/flashback-1988-get-ready-for-a-world-currency-by-2018%E2%80%B3-the-economist-magazine/) in which it outlined the framework for a global currency system called the “Phoenix” (a hypothetical title), administered by the International Monetary Fund by the year 2018, which would erase all national economic sovereignty and require governments to borrow from the world central banking authority, rather than print, in order to finance their infrastructure programs. This would mean total control by the IMF over member nations as they beg and plead for more capital under the global currency umbrella.

http://redefininggod.com/wp-content/uploads/2014/09/ecocover.jpg
If this sounds familiar, it is because I have been warning about the IMF takeover of the global monetary system for at least six years. The Economist actually admits that the Phoenix system would start out in the format of the Special Drawing Rights basket currency:

The phoenix would probably start as a cocktail of national currencies, just as the Special Drawing Right is today. In time, though, its value against national currencies would cease to matter, because people would choose it for its convenience and the stability of its purchasing power…

The plan is to introduce a basket currency system as an alternative to the dollar as world reserve, then slowly but surely phase out all sovereign currencies until the basket becomes a currency itself - the ONLY currency. Former World Bank Chief Economist Justin Yifu Lin seems to agree (http://africa.chinadaily.com.cn/weekly/2014-01/31/content_17266594.htm) with this ideology, arguing that national currencies must be replaced with a supranational currency, and pointing out that no single currency has the strength to stand alone as world reserve:

"I think the dominance of the greenback is the root cause of global financial and economic crises...The solution to this is to replace the national currency with a global currency..."

~~~~~~~~~~~~~~

His article concludes:

~~~~~~~~~~~~~~

The economic endgame is not about collapse alone. Collapse is nothing more than a process that ends abruptly only when public faith is finally lost. The endgame is about acceptance — the acceptance by the masses of a “new normal” in which financial and political terror become the foundation of daily life. The endgame is, first and foremost, about the psyche of mankind and its mutation into something unrecognizable. This kind of pervasive conditioning requires immeasurable fear. Our economic philosophy of sovereign trade and identity cannot be erased without it. The elites have already given us their timeline. The crash of 2008 was only the beginning of the program, and 2014-2015 looks to be the next stage. I have written hundreds of articles on how to prepare and diffuse the dangers of the impending reset, but the most important issue of all is that people understand the threat is at their doorstep. It’s not a few years off or a decade away; it’s here now. We are right in the middle of collapse, even if many cannot see it. Watch global developments carefully, as market volatility increases and international conflicts escalate. Time is up.
~~~~~~~~~~~~~~

ThePythonicCow

13th November 2014, 18:20

The role of gold in all this ... gold is the primary marker of the "top dog lender".
...
To expand my one-liner from above:

Where goes the gold, there goes the control of the world's most senior debt paper, and then there goes control of the world's major political and corporate institutions.
More tersely, the famous bastardization of the Golden Rule:

He who has the gold, rules.
...
Even former Fed Chairman Alan Greenspan said "gold is a good place to put money these days" a few days ago, here (http://online.wsj.com/articles/former-fed-chief-greenspan-worried-about-future-of-monetary-policy-1414597627).

The reasons for all the alternative media "buy gold" propaganda in recent years are in my view not so obvious...

... Debt is only worth what you have the power (the sufficiently overwhelming force) to collect.

Aha - now it is obvious to me - gold is the essential alchemical monetary catalyst that converts debt-based Babylonian Money Magic control of humanity from the level of thuggery:

We'll loan into existence whatever money we want, whenever and to whomever, because we have sufficient overwhelming force to take whatever we want, whenever we want, from whomever we want.to the level of the divine right (of gods, pharaohs, kings and now central banks):

This money is real ... it is fair trade for your life's labor and savings, for your lovely daughters and fertile land.
For a new monetary system to be breathed into life, it must be blessed with the "backing" of the world's dominant hoard of gold.

That's what all the gold bug propaganda, now even reaching the lips of former Fed Chairman Alan Greenspan (http://online.wsj.com/articles/former-fed-chief-greenspan-worried-about-future-of-monetary-policy-1414597627), is about.

That's what the anticipated "shocking" revelations of the immense gold hoard of China and Russia (likely early in 2015, likely for over 30,000 tons between them) will be about.

That's why the Chinese will announce that they are now buying at their Shanghai Gold Exchange (http://www.en.sge.com.cn/), for twice the COMEX price of the day before:

gold for say $2500/ounce instead of $1250/ounce, and
silver for say $45/ounce instead of $15/ounce.
That's why it must be that particular announcement that triggers the publicly visible collapse of a number of major "Western" financial institutions, leading to a financial and economic collapse, followed by the open restructuring of the US currency and debt, into SDR denominated foreign debt and US Treasury issued domestic currency that replaces current US Federal Reserve Notes.

That's what Jim Willie continues to explain to us, in detail, from his vantage point, such as in this interview from a couple of days ago: $18,000 Gold & U.S. Becomes Third World | Jim Willie (FinanceAndLiberty.com) (http://investmentwatchblog.com/addendum-18000-gold-u-s-becomes-third-world-jim-willie/):
3fmWqqEpFjk
Show notes for the above interview of Jim Willie: U.S. Mint SOLD OUT of Silver Eagles ►1:17 (http://youtu.be/3fmWqqEpFjk?t=1m17s)
GLD and ScotiaMocatta being drained of physical gold ►5:38 (http://youtu.be/3fmWqqEpFjk?t=5m38s)
The U.S. government has already defaulted on its debt; China is taking control ►17:01 (http://youtu.be/3fmWqqEpFjk?t=17m01s)
How returning to a gold standard might work ►41:15 (http://youtu.be/3fmWqqEpFjk?t=41m15s)

Gold ... it is still a key magic potion of our supreme leaders, breathing into them power over us, long ago, and even now, into "our masters", be they the ancient Pharaohs:

http://www.chemicool.com/elements/images/300-gold-tut.jpg
or the up and coming Chinese and Russian holders of the world's largest gold hoard:

https://www.fortressgoldgroup.com/wp-content/uploads/Chinese-gold-bar.jpg
The Obama Administration's Pivot to Asia (The Foreign Policy Initiative; December 2011) (http://www.foreignpolicyi.org/content/obama-administrations-pivot-asia) is fundamentally a financial/economic/monetary pivot, not a military pivot. It has been ongoing at least since Kissinger's secret trip (http://www2.gwu.edu/~nsarchiv/NSAEBB/NSAEBB66/index2.html) to China's Premier Zhou Enlai, in July 1971:

http://www2.gwu.edu/~nsarchiv/NSAEBB/NSAEBB66/01.jpg
leading to Nixon's famous meeting with Chairman Mao in February 1972:

http://www2.gwu.edu/~nsarchiv/NSAEBB/NSAEBB66/03.jpg
===

However, unlike the 40 year reign of the Petro-Dollar, which then U.S. Secretary of State Henry Kissinger (agent for the Rockefellers) also negotiated, with the Saudis, starting in the same year, 1971 (he was a busy man that year), I do not anticipate that there will be a long reign of Chinese or Russian currencies as the single dominant world reserve currency.

Rather, the next phase of this "pivot east" will endeavor to shock the Western populace and financial institutions into accepting the equal role of Eastern (BRICS) nations, and leveling the playing field between East and West, lowering one while raising the other, under a new world monetary system denominated, at the top, in its most liquid debt, some major trade arrangements, and the setting of the Forex (foreign exchange) relative national currency valuations, by the IMF, BIS and associated institutions (and ... whoever controls them.)

Western economies and the US Dollar in its role as the world's reserve currency, will collapse dramatically, openly beginning with China's repricing of gold in early 2015 (Jim Willie anticipates it will be shortly after the Chinese New Year on Thursday, February 19, 2015), causing major stress in various derivative markets and within weeks thereafter, the collapse of a number of major Western banks. From there, it will go to the streets, nightly news casts, gas stations, grocery store shelves and ATM's (cashpoints).

Pain will need to be felt on the American streets, and in their wallets and stomachs, in order to pave the way for the new currency arrangements. Road builders must first grind up the old road before laying the new.

The Chinese and Russian leadership have made it clear all along that they intend to continue "playing ball" with the IMF and BIS, and the US congress will soon (as predicted above on this thread) accept the IMF 2010 Reforms, also accepting the over arching authority of the IMF and BIS.

Gold and silver -- the "Twin Towers" of Babylonian Money Magic.

Rocky_Shorz

13th November 2014, 18:49

and now, for those who haven't been watching the sun, we have a spot swinging around towards earth with enough energy to knock out the power grids...

drop down for 3-6 months pop back on with a new financial system in place...

TargeT

13th November 2014, 18:54

This video is mostly supportive of this thread and gives a deep history of china and it's involvement in "all this".

5M1KD7Dnq4s

Military tensions, cyber espionage accusations, a brewing currency war; with every passing day, the headlines paint a convincing portrait of an emerging cold war between China and the West. But is this surface level reality the whole picture, or is there a deeper level to this conflict? Is China an opponent to the New World Order global governmental system or a witting collaborator with it? Join us in this in-depth edition of The Corbett Report podcast as we explore China's position in the New World Order.

Calz

13th November 2014, 18:57

and now, for those who haven't been watching the sun, we have a spot swinging around towards earth with enough energy to knock out the power grids...

... and for those who have been paying attention ... James Horak has long been offering evidence of "EMVs" protecting the solar system from the worst the Sun has to offer.

Lots of images captured by many suggesting massive "cube shaped ships" are around the Sun and interacting with it.

Really beyond deniability ....

How the alleged "wave' emanating from the galactic core fits into that ... who really knows???

Sometimes I think the elite are as clueless as we are despite all the advantages of "true history" etc and their tech toys.

... but ... simply my opinion ...

ThePythonicCow

13th November 2014, 19:05

This video is mostly supportive of this thread and gives a deep history of china and it's involvement in "all this".
Yup - good one - as James Corbett said of it himself, it's a doozy of a report.

Here's a thread specifically focused on this report on China by James Corbett: China and the new world order (http://projectavalon.net/forum4/showthread.php?76873-China-and-the-new-world-order).

Belle

13th November 2014, 20:03

Interesting article entitled 'The Rockefeller Plan for the BRICS New World Order...' found at http://redefininggod.com/2014/11/the-rockefeller-plan-for-the-brics-new-world-order-in-their-own-words/

The article is a long read, but well worth the time. It begins:

Decades before President George H.W. Bush introduced the “New World Order” (NWO) into the American vernacular, the Rockefeller family and their minions were making plans to expend America’s post-World War 2 power to bring about such an order. In the course of researching Laurance Rockefeller for my last entry, Why are the Rockefellers and the Jesuits guiding the UFO Disclosure Movement?, I came across a book titled Prospect for America: The Rockefeller Panel Reports…

…It was the product of a 1956 Rockefeller Brothers Fund effort known as the Special Studies Project, and it lays out the blueprint for the multilateral / multipolar New World Order that is currently materializing around us.

I found the following excerpt relevant to the conversation on this thread re: China.

>>>Why China? Why would the Illuminati, whose home base is in Western Europe, have the Chinese front the public face of their New World Order?

A clue to their motivations and strategy can be found in this article, titled “Colonial Elite Rules China for the Illuminati.” In it, the author states…

“The Chinese people would revolt against overt foreign domination, but embrace their place in the NWO if they believed they were in control.”

The Chinese have suffered greatly at the hands of Western imperialism, as has much of the world. As a result, the Illuminati would have trouble roping many nations into a Western-led New World Order, especially the nationalistic Chinese. Since you can’t have a truly global order without the most populous nation on Earth, the Illuminati opted to use their own legacy of destruction to their advantage. Their two-part strategy to do so is as follows:

1 – They set up a China-centered alliance as an opposing force to the Western alliance.
This part of the strategy was hinted at in the mainstream press in this 2002 UPI article, titled “China Wants Its Own ‘New World Order’ To Oppose US Version.” It is common practice for the Cabal to use opposing forces to achieve their ends, and they always make sure they have influence or control over both sides.

2 – They have been driving the world public into the hands of the Chinese alliance.
How have they approached this, you ask?

> They have widely publicized a heinous New World Order planned by the Western Powers while simultaneously publicizing a benign New World Order planned by China and its allies (thus establishing danger from one side and safety from another).

> They have instigated outrageous and provocative action, both economic and military, by the Western powers (this adds a new insight into the open-for-all-to-see Wall Street / City of London criminality and recent Western military boondoggles in Afghanistan, Iraq, Egypt, Libya, and Syria).

> They have broadly exposed damaging information about Western nations, especially the US. This is the motivation behind WikiLeaks, Snowden, and a thousand smaller disclosures. And after Snowden outed the NSA’s activities to the general public, where did he run to hide? First to China (Hong Kong), then to Russia. So what is the psychological message? China and Russia (the BRICS alliance) are where you run for safety from the evil US, its Western allies, and all their horrible behavior.

It is really very simple: the Illuminati built a rabbit trap (in the BRICS alliance) that looks like a nice, safe hole to hide from danger. Now they are beating the bushes (with the Western powers) to drive the rabbits toward the trap.<<<

Clearly, the globalists took into account “the aspirations of peoples all over the globe… to emerge rapidly and conclusively from the era of colonialism” in their planning of the NWO. It is for this reason that the BRICS alliance was formed and the NWO was designed in a multipolar fashion. They want the oppressed peoples of the world to join together and see themselves beating the West. And they want them to believe that the Illuminati’s multipolar New World Order represents their final victory over oppression and ascension to equality, when it is actually just the beginning of a new phase of subjugation and their fall into equality as global serfs.

That article is followed-up with another entitled 'China’s complicity in building the Rockefeller New World Order, in their own words…' found at: http://redefininggod.com/

Very interesting...

naste.de.lumina

13th November 2014, 20:04

Paul my friend, this topic is hot. Very nice.

Follows a complement of information to enrich the overall picture of the scenario.

June 1973 – David Rockefeller Sr. visits China (http://www.forbes.com/profile/david-rockefeller-sr/gallery/18) to start working out implementation details for what is to come.

Here he is meeting with Premier Chou En-Lai…
http://redefininggod.com/wp-content/uploads/2014/11/rockchina.jpg

Needless to say, globalist coordination with China…
http://redefininggod.com/wp-content/uploads/2014/11/kissingerxi.jpg

Putin Welcomes Kissinger: ‘Old Friends’ to Talk Shop - January 19, 2012 - New York Times (http://www.nytimes.com/2012/01/20/world/europe/henry-kissinger-to-meet-with-vladimir-putin-in-russia.html)
http://redefininggod.com/wp-content/uploads/2014/11/kissputie.jpg

It was the product of a 1956 Rockefeller Brothers Fund effort known as the Special Studies Project (http://en.wikipedia.org/wiki/Rockefeller_Brothers_Fund#Special_Studies_Project),
and it lays out the blueprint for the multilateral / multipolar New World Order that is currently materializing around us.
http://redefininggod.com/wp-content/uploads/2014/11/prospectforamerica.jpg

Source: http://redefininggod.com/2014/11/the-rockefeller-plan-for-the-brics-new-world-order-in-their-own-words/

The 'conscience' is everything, and the infinite is our eternal destination.:thumb:

Hugs.

Naste.

Belle

13th November 2014, 20:25

'Great minds think alike', eh, naste?

Didn't Maurice Strong move to China about 3-4 years ago, iirc?

Calz

13th November 2014, 20:31

... again ... most all the "smart money" started to move to China in the mid 90's.

Not really something that is debatable?

naste.de.lumina

13th November 2014, 20:35

'Great minds think alike', eh, naste?

Didn't Maurice Strong move to China about 3-4 years ago, iirc?

No doubt Belle, and our collaboration on this 'energy' war are our frequencies with all this organized information.

Synchronicity

Naste.

P.S.: I'm sorry but I do not remember / know who is Maurice Strong.

Belle

13th November 2014, 20:48

Maurice Strong is more than a money man....he is a real 'mover and shaker' in the NWO. I believe it was he who came up with the global warming scam and 'sustainable development'.

Not much is known about him except he is POWER and wields it well.

He does have an 'official' website...http://www.mauricestrong.net/ from which the following quote is taken:

Indeed, Secretary-General Kofi Annan, near the end of his term, paid the following tribute to Strong:

“Looking back on our time together, we have shared many trials and tribulations and I am grateful that I had the benefit of your global vision and wise counsel on many critical issues, not least the delicate question of the Korean Peninsula and China’s changing role in the world. Your unwavering commitment to the environment, multilateralism and peaceful resolution of conflicts is especially appreciated.”

ThePythonicCow

13th November 2014, 22:15

The one who calls himself "Ken", the blogger at RedefiningGod.com and source of posts 72 (http://projectavalon.net/forum4/showthread.php?76591-Global-Currency-Reset--SDR-s-and-the-New-Bretton-Woods-by-JC-Collins-&p=900990&viewfull=1#post900990) and 73 (http://projectavalon.net/forum4/showthread.php?76591-Global-Currency-Reset--SDR-s-and-the-New-Bretton-Woods-by-JC-Collins-&p=900992&viewfull=1#post900992) above, is good - thanks for introducing him here, Belle and naste.de.lumina.

Yes, both Ken's material, and James Corbett's China special that TargeT posted above, are very relevant to understanding this Global Currency Reset, and the roles of China, the Rockefellers, Kissinger, the United Nations, the IMF and BIS, and related entities in these events, which have been ongoing at least since World War II.

Excellent!

Dennis Leahy

13th November 2014, 23:19

TargeT

13th November 2014, 23:46

For the large-scale individual "collector"/hoarder/saver of gold and silver coins, there is probably not much chance of staying under the radar (they are already on a list, I would guess.)

But what about the guy who has bought a few coins here and there? How will the (US-based) bastards squeeze that stone? Will there be a "tax"/fee when converting silver coins to new IMF-dollas?

Or, is silver a really smart buy right now, for the little guy that cannot buy (convert US dollars into) other, bigger ticket, tangible assets such as land or viable businesses (like agribiz "farms.")

Silver is around $15/ounce today. BUY? It's not a rhetorical question, and I don't know the answer. It just seems like it can't fall much further, and (unlike Federal Reserve Notes) will probably go up in value.

Dennis

when you say large scale collector/hoarder you are talking numbers that are unattainable by us lowly 99%, the wealth gap has grown so large that "we" don't register on the radar.

if you are looking for a "wealth preserving" commodity I still feel that precious metals are not bad place to store them, but don't be shy of digital currency either.. it may not knock the financial world completely off it's feet, but I see a blind-side blow coming that is nigh unstoppable. (Bitcoin etc..); as always diversifying is the best option.

Note:

I say this as I live just above "paycheck to paycheck" status with a heavy debt load... so probably not the best financial ad visor; though I still (based on research) think the above is solid advice.

Griff

14th November 2014, 01:58

I haven't seen this reported widely, other than a brief CBC article referenced here. I think this could be quite significant:

http://www.globalresearch.ca/petrodollar-panic-china-signs-currency-swap-deal-with-qatar-and-canada/5413467

I would have surely thought that a deal trading Canadian oil directly in RMB would get far more attention.

Griff

ThePythonicCow

14th November 2014, 08:09

I would have surely thought that a deal trading Canadian oil directly in RMB would get far more attention.
China, Russia and the other BRICS nations are working hard and fast to put in place alternatives to the US Dollar based financial arrangements.

But apparently the time to "spring" this on the American public has not yet (quite) arrived.

This reminds me of watching the men of the town I grew up in, gathering boxes of fireworks and arranging wires and such, in the big field next to the parade ground, on the afternoon of July 4th, each year. One soon figured out that these activities were a prelude to another fine fireworks display, that would begin a half hour after sunset, that evening.

In the present situation, I suspect that the (world monetary) fireworks will begin with something involving gold. It's not because (so far as I know) gold has some technical property that is necessary and essential to such Babylonian Money Magic as controls us, though it (gold) might have such ... but rather it's because gold is the mark our "overlords" use to "bless" money, and they aren't about to change that habit after so many thousands of years.

So, we will soon (whatever that means) see:

The US Congress pass the 2010 IMF Code of Reforms.
Russia and China reveal holdings of over 30,000 tons of gold.
China offer to buy gold at well above the COMEX spot price (the fireworks begin).
A severe crisis in interest rate swap and foreign exchange rate derivatives.
Some major Western banks fail, with losses to depositors this time.
Serious economic collapse in the US, Europe and Japan.
The loss of US Dollar reserve currency status.
The rise of China to a top tier role in the IMF.
A stronger role for the IMF and BIS over major financial institutions.
A US Treasury issued domestic Dollar.
US Treasury and Federal Reserve debt restructured in SDR denominations.

ThePythonicCow

14th November 2014, 09:53

As I observed earlier in this thread, force, sufficiently overwhelming force to collect on debts (and steal whatever else is coveted), is an essential element of debt-based monetary systems.

The military, intelligence, black-ops power of the United States, during and since World War II, has dominated this planet, and been an essential element of the world monetary reserve status of the US Dollar.

As the US Dollar's reserve status ends, so will the US force dominance end. We are already seeing this. The US Military is shrinking, the Germans are pulling back from NATO, and Japan is stepping out from under the US Military defense umbrella.

From GovernAmerica.com (http://www.governamerica.com/news/16310-army-cuts-hit-officers-hard-especially-ones-up-from-ranks-that-s-because-a-new-global-military-is-replacing-america-s-armed-forces):

For the first time since the end of the Cold War in the 1990s, the Army is shrinking. Faced with declining budgets, the Army, the largest of the services, cut its force this year to 508,000 soldiers from 530,000, with plans to trim an additional 20,000 troops next year. If funding cuts mandated by Congress continue, the Army could have fewer than 450,000 soldiers by 2019 — the smallest force since World War II.
From Deutsche Gesellschaft (https://ip-journal.dgap.org/en/blog/berlin-observer/unfit-fight-or-flight):

What this means is that Germany is no longer able to fulfill its commitment to NATO. In case of an attack on one of NATO's Baltic member states, Germany has promised to send 60 Eurofighters. Right now, that would be impossible, as Defense Minister Von der Leyen admitted over the weekend.

“As far as the flying systems are concerned, we are at the moment below last year's target numbers of what we could make available to NATO within 180 days in case of an emergency,” Von der Leyen told the newspaper Bild am Sonnntag newspaper (http://www.bild.de/politik/inland/ursula-von-der-leyen/wie-schrott-ist-die-bundeswehr-37925584.bild.html) [DE].
From Joseph P. Farrell ("https://www.youtube.com/watch?v=E0Je_AVv5Vc):

E0Je_AVv5Vc
Japan is stepping up its own military, connecting more closely with China, and (Farrell speculates) preparing to assume its own military role, displacing the continued US military occupation since World War II, and stepping out from under the US military umbrella.

ThePythonicCow

14th November 2014, 11:20

http://redefininggod.com/wp-content/uploads/2014/11/prospectforamerica.jpg
~~~~~~~~~~

From page 75 of this book, as posted at The Rockefeller Plan for the BRICS New World Order, in their own words… (Update 1 – Putin and Kissinger’s friendship) (RedefiningGod.com) (http://redefininggod.com/2014/11/the-rockefeller-plan-for-the-brics-new-world-order-in-their-own-words/):

http://thepythoniccow.us/china75b.jpg
~~~~~~~~~~

One of many delightful images that xidaijena just posted on the Avalon Crazy China! (http://projectavalon.net/forum4/showthread.php?65982-Crazy-China--Forty-People-Broke-into-the-4th-Branch-of-Our-Community-Without-Any-Lawful-Documents-&p=901194&viewfull=1#post901194) thread:

http://2013life.org/new/data/attachment/forum/201411/13/172003vi0qf996osq87qzn.jpg

ThePythonicCow

16th November 2014, 13:33

From the G20 Leaders’ Communiqué (pdf) (https://www.g20.org/sites/default/files/g20_resources/library/brisbane_g20_leaders_summit_communique.pdf), released after the G20 Brisbane Summit meeting, 15-16 November 2014, as reported by JC Collins at G20 Summit Communique (PhilosophyOfMetrics.com) (http://philosophyofmetrics.com/2014/11/16/g20-summit-communique/):

~~~~~~~~~~

The G20 must be at the forefront in helping to address key global economic challenges. Global economic institutions need to be effective and representative, and to reflect the changing world economy. We welcome the increased representation of emerging economies on the FSB and other actions to maintain its effectiveness.

We are committed to maintaining a strong, quota-based and adequately resourced International Monetary Fund (IMF). We reaffirm our commitment in St Petersburg and in this light we are deeply disappointed with the continued delay in progressing the IMF quota and governance reforms agreed in 2010 and the 15 th General Review of Quotas, including a new quota formula.

The implementation of the 2010 reforms remains our highest priority for the IMF and we urge the United States to ratify them. If this does not happen by year-end, we ask the IMF to build on its existing work and stand ready with options for next steps.
~~~~~~~~~~

The US Congress will pass the 2010 IMF Reforms, or it will be by-passed :).

See my Post #55 (http://projectavalon.net/forum4/showthread.php?76591-Global-Currency-Reset--SDR-s-and-the-New-Bretton-Woods-by-JC-Collins-&p=900360&viewfull=1#post900360) above for JC Collins post on what these "options" are, in the case that the US Congress doesn't pass the 2010 IMF Reforms.

ThePythonicCow

16th November 2014, 13:57

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.

I'd like to clarify and extend these two points from above.

===

This recurring problem of the collapse of the debt system, when the current production cannot satisfy the previous promises, is resolved by (1) even bigger promises to replace the defaulted promises, (2) where these bigger promises gain their power, their authority, from an even larger, more encompassing, credible threat of force.

Mao said that "Political power grows out of the barrel of a gun."

I say that "The power of debt-based money magic also grows out of the barrel of a gun."

===

It is no accident that the popular support for the US President and US Congress are at an all time low. They are the fall guys. They are being setup to fail, in the face of an even larger, more encompassing, credible institution of authority (and threat of force.)

By the time we finish with George W. Bush and Barrack H. Obama, there will be scarcely a conscious American left who thinks that all US Presidents are generally deserving of respect.

As part of this discrediting of the US Congress and President, it may very well be that we see more gridlock, more passage of bills we don't want, and continued failure to pass either the IMF 2010 reforms or anything that we (the American people) do want. Their failure is the only option they are being allowed.

ThePythonicCow

16th November 2014, 14:04

Also in my Post #55 (http://projectavalon.net/forum4/showthread.php?76591-Global-Currency-Reset--SDR-s-and-the-New-Bretton-Woods-by-JC-Collins-&p=900360&viewfull=1#post900360) above, I wrote (summarizing JC Collins) that:

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 is confirmed, once again, this time in China Daily (http://www.chinadaily.com.cn/world/2014xiattendg20/2014-11/15/content_18922015.htm), reporting on China's President Xi Jinping attending the G20 conference:

~~~~~~~~~~

President Xi Attends G20 Summit

Xi backs higher IMF standards

China will subscribe to the Special Data Dissemination Standard (SDDS) of the International Monetary Fund (IMF) and support the G20 in establishing a global infrastructure center, President Xi Jinping said on Saturday in Brisbane.

On the first day of the two-day 9th G20 Summit, Xi highlighted China's view on major issues in the global economy, and put forward suggestions regarding boosting economic growth, transcontinental connectivity, infrastructure and financing.

China has already been a subscriber to the IMF's General Data Dissemination System (GDDS), and SDDS represents higher and tougher standards.

The SDDS aims to enhance the availability of timely and comprehensive economic and financial data, and Beijing's decision of adopting it has been hailed by senior officials and observers as China's commitment to "improve the dissemination of statistics".

~~~~~~~~~~

There is more to this China Daily article here (http://www.chinadaily.com.cn/world/2014xiattendg20/2014-11/15/content_18922015.htm).

ThePythonicCow

17th November 2014, 00:07

Here is another confirmation of China's intentions in all this, from the Xinhua News Agency, which is the state press agency of the People’s Republic of China, from their October 2013 article Commentary: U.S. fiscal failure warrants a de-Americanized world (http://news.xinhuanet.com/english/indepth/2013-10/13/c_132794246.htm), as reported in China’s complicity in building the Rockefeller New World Order, in their own words… (RedefiningGod.com) (http://redefininggod.com/2014/11/chinas-complicity-in-building-the-rockefeller-new-world-order-in-their-own-words/).

Here is just part of that October 2013 article, from the English version of Xinhua:

~~~~~~~~~~~~~

As a result, the world is still crawling its way out of an economic disaster thanks to the voracious Wall Street elites, while bombings and killings have become virtually daily routines in Iraq years after Washington claimed it has liberated its people from tyrannical rule.

Most recently, the cyclical stagnation in Washington for a viable bipartisan solution over a federal budget and an approval for raising debt ceiling has again left many nations' tremendous dollar assets in jeopardy and the international community highly agonized.

Such alarming days when the destinies of others are in the hands of a hypocritical nation have to be terminated, and a new world order should be put in place, according to which all nations, big or small, poor or rich, can have their key interests respected and protected on an equal footing.

To that end, several corner stones should be laid to underpin a de-Americanized world.

For starters, all nations need to hew to the basic principles of the international law, including respect for sovereignty, and keeping hands off domestic affairs of others.

Furthermore, the authority of the United Nations in handling global hotspot issues has to be recognized. That means no one has the right to wage any form of military action against others without a UN mandate.

Apart from that, the world's financial system also has to embrace some substantial reforms.

The developing and emerging market economies need to have more say in major international financial institutions including the World Bank and the International Monetary Fund, so that they could better reflect the transformations of the global economic and political landscape.

What may also be included as a key part of an effective reform is the introduction of a new international reserve currency that is to be created to replace the dominant U.S. dollar, so that the international community could permanently stay away from the spillover of the intensifying domestic political turmoil in the United States.

Of course, the purpose of promoting these changes is not to completely toss the United States aside, which is also impossible. Rather, it is to encourage Washington to play a much more constructive role in addressing global affairs.
~~~~~~~~~~~~~

(Bold added by myself.)

It is becoming compellingly obvious where we're headed, at least as regards the world monetary system.

naste.de.lumina

17th November 2014, 00:48

It seems that the central structure for globalist economic plan is in place as well explained for the autor the blog (RedefiningGod.com) and for this topic.

After the end of the G-20 in Sunday, 11.16.2014, with the progress of the week goes on, some consequences of the main meetings behind the curtains should start to appear.

However, according to the latest article from Dave Hodges (THE MONEY IN YOUR BANK ACCOUNT WAS STOLEN THIS MORNING (http://www.thecommonsenseshow.com/2014/11/16/the-money-in-your-bank-account-was-stolen-this-morning/)), certain consequences follow faster than other for slaves of the farms.

A portion of the article:

The G20 Just Stole Your Bank Account

http://www.thecommonsenseshow.com/siteupload/2014/01/bank-run.jpg
Can you find yourself in the picture?

With the G-20 summit coming up this weekend in Brisbane, Australia, it might be worth wondering if you can have too much money in the bank, or, Whether you shouldnt any money in the bank at all!

As of this morning all nations Belonging to the G20 will immediately submit and pass que Legislation Will Fulfill the new investment program (http://www.economicpolicyjournal.com/2014/11/warning-bank-deposits-will-soon-no.html). This new program Creates a whole new paradigm and set of rules whereby banks will no longer Recognize your deposits the money.

naste.de.lumina

18th November 2014, 14:41

Reinforcing the new dialectic BRICS (good guys) X OLD Powers (bad guys)

G20 in Australia: Buffoons v the Global South - By Pepe Escobar (http://rt.com/op-edge/206083-g20-summit-brics-economy/)

Here’s the G20 in Australia in a one-liner: a tiny bunch of Anglo-Saxon political buffoons attempts to drown out the Global South.

Countries representing over 85 percent of the world economy get together to (in theory) discuss some really heavy economic/financial issues, and virtually the only thing pitiful Western corporate media blabbers about is Russian President Vladimir Putin cutting an ‘isolated figure’.

Well, Washington and its string of puppets did try to turn the G20 into a farce. Fortunately the adults in the room had some business to do.

The five BRICS member-nations – despite their current problems, the G5 that really matters in the world - did meet before the summit, including the ‘isolated figure’. Economically, this G5 more than matches the old, decrepit G7.

Brazilian President Dilma Rousseff forcefully encouraged the G5 to turbo-charge their mutual cooperation – as well as South-South cooperation. That includes, of course, the BRICS Development Bank. The BRICS, stressing their ‘serious concern’, once again called Washington’s bluff – perpetually refusing to endorse much-delayed structural reform at the IMF.

The IMF quota and governance reform package was in fact approved by the IMF’s Board of Governors way back in 2010. One of its key resolutions was to increase the voting power of emerging markets, the BRICS at the forefront. For Republicans in Washington, this is worse than communism.

ThePythonicCow

26th November 2014, 13:27

Update - everything I am reading, both from JC Collins and Jim Willie, indicates to me that the US Congress will not accept the 2010 IMF Code of Reforms. I am seeing no indication to the contrary anywhere else either; the IMF reforms do not seem to be on the calendar for consideration by Congress.

JC Collins, in his latest post The Tail of the Dragon: How and Why China Delayed IMF Reforms Through Republican Party Donations (http://philosophyofmetrics.com/2014/11/25/the-tail-of-the-dragon/) speculates that this is in part a deliberate result of Chinese supporting the Republican victory in the recent US Elections, via funding through the Koch brothers. Apparently the Chinese have concluded that they can strike a better deal without the US accepting the 2010 IMF Code of Reforms.

Jim Willie remains confident, in considerable detail, in his monthly subscription newsletter that just came out, that Russia, China and many associated nations, including Saudi Arabia, are accelerating the creation of alternative trade settlement arrangements, outside the US Dollar, and the various monetary and financial institutions and mechanisms that go along with that. He continues to expect a sharp and imminent (early 2015) repricing (perhaps initially doubling) of gold by China in their Shanghai market, and the collapse of Japan's financial markets, along with some major banks.

ThePythonicCow

28th November 2014, 04:47

Rocky_Shorz

28th November 2014, 19:14

Russian Ruble is in a free fall against the dollar, 50 to 1 exchange rate after OPEC continues to drive down the price of oil with Maximum output...

everyone thought Saudi's move was to hurt US oil producers...

everyone is expecting the Central Bank to step in to stop the free fall

heyokah

29th November 2014, 13:27

http://www.youtube.com/watch?v=sic-tEr_GQY?list=UUAF7Kv45Z3PNJOmms46I2Sw

HUGE rumblings from France as French National Front leader Marie le Pen demands that France repatriate its gold

First Germany, then the Netherlands, perhaps Switzerland this weekend, and now the French right-wing Front National, which shockingly came first (http://www.france24.com/en/20140521-france-national-front-europe-parliament-elections/)in May's European parliament elections, and whose leader Marine Le Pen is currently polling in first place in a hypothetical presidential election (in both a first and run off round), ahead of president Hollande, has sent a letter to the governor of the French Central Bank, the Banque de France, demanding that France join the list of nations which have repatriated, or at least tried to, their gold.

From her letter, here is the full list of French demands (google translated):

• Urgent repatriation on French soil of all of our gold reserves located abroad.

• An immediate discontinuation of any gold sales program.

• Conversely, a gradual reallocation of a significant portion of foreign exchange reserves in the balance sheet of the Bank of France by buying gold at each significant decrease in the price of an ounce (recommendation 20%) .

• A suspension of any financial commitment or loan contract would wager that our gold reserves.

• At the patrimonial and financial balance of the 2004 gold sales transactions ordered by N. Sarkozy.

Open letter to Mr Christian Noyer on the gold reserves of France
(https://translate.google.com/translate?sl=auto&tl=en&js=y&prev=_t&hl=en&ie=UTF-8&u=http%3A%2F%2Fwww.frontnational.com%2F2014%2F11%2 Flettre-ouverte-de-marine-le-pen-au-gouverneur-de-la-banque-de-france%25E2%2580%258F%2F&edit-text=)

ThePythonicCow

4th December 2014, 03:41

~~~~

A new update from JC Collins -- The Implosion of American Culture (http://philosophyofmetrics.com/2014/12/03/the-implosion-of-american-culture/#more-1798):

===================

(Excerpts)

...
the same machinations as “perestroika” and ‘glasnost” can be observed in the social fragmentation and devolution of the American middle class. Where the Soviet Union enacted policies which instigated the CSI changes within the country, it will be Americas lack of enacting policy change which will precipitate the implosion of its culture

...
To understand what this means we must consider the expansion of American culture around the globe since 1944, which was the year the USD became the primary reserve currency used in global trade. As use of the dollar increased, so did the acceptance of western culture. Everything from McDonald’s burgers to Hollywood creations were exported around the world.

...
In November of 2010 the G20 countries along with the International Monetary Fund agreed to reforming the international system. These reforms have been held up in the US Congress since and the message is being sent that the rest of the world is becoming impatient and tired of the American games.

...
Over the last few years we have begun to see once stable American institutions and companies begin to struggle.

...
This implosion of culture can be seen in the recent racial and political divide which has been given focus in the riots and protests across the country.

...
Yet, nowhere are the masses being informed and educated about the reality of economics and politics, let alone about the decay of culture and self.

...
From this engineered ignorance the surprise of a “fall of the Berlin Wall moment” will emerge and crawl across the face of the western man.

...
It is beginning to look likely that the the IMF Reforms were never meant to be passed and enacted as written back in 2010. As such, the IMF along with the BRICS countries and other G20 members, have devised methods of bypassing America and implementing and even broader reform of the institution. This Plan B implementation will build on the meme of “American greed and instability” in order to create acceptance of a reformed system which has stripped the US of its veto power on the IMF Executive Board, as well double the actual quota commitment from member countries.

...
Now that Saudi Arabian interests have been secured through Chinese bonds, the fragmentation of old “dollar based” structures such as OPEC can begin. Everywhere a dollar based institution has been established will see change as the system transitions and the multilateral emerges.

...
By July, 2015, the renminbi will be added to the SDR basket composition and from that moment SDR bonds will begin to re-liquify the international financial system.

...
The current deflation of commodities will be temporary and the new SDR commodities exchange will “correct” the imbalances in the system caused by American greed and the USD instability.

===================

See the above link for the full post.

In short, the US is about to experience a "Fall of the Berlin Wall", Yankee style.

As Jim Willie has been predicting for years, in the end "the dollar will rise, and rise, and rise ... and then collapse." We are now in that final rising period. Jim Willie is predicting that Chinese repricing of gold, in a few months, will trigger the collapse. JC Collins is predicting that the refinancing of the international financial system using SDR's will be that trigger, "by July, 2015".

ThePythonicCow

4th December 2014, 15:57

Alasdair Macleod posted an article a few days ago that has received wide spread coverage on the gold bug sites, and even made it to Zerohedge: Russia's Monetary Solution (http://www.zerohedge.com/news/2014-12-03/russias-monetary-solution).

Normally, he does not get much following on the gold bug sites, as his thinking is neither conventional "main stream", nor conventional "gold bug". He has only been mentioned once, over a year ago, here on Avalon: TOO BIG TO JAIL ... A Keiser Report rant... Post #80 (http://projectavalon.net/forum4/showthread.php?53083-TOO-BIG-TO-JAIL-...-A-Keiser-Report-rant...&p=670211&viewfull=1#post670211).

However the gold bugs could not resist Alasdair's latest speculation, that Russia may be moving towards putting its ruble "on a gold exchange standard." Alasdair only briefly mentions China in this article, to recognize that China might also be "working towards a similar objective."

Alasdair posted this article on 28 November 2014, on both his own website FinanceAndEconomics.org (http://www.financeandeconomics.org/russias-monetary-solution/), and on GoldMoney.com (http://www.goldmoney.com/research/analysis/russia-s-monetary-solution), where Alasdair is Head of Research.

Alasdair's analysis here reminds me of Jim Willie's recent forecast, which Jim has repeated in many interviews and in his Hat Trick subscription newsletter, that sometime in the first few months of 2015 China will shock the world financial markets by offering to purchase gold at a price perhaps twice what the going paper (Comex futures) price of gold, sparking the final and dramatic stages of the collapse of the US Dollar based Western financial markets, and ending the reign of the US Dollar as the world's reserve currency. Well ... similar in substance, though quite different in style. I'm confident that Alasdair has more tailored suits and ties in his closet than does Jim Willie, aka the Golden Jackass (http://www.goldenjackass.com/).

Here are the opening words of Alasdair Macleod's article:

=================

Russia’s monetary solution

By Alasdair Macleod
Posted 28 November 2014
---------------------------------------------------

The hypothesis that follows, if carried through, is certain to have a significant effect on gold and the relationship between gold and all government-issued currencies.

The successful remonetisation of gold by a major power such as Russia would draw attention to the fault-lines between fiat currencies issued by governments unable or unwilling to do the same and those that can follow in due course. It would be a schism in the world's dollar-based monetary order.

Russia has made plain her overriding monetary objective: to do away with the US dollar for all her trade, an ambition she shares with China and their Asian partners. Furthermore, in the short-term the rouble's weakness is undermining the Russian economy by forcing the Central Bank of Russia (CBR) to impose high interest rates to defend the currency and by increasing the burden of foreign currency debt. There is little doubt that one objective of NATO's economic sanctions is to harm the Russian economy by undermining the currency, and this policy is working with the rouble having fallen 30% against the US dollar this year so far with the prospect of further falls to come.
=================

... and here are the closing words of this fine article:

=================

... by adopting a gold exchange standard Russia is almost certain to raise fundamental questions about the other G20 nations' approach to gold, and to set back western central banks' long-standing attempts to demonetise it. It could mark the beginning of the end of the dollar-based international monetary system by driving currencies into two camps: those that can follow Russia onto a gold standard and those that cannot or will not. The likely determinant would be the level of government spending and long-term welfare liabilities, because governments that leech too much wealth from their populations and face escalating welfare costs will be unable to meet the conditions required to anchor their currencies to gold. Into this category we can put nearly all the advanced nations, whose currencies are predominantly the dollar, yen, euro and pound. Other nations without these burdens and enjoying low tax rates have the flexibility to set their own gold exchange standards should they wish to insulate themselves from a future fiat currency crisis.

It is beyond the scope of this article to examine the case for other countries, but likely candidates would include China, which is working towards a similar objective. Of course, Russia might not be actively contemplating a gold standard, but Vladimir Putin is showing every sign of rapidly consolidating Russia's political and economic control over the Eurasian region, while turning away from America and Western Europe. The fast-track establishment of the Eurasian Economic Union, domination of Asia in partnership with China through the Shanghai Cooperation Organisation, and plans to set up an alternative to the SWIFT banking payments network are all testaments to this. It would therefore be negligent to rule out the one step that would put a stop to foreign attempts to undermine the rouble and the Russian economy: by moving the currency war away from the foreign exchanges and into the physical gold market were Russia and China hold all the aces.=================

Alastair's phrasing is certainly more erudite, less pungent, than Jim Willie's. But like several other analysts that I follow, including JC Collins, the chief protagonist of this particular thread, it seems to be headed in the same direction.

The reign of the US Dollar's dominant status in the world's financial markets is coming to an end. There will soon be a time when anyone who did not get out of US Dollar denominated (or Yen or Euro denominated) financial assets, such as stocks and bonds, will wish they had.

T Smith

5th December 2014, 04:29

I've been following this development with fascination... this is truly one of the most intense chess games of our time. But there are a couple nagging questions I can't seem to reconcile:

#1. As I understand the dynamic China pretty much has to hold its nose while it purchases Treasuries with its excess dollars... but why not just buy gold at its current bargain-basement-ridiculously-undervalued-and-manipulated prices with their dollars instead of Treasuries all along? If you truly want to increase the nation’s gold holdings, wouldn’t this be the way to do it? The theory is the U.S. trade deficit forces China's hand to dump its surplus dollars back into Treasury bonds (what the hell else are they supposed to do with them?), but my question is, why not just buy something tangible with their dollars instead, namely gold?

#2. We've been hearing for some time now that China/Russia et. al are going to officially announce their gold holdings in tonnes at some future time, something to the tune of 4,000 - 6,000 tonnes, or perhaps even back their national currencies with some percentage of gold, and thus precipitate the collapse and downward spiral on the dollar. In short, we've been reading from numerous commentators, and for quite some time, that China has been preparing to deliver a coup de grace blow on the dollar, but only after careful deliberation and only after all the right pieces are in place. It takes little insight to understand that a $5,000 - $10,000 gold price would collapse the dollar. But this is hardly a little known development and almost common knowledge among certain observers. My question is, if every commentator and her brother can foresee China's strategy against the dollar doesn't the Federal Reserve and its conniving cohorts also foresee (and thus have prepared) for this scenario? I find it difficult to believe that the current money changers in power, who for all intents and purposes have conquered and have controlled the most powerful governments in the world for the better part of the past century, are not prepared for this very predictable attack on the dollar. Perhaps there is little they can do to retaliate, or perhaps the "reset" will not affect their power structure in the slightest, rather merely wipe the slate clean for a redux. But in any case, I have yet to read any speculative account on how this might affect the current PTB or how they might respond to such a move. This leads me to believe that commentators like JC Collins and Jim Wille are taking a very 2-dimensional approach in analyzing the current dynamic afoot, as if they are simply assuming the Fed is blind to these moves against the dollar and have no idea what is coming. It would be a lot more interesting to me (and certainly more convincing) if they also were to analyze how the Fed and the current PTB might respond to such an existential threat to their power structure.

I think this is a very complex battle, and not so simple as China simply setting a $2,500.00 tender price on gold.

gripreaper

5th December 2014, 05:01

ThePythonicCow

5th December 2014, 15:15

As I understand the dynamic China pretty much has to hold its nose while it purchases Treasuries with its excess dollars... but why not just buy gold at its current bargain-basement-ridiculously-undervalued-and-manipulated prices with their dollars instead of Treasuries all along?

I concur. I think that the dollar collapse is a staged event (or slow bleed) and is the crisis being engineered in the Hegelian dialectic of a new synthesis of Special Drawing Rights under the IMF and the World central bank. There is way more to this than meets the eye. You can't just "go against" thousands of years of patriarchal pyramidal power structure to which you are fully indentured.

China and Russia are, so far as I can tell from what I read and listen to, accumulating gold, as fast as they can, and have been doing so for at least the last couple of years.

There is a limit on how fast they can do this, without driving the Dollar price of gold much higher. The price of gold, when purchased in 100 ton lots for physical delivery, is apparently already quite a bit (say 50% to 80%) higher than the paper price of gold on Comex futures, or when purchased in small quantities by ordinary people.

They are apparently accumulating gold faster than it is produced on the planet, by taking it from Western vaults. When the amount of gold that can be taken (stolen, essentially) from Western vaults runs out, then this phase of the monetary transition will have ended.

The "Hegelian dialectic" is pitting West against East, NATO against BRICS, ... Someone, some beings, some entities, sit above this, not embedded in either side. The NATO/Neocon/Federal Reserve/Washington/... side is being dragged through this kicking and screaming; they don't like it one bit.

But the pyramidal power structure and Babylonian money magic (debt based currency) of the last many millenia is not threatened ... just undergoing another shift in what constitutes the "most senior, most liquid" debt.

Whether or not the "losing" Western side will be able to, allowed to, create a major war or other massively destructive or lethal event (major EMP, major ebola or other such pandemic, major war, ...) remains to be seen. Pretty clearly some of the neocons are straining at the bit to do something like this, but so far, someone seems to be keeping the Neocon bastards on a leash. Rather, the focus seems to be more on continuing to weaken and divide Americans and their domestic economy, cultures, and institutions.

PathWalker

5th December 2014, 17:59

It would be a lot more interesting to me (and certainly more convincing) if they also were to analyze how the Fed and the current PTB might respond to such an existential threat to their power structure.

I concur. I think that the dollar collapse is a staged event (or slow bleed) and is the crisis being engineered in the Hegelian dialectic of a new synthesis of Special Drawing Rights under the IMF and the World central bank. There is way more to this than meets the eye. You can't just "go against" thousands of years of patriarchal pyramidal power structure to which you are fully indentured.

Thanks to Alan (http://projectavalon.net/forum4/member.php?835-Alan)for this post (http://projectavalon.net/forum4/showthread.php?77690-Update-from-Karen-Hudes&p=909060&viewfull=1#post909060).
Karen Hudes, has just posted her plan to take back the power from the BIS to another version NWO organization. She named it the rule of law (who decides the law? and how it is decides? she failed to mention)!
Karen Hudes wants single world currency (Orum) backed by gold (who owns/control the gold she failed to mention).
Commodities based currency is a good idea in general. The matter is power and control not just the currency. Where the power and control goes there goes the liberty.
zl3kaBSl2p8

ThePythonicCow

6th December 2014, 05:17

Another fine interview with Jim Willie, as he continues to refine his description of what is happening and what is likely to happen:

http://www.trunews.com/Audio/12_4_14_thursday_trunews2.mp3
This interview is with Rick Wiles, of Trunews.com (http://www.trunews.com/thursday-december-4-2014-jim-willie/). Jim Willie says we are in the final stage of the break-up of the Western banking cabal’s stranglehold on the world.

Jim Willie sees continued progress by the BRICS nations, MINT (Mexico, Indonesia, Nigeria and Turkey), and associated nations (most of the nations of the world now) in replacing the US Dollar as the means of trade settlement. He sees the Neocon/Fascist Bankster/Narco thugs as losing their effort to remain in power, with most of their key people already having cut deals to avoid elimination. The efforts, such as in the Ukraine over the last two or three years, to start another major war, so as to continue the reign of the US Dollar, have been failing, and will continue to fail.

Jim Willie reports that Obama has been isolating himself the last couple of weeks, in a depression, not even playing golf, but rather drinking too much and getting angry with staff. Perhaps Obama has been informed that his Presidency will not last the year 2015. The too big to fail big banks, and the too big to fail US government need to fail. Their fraud and destruction of peoples, nations, economies, markets, and the US Constitution will not be allowed to continue. The Bush/Nazi/... crime syndicate is coming down.

The US Dollar will rise, and rise, and rise ... and then disappear. Not fall ... disappear. It will cease being the world's reserve currency. Domestically within the US it will be replaced with a US Treasury issued currency. Internationally, the Federal Reserve issued Dollar will be rejected, and US Treasury issued debt will be "returned to sender, value unknown." China already is already the dominant buyer of property in major US cities, including New York (such as the JP Morgan headquarters building), Dallas, Los Angeles, and Detroit.

gripreaper

6th December 2014, 07:14

I’m having trouble reconciling the overall context of this developing story in regards to the elements of fungible money, currencies and the mediums of exchange in commerce, and who holds what and where the power lies. Jim Willie makes the statement that many of the G20 nations are seeking safe haven in the dollar because their currencies are losing value, and in the same breath claims that the dollar will collapse and gold will back a new alliance between these nations which are going against the Nazi/Bush/Rockefeller/Federal Reserve bankster cabal.

I can see that the dollar is rising and that gold and oil are falling, but what I can’t fully see is the underlying playing field and the position of all the players. I can’t see the postulate that the Nazi cabal is on the ropes and that this alliance of many nations, who are purchasing treasuries and buying the dollar, are going against this cabal and will globally reset currencies based on doubling the price of gold and in an instant, the dollar will disappear. I can’t see who is getting hurt from gold and oil falling, and who is benefitting from the dollar rally.

I can’t reconcile these two seemingly opposing dialectics. Is this alliance of nations buying dollars so that they can control the dumping of dollars towards its collapse, and “take the hit” for the unredeemable dollars while repatriating gold at twice or more of its current price relative to the worlds currencies?

What I can do, is create a context for further inquiry and roll back history at least 80 years to after World War 11 and who held the power and who set the agenda and who held most if not all of the tangible wealth unscathed.

Europe and Japan were decimated by World War 11, and China, Russia and India were not far behind. Those who came out of this great war virtually unscathed were the United States, and those who made the most money on the War were the global interests, namely the Nazi/Bush/Rockefeller/Federal Reserve/ western cabal. They made trillions and left the rest of the world decimated, and then proceeded to put the world in debt.

But, let me roll history back just a few more decades and look at what happened when oil and the industrial revolution was emerging and the Rockefellers became the western agents of the Rothchilds, and were given the Standard Oil monopoly. I don’t think these ancient European monarchs fully understood the implications of the wealth that oil would create in the next century, and who would control that wealth. Although the Rockefellers were originally agents of the Rothchilds, they became as wealthy in the last century as did the Rothchilds over the last five centuries. It was exponential how oil became the wealth generator and the power shifted.

And, this new money and new wealth is what set much of the agenda and later became the western faction of the globalist state. How these two factions are working together or infighting is one variable in the larger context. Other variables include the emergence of the petrodollar, the proliferation of fiat debt instruments, the location and holding of all the gold and other tangibles in exchange for a line of credit towards debt, and the agreements at both Breton Woods and the Bilderberg agreements, and the bankruptcy receivership protocols for the G20 nations.

This cabal we speak of has control of most of the gold, has control of the petrodollar system, and has control of the world reserve currency, and the dollar. They also have the largest military mercenary force, to enforce their agenda, and they also have most of the world indebted to their system, in bankruptcy receivership, and I might add, quite willingly in light of the Breton Woods and the Bilderberg agreements. How long these agreements were and when they are to expire and what are the terms I am not privy to and can only speculate.

The debate seems to be centered on “Nations” and what different nations are doing and how these national moves will somehow shift and manifest, when I think the larger context involves a global imperative and that the national focus is just a distraction. You see, from the elite power structure at the top, there are no nations. The national view is just for us peons.

The global agreements between all of the heads of state, who act as agents for the globalists and answer to the global agenda, kept all the tangible wealth in the hands of the ancient eastern cabal as well as the new western cabal, and left all nations in debt to the globalist system. This idea of a New World Order coming down the pike and nationalism disappearing, in my view, has already happened. Constitutions and national borders no longer exist and these global agents have agreed to keep their populations in debt and poverty, and all the energy and production and resources are used globally to fulfill the globalists agenda, and anyone who breaks rank and attempts to go against this agenda gets free skydiving lessons off a tall building without a parachute.

This is what I see. I see distractions. I don’t see a globalist cabal who is losing any power or control. I don’t see an alliance of nations, who have the ability or wherewithal to go against this cabal, when they are fully indentured and indebted and in bankruptcy, pledged and collateralized to this cabal, and have surrendered all of their tangibles, their natural resources, and all of their labor to this cabal.

Short of a global coup, backed by the worlds militaries, followed by a global debt jubilee and a reset based on a basket of tangibles, I don't see it happening. This coup would require the unwilling extraction of the cabal and its thousands of years hold on both the very DNA and mindset of the people, and all that has taken them thousands of years to put in place, as well as their stellar technology and their breakaway technology and their mind control microwave entrainment and their digital surveillance and data mining and collating grid.

Come on, let’s step back from the canvas and try and take the larger context. What we are seeing could just be for us tourists while the real agenda remains obscure. The cabal is not just going to go quietly into the night while these alleged nations, which no longer exist in substance, are going to walk away from their agreements with the globalists and go rogue. Remember, the cabal is listening to their phone calls too.

ThePythonicCow

6th December 2014, 12:38

I can’t reconcile these two seemingly opposing dialectics. Is this alliance of nations buying dollars so that they can control the dumping of dollars towards its collapse, and “take the hit” for the unredeemable dollars while repatriating gold at twice or more of its current price relative to the worlds currencies?
I like to use a strange analogy for this.

I imagine the various ways in which individuals, corporations and governments can invest their assets as a multi-story building.

At the higher stories are investments that only make sense in the best of times, such as yet another BMW dealership on Stevens Creek Blvd, in Sunnyvale, California (Silicon Valley) at the height of the dot-com boom, or such as founders stock in yet another dot-com company with no revenue stream or business model to speak of.

At the bottom level are hard, physical, assets held close to one's personal control, such as rice, beans, guns, tools, shelter, clothing and silver or gold, worth having through hard times.

The most liquid currency, which in the last half century has been the US Dollar, is just above that bottom level.

In economic downturns, people move out of the higher levels, like moving out of the top stories of a building shaking in an earthquake, to the lower, safer, levels. In boom times, people move back up to the higher levels.

When the world's monetary system goes through one of its major crisis periods, people move down further, to plain cash, out of stocks, bonds, home equity, and other such "riskier" investments, and major corporate investors, such as insurance companies and retirement funds move down further, to whatever is the most liquid debt paper, which at present is US Treasuries. Wealthy people move personal funds into "physical stuff", such as fine art. That's what we're seeing now (except that we can't see the departure of the individual stock investor from the market, due to the extreme manipulation of the stock market by a few dominant players.)

Another way of putting this that's more common -- monetary systems rot from the periphery inward. The last currency in the present monetary system to suffer severe loss of value will be the core currency, the US Dollar. Other currencies, such as the Yen, Ruble, and Euro, will lose value first, exactly as we are now seeing. As Jim Willie says, the Dollar will rise, and rise, and rise.

It is as if all the people on the "higher stories" of my imaginary building are rushing down to the "safe" floor of the US Dollar.

If that US Dollar floor holds, as it did in its previous major crisis period, of the 1970's, then everyone would start moving back up the building again, and the US Dollar would give back its value gains, as happened later in the 1970's.

But if, as I'm anticipating, the US Dollar floor doesn't hold, it will instead collapse - it will disappear as Jim Willie puts it. World trade will be reduced to what amounts to barter, plus whatever alternative and parallel structures are already functional, or can be put into service without delay. The Federal Reserve system, and its associated too big to fail banks ... will fail.

The "people" in my imaginary building will have to abandon even the ground floor of the US Dollar reserve currency system, the Dollar and the Treasury, and rush out to whatever else they can find.

So, in short, it's a dynamic situation. It's not just that the Dollar gets stronger, or just that it gets weaker. It's not just that prices rise, or just that they fall. It's a changing and stormy situation, and sooner or later, many of these possibilities will occur.

ThePythonicCow

6th December 2014, 12:44

I don’t see a globalist cabal who is losing any power or control. I don’t see an alliance of nations, who have the ability or wherewithal to go against this cabal,
It's likely both - East (e.g. BRICS) vs West (e.g. the US) factions, and some overlords that are playing both side against the other.

The portion of the cabal that I identify as the Bush-Neocon crime syndicate and cabal does seem to me to be losing, as does the US Dollar as a reserve currency.

No, that Bush ... cabal will not go quietly into the night. But so far, they seem to be drawing the short straws, and their efforts to start yet another major war, in places such as Syria and the Ukraine, appear to have fizzled so far, sputtering along, but not causing a major conflagration.

sheme

6th December 2014, 13:11

It would seem from afar "they" are trying to start a civil war in the US between races, how the police goad the Black American- it is beyond belief.:noidea:

ThePythonicCow

6th December 2014, 13:18

It would seem from afar "they" are trying to start a civil war in the US between races, how the police goad the Black American- it is beyond belief.:noidea:
They are certainly throwing whatever they can up, to distract, confuse and justify tyranny.

I like the typical magician's way of distracting better - the long legged lady and the distracting banter.

jerry

6th December 2014, 14:48

Why is the dollar rising? Inflation? Most nations are now in the business of counterfeiting. I don't see the dollar rising because at the same time its value is dropping. Its a catch 22 situation. A well planned one
"that has taken them thousands of years to put in place, as well as their stellar technology and their breakaway technology and their mind control microwave entrainment and their digital surveillance and data mining and collating grid"
The poor and middle classes have been enslaved and worsening on a daily basis. The rules are theirs the game is theirs we are theirs, as long as we participate. Do we have a choice? can we opt out? what would be the consequences?

gripreaper

6th December 2014, 20:40

The poor and middle classes have been enslaved and worsening on a daily basis. The rules are theirs the game is theirs we are theirs, as long as we participate. Do we have a choice? can we opt out? what would be the consequences?

That's a good question, and I hope Paul will allow me to digress and go down this rabbit hole for a few minutes.

You can take steps, many of which have been outlined at this site, such as get out of debt, do not sign any more debt instruments to be deposited as drafts to create new money in commerce in the hopes of generating a profit, and live in the bottom floors of Paul's allegorical building and stay close to the tangibles which sustain life, by using your own self responsibility to produce, husband, and distribute such raw materials and products. In other words, don't depend solely on the global corporatocracy for your basic needs.

As far as opting out of the entire system of commerce the way it is currently designed, is virtually impossible, unless you want to live in a cave far from civilization and hunt grouse for food. There are ways to extricate yourself from many of the implied adhesion contracts we adhere to which are statutory and mandated by the state for their state owned citizens, who have been pledged as collateral for the bankruptcy. I would encourage you to go to sigma6 page and go to his post history and read up as much as you can about "trusts" and how they operate and how you can express the trust in many situations.

I would also recommend you consider the dynamic correlation between physical trusts and how they manifest energetically in the astral, and make some provisions in your own energy field to not attract, adhere, acquiesce to, or otherwise support them energetically, via declaration, rescission, and subsequent course of actions. This implies an internal shift in consciousness and the ability to sense with not only your five physical senses, but your energetic chakra senses as well. In other words, to use a new age term, ascend :)

The more we clear discordant energy in our own fields and unify this energy back into the wholeness of who we are, the more the upper brain centers are stimulated and the more we are able to intention, amplify, emanate, and create the collective hologram the way we want it to manifest in our reality. If we put down the microwaved hot pockets and the Monster energy drinks, and drink distilled water, take homeopathic cell salts, and eat raw fruits and vegetables, and meditate, that helps too, as I am sure you already know.

gripreaper

6th December 2014, 20:55

The "people" in my imaginary building will have to abandon even the ground floor of the US Dollar reserve currency system, the Dollar and the Treasury, and rush out to whatever else they can find.

Sounds like a good script for a zombie apocalypse movie :)

So, in short, it's a dynamic situation. It's not just that the Dollar gets stronger, or just that it gets weaker. It's not just that prices rise, or just that they fall. It's a changing and stormy situation, and sooner or later, many of these possibilities will occur.

I appreciate your having started this thread and bringing as many of the data points together to postulate a synthesis. That is what I am doing as well and will continue to follow this thread, and listen to Joseph Farrel and others who are doing same. With the many discordant variables and outliers, its still difficult for me to gauge the big picture, but I think we are getting close and many of the dots are starting to connect.

Lets hope the 2017 timeline for the annihilation of mankind and the breakaway of the elites does not correlate as we go forward.

ThePythonicCow

6th December 2014, 22:23

As far as opting out of the entire system of commerce the way it is currently designed, is virtually impossible, unless you want to live in a cave far from civilization
The last guy I recall who tried that was Osama bin Laden ... they blamed 9/11 on him and dropped some cruise missiles on his dialysis machine :).

You can't win sometimes.

ThePythonicCow

9th December 2014, 11:21

A key insight became (once again, to be honest) clear to me, with the combination of three reports, from three of those I read most assiduously: The Saker, Ken at Redefining God, and Jim Willie.

The key insight, which the following should support, is that the rise of the BRICS nations, led by Russia and China, is not in opposition to the Global Illuminati Banksters, but under their deep and (at a minimum) decades long control. The Banksters intend for the BRICS nations to present an opposing force to Western banking, I presume with the intention of joining both into one global system, replacing each.

First - consider Russia, from the perspective of the Saker.

The Saker laments that Russia still seems in the grip of the global Banksters. The Saker was delighted that Putin, in a recent and important speech, was quite strong in his opposition to the political treachery of the West. However the Saker finds that Putin showed no opposition to the financial treachery of the West in that speech. You can read the Saker's post at The biggest threat for Russia and for Putin (http://vineyardsaker.blogspot.com/2014/12/the-biggest-threat-for-russia-and-for.html).

The Saker's post begins with:

===============

Putin's recent speech to the Federal Assembly contained two part: a foreign policy part which was nothing short of historical (http://vineyardsaker.blogspot.com/2014/12/disgusted-russia-officially-gives-up.html), and an internal economics part which was very disappointing to say the least. In fact, I would say that it was outright frightening. I won't post the full text here, but you can consult if for yourself by clicking here. But here is my summary of Putin's message:

We will make every effort to aid the Russian business community, we will also make every effort to return much of the Russian money hidden abroad in offshore accounts, and we will create stability and predictability. All this is fine and dandy, except for what was not said.
Putin did not denounce the work of the Russian Central Bank or its Chairwoman.
Putin did not promise to sell US bonds and bring Russian money back home.
Putin did not sack a single Russian official for incompetence or, even less so, sabotage
Putin did not announce a major change in the status of the Ruble, no "golden Ruble" for example.
Putin did not reject the western economic model.
Putin announce no reform or taking over by the state of the Russian Central Bank.
Most importantly, Putin did not announce any major change in economic policy
I have no way of knowing whether Putin sincerely believe in the western economic dogmas, of whether he has no other option than to pretend that he does, but the outcome is the same: Putin rejects the western political model while apparently still fully endorsing its economic model.

===============

Second, consider China, from the perspective of Ken at Redefining God.

Ken at Redefining God provides excellent and detailed evidence that the Chinese leadership is a puppet of the illuminati, in his post Meet Robert Lawrence Kuhn, Illuminati handler of China’s leaders (http://redefininggod.com/2014/12/meet-robert-lawrence-kuhn-illuminati-handler-of-chinas-leaders/).

Ken's post is long, but well written, well researched, and quite informative. I encourage you to read it in full. It ends with:

===============

Having seen all this, ask yourself the following question…

Given everything in which Robert Lawrence Kuhn is involved (investment banking, End Times and New World Religion programming, bread and circuses, mergers and acquisitions, and American deindustrialization / Chinese industrialization), as well as his all-access pass to China’s government, does he trigger your Illuminati radar?

He certainly does mine. But this entry isn’t really about Robert Lawrence Kuhn; it’s about pointing out that the Chinese are not the opponents of the Illuminati. Quite to the contrary, modern day China and its leaders are Illuminati creations through and through. Just think about it…

> Was it the Chinese Communist leaders who engineered China’s meteoric rise to economic power? Far from it. If you want to see what the Chicom politicians are really capable of, just look at the incomprehensible stupidity of the Great Leap Forward. Did they magically transform from the world’s biggest fools to the world’s wisest leaders overnight? No way. The Illuminati were the architects of China’s economic rise and global integration.

> Did Chinese manufacturing conquer the world with their notoriously buggy designs and shoddy workmanship? Not a chance. The Illuminati had to pour VAST amounts of Western technology and organizational expertise into China in order to drag them up to speed. Without the Illuminists providing close supervision and easy access to Western markets, Chinese industrialization would have gone nowhere. After all, who in the world really wants to buy anything made in China?===============

Third and finally, consider the synthesis - Russia and China together, as described by Jim Willie.

The third and final source that I will reference is Jim Willie. We have seen above the cases made that both Russia and China are more cooperative with, or even puppets of, the Global Illuminati Banksters.

I won't quote Jim Willie at length, and his Hat Trick Letter (http://goldenjackass.com) is only available to subscribers, but in a report three months ago entitled "RUSSIA & CHINA JOIN AT THE HIP", Jim Willie examined the cooperation of Russia and China in detail.

Some of the points that Jim Willie makes include:

Russia and China are making major energy deals with each other and other nations, using the Yuan and other currencies, outside the vaunted Petro-Dollar.
The US handling of the Ukraine, including sanctions, is serving to drive most of the other nations of the world closer together, isolating the US (not the stated intention at all!)
Russia and China are busy setting up separate world wide agencies to handle global financial, monetary and currency affairs, outside of the Western agencies.
Russia and China are ramping up cooperation on a number of shared investment and trading projects.
Russia and China are cooperating on building a massive seaport, on the eastern edge of Asia near Japan.
Russia and China are cooperating on building a second, massive, canal across the narrow land between North and South America, parallel to the Panama Canal, that will be able to handle larger ships.
Russia and China are cooperating on building a new "Silk Road" providing overland transportation across the Asian-European continent.
Iran and perhaps a bit later India will likely join Russia and China and a few other Asian nations in the Shanghai Cooperation Organization (SCO), the Eastern alternative to the West's NATO.
One by one, Russia and China are working with other nations, to wean them off the US Dollar for their trade and currency reserves.

===============

So there we have it, as I stated in the opening to this long post. Russia and China are both working with and for the Global Illuminati Banksters, cooperatively.

We should not expect the control of the Global Illuminati Banksters to be overthrown, but rather to be "rehypothecated", on a more global scale, combining the East and West factions now forming before us, after "suitable" turmoil.

ThePythonicCow

9th December 2014, 11:45

Ah, from the middle of Ken's great post Meet Robert Lawrence Kuhn, Illuminati handler of China’s leaders (http://redefininggod.com/2014/12/meet-robert-lawrence-kuhn-illuminati-handler-of-chinas-leaders/), comes this wonderful summary of the grand plan of the Global Illuminati Banksters:

===============

... >>> a Great Tribulation will soon occur in which a united European power will emerge, composed of ten nations or groups of nations, which will conquer the modern descendants of Israel (the USA, Britain and Israel) and take them into slavery. An alliance of eastern powers (including Russia and China) will gather up its forces and wage war upon the European power. Then Jesus Christ will return and liberate the Israelites and usher in a thousand years of worldwide peace, which is called the world tomorrow. <<<

Does this scenario seem familiar to you somehow? ;-) It is, of course, the exact scenario we see the Illuminati attempting to implement around us right now. According to its narrative…

the “Bad West” (the US, Europe and Israel) which has been enslaved by “evil Nazis/Zionists”

…will be defeated by…

the “Good East” (the BRICS nations) which is led by “the new Champion of Christianity Vladimir Putin (https://web.archive.org/web/20140210011238/http://blog.redefininggod.com/2014/01/23/the-blood-cult-and-2014-welcome-to-the-global-universal-church-and-your-new-motherfather-god.aspx)” and his Chinese counterpart Xi Jinping.===============

naste.de.lumina

9th December 2014, 12:10

Thanks for the consolidation of information Paul.

I think your post above confirms harder the actual success of the globalist cabal plan of total world financial control.

A peripheral information.

Who is the Joaquim Vieira Ferreira Levy a new finance minister, in newly re-elected government of Dilma Rousseff in Brazil (B of BRICS).

Life and Education
Born in Rio de Janeiro, Brazil, Levy holds a PhD in economics from the University of Chicago (1992), a Master's in economics from FGV (1987) and is graduated in Naval Architecture and Marine Engineering at the Federal University of Rio de Janeiro. [3]

Career
He was a Professor of Economics at FGV in the 1990s, before joining the IMF, where he worked from 1992 to 1999. At the IMF Mr Levy held several positions in the Western Hemisphere Department (1992), Europe Department I (1993-1997) , Capital Markets, and Research (1997-1998). Mr Levy was Vice President Also at the Inter-American Development Bank and Finance Secretary of the State of Rio de Janeiro, During the first administration of the Governor Sergio Cabral Filho.

Between 1999 and 2000 he was a visiting economist at the European Central Bank, having worked in the division of Capital Markets and Monetary Strategy. In 2000 he was appointed Deputy Secretary of Economic Policy at Brazil's Ministry of Finance, and in 2001 Became Chief Economist at Brazil's Ministry of Planning, Budget, and Management.

In January 2003 he was appointed Treasury Secretary by president Luiz Inácio Lula da Silva, the position held Until 2006. The Chicago-trained economist and former Brazil's Treasury Chief is an experienced Regarded the orthodox professional and proven fiscal hawk, who Helped Brazil obtain infor- its investment grade rating by checking spending and overhauling its debt structure.

From 2010 to November 2014, Mr. Levy was the President of Bradesco Asset Management, an asset arm of the Brazilian giant financial conglomerate Bradesco, with more than $ 130 billion under management. Mr Levy left Bradesco after the invitation from Dilma Rousseff to assume the Ministry of Finance.

Brazil's Finance Minister
On Nov, 27th, president Dilma Rousseff named Mr Levy to the country's Finance Minister for her second term, Replacing current Guido Mantega, who assumed office in March 2006.
Source: http://en.wikipedia.org/wiki/Joaquim_Levy

All in the same bed

P.S.: Bradesco is the second largest private bank in Brazil

ThePythonicCow

9th December 2014, 13:25

All in the same bed

"It's a big CLUB. And YOU AIN'T IN IT. You and I are NOT IN the big club." -- George Carlin.

ThePythonicCow

11th December 2014, 13:44

Just a quick note:

Just as political power grows out of the barrel of a gun, so does monetary power.

The essential basis of Babylonian Money Magic, aka debt-based money, is not what gold, beaver pelts, or OPEC oil ostensibly "backs" the currency. The essential basis is the power to use overwhelming force to "collect" on debt, either the promised payments, or whatever property, income or resources were tendered as security for the "debt", whether tendered in a legitimate contract (a fair loan), or whether just plain stolen.

The stories involving various combinations of Nesara, Leo Wanta, Neil Keenan, Iraqui Dinar, Trillions of Dollars of Gold for the benefit of humanity, Global Collateral Accounts, the Dragon family, World Global Settlements, the One People's Public Trust (OPPT), ... are, in my view, utter nonsense, mixed in of course with interesting truth. It does not matter who promised who what. It does not matter what court decrees what about any of this. None of that matters, for lack the superior force required to enforce any such claims.

Debt money is backed by superior force. Nothing else, no other claim, no other resource or precious metal matters. For example, if it seems that gold or oil or opium is the "coin of the realm", then the most powerful simply steal that gold, oil or opium.

Debt money is superior force.

Debt money is monetization of overwhelming force, sufficient to compel compliance, confiscation or ... death.

ThePythonicCow

12th December 2014, 15:53

There may be a change to the forecasts that I quoted above, expecting gold and silver to double over night, when China offers to purchase all the metal that is tendered, at twice the US "paper price" set on the COMEX futures exchanges.

COMEX just put in place limits on how much the price of gold and silver can change on its "paper" markets each day. If the limit is hit, that market shuts down (a "circuit breaker") for the day.

The limit is about 5 to 10 per-cent per day. At that rate, it would take two weeks to double the price, not overnight.

See further What Do They Know? CME Implements Gold, Precious Metals Circuit Breakers (Zerohedge.com) (projectavalon.net/forum4/showthread.php?76591-Global-Currency-Reset--SDR-s-and-the-New-Bretton-Woods-by-JC-Collins-&p=911190#post911190), which begins:

With memorandum S-7258, titled "Implementation of New NYMEX/COMEX Rule Regarding Special Price Fluctuation Limits for Certain NYMEX and COMEX Metals Futures and Options Contracts (http://www.cmegroup.com/tools-information/lookups/advisories/ser/files/SER-7258.pdf)" released moments ago by the CME Group, and set to become effective on December 21, 2014, and which seeks a 5 minute trading halt when "price movements in lead-month primary futures contracts result in triggering events" ...

ThePythonicCow

13th December 2014, 03:09

As is becoming clear to us all, and as JC Collins explains in his latest post IMF and G20 Moving Forward on Plan B (http://philosophyofmetrics.com/2014/12/12/imf-and-g20-moving-forward-on-plan-b), the US Congress will not ratify the 2010 IMF reform package this year.

In a statement by Ms. Christine Lagarde, Managing Director of the International Monetary Fund (IMF), she states:

[The IMF] will now proceed to discuss alternative options for advancing quota and governance reforms and ensuring that the Fund has adequate resources, starting with an Executive Board meeting in January 2015.
This is "Plan B" for the IMF ... what they do if the US drags its feet too long. These alternatives will likely not be "USA or US Dollar friendly".

For more details of what these Plan B alternatives might involve, JC Collins recommends an April 2014 article by Edwin M. Truman of the Peterson Institute for International Economics, entitled Time for the United States to Risk Its IMF Veto (http://blogs.piie.com/realtime/?p=4273).

(At this point in posting this, I intended to explain Truman's "Plan B", his alternative plan if and when (as seems likely now) the US does not ratify the 2010 IMF reform package this year. However I still don't understand his Plan B well enough to explain it. Sorry.)

gripreaper

14th December 2014, 18:51

Just a quick note:

Just as political power grows out of the barrel of a gun, so does monetary power.
Debt money is backed by superior force. Nothing else, no other claim, no other resource or precious metal matters. For example, if it seems that gold or oil or opium is the "coin of the realm", then the most powerful simply steal that gold, oil or opium.
Debt money is superior force.
Debt money is monetization of overwhelming force, sufficient to compel compliance, confiscation or ... death.

Exactly. As I have postulated and stated elsewhere, when you hold all the power, all the militaries on the planet, all governments, corporations and means of production, as well as the education systems and the media, and can "entrain" large segments of the population with your microwave technology, based on information you gather and collate through your complete legacy surveillance and data gathering capabilities, then the opposition would need to be able to circumvent such overwhelming power.

I'm still at a loss how Russian and Chinese alliances going against the dollar would have the wherewithal to shift the balance of power.

The key insight, which the following should support, is that the rise of the BRICS nations, led by Russia and China, is not in opposition to the Global Illuminati Banksters, but under their deep and (at a minimum) decades long control. The Banksters intend for the BRICS nations to present an opposing force to Western banking, I presume with the intention of joining both into one global system, replacing each.

I concur. Smoke and mirrors, control both sides of the dialectic for the new synthesis. I still don't understand how the decimation of the price of oil we are seeing right now plays into this.

ThePythonicCow

15th December 2014, 08:53

I still don't understand how the decimation of the price of oil we are seeing right now plays into this.
Good question ... it's a nice gateway into some of the complexities in what is happening.

First of all, we are not dealing with a simple teeter-totter (see-saw), where if you push one end down, the other end goes up:

http://thepythoniccow.us/cseesaw2.gif

Rather we are dealing with a more complex mechanism:

http://i0.kym-cdn.com/photos/images/newsfeed/000/045/396/blue_ball_machine20110724-22047-9acqu7.gif?1318992465

Worse than that actually, as it is many times more complicated, unreliable, constantly changing and obscured by layers of fog, confusion, lies, propaganda, conflicting interests and disinformation.

So ... what do we know (if anything)?

We are in a debt-based monetary system. It's not a case of "Fly now, pay later." Rather it is a case of "Fly now, pay more later (or forfeit your first born.)". Eventually the promised more must exceed the practically available, and there must be some sort of debt jubilee or collapse.
When such systems reach their peak indebtedness, the monetary system decouples from the physical system. When the amount of debt paper, promised entitlements and retirement benefits, rehypothecated gold accounts, accumulated paper wealth in stocks, bonds, and real estate, and all other such liens on future production exceeds the actually available, real physical economy by a hundred or a thousand fold, then those promises no longer reliably connect to physical reality.
Both our financial and our real physical markets are heavily globalized. We cannot have Europe and the US in an economic depression while China and Russia continue to prosper. Germany cannot continue to prosper if China, Russia, Japan and the US no longer purchase their machined industrial equipment or automobiles. Russia, Iran and Saudi Arabia cannot prosper if the world's energy and mineral resource requirements decline.

An analogy - it's as if someone tried to put a 1000 horsepower top fuel dragster engine in a '66 Toyota Corolla with a manual shifter. We now have a financial engine (as reported by the Federal Reserve, the stock market, and the real estate agents for luxury apartments in Manhattan) that has almost entirely disconnected from the physical world (as seen in the declining number of employed, earning lower wages, with retail store closings and protests in the streets).

Pouring more fuel into that engine will not make that car go faster. It will just burn out the clutch faster. Physically, the car will continue to drift to a stop, while the engine goes faster and faster until it "blows up real good."

Rising stock market indices, high speed trading algorithms, rigged markets, bankster "suicides", and the piled higher and deeper quadrillions of derivatives on top of securitized rehypothecated fraudulent debt instruments are all symptoms of an immense disconnect. Wall Street and Main Street might as well not be on the same planet anymore.

This is the inevitable cycle of economies based on debt-based monetary systems, and we are perhaps witnessing the biggest such "blown engine" in recorded human history.

Food, clothing, shelter, ordinary jobs paying a decent wage, tools, and the other "ordinary" stuff of commerce and economics will become increasingly scarce. The "real" prices of commodities (copper, oil, gold, silver, wheat, rice, ...) will continue to decline on the whole, as fewer potential customers come to the market, with less to spend. If your business can't sell it cheaper, or can't continue to fund its debt payments on the reduced income, then your business will go bankrupt (or, if it's a Too Big To Fail Bank, take the government down with it.)

As when US President Roosevelt revalued gold from $20.67 to $35 per ounce in 1933, there may be a similar repricing of gold, such as Jim Willie is anticipating China will instigate in 2015, but this will be a counter-trend move; the over all trend for the next several years will be depressing and deflating.

The essential reason for the monetary deflation will be the collapse of a vast amount of the outstanding debt paper and other such liens on future productivity. It is exactly such promises, debt and liens that fund the money supply in a debt-based monetary system, and it is exactly when such promises fail that the money supply collapses.
This is a deflationary depression we are entering, and it looks fit to eclipse the Great Depression of the 1930's.

As Harry Dent (http://www.marketoracle.co.uk/Article44022.html) has been telling us for years, some of this is quite predictable, based on demographic trends. In the 1990's, more Japanese went into retirement than went into their high income years, and the Japanese economy stalled out. In the 2000's, the same happened in the US, as the Baby Boomers started getting close to retirement. In the next few years, this will be happening in Germany, and the economic power that every one hopes will continue to drive Europe will weaken, even as the other European nations are mostly already weak.

China does not have any external debt, but it has enormous internal debt, epic mal-investments (not just roads to nowhere, but entire cities to nowhere), and immense political and financial fraud, all on a scale never before seen in recorded human history (well, perhaps the Anglo-American empire can compete on the scale of fraud.) China is desperately trying to convert its paper wealth (US Treasuries) into physical wealth (real estate and resources around the world), but it can no more escape this deflationary depression than the rest of us. More over, its former "one child" policy leaves China with a demographic problem of truly epic proportions: millions of young men with no hope of finding a spouse, and soon with no hope of finding a job.

Right now, the Saudi's are facing a combination of reduced demand for oil, along with increasing threats to the very existence of the Anglo/US/Israeli supported ruling regime in Saudi Arabia. They are desperate, and likely also angry at the West, which probably stole all the Saudi gold that had been in Swiss vaults (http://themillenniumreport.com/2014/07/saudi-arabia-joining-brics-abandoning-the-petrodollar-starting-gold-sovereign-wealth-fund/). They can still ship oil for less cost per barrel than most producers, so they are playing that last major card in the difficult hand dealt to them as best they can. Much of that oil is being shipped to China (see here (http://gcaptain.com/record-oil-tankers-seen-sailing-china-amid-stockpiling-signs/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+Gcaptain+%28gCaptain.com%29)), which remains eager to obtain "real physical" goods any way that it can.

As already happened with overly hyped dot-com stocks leading up to the Nasdaq crash in 2000-2001, and with mortgage backed securities leading up to the 2007-2008 crash, now we are seeing happening with over-financialized (http://www.oftwominds.com/blogdec14/financialized-oil12-14.html) oil fracking operations, that are deeply in debt and depend on oil priced over $100/barrel.

The increasingly immense and amazing fraud that we are observing in so many financial markets and institutions is one symptom of this disconnect, between the financial world and the ordinary physical economy. The 1000 horsepower financial engine screams faster and faster, as the physical vehicle slows and a burnt smell emanates from the fried clutch.

So, China doesn't mind the falling oil price, as they stock up their petroleum reserves further, while investors in shale oil fracking are soiling their undergarments and doubling up on their luncheon Martini's, desperately underwater. Meanwhile, the Saudi royal family gets to remain in their palaces for another day, sweating bullets, but perhaps pleased to be both royally screwing over Western fracking investors (the West stole their gold and sold them down the river) and aiding their new allies, the Chinese.

In the longer run however, what will likely be more interesting than the question of why this (falling oil price) is happening now, will be the consequences of that falling price, which we are just beginning to observe. The always delightful and insightful charles hugh smith has a good piece on this, posted just a few days ago, at The Financialized-Oil Dominoes Are Toppling: The drop in oil revenues has triggered a self-reinforcing feedback dynamic. (http://www.oftwominds.com/blogdec14/oil-dominoes12-14.html)

mgray

15th December 2014, 12:34

I still don't understand how the decimation of the price of oil we are seeing right now plays into this.
Good question ... it's a nice gateway into some of the complexities in what is happening.[/I][/url]

Another way of looking at crude pricing is that globally we are in a recession. Slow or no growth means pricing craters. In 2008 during the recession oil was $38 barrel.
Since the US is "the cleanest dirty shirt in the pile" with allegedly marginal growth, the dollar is stronger.

Look at a 6-month chart of $/yen and the the Dow. In lock step as we begin "beggar thy nation" economics of currency wars.

TargeT

15th December 2014, 22:51

the weak ones are starting to fall.

Russian Ruble Crashes to World's Worst-Performing Currency
The ruble collapsed by 10 percent against the U.S. dollar Monday earning the Russian currency the dubious laurels of the world’s worst-performing currency this year.

The Russian currency has now fallen 49.3 percent against the greenback since January, according to data from the Moscow Exchange. The drop takes it below the Ukrainian hryvna, which has weakened 47.9 percent in 2014.

Monday’s plunge was the largest single-day fall for the ruble since the financial crisis of 1998 when Russia was forced to default on its debt after exhausting its reserves in a fruitless bid to prop up the currency.

In evening trading Monday the ruble was worth 64.4 against the dollar and 78.8 versus the euro. The currency earlier dropped past 100 rubles to the British pound.

Russian stocks followed the ruble downward with analysts at Bank of America Merrill Lynch labeling the 10 percent decline for some shares “local capitulation.”

The dollar-denominated RTS Index, particularly vulnerable to ruble weakness, fell 10.12 percent Monday to 718.32 points, its largest drop since March when Russia moved to annex Ukraine’s southern Crimean Peninsula.

The ruble’s depreciation has gathered pace in recent days with the currency shedding 15 percent versus the dollar in the last three days of trading alone.

The ruble has been under heightened pressure from falling oil prices — with Brent crude now trading at almost $60 a barrel down from a June high of $115 — but appeared Monday to decouple from its traditional link to the oil price. Oil initially strengthened Monday, before reversing gains after stock markets closed in Moscow.

“The ruble today became detached from oil fundamentals,” Tom Levinson, currency strategist at Sberbank CIB in Moscow, said in written comments.

“The problem is that there is no obvious 'end game' for investors to grab hold of when it comes to a possible turnaround. Markets are pushing at an open door,” he said.

The Ghanian cedi and the Argentinian peso occupy the places above the hryvna and the ruble at the bottom of the table of this year's worst-performing currencies. The hryvna has been battered by a full-blown recession in Ukraine exacerbated by a war in the east of the country and the introduction of capital controls.

Monday's moves by the ruble were “staggering,” said Timothy Ash, an emerging markets analyst at Standard Bank, in a note to investors.

Currency traders said that the Central Bank intervened on the market to support the ruble Monday afternoon, according to the Reuters news agency. In line with the regulator's approach since letting the ruble free-float on Nov.10 however, the interventions were relatively small — apparently designed to slow the currency's fall rather defend a certain level.

"The policy response from the Russian authorities has been close to non-existent," according to analyst Ash. “This is a really high-risk strategy from the Central Bank.”

Experts earlier warned that the Central Bank could stage a large intervention on the market to punish traders betting on the ruble's continued decline, but such expectations appear to be fading.

There is an increasing conviction that “ruble bears will not be subject to any sudden bounce back,” said strategist Levinson.

While Russia has spent over $70 billion defending the ruble this year, it still has $420 of its foreign currency reserves left, according to Central Bank data.

Additional downward pressure on the ruble was generated by fears of an increase in tensions between Moscow and the West after the passage through the U.S. House of Congress at the weekend of a new bill that could harden sanctions against Russia over the Ukraine crisis if signed into law by President Barack Obama.

The Ukraine Freedom Support Act would “be negative for market sentiment,” analysts at Sberbank CIB said in a note Monday.

The speed and extent of the ruble's disintegration in recent days has also raised fears that the Russian government could resort to more extreme measures, including restrictions on the free flow of capital, in order to restore stability to the market.

“There is a growing sense that the currency crisis is spiraling out of control,” London-based macroeconomic research company Capital Economics said in an emailed report Monday.

“Hard-liners inside the Kremlin are most likely to be making the case for capital controls.”
http://www.themoscowtimes.com/business/article/russian-ruble-hits-60-to-the-u-s-dollar-as-currency-collapse-continues/513309.html

naste.de.lumina

15th December 2014, 23:12

Coming from Miles Franklin's blog (http://blog.milesfranklin.com/), we have a very good summary of several pieces of the puzzle and blatant manipulation.

One Foot on a Banana Peel …The Other in a Grave!

By Bill Holter - December 15 2014

Never before have I seen so many pieces of information to be put together in the span of just one week. This past week we were bombarded with connectable dot after connectable dot, nearly each and every one of them on their own would have caused a panic 30 years ago. I say “30 years ago” because this was before the 1987 crash, this was before anything and everything, nailed down or not …was levered many times over in what eventually became an inflation party. 30 years ago, black was not white, wrong was not right and “debt” was still in its infancy of being money. Fast forward to present day and we now have a monetary system with one foot on a banana peel and the other in a grave!

Let me list what I saw this past week as some very ugly dots to be connected, by no means is this list complete but I think you’ll get the point by the time you are done reading. Early in the week, China announced changes to their collateral rules for the credit quality necessary for corporate bonds to be accepted as collateral (now only AAA and AA bonds can now be used). This caused a 5.6% drop the following day in their stock market which did ripple around the world to other stock markets. This is significant because without a doubt it was an act of tightening credit and will directly decrease the liquidity available for the Chinese exchange. This is not a one day event as CNBC would lead you to believe.

Next, oil has outright crashed in price and finished the week under the recently unthinkable number of $60… and the repercussions have just started to be felt. The 130 year old firm Phibro announced they will be closing up shop while oil exporting currencies (including the ruble) were destroyed. There had been discussion over the last several weeks regarding the future of the shale industry, this discussion is now ended in that no one can say “this will blow over” any longer. $100′s of billions of extended credit is now impaired and this credit market has crashed to yields now over 10%. The crash in oil all by itself is enough to ruin the financial system but by no means was alone this past week.

The next dot to connect was the spending package passed by Congress. As Zerohedge reported Presenting the $303 Trillion in Derivatives That US Taxpayers Are Now on the Hook (http://www.zerohedge.com/news/2014-12-12/presenting-303-trillion-derivatives-us-taxpayers-are-now-hook) For, the U.S. public was sold down the river. Just a month after the Republicans won both houses of Congress, they have now allowed the banks to stuff their derivatives portfolios under the FDIC umbrella. Over $300 trillion worth! Prior to this, the FDIC insured over $6 trillion worth of bank deposits with a whopping $54 billion reserve… How could any “true American” have voted for this? Even a calculator with no batteries can understand this will unequivocally bankrupt the country, yet this law is passed little over one month after an election by the American public put trust in the Republicans as their “last hope?” Was this passed by mistake or do you think they knew what they were doing? Was Obamacare passed by mistake? Comically, the architect of Obamacare testified to Congress after calling the American public stupid …a traitor testifying to traitors, they should all be strung up for TREASON! Whether you know it or not, Congress just called the American public foolish also by passing this traitorous law.

More (http://blog.milesfranklin.com/one-foot-on-a-banana-peel-the-other-in-a-grave)

It seems to me that we are in a time when, if there is a small misstep in one of the main gears involved, ..... 'Babylon on fire',

Where are the Neros?

Naste.

gripreaper

16th December 2014, 03:16

Coming from Miles Franklin's blog (http://blog.milesfranklin.com/), we have a very good summary of several pieces of the puzzle and blatant manipulation.

One Foot on a Banana Peel …The Other in a Grave! It seems to me that we are in a time when, if there is a small misstep in one of the main gears involved, ..... 'Babylon on fire',

Where are the Neros?

Naste.

That's one hell of a lineup for one week...

The ruble collapsing by 10 percent against the U.S. dollar Monday, the Russian currency has now fallen 49.3 percent against the dollar since January, cover the derivatives bubble with the hard workers savings and pensions, drive the price of oil down below where the highly leveraged shale producers cannot survive, write another blank check for the US debt generator, put "brakes" at the COMEX if metals move too fast on any given day, while the BRICS are accelerating their move away from SWIFT, and the Chicago Fed is filling in their first floor windows with bricks?

I repeat, that's one hell of a week.

mgray

16th December 2014, 03:21

The Russian Central Bank raised its benchmark rate from 10.5% to 17% in one fell swoop after US markets closed.

TargeT

16th December 2014, 03:42

The Russian Central Bank raised its benchmark rate from 10.5% to 17% in one fell swoop after US markets closed.

tomorrow will be interesting.

gripreaper

16th December 2014, 03:43

The Russian Central Bank raised its benchmark rate from 10.5% to 17% in one fell swoop after US markets closed.

tomorrow will be interesting.

The Saudi's are saying they are okay to 40 a barrel for oil. Zerohedge is saying they are following the same playbook from 1985 where oil price fell 69% in four months.

http://www.zerohedge.com/news/2014-12-15/oil-battle-market-share-saudis-1985-playbook

ThePythonicCow

16th December 2014, 07:26

Via way of Zerohedge (http://www.zerohedge.com/news/2014-12-15/yes-its-possible-gold-backed-renminbi-dethrone-us-dollar), Russell Napier, one of the great bear market analysts and historians of our time, writes in his latest ‘The Solid Ground’ piece:

===========

In 1919-1921, 1929-1932, 2000-2003, 2007-2009 it was not a resurgence in wages, Fed-controlled interest rates or corporate taxes which produced a collapse in corporate profits and a bear market in equities.

On those four occasions equity investors suffered losses of 32%, 85%, 41% and 51% respectively despite the continued dormancy of labour, creditors and the state. It was deflation, or the fear of deflation, which cost equity investors so much. There is a simple reason why deflation has always been so damaging to corporate profits and equity valuations: it brings a credit crisis.

Investors forget at their peril what can happen to the credit system in a highly leveraged world when cash-flows, whether of the corporate, the household or the state variety, decline. In a deflationary world credit is much more difficult to access, economic activity slows and often one very large institution or country fails and creates a systemic risk to the whole system.

The collapse in commodity prices and Emerging Market currencies in conjunction with the general rise of the US$ suggests another credit crisis cannot be far away. With nominal interest rates already so low, monetary remedies to a credit seizure today would be much less effective. Such a shock, after five and a half years of QE, might suggest that the patient does not respond to this type of medicine
===========

ThePythonicCow

16th December 2014, 08:02

If you found the brief excerpt of Russell Napier in the previous post interesting, here's a longer interview with him, in which he goes over his expectations for a stronger US Dollar forcing some nation that borrows in Dollars, not its own currency, to fail. Presently, the weakest such borrowers are Turkey and in eastern Europe.
W0gIA2zPOBg

TargeT

16th December 2014, 13:21

The Russian Central Bank raised its benchmark rate from 10.5% to 17% in one fell swoop after US markets closed.

tomorrow will be interesting.

Turmoil Spreads: Ruble Replunges, Crude Craters, Yen Surges, Emerging Markets Tumbling
For those wondering if the CBR's intervention in the Russian FX market with its shocking emergency rate hike to 17% overnight calmed things, the answer is yes... for about two minutes. The USDRUB indeed tumbled nearly 10% to 59 and then promptly blew right back out, the Ruble crashing in panic selling and seemingly without any CBR market interventions, and at last check was freefalling through 72 74 76, and sending the Russian stock market plummeting by over 15%.
http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2014/12/USDRUB.jpg
It is so bad, US equity futures which had jumped earlier on hopes of more Chinese intervention following the latest disastrous Chinese PMI print, as well as a French manufacturing PMI beat (don't laugh), are back to unchanged.

The latest rout continues to be driven by the relentless plunge in Brent which also continued crashing overnight to fresh 5 year lows, sliding decidedly under $60 as WTI dropped well under $55 as well. And as we previewed over a month ago, it is not just Russia, but every single petroleum exporting country that is suddenly seeing a currency crisis, and spreading to all EMs with the Indian Rupee weakening the most since 2013, Indonesia lowering the Rupiah's reference rate by the most on record, and so on. Ironically, this happens as the USDJPY is also crashing and dropping moments ago to 116.25, the lowest level since mid-November. At this rate the Fed will have no choice but to intervene, however in the opposite direction, and admit that despite all its best intentions, the US can not decouple from the rest of the world and a rate hike - so very priced in by everyone - is just no going to happen in the coming years (which sadly means that the latest subprime debt driven "recovery" is about to be called off).

A quick look at the oil market where Brent drops for 5th day, falls below $60 for 1st time since July 7, 2009 as the market continues to look for signs that falling prices is crimping production. WTI breaks below $55, drops to lowest since May 6, 2009. "The race to the bottom continues, we are still not seeing any signs of supply disruption,” says Saxo Bank head of commodity strategy Ole Hansen. “There is very big negative momentum in the mkt and the fact people are starting to talk about breakeven levels of $35-$40 has put up a new red flag for mkts to aim at.... Jan. WTI options expire today and there is quite a lot of open interest ~$55 put strikes, that is probably the key level of potential support today.”

......

Lots more summary info here:
http://www.zerohedge.com/news/2014-12-16/turmoil-spreads-ruble-replunges-crude-craters-yen-surges-emerging-markets-tumbling

Calz

16th December 2014, 18:18

Anything that matters is scripted.

How many decades ago was this planned???

World economic collapse and world war (ebola seems to be lagging as the worldwide pandemic was part of the plan).

World on their knees begging for the NWO to save them ...

Bluebeam ... save us from those nasty aliens!!!

Well ... let's break it down a bit shall we???

Oil prices ... SA and OPEC able to collapse the two most powerful nations on the world by keeping their pumps open???

Please ...

You really think natural market forces could bring down oil prices that much???

Hey ... what a coincidence ... written into the latest USA budget has yet another banker bailout covering any banking derivative losses (massive with the plunge in oil prices).

Hey ... this time the Congress Critters give the green light to take your pensions and loot your savings and checking accounts.

Hmmm ...

Any wonder why the Chicago Federal Reserve is covering all ground level windows with bricks???

Hmmm???

Any wonder why they have been sending out "prepper packages" to bank managers???

Hello????

Oh yes ... about those several days of planeloads of US high tech military hardware into the Ukraine (never mind there is no way for them to pay for it ...) ...

... do the math peeps ...

(sorry for the rant ...)

TargeT

16th December 2014, 18:38

Anything that matters is scripted.

How many decades ago was this planned???

I think this is understood, we are simply documenting... the "reported" timeline doesn't call for a collapse now (and I don't think this is anything more than a (possibly major) blow to the system).

ThePythonicCow

17th December 2014, 11:17

If you like his style (it's one of a kind), Darryl Robert Schoon has an excellent overview of the history and functioning of debt based fiat money in our civilization:
YHQNYUdEsGc
Listening to it, it occurred to me (not something Schoon said himself) that essentially what the Banksters did, when they formed the Bank of England in 1694, was to monetize and militarize the increased productive capacity of the forthcoming Industrial Revolution.

The Industrial Revolution began in England in the mid 1700's, with improvements in textile manufacturing. It raised the productive capacity of a population above the level needed to sustain that population.

The Bankster revolution depended on the charter of central banks, starting with the Bank of England, to lend money into existence. They would lend money to nations, starting with England, to fund wars to conquer other nations and expand the control of the Banksters over the world, and they would lend money to the up and coming Industrialists, to fund their increasingly expensive manufacturing capacity.

Thus the Bankster revolution came to rule the world.

ThePythonicCow

17th December 2014, 11:25

Back to a more "conventional" author (at least for this thread), JC Collins sees in the recent financial turmoil the beginnings of the turmoil that he has been describing in anticipation for the last year, that will result in converting a US Dollar based world currency structure to an IMF/SDR based structure.

JC Collins' latest post, The SDR Purpose of BRICS (http://philosophyofmetrics.com/2014/12/17/the-sdr-purpose-of-brics/#more-1897) begins with these words:

==============

Global markets are showing increasing signs of instability and there are serious concerns about risks to international liquidity building across the spectrum. Exchange rate volatility is deepening with the Russian ruble leading the way and the systemic contagion is spreading around the world, from European and Western banks to stock market crashes in the Middle East.

Oil continues its descent into the $30 to $40 dollar range with a strategically timed announcement by OPEC today, at the peak of the turmoil, stating it will not meet again until June, 2015, ensuring continued instability and lack of confidence in the energy markets.

Trading between the ruble and USD has been halted almost at the same time as Russia’s alternative to the SWIFT system came on line.

Since the beginning of the year we have rehearsed these moments in our minds, not sure if they would happen as we had been discussing, and hoping that they wouldn’t, but knowing full well that the amount of preparation and strategy which has gone into the transition of the international monetary system, from a unipolar structure to a multilateral structure, would eventually materialize in the real world as the Hegelian Dialectic machinations which we are witnessing now.

A look through the headlines on such sites as Zero Hedge will quickly give the reader a birds eye view of the destruction that is now taking place in the international financial system. Much of it is exactly what we have been expecting as a part of the problem, reaction, solution dynamic which will engineer and implement the multilateral financial system.

It was always expected that the transition would require some level of crash or instability.

==============

JC Collins' post ends with these words:

==============

We are only at the beginning of this transition and expect to see even deeper instability wash upon North American shores in the coming days and weeks. The obvious “event” will be China stepping away from the USD. But how that will coordinate with the substitution accounts and issuance of SDR bonds through the BRICS group is not discernible at this time. It can be expected that SDR bonds will not be issued until the basket composition is changed and the 2010 IMF Reforms, being Plan B, are fully implemented. Plan A, which would have lead to a more constructive transition required the US Congress to pass legislation supporting the 2010 Reforms, which it hasn’t. Let’s hope that the Plan B process doesn’t take until next July. Perhaps an emergency session is in order for the New Year. ==============

Comparing Schoon's video, posted above, and this work of JC Collins, there is a clear difference between them in view, or at least in the time scale over which they are working.

JC Collins is focused mostly on events of the few years past and upcoming, as the basis for our debt-based monetary system transitions from one currency to the next.

Schoon is working on a larger scale, anticipating the end of the debt-based money system which has grown from the Bank of England's charter in 1694, to span the globe now. As Schoon readily states, he does not know what comes after our civilization's debt-based monetary system fails, but fail it will, for it is essentially flawed.

Debt-based monetary systems are a cancer that can only survive so long as they continue to expand. That is the fundamental nature of debt-based monetary systems, constantly exchanging what goods and services can be had today, for title to or a lien on an even larger amount in the future. They feed on, existentially require, profligate waste, planetary and civilization destruction, and ever increasing military, intelligence and police powers.

That which cannot expand forever ... won't.

ThePythonicCow

17th December 2014, 12:30

And rounding out today's triple header, one of my favorite up and coming analysts, Brandon Smith of alt-market.com.

In his post today, IMF Now Ready To Slam The Door On The U.S. And The Dollar (http://www.alt-market.com/articles/2444-imf-now-ready-to-slam-the-door-on-the-us-and-the-dollar), Brandon goes over what he sees happening now, as financial turmoil increases, and over 2015, as the Banksters who are ultimately behind and in control of all the world's central banks and of the IMF, pull the plug on the US Dollar, remove the US veto position in the IMF, add various BRICS nations to key IMF roles and elevate their currencies into larger proportions of the SDR basket.

The next SDR conference (they are only held once every five years) has been set for October 2015, at which time these structural changes will likely become official. We will see "a hailstorm of geopolitical crises over the next year to provide cover for the shift away from the dollar."

The Dollar will die, losing its role as the world's reserve currency. The IMF will (by JC Collins analysis) provide "substitution accounts" by which large holders of US Treasuries can exchange them for SDR denominated bonds. International trade and debt will shift to being denominated predominantly in SDR's, not Dollars.

Brandon's article is a good straight forward read, his thinking clear and his insights solid. I recommend his article, link above, to your reading pleasure.

giovonni

17th December 2014, 13:06

following the geopolitical script ...

CrossTalk: Dumping the Dollar

"The greenback vs the rising red back: China and other economies in the emerging world are intent to free themselves from the strangle hold of the US dollar. Is it only a matter of time before the Chinese currency seriously challenges the dollar? And what about America's incredible debts? CrossTalking with Liam Halligan, Alasdair Macleod and Ann Lee."

* throw a monkey wrench in the works (http://www.cnbc.com/id/102273192)

Published on Dec 17, 2014

http://www.youtube.com/watch?v=CV3ABvDZSlw

gripreaper

18th December 2014, 04:43

Bankers manifesto...

Create credit out of thin air and loan it out as debt with interest. Do NOT print the interest which is needed to service the debt, thereby forcing more exponential expansion of debt. Foment wars and divisiveness through religious and political dogma to force massive debt upon nations and governments, imperialize all the nations natural resources as collateral, and enslave the populations into abject poverty.

Once everyone is in such massive debt that there are no more borrowers who can increase the debt pyramid, begin to shrink the money supply, put pressure on capital and assets, force defaults and bankruptcies, and call in loans. Continue shrinking the money supply until all peoples of the planet are broke, poor, and are forced into forfeiting everything they have to the banksters.

Rinse and repeat as often as necessary to make sure every ounce of capital, assets, natural and human resources are subjugated and consolidated into the hands of the few elite banksters power and control .

Calz

18th December 2014, 05:05

Rinse and repeat as often as necessary to make sure every ounce of capital, assets, natural and human resources are subjugated and consolidated into the hands of the few elite banksters power and control .

Banksters have been ousted on occasion in the past (pitchforks come to mind).

I guess the question we should be asking ourselves is why do we (as humanity on the whole) continue to fall for this again and again???

One would think with the advent of the internet and so much information out there to alert us to this possibility it would be easier than ever to avoid???

http://3.bp.blogspot.com/_29_shKT4Elw/StQrXn1iY0I/AAAAAAAAIkA/INtIo9ZPAfE/s400/torches_pitchforks.jpg

gripreaper

18th December 2014, 05:25

I guess the question we should be asking ourselves is why do we (as humanity on the whole) continue to fall for this again and again??? One would think with the advent of the internet and so much information out there to alert us to this possibility it would be easier than ever to avoid???

Calz, it does appear that most are complacent or just ignorant of the facts, yet those who have accumulated what they would consider wealth, are aware and could actually change things, do not want to alter the system from the way it is, but continue to support it. Catherine Austin Fitts explains this phenomenon quite well. Listen to any one of her great interviews.

Especially here in America, about the only product we still produce is war and war machinery. If the upper middle class and the uber wealthy do not continue to support the military industrial complex and the imperialization of the third world, then they would lose their 401K's, their stock portfolio's, their big beautiful houses with their in ground swimming pools, their luxury automobiles and their private jets, private school for the kids, and their country club memberships.

Now, who would want that?

ThePythonicCow

18th December 2014, 06:59

Create credit out of thin air and loan it out as debt with interest. Do NOT print the interest which is needed to service the debt, thereby forcing more exponential expansion of debt.
That's the usual explanation, yes.

However, as I've explained in posts above, I think that explanation is partially deceptive.

One could extinguish the excess debt by inflating the money supply, or even by increasing the "velocity" of money.

There is a famous example where several people in a small town owe each other $100, and a visitor comes to town, momentarily putting down $100 on a hotel room, which $100 then quickly exchanges hands several times, paying off each debt, before returning to the hotel desk, where the visitor gets a refund and leaves town, having decided not to stay there that night anyway. All of that debt was extinguished by a brief spike in money velocity in that small town.

As I said, the problem is not in the supply or velocity of money. Rather, the problem is in the unending, exponentially increasing, promise of future goods and services in excess of what is presently available, and in the accumulation of sufficient force to collect on those promises.

One borrows enough for one car, house or refrigerator, and in turn promises to pay back enough for two or three such, or else the sheriff shows up to take that and more. This works against individuals, corporations and nations. This works for all promises to pay back more in the future than is paid out in the present. It works for insurance, social and medical benefits, retirement plans, investment schemes, bank deposits, and ordinary loans.

The primary lenders can always escalate force beyond whatever the debtor can counter.

It is fundamentally a scheme for the forced enslavement of humanity and the confiscation of all they own and the land their ancestors settled on.

It has more or less worked for the last 320 years, since the Bank of England was chartered in 1694, because the wealth producing capacity of our civilization has grown exponentially in these last three centuries, and because the realm of central banks under the control of the great money lenders has expanded from the island of England to the entire civilized world.

Unfortunately, we are running out of potential debtors -- we might find some resources on Mars or the asteroids, but so far as I know, there are no potential customers for earthling bankers out there. We might also be pushing the resource limits of the air, water, arable land, and mineral and energy resources of this planet too far, though it's hard to know just how close we are to hitting the limits here (until we've gone "too" far ...).

Central banking issuance of debt-backed money is not fundamentally limited by any limits on money supply or velocity that might be exceeded by compound interest.

Rather it is limited, like a cancer on the body, by the upper limits on the ability of an increasingly unhealthy body to meet the demands of a destructive and unproductive cancer that must keep growing ... or die.

When I was a child in a poor farming community, my parents, and my ancestors for generations, had "accumulated capital" by investing their labor into improving their land, their herds and flocks, their buildings, their tools, their clothing, their children, and their communities. Now we "accumulate capital" by working to get money to "pay the bills and taxes", most of which goes to pay interest on personal, corporate and government debt, and to governments and pension funds and insurance companies who promise us future payouts and benefits, and to banks and investment funds, who promise us profit on our savings.

Ultimately (as in about now) we will no longer be able to deliver on the promises of the past to deliver more goods and services in the future, and the Banksters will once again use their superior force and control of media, governments, courts, military, police, the Internet, and anything else of substantial size or influence to confiscate even more of our labor, property and resources.

It's all about superior force leveraging the essential impossibility of forever increasing production of goods, services and resources to further enslave humanity and control this planet.

The printing press is not the limit. The planet and humanity are the limit. One or the other of them will eventually kill this cancer. You and I might not survive the final battle.

ThePythonicCow

18th December 2014, 07:23

The fundamental problem of all the well funded conservation and green programs that warn of collapse of the world's ecosystems if we don't reduce our "footprint" is that they blame humanity. The problem with all austerity programs that require that the borrower live on less in order to pay off excess debt is that they blame the borrower.

This is like telling an advanced stage cancer victim, emaciated because their body no longer functions well enough to keep them nourished and feed the cancer too, that the problem is that their body consumes too much food.

No, the problem is the cancer. The problem is the increased domination of human civilization by a debt-based monetary system under the control of a few, very powerful, beings (human or not ... I don't know.)

All such cancers, which have as an essential part of their genetic makeup the requirement to keep growing or die, eventually kill their host.

ThePythonicCow

18th December 2014, 07:35

giovonni

18th December 2014, 07:36

The problem with all austerity programs that require that the borrower live on less in order to pay off excess debt is that they blame the borrower.

http://lowres.cartoonstock.com/computers-life_support-life_support_machines-skeleton-neglect-patient_care-kfon161_low.jpg

giovonni

18th December 2014, 07:45

Paul ~ i will share this here since it's attuned and timely to your last few post here ...

Jeff Rense & Gary Null - Challenge Your Belief System

Clip from December 15, 2014 / Published on Dec 17, 2014

http://www.youtube.com/watch?v=j62y2JlOqcw&feature=em-uploademail

Calz

18th December 2014, 07:47

Rocky_Shorz

18th December 2014, 08:12

naste.de.lumina

18th December 2014, 18:05

All such cancers, which have as an essential part of their genetic makeup the requirement to keep growing or die, eventually kill their host.
Actually, I think I am very, very wrong in saying this.

Sometimes, even far advanced stage cancer victims, on their literal death beds, heal.

This is not done by the conventional treatments of "modern" medicine - cut, burn and poison (surgery, chemo or radiation.)

Rather it is done by healing the mind, body, and soul, so that the cancer can no longer co-exist.

the first rule of healing, is don't let facts stand in your way...

they mean nothing, health can change instantly, with thought and faith all realities are possible...

For this to be effective you must believe 100%. Feel that 'truth'. It's not just a matter of knowing mentally.

And that is what generates the difficulties because the 'believe' 100% depends on the sum of your conscious with your sub-conscious.

If your sub-conscious does not believe there no will be cure.

Brain Scans Can Reveal Your Decisions 7 Seconds Before You “Decide”

In a kind of spooky experiment, scientists at the Max Planck Institute for Human Cognitive and Brain Sciences reveal that our decisions are made seconds before we become aware of them.

In the study, participants could freely decide if they wanted to press a button with their right or left hand.

The only condition was that they had to remember when they made the decision to either use their right hand or left hand.

Using fMRI, researchers would scan the brains of the participants while all of this was going on in order to find out if they could in fact predict which hand the participants would use BEFORE they were consciously aware of the decision.

The Results

By monitoring the micro patterns of activity in the frontopolar cortex, the researchers could predict which hand the participant would choose 7 SECONDS before the participant was aware of the decision.

“Your decisions are strongly prepared by brain activity. By the time consciousness kicks in, most of the work has already been done,” said study co-author John-Dylan Haynes, a Max Planck Institute neuroscientist.

I don’t even know where to begin here! I know from the hypnosis research that the unconscious pretty much controls everything and that consciousness is extremely limited.

But, I do find it a bit disconcerting that decisions are made by unconscious me 7 seconds before conscious me…

I am not the only one.

N6S9OidmNZM

Watch Marcus Du Sautoy (Professor of Mathematics at the University of Oxford) go through the study himself. The 7 second delay is in full effect.

Marcus is really disturbed here and brings up the subject of free will. Does this mean we really do NOT have free will? I am really curious what you think about this, please comment below.
Source: http://exploringthemind.com/the-mind/brain-scans-can-reveal-your-decisions-7-seconds-before-you-decide

If 'someone' can provide information in the form of programming for our sub-conscious (symbology, sub-liminal messages, etc.) probably genetically designed to receive them in an unconscious way, it is very likely that the emotional and physical responses will be results these schedules if not criticized by the conscious.

Pressing buttons.

Add the information described above with our knowledge of the collapse of the wave function of quantum mechanics (http://www.informationphilosopher.com/solutions/experiments/wave-function_collapse/), and a foundation for mind over matter is established as factual to the tunnel of personal and collective reality (s), depending on the degree of perception.

The sum of all the wave function collapses adding all consciousness, creates a reality of the average of desires that all involved wish to experience, turning different frequency waves of information into the 'desired' realities.

Know and be able to modify our 'I / Self' and understand how to control it seems to be essential to create the world we want.

I try to collapse the end of all illusion matrixies but I know a lot of people that do not want them to disappear.

Most people have no idea that they actively collaborate to materialized reality, personally and globally.

Naste.

ThePythonicCow

19th December 2014, 12:56

gripreaper

20th December 2014, 05:41

So Putin is forced to sell gold to make up shortfall in revenue in order to bring in food for the winter.
The November results are in. Russia did not sell gold in November. They bought another 600,000 ounces, as reported at Zerohedge (http://www.zerohedge.com/news/2014-12-19/russia-busts-gold-selling-rumors-reports-it-bought-another-600000-ounces-taking-gold):

Which of course means that the very "Russia is selling" rumors that were so effectively used to keep the price of gold low into the recent risk-flaring episode, were capitalized on by the very same Russia, which we do however know sold some $8 billion in US Treasurys in October bringings its total holdings of US paper to the second lowest since 2008...

This article caught my attention, as I was trying to figure out who is getting hurt by the slaughtering of the price of oil and gold, and the raging rise in the dollar. Here is an excerpt, the whole article linked below.

In the financial world it is (generally) accepted as a given that gold is anti-dollar…i.e. the gold price runs inverse to value of the dollar.

In 1971, US President Richard Nixon closed the ‘gold window’, ending the free exchange of dollars for gold, guaranteed by the US in 1944 at Bretton Woods.

In 2014, Russian President Vladimir Putin has reopened the ‘gold window’, without asking Washington’s permission.

Right now the West spends much of its efforts and resources to suppress the prices of gold and oil. Thereby, on the one hand to distort the existing economic reality in favor of the US dollar …and on the other hand, to destroy the Russian economy, refusing to play the role of obedient vassal of the West.

Today assets such as gold and oil look proportionally weakened and excessively undervalued against the US dollar. It is a consequence of the enormous economic effort on the part of the West.

And now Putin sells Russian energy resources in exchange for these US dollars, artificially propped by the efforts of the West. With these dollar proceeds Putin immediately buys gold, artificially devalued against the U.S. dollar by the efforts of the West itself!

There is another interesting element in Putin’s game. It’s Russian uranium. Every sixth light bulb in the USA depends on its supply, which Russia sells to the US too…for dollars.

Thus, in exchange for Russian oil, gas and uranium, the West pays Russia with dollars, purchasing power of which is artificially inflated against oil and gold by the efforts (manipulations) of the West. However, Putin uses these dollars only to withdraw physical gold from the West in exchange at a price denominated in US dollars, artificially lowered by the same West.

This truly brilliant economic combination by Putin puts the West led by the United States in a position of a snake, aggressively and diligently devouring its own tail.

http://www.silverdoctors.com/checkmate-is-russia-selling-oil-for-gold/

This seems like a plausible scenario to me.

giovonni

20th December 2014, 15:47

will share this here ...

Keiser Report: Ruble’s Baptism by Fire

"Max Keiser and Stacy Herbert are joined by Liam Halligan of BNE.eu. They talk rubles, sanctions and diversifying the economy with some technology investments. In the second half, Max interviews Konstantin Gurdgiev about the ruble, the Russian budget and David Cameron’s take on the causes and consequences of the crisis and sanctions. They also discuss the ruble’s ‘baptism by fire’ as it only just joined the five trillion dollar per day forex markets."

Published on Dec 20, 2014

Episode 695

http://www.youtube.com/watch?v=NCY_wJCTloQ

ThePythonicCow

27th December 2014, 14:37

Jim Willie's Hat Trick Letter (http://www.goldenjackass.com/) for this month has a couple of twists to the plot that (1) I agree with, but (2) are not inline with and following on from what's in this thread so far.

Jim has been side stepping any significant comment on whether, in his view, aliens are involved in the adventures of humanity. He has been wanting to maintain his credibility in topics that he could focus on, with less unresolvable controversy. But this month, he has come out, in his subscription newsletter, pretty clearly and in some detail, stating that he understands that "other" (non-human, aka alien) beings are quite involved, some darker ones siding with the retread Nazi's running the US, and some others more recently supporting Russia and the BRICS in order to avoid destruction of or great setbacks to the wonderful diversity of advanced life and civilization on this planet. Jim is still being deliberately vague, in an effort to avoid saying something that will sound foolish to most of his readers now, and be soon enough shown ridiculously wrong in the near future. But that said, it was, by my reading of Jim, a disclosure of Jim Willie's conclusion that aliens are significantly involved in events here on earth.

In the other twist to the plot, Jim Willie is clearly coming down in a different view of the future role of the IMF in the world's monetary system than is JC Collins (the one whose posts primed the pump for this present thread.) In Jim's view, the IMF is too compromised by it's entanglement with Western Banksters, and is being driven more to destruction than it is being built up to become the creator of the world's next dominant "reserve currency", with its SDR's to become the world's "senior debt." The US has not paid its dues to the IMF in several years, and has been the primary holdout from ratifying the 2010 IMF reforms. Apparently, in Jim Willie's view (and I suspect he's right), the US would rather destroy the IMF than it would allow the IMF to become a more potent agency that was out from under the US thumb. So instead, the trend will continue with developing alternatives to the US Dollar for international trade and finance that are outside of the Western dominated banking systems, using resources and precious metals to settle imbalances in a variety of bilateral and regional agreements.

giovonni

27th December 2014, 15:20

gripreaper

5th January 2015, 03:06

And the beat goes on...

$USD
http://bigcharts.marketwatch.com/kaavio.Webhost/charts/big.chart?nosettings=1&symb=%24USd&uf=0&type=2&size=2&sid=3044712&style=320&freq=1&entitlementtoken=0c33378313484ba9b46b8e24ded87dd6&time=8&rand=133833550&compidx=&ma=0&maval=9&lf=1&lf2=0&lf3=0&height=335&width=579&mocktick=1

OIL
http://bigcharts.marketwatch.com/kaavio.Webhost/charts/big.chart?nosettings=1&symb=oil&uf=0&type=2&size=2&sid=2395435&style=320&freq=1&entitlementtoken=0c33378313484ba9b46b8e24ded87dd6&time=8&rand=1811572107&compidx=&ma=0&maval=9&lf=1&lf2=0&lf3=0&height=335&width=579&mocktick=1

Jim Willie's latest...

http://www.stage2omega.com/jim-willie-its-game-overthe-dollar-is-dying/

ThePythonicCow

14th January 2015, 23:42

As Jim Willie is fond of saying, the US Dollar will rise, and rise and rise some more ... then crash.

The trillions and trillions and hundreds of trillions of dollars "worth" of assets added to the balance sheet of the Federal Reserve, and other Central Banks, in the last six years have -not- caused inflation, and will -not- cause inflation in the short term.

Those trillions have been exchanged for debt paper ... calls on future world cash flows.

Now those debts are starting to come due; now the Federal Reserve and other Central banks are starting to pull back from ever more rapid, cheaper, lending.

That is why the price of oil is falling. That is why the price of gold is falling. That is why the price of copper is falling. That is why overly indebted investments in shale oil fracking are failing. The debts are coming due, and there is a world wide shortage of the US Dollars in which most of those debts are denominated.

This is why the US Dollar is rising (see the chart in the previous post) against other currencies. Most major corporate and national debt is denominated in (must be paid back with) US Dollars.

We are in a monstrously large bubble that is far larger than the dot-com boom or the housing market bubble. Central bank lending to the world's markets has pushed up debt and unfunded liability levels of many nations and major corporations to the highest in recorded human history.

The world is like a crack addict, on the biggest high in tens of thousands of years. It's a bubble not in Silicon Valley Start-Up Stock, nor in Securitized Mortgages, but in Sovereign Bonds of the major Central Banks of the world. Record low interest rates mean, exactly, record high prices for sovereign debt paper.

This bubble will burst. Bubbles always burst. That's what they do.

I am beginning to suspect that JC Collins, the analyst I began this thread with, is being unrealistically optimistic when he lays out a relatively smooth transition, over the next year or two, to a new world currency system, based on a new reserve basis defined by the IMF, using some next generation SDR's as the reserve unit.

Bubbles this big don't go quietly into the night in a year or two.

This sort of pump and dump, easy lending followed by monetary and economic collapse, has been the time honored means, for at least centuries now, by which the "money changers in our temple" have been jacking up their control of human civilization.

The game's not over. Unless some amazing shift, unlike any seen in a thousand years at least, comes to humanity, then the next couple of decades could get quite ugly.

ThePythonicCow

14th January 2015, 23:49

From 555 Trillion Reasons Why Central Banks Won't Let Rates Normalize (ZeroHedge) (http://www.zerohedge.com/news/2015-01-13/555-trillion-reasons-why-central-banks-wont-let-rates-normalize):

=========

The biggest question for most investors today is whether or not rates will rise in 2015.

This question is focusing on the wrong issue: the economy. It should be focusing on the REAL issue: the bond bubble.

The Fed may raise rates a token amount this year, but the move will be largely symbolic. With over $100 trillion in bonds and over $555 TRILLION in interest rate derivatives trading based on interest rates, the Fed will not be normalizing rates at any point in the future.

...
The reality is as follows:

Bonds are the biggest bubble in history, dwarfing even the real estate bubble of the mid-2000s.
This bubble also encompasses the bubble in Central bank policy. Every single Central Bank policy is focused on maintaining the bond bubble and the TBTF banks with the greatest derivative exposure to it.
When the bond bubble bursts, entire nations will fail, as will the Central Banks themselves. Draghi, Yellen, Kuroda et al will do everything in their power NOT to allow the system that has put them at the top of the economic food-chain to collapse no matter what the costs for ordinary citizens.
Rates will only rise significantly ONCE the bond bubble bursts. There may be symbolic raises here and there, but with over $555 trillion in derivatives based on interest rates floating in the system globally, you can bet there will NEVER be a shock and awe interest rate raise.
This bubble, like all bubbles, will eventually burst no matter what the Central Banks do. When it does, everything about modern finance will prove misguided and based solely on the belief that Central Banks can control the system.

=========

ThePythonicCow

14th January 2015, 23:54

From Major War Exploding Soon-Charles Nenner (Greg Hunter's USAWatchDog.com) (http://usawatchdog.com/major-war-exploding-soon-charles-nenner/):

=========

Renowned analyst Charles Nenner says the biggest cycle he sees coming is the war cycle. Nenner says, “For the last couple of years, I have been saying, in the second decade of the new century, we will have a big war. Why, because there is a 100 year cycle. If you go back 100 years to the first world war in 1914 to 1918, that led to the second world war. That was actually one big war with peace in the middle. It you go back 100 years before that, you get Napoleon. . . . If you put ‘big war’ in Google, you see always in the second decade of the new century, there is a huge war. Nenner goes on to say, “The fear has started already. So, this is going to be exploding soon into a major war. . . . Based on the weaponry that becomes better in every war, I guess that’s why we get more dead bodies in every war.”
=========

Here's the Youtube video of Greg Hunter's interview of Charles Nenner (though the audio on Nenner's end rather sucks)
AkGGXzQdo-M

ThePythonicCow

15th January 2015, 00:13

Classic examples of hyperinflation, such as in the Wiemar Republic in the early 1920's, occur when a nation owes far more debt than it can pay, and prints money to pay that debt.

The United States debt and unfunded liabilities are at historic highs, yes. However, that's not humanity's biggest problem.

The biggest elephant in the room is the amount of money owed to the Central Banks, such as the Federal Reserve. What ever inflation that excess lending was going to cause has already mostly happened, such as in the stock market bubbles of the last few years. Now the bill is coming due, as the Central Banks pull back on the lending. This will suck all the air out of the room ... all the Dollars out of the world economy ... trying to pay back more debt than the profits of real world economy can fund. That's not inflation. That's deflation, on an epic scale.

This usually leads to economic collapse, a pull back from globalization as global financial markets fail, war on a large scale, millions (perhaps billions, this time around) being slaughtered, and then a reformulation of the world's political, economic and monetary structure, on a larger scale.

naste.de.lumina

15th January 2015, 00:23

ThePythonicCow

15th January 2015, 00:34

Another aspect of this - a major source of funding for US Dollar denominated debt has been the Petro-Dollar. Since Nixon and Kissinger got Saudi Arabia to require payment in US Dollars for their crude oil in the 1970's, agreeing to invest the profits in US Treasuries, in exchange for protection by (or should I say, from) the US Military and Intelligence agencies, the flow of US Dollars into US debt paper, through the oil exporting countries, has been the largest engine keeping the US Dollar denominated world monetary system going.

This recycling has now ended.

The world's largest oil exporter, Russia, is now selling US Treasuries, not buying them.
The oil exporters who still are taking US Dollars for their oil are selling their oil for one half as many Dollars per barrel as a year ago.

From Russia Just Pulled Itself Out Of The Petrodollar (Zerohedge) (http://www.zerohedge.com/news/2015-01-14/russia-just-pulled-itself-out-petrodollar):

=========

Back in November, before most grasped just how serious the collapse in crude was (and would become, as well as its massive implications), we wrote "How The Petrodollar Quietly Died, And Nobody Noticed", because for the first time in almost two decades, energy-exporting countries would pull their "petrodollars" out of world markets in 2015.

This empirical death of Petrodollar followed years of windfalls for oil exporters such as Russia, Angola, Saudi Arabia and Nigeria. Much of that money found its way into financial markets, helping to boost asset prices and keep the cost of borrowing down, through so-called petrodollar recycling.

We added that in 2014 "the oil producers will effectively import capital amounting to $7.6 billion. By comparison, they exported $60 billion in 2013 and $248 billion in 2012, according to the following graphic based on BNP Paribas calculations."

http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2014/11/petrodollar%20chart_0.png
The problem was compounded by its own positive feedback loop: as the last few weeks vividly demonstrated, plunging oil would lead to a further liquidation in foreign reserves for the oil exporters who rushed to preserve their currencies, leading to even greater drops in oil as the viable producers rushed to pump out as much crude out of the ground as possible in a scramble to put the weakest producers out of business, and to crush marginal production. Call it Game Theory gone mad and on steroids.

Ironically, when the price of crude started its self-reinforcing plunge, such a death would happen whether the petrodollar participants wanted it, or, as the case may be, were dragged into the abattoir kicking and screaming.

It is the latter that seems to have taken place with the one country that many though initially would do everything in its power to have an amicable departure from the Petrodollar and yet whose divorce from the USD has quickly become a very messy affair, with lots of screaming and the occasional artillery shell.

As Bloomberg reports Russia (http://www.bloomberg.com/news/2015-01-14/russia-to-convert-currency-from-wealth-fund-to-arrest-ruble-drop.html) "may unseal its $88 billion Reserve Fund and convert some of its foreign-currency holdings into rubles, the latest government effort to prop up an economy veering into its worst slump since 2009."

These are dollars which Russia would have otherwise recycled into US denominated assets. Instead, Russia will purchase even more Rubles and use the proceeds for FX and economic stabilization purposes.

"Together with the central bank, we are selling a part of our foreign-currency reserves,” Finance Minister Anton Siluanov said in Moscow today. “We’ll get rubles and place them in deposits for banks, giving liquidity to the economy."

Call it less than amicable divorce, call it what you will: what it is, is Russia violently leaving the ranks of countries that exchange crude for US paper.

=========

ThePythonicCow

15th January 2015, 00:55

The biggest source of the "economic recovery" of the last few years in the US, besides lies, damn lies and doctored statistics from the government and besides the bubbles in the stock and bond markets, has been the growth of the energy sector in the US ... meaning shale oil fracking.

That's is now going bust, with the collapse of oil prices below those needed to extract shale oil at a profit, or to even service the debt on existing operations.

From What Happens To High-Wage Jobs Next? (Zerohedge) (http://www.zerohedge.com/news/2015-01-14/what-happens-high-wage-jobs-next):

=========

Yesterday, during his conference call, in the context of the collapse in the US shale industry, DoubleLine's Jeff Gundlach said something that we first noted over a month ago: that "all of the job growth in the (economic) recovery can be attributed to the shale renaissance." He was likely looking at the following chart from a Manhattan-Institute report (http://www.manhattan-institute.org/html/pgi_04.htm#.VLZ813uxViA):

http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2015/01/oil%20jobs_0.gif
And while he added that if low oil prices remain, the U.S. could see a wave of bankruptcies from some (or most) leveraged energy companies which we also observed two months, there is a different and perhaps far more important tangent to the above chart.

Wages.

Because recall that now that the unemployment rate is an artificially low 5.6% thanks to a record number of Americans out of the labor force (all that would need to happen for the jobless rate to double is for 8 million of the 93 million American not in the labor force to return to it for whatever reason), the one key indicator that the Fed is focusing on, is average weekly compensation. And as those who followed last Friday's jobs report recall all too well, in December nominal wages saw their biggest monthly plunge in years.

So our question is this: if indeed the shale boom is now turning to bust, and if indeed the vast majority of jobs created were thanks to the shale revolution (which is about to go in reverse), what happens to the primary source of high-paying jobs: the energy sector?

=========

T Smith

15th January 2015, 01:15

As Jim Willie is fond of saying, the US Dollar will rise, and rise and rise some more ... then crash.

A light bulb always burns brightest just before it burns out. I have a very uneasy feeling about recent developments; the present dollar euphoria and bond market rallies (U.S. Treasury markets are in SERIOUS rally mode right now -- the long bond yield hit an all time low just today) could well be nothing but the onset of its fatal heart attack. What is a little more uncertain is how high it can go and how long the consortium of central banks can sustain the final flash, so to speak. No doubt they are orchestrating covert schemes (some of which we may not even fathom before they unfold) to administer a sort of synthetic pressure in the bubble to keep it from bursting. World War comes to mind, but I would think we will see many such desperate plays for control, Hail Mary's, and surprising moves in the coming weeks and months.

ThePythonicCow

15th January 2015, 01:17

Here's another place that that excess lending has gone, besides an epic bond bubble and yet another stock bubble -- skyscrapers.

The world's greatest skyscrapers are often completed at the beginning of the world's greatest economic depressions.

From Skyscraper Index Goes Global (Zerohedge) (http://www.zerohedge.com/contributed/2013-08-06/impending-world-doom):

=========

[Each year, Barclays Bank of the UK publishes an index] that is intended to correlate the height of buildings with the recessions that have taken place around the world. It’s called the Barclays’ Skyscraper Index.

According to the index the construction of the world’s tallest buildings have always coincided with the great slumps and recessions that we have gone through in history. The Chrysler Building completed in 1930) and the Empire State Building (completed in 1931) and the Great Depression all happened at the same time. The Burj Khalifa inDubai, United Arab Emirates was started in 2004 and finished construction in 2009 just in time for the global financial crisis to have really set in. The Petronas Tower in Indonesia was directly in line with the Asian crisis.

But, perhaps it’s not that stupid. Skyscrapers coincide with building booms and that means heavy investment, often overinvestment and that means misallocation of capital to a high degree. If capital is misallocated in the economy and there is too much spending or credit going round, then the economy ends up righting itself by plunging the country into a deficit and a slump ensues. So, the skyscraper index may not sound that stupid at all.

Two countries in particular have a race on to have the tallest building in the world and the most skyscrapers. That means that there is going to be big investment coming or that is already well under way. China is one of those countries and it has already finished half of the 124 skyscrapers that it plans to build in the country. The Chinese embarked on a massive skyscraper-building project two years ago and planned to build a new skyscraper every 5 days to deal with the growing influx of rural migrants coming to urban areas to find work. Within the next two years studies show that China will have more than 800 skyscrapers (buildings over 500 ft high) within the next couple of years.

China’s tallest building (the Shanghai Tower) began construction at the start of the financial crisis in 2008. Saturday just gone saw the final beam being lowered into position to complete the construction on the main structure of the building. It coincides with the downturn in the Chinese economy and the contraction that is currently being experienced. Analysts reduced the economic outlook for the country when growth in China fell from 7.7% in Q1 to 7.5% in Q2.

India is the second country that is embarking on a super-building project. There are 14 skyscrapers that have been planned to see the light of day over the next 5 years. India Tower in Mumbai will be the second tallest building in the world at 2,356 feet. It began construction in 2010, but has been interrupted since 2011.

Too many skyscrapers being built in a country means that it’s the end of a possible cycle. The country has been flush with money already and the good times were there to feed the fat cows and the banks opened the floodgates to spray that money around. But Barclays’ Skyscraper Index states that there is not only a correlation between the number and even the fact that tall buildings are constructed, but also the height of those buildings that predicts the extent of the economic slump to come. Buildings have never been higher today in the world! The Burj Khalifa is 829 meters high (2, 719 feet), the Shanghai Tower is 630 meters (2,066 feet). But, the Chinese have already set about building the world’s tallest building, the Changsha construction, which will be 838 meters high (2, 749.34 feet), surpassing the Dubai skyscraper by ten feet. The Shanghai Tower cost $2.4 billion and it will be fully completed by 2014 after Saturday had the flag-waving Chinese celebrate the final beam going into place to finish off the shell of the structure itself.

http://s.wsj.net/public/resources/images/OB-YI320_skycit_DV_20130726073634.jpg

An artist’s rendering of the Changsha construction, Sky City,
which is expected to stand 838 meters (2,750 feet) tall.
The Chinese property bubble already started to go down in 2011 as housing prices began to fall in China. The middle-class was unable to find property to rent in urban areas at reasonable and affordable prices, and analysts clearly point to this being one of the reasons that the Chinese economy has taken a downturn since last year. Average prices in residential areas were multiplied by three from 2005 to 2009. Properties fell vacant as the Chinese were unable to pay the rent or keep up with the prices as their salaries were not following. While there were 64 millionvacant residential properties in China in 2011, the country continued building and building regardless. In Shanghai alone property prices skyrocketed by 150% over a seven-year period from 2003 to 2010.

If you still need more proof, the British built the London Shard by London Bridge; started in 2009 and finished in 2012 (inaugurated on July 5th). It’s 1, 020 feet high and the tallest building in the EU today. Heaven forbid if the Barclays’ Skyscraper Index should ever for one moment suggest that it is the British that are at the origin of the downfall of the Eurozone and the recession.
=========

ThePythonicCow

15th January 2015, 01:28

... but I would think we will see many such desperate plays for control, Hail Mary's, and surprising moves in the coming weeks and months.
Interesting times indeed :).

naste.de.lumina

15th January 2015, 07:21

AN HISTORICALLY MOMENTOUS DAY

By Andrew Hoffman - January 14 2015 from Miles Franklin Blog (http://blog.milesfranklin.com/an-historically-momentous-day)

Remember this day – Wednesday, January 14th, 2015; as it may well be recalled as a key inflection point in financial history. Before writing this article, I had planned on writing of just one “historically momentous” event – which in and of itself, is noteworthy in the chronology of the global collapse of 2015; i.e., last night’s implosion of base metal prices, signaling the “death of manipulation (http://blog.milesfranklin.com/the-death-of-manipulation)” of the illicitly supported copper market. However, before I even started writing – at 8:40 AM EST – no less than seven such events littered the global economic and financial landscape.

Actually, I had planned on also highlighting the utterly insane manipulations of yesterday’s markets – as the PPT desperately attempted to prevent the “Dow Jones Propaganda Average (http://blog.milesfranklin.com/the-dow-jones-propaganda-average)” from plunging; whilst the Fed desperately attempted to prevent the 10-year yield from closing below the October 15th “flash crash” low of 1.89%, yielding universal realization of the “most damning proof yet of QE failure (http://blog.milesfranklin.com/the-most-damning-proof-yet-of-qe-failure)”; and the Cartel desperately attempted to slow the momentum of the past two weeks’ explosion of PM prices, particularly in non-dollar currencies. Suffice to say, the piddling “salvation” achieved by yesterday’s efforts has been decidedly annihilated this morning; as care of said “historically momentous” factors, stocks, commodities, and interest rates are plunging; whilst currency markets are in chaos; and what do you know, gold prices are surging – as silver, a day after another enormous sales day at the U.S. mint, is also looking extremely strong.

And thus, in no particular order, here are today’s “historically momentous” events; which, cumulatively, will make it eminently difficult for TPTB to prevent universal realization of a far more terrifying sort; i.e., that “2008 is back (http://blog.milesfranklin.com/2008-is-back-with-one-temporary-exception).”

1. I could kick myself, as for the past week I’ve queued up an article topic, discussing the irrationality of copper and zinc prices holding up so well, whilst the Bloomberg Commodity Index plunges to a 12-year low. Moreover, in the case of “Dr. Copper” – the poster child of industrial commodity demand; or as I called it last year, “Dr. Death (http://blog.milesfranklin.com/doctor-death)” – it is also amidst a horrific Chinese inventory scandal. In other words, it was just a matter of time before copper “met its maker.” And finally, after gradually weakening over the past week, it suddenly collapsed last night, along with zinc and all the base metals. Down 5% today alone, to $2.57/lb, it is now down 11% from the $2.90/lb level it ended 2014 at; whilst zinc is now just $0.92/lb, from $0.99/lb at year-end. Both metals have a long way to go to the $1.25/lb and $0.50/lb lows of 2008, respectively, but rest assured they’ll probably come close. And when they do – and the Bloomberg Commodity Index makes multi-decade lows, not only will BHP Billiton and Rio Tinto again teeter on bankruptcy, but the “Miles Franklin Silver All-Star Webinar Panel’s (http://blog.milesfranklin.com/miles-franklin-all-star-silver-panel-webinar)” forecast of a 25%-50% silver production decline will appear far more likely.

2. After plumbing 20-year lows for the past year, mortgage purchase applications exploded 24% last week alone; and refinancing applications, an incredible 66%! And no, this is NOT “good news”; but instead, the “sum of all fears” regarding U.S. consumer and Federal insolvency.

To wit, I spent the New Year’s holiday in Arizona with a very close friend, who said he has just refinanced his mortgage. When questioned, he said Quicken Loans now sends email “alerts” whenever rates fall enough to warrant a new mortgage, with no material costs to complete the process. Immediately after completion, he receives a letter from Fannie Mae, reiterating their ownership of hits mortgage, and the perpetual refinancing process starts anew, as Quicken prepares its next email “alert.” Frankly, I was in awe – realizing that this, in fact, is a new form of QE, as the government is directly “giving” money to the public; thus, indebting it further, whilst adding massive debts to the Federal balance sheet. Which, by the way, is conveniently hidden from view, as Fannie and Freddie’s nearly $6 trillion of nationalized debt is held “off balance sheet.” Throw in the 3%-down (http://www.zerohedge.com/news/2015-01-08/president-obama-explains-how-fhas-3-down-mortgages-are-great-america-live-feed) mortgages the FHA is now offering to subprime lenders, and you can see the Fed’s printing presses have decidedly not been “tapered” – nor its appetite for financial destruction. Of course, you can bet that few, if any (http://www.zerohedge.com/news/2014-11-03/why-housing-dead-first-time-buyers-collapse-27-year-lows), of the 24% increase in mortgage applications will actually turn into new home purchases. Or, for that matter, that the waves of refinancing will cause Americans to “spend” – as opposed to paying off other debts.

3. In my “2015 predictions (http://blog.milesfranklin.com/2014-review-and-2015-predictions),” I forecast “Retail Armageddon” following this year’s historically horrible holiday spending season. Additionally, in yesterday’s “things I’m grateful for (http://blog.milesfranklin.com/things-im-grateful-for),” I noted my incredulity in seeing the MSM and Wall Street continue to expect holiday spending to be “salvaged” despite an 11% plunge in “Black Friday” weekend sales. Well, just this morning, that illusion was decidedly shattered, when it was reported that December retail sales not only plunged by 1.0%, compared to expectations of just a 0.1% decline. Thus, the oil price plunge has decidedly NOT acted as a “tax cut”; as not only evidenced by the shockingly bad retail sales, but plunging load factors at airlines like American Air (http://www.zerohedge.com/news/2015-01-13/despite-gas-tax-cut-airlines-see-tumbling-traffic-outsource-us-jobs)! And oh yeah, even “excluding gasoline sales,” retail sales still declined.

4. The Fed may have succeeded in closing the 10-year yield at 1.89% yesterday, mere tenths of a basis point above the October 15th “flash crash” low. However, this morning it is in FREEFALL – touching at low as 1.78% earlier this morning, and sitting at 1.81% as I speak. In other words, the market is now fully “front-running (https://www.youtube.com/watch?v=hLoaHz7Cr2E)” QE4, expecting it sooner rather than later; or as I’ve deemed it, the inevitable “Yellen Reversal (https://www.youtube.com/watch?v=inRCFVa8nPQ).” And not only here, but throughout the world – as evidenced by the Japanese five-year yield yesterday joining those of Germany and Switzerland in negative territory. I mean, can you imagine the insanity of paying the world’s most insolvent entities for the right to lend them money? I can, as “investors” are simply betting the BOJ, ECB, and SNB – among others – will monetize such bonds at still higher prices. Of course, whilst investors rush headlong to the “safety” of QE-supported sovereign bonds – no matter how insolvent their issuers – they are fleeing “2008-style” from the debt of insolvent corporations!

5. Speaking of the ECB, the Euro has plunged to another nine-year low this morning – of 1.174 at its low. “Coincidentally” before next Tuesday’s potentially momentous ECB meeting, the highest EU court essentially gave a green light to the constitutionality of QE. Thus, gold is again surging in Euro and Swiss Franc terms, as the orchestrated three-year “bear market” is decidedly OVER (http://blog.milesfranklin.com/end-of-the-gold-bear-market). It’s only a matter of time before gold in Euros, Swiss Francs, Japanese Yen, and countless other currencies join Ruble-priced gold at all-time highs; and ultimately, as I’ll discuss in tomorrow’s Audioblog, U.S. dollar-priced gold.

6. Also on the topic of CRASHES, how about Bitcoin? Down another 20% overnight – to a low of $172 – it is now down 40%
this year alone, and 85% from the all-time high set barely a year ago. I’ve written exhaustively of my views on Bitcoin; and frankly, the concept of alternative currencies, whilst intriguing, has a LONG, LONG way to go, even if ultimately successful. That said, Bitcoin will NEVER meet the parameters of money (http://blog.milesfranklin.com/are-bitcoins-money) ; and sadly, countless tens of thousands are finding that out the hard way.

Nor, for that matter, are mining stocks – which despite the potential for material gains, are still just shares of ownership of companies hoping to profitably mine gold and silver, amidst a “minefield” of industry and government-erected obstacles. Just look at the massively dilutive financing announced yesterday by one of the industry’s “best” miners – Yamana Gold – causing its price to plunge 13% yesterday alone. In said “2015 predictions,” I also forecast complete paralysis of the global gold and silver mining industries, from
already devastated levels – and that was
before the base metal implosion I started today’s article discussing. Recall, roughly two-thirds of all silver production emanates as by-product from other types of mines – for the most part, copper or lead/zinc.

7. Though not momentous today, we are but eleven days from the potentially historic Greek snap election – in which the “anti-austerity” (read “pro-default”, “anti-Euro”) Syriza party is expecting a dramatic victory. Seeing its leader, Alexis Tsirpas, claiming Greek economic data is dramatically overstated – whilst government tax receipts collapse, as citizens anticipate a “debt jubilee,” it’s awe-inspiring to see the “revenge of the people (http://blog.milesfranklin.com/revenge-of-the-people)” movement I anticipated in action.

Well, that’s enough for this “historically momentous” day; other than to conclude with this (http://www.mineweb.com/chinese-buy-29-tonnes-gold-last-3-days-2014/) news of the ongoing explosion of global physical gold demand – which will inevitably go parabolic when, likely much sooner than most can imagine – the entire world realizes the end game of history’s largest fiat Ponzi scheme, “QE to Infinity,” is not just inevitable, but imminent.

ThePythonicCow

16th January 2015, 23:08

Where are we now, and what's coming ... ?

Two months ago, back in Post #12 (http://projectavalon.net/forum4/showthread.php?76591-Global-Currency-Reset--SDR-s-and-the-New-Bretton-Woods-by-JC-Collins-&p=896768&viewfull=1#post896768) of this thread, I wrote:

I predict that by early 2015 either the US lame duck Congress will have passed the long stalled 2010 IMF Code of Reforms, as explained in JC Collin's A Global Currency Reset -- Changing the Architecture of the Financial World (http://philosophyofmetrics.com/2014/08/02/global-pandemic-and-quarantine/), or
the manipulation of the price of Gold and Silver will end, with China offering to purchase gold at a price perhaps twice that of the current price, as described in this article at "Adask's law" blog (http://adask.wordpress.com/2014/09/11/harvey-organ-predicts-manipulation-of-goldsilver-to-end-this-year/).
My record of predictions remains perfect ... perfectly wrong :).

Some things seem clear enough, in which we all seem to agree. Some other things are matters of considerable debate. And in any case, predicting, especially of the future, remains difficult.

Signs of momentous financial, economic and monetary stress continue to build up, such as outlined in naste.de.lumina's post just above.

Somehow, it seems that the US Petro-Dollar (USD) based world monetary system is involved in a major transition, to some other monetary system. While a few anticipate that the next system will no longer be controlled by some bastardized banksters behind the scenes, I predict that the next system will once again be so controlled (oh - would I love to be proven wrong on this prediction - if the alternative is something better.)

A couple of weeks ago, in an Editor's Note to his "Fed Vs. BIS? Fed Regulatory Stance Seen Boosting 'Wall Street Party' " article (http://www.alt-market.com/articles/2455-fed-vs-bis-fed-regulatory-stance-seen-boosting-wall-street-party), Brandon Smith, Founder of Alt-Market (http://www.alt-market.com), describes perhaps as well as any of us what many of us agree with:

=============

It is important to note that the new trend of the Bank Of International Settlements (BIS), the central bank of central banks, making proclamations and warnings contrary to its own underling "national" central banks' positions has been growing for the past year. When one understands that the BIS essentially dictates all policy actions of its member banks (just read the article 'Ruling The World Of Money' by Harpers), the idea that the BIS is at odds with the Federal Reserve is utterly ridiculous. However, if you recognize the conflict as a kind of Kabuki theater, the whole thing makes much more sense. The BIS is setting itself up as the burgeoning "prophet" and "hero" of the new age, an age that will begin with economic turmoil, monetary collapse, and the birth of a new world order financial structure the IMF has been calling "the economic reset". The U.S. dollar is the primary target of this reset, and by extension, the idea of sovereign currencies and fiscal management in general. With the loss of reserve status and the implosion of the Greenback, the BIS can waltz onto the terrible scene, say "we told you so", and then offer the solution to the crisis it helped to create - a global central bank designed to "save us all" from the complications and catastrophes caused by too many banks "working at cross purposes"...

=============

To summarize Brandon Smith's above comments - it appears that we are being presented with the (1) thesis of the hegemony of the US Dollar, (2) the anti-thesis of the BRICS efforts to develop alternatives, which, after some Sturm und Drang resulting from the chaotic confusions of conflicting currency systems, will combine into the (3) synthesis of a new world monetary order.

The rest of the new world order will follow, for, as Mayer Amschel Rothschild is claimed to have said, it matters not who makes the laws, but rather who controls the money.

Where we disagree seems to include, amongst other matters, how rough that transition will be.

The quick and easy transition:

The JC Collins named in this thread's title is anticipating a relatively rapid and painless transition, this year, to a world monetary system based on some variation and extension of the IMF and its SDR's. For example, in JC Collins latest piece, yesterday, The Fed & SDR Denominated Derivatives (http://philosophyofmetrics.com/2015/01/15/the-fed-sdr-denominated-derivatives/), JC Collins concludes:

=============

The USD will not collapse and the SDR will be implemented as the international unit of account. No one currency or country has the ability or policy framework to deal with the challenges presented in correcting the imbalances which have developed from the USD system. China, Russia, or any other grouping of countries, are not interesting in replacing the USD as the international unit of account. The response to the systemic imbalances which exist will require the unified approach to policies and procedures which only the multilateral framework can provide.

=============
The slow and brutal transition:

Charles Nenner sees a 100 year war cycle, each time getting worse. He's expecting a major world war over the coming decade, with perhaps a billion people slaughtered, as each century, the body counts gets worse:
AkGGXzQdo-M

New Gold Bull Market Coming Soon
(interview with Greg Hunter of USAWatchDog)
===

There may be a saving grace to the dumbing down of Americans with slow toxins in their food, water, air, medicines, media, schools, and lord knows where else.

We Americans are no longer herds of wild buffalo and untamed stallions. We've become slow moving, over weight, dumbed down cows, easily herded by lap dog poodles.

So perhaps the bastards won't have to slaughter and imprison and starve so many of us, in order to have their way. Ten million Wal*Mart customers make a far less formidable army than the few thousand that fought for George Washington in the American Revolution, or the 910, with but 2 cannons, that won independence for Texas against the Mexican army of Santa Anna.

Perhaps also the bastards realize that a total war now would likely set back advanced civilization on this planet for tens of thousands of years. Perhaps that's part of the reason they have been working so long and hard, in so many ways, to dumb us down.

===

I am presently expecting that the transition will be more difficult than JC Collins expects, but less so than Charles Nenner expects.

I am expecting that a new, more globally controlled and based source of "reserve currency" (more properly called, source of "primary, most liquid, debt") will replace the US Dollar in its present role as the reserve currency.

I am expecting that a substantial portion of the tens of trillions of debt issued to nations and corporations around the world, payable in nearly "free" (very low interest rate) US Dollars, will default, as the US Dollar becomes (quite deliberately so) scarce. The inflation scares will continue to threaten grandiose money printing by the Federal Reserve, which is actually the back stopping of the largest issuance of debt in any one currency ever, in the (published) history of human civilization.

That is the primary cycle we are seeing here now, a boom-bust cycle in US Dollar (or its little brothers, the Euro and Yen) denominated debt, which will force many national and local governments, many banks and other corporations, and many individuals, into bankruptcy, once (like oil fracking companies and Greece, already) they can no longer make payments on their debt, pensions, insurance policies, derivatives, options, and promised social benefits (such as Obamacare.)

Once again, the bastards will clean up. They will institute a new debt-backed monetary scheme, even more global and more under their covert control than before. They will institute more Draconian laws and foreclose on more property and future income and tax revenue streams.

The "divide and conquer" strategies will continue; they work quite well. By now, most of humanity, and even a decent portion of Americans, have figured out that the bastard politicians and bureaucrats in Washington, DC, are no more to be trusted than a nest of startled rattle snakes.

The false flag events will continue; they work quite well, even when they divide the few who bicker over what color the false flag was from the many who accept, more or less, the official story.

There may well be a major false flag event, even more traumatic than 9/11, in the near future, just before key events unfold, like the stage magician having his most attractive and alluringly dressed assistant come on stage, just before a critical slight of hand.

===

Last, I am expecting my record of predictions to remain dismal and abysmal.

ThePythonicCow

17th January 2015, 06:43

...
Where we disagree seems to include, amongst other matters, how rough that transition will be.

...
I am presently expecting that the transition will be more difficult than JC Collins expects, but less so than Charles Nenner expects.

Gregory Mannarino on the other hand is expecting the worst. In a new blog post We Now Stand At The Precipice Of Global War And Financial Ruin (http://seekingalpha.com/instablog/29482055-gregory-mannarino/3646256-we-now-stand-at-the-precipice-of-global-war-and-financial-ruin), he concludes:

===========

As we all now stand on the edge of a global financial meltdown, our policymakers are going to push us into a world war. They are going to blame this war for the financial cataclysm which will soon be engulfing the entire world.

Then the real blame game will begin, when this push to war was the plan all along.

I have been screaming from rooftops for years telling of all these events which are now occurring, and they are now unfolding quickly in a cascade of unstoppable events.

It is my hope that you start to pay attention.

The issue is debt.

The global debt issue is the largest financial bubble in the history of the world. But it will become a resource issue for you directly.

As the debt bubble continues to crack and eventually burst, every fiat based currency will become worthless, therefore the global economy as we know it will cease to function.

There will be bank runs, price controls, chaos in the streets in every corner of the globe, a suspension of the Constitution, and Martial Law right here in the US.

The breakdown of the global debt based economic model will be the single most apocalyptic moment in human history...

Are you ready?

===========

gripreaper

17th January 2015, 22:50

The thing about debt is: it does not have to be repaid, especially if enough nations and it's populations understand how debt is created and how the actual owners of IMF, BIS, and the Federal Reserve have no skin in the game and will not "lose" anything if the dollar collapses. ALL debt instruments are on a timeline to eventual expiry and zero value anyway, tracked by the Federal Reserves own CUSIP tracking system.

So, the game is to continue to issue more and more debt to keep the ponzi scheme of debt service going, which forces all energy, human capital, and natural resources upstream and into the hands of the few elite at the top. ALL value added winds up in the coffers of these elite based on this system of debt.

So, restructuring this debt into a new system and re-leveraging it to where it becomes manageable and payable, is not the only answer. A full on default, with a subsequent discharge is also an option. The reason this option is never talked about or entertained is because this removes legal tender from circulation, and it exits commerce, and causes mass hardship on an already burdened and poor population of planet earth.

The removal of dollars from circulation is what happened after the Federal Reserve got everyone into debt in the early 1900's, and then shrunk the money supply into the 1930's and bankrupted the G-5 nations, which to this day remain in receivership to this cartel. Its the same old game in different clothes, albeit more global.

I say default. DON'T pay back the bankster cartel. I think the BRICA nations may be getting ready to do just that. I hope they succeed. When debt is discharged it ceases to exist. The current debt system based on nothing but "promises" to continue paying into the system, only continues because we continue to support it.

A reset will probably devalue the current debt instruments by as much as 50% anyway, so why not take the full hit? We are going to take the hit to some degree anyway. The only unknown is what type of system are we willing to accept and will it be a psychopathic elite alien archonic Babylonian bankster controlled system, or one of equity?

eaglespirit

18th January 2015, 00:20

HIGHER Equity IS Here...Times Up!!!

ThePythonicCow

19th January 2015, 01:55

So Putin is forced to sell gold to make up shortfall in revenue in order to bring in food for the winter.
Well, the numbers are in, for the last couple of months since you wrote the above.

From "De-Dollarization" Deepens: Russia Buys Most Gold In Six Months, Continues Selling US Treasuries (Zerohedge) (http://www.zerohedge.com/news/2015-01-18/de-dollarization-deepens-russia-buys-most-gold-six-months-continues-selling-us-treas):

===============

The rumors of Russia selling its gold reserves, it is now clear, were greatly exaggerated as not only did Putin not sell, Russian gold reserves rose by their largest amount in six months in December to just over $46 billion (near the highest since April 2013). It appears all the "Russia is selling" chatter did was lower prices enabling them to gather non-fiat physical assets at a lower cost. On the other hand, there is another trend that continues for the Russians - that of reducing their exposure to US Treasury debt. For the 20th month in a row, Russia's holdings of US Treasury debt fell year-over-year - selling into the strength.

Buying low...

Russia gold reserves jump the most in six months in December, near the highest since April 2013...

http://thepythoniccow.us/20150118_russia1_0.jpg
and selling high...
Russian holdings of US Treasuries are now at the 2nd lowest since 2008...

http://thepythoniccow.us/20150118_russia.jpg
It would appear the greatest rotations that no one is talking about are the fiat to non-fiat and the paper to physical shifts occurring in China and Russia.

===============

There's more at the above link.

As usual, the main stream story attached to events is not to be trusted. Surely (may I call you "Shirley" <grin> ?) if Putin has both gold and treasuries to sell, to make up his balance of payments shortfall, he will more likely be selling treasuries.

ThePythonicCow

19th January 2015, 02:06

gripreaper

19th January 2015, 05:32

Paul, you might find this article interesting as I found it linked by Joseph Farrell. It describes the deep historical culture of Russia and how they can be so staunchly independent and produce everything they need "in house" where they are not subjected to the whims of outsiders and how they have historically dealt with conflict. I found it enlightening as I never thought of Russia in this way.

http://www.sott.net/article/291356-The-Russian-national-character-Confounding-the-West-for-centuries

By the way, I am warming up to the idea of a BRISCA system developing which has the potential to operate independently of the petrodollar and the Babylonian banksters system. I have always been of the mind that,. after the Bilderberg agreements that all nations bought into, that they no longer had the capacity to de-leverage themselves and to extricate themselves from the global system...

But I am digressing....

naste.de.lumina

19th January 2015, 13:51

By the way, I am warming up to the idea of a BRISCA system developing which has the potential to operate independently of the petrodollar and the Babylonian banksters system. I have always been of the mind that,. after the Bilderberg agreements that all nations bought into, that they no longer had the capacity to de-leverage themselves and to extricate themselves from the global system...

But I am digressing....

At 0:12

“…So I think you need a New World Order that China has to be part of the process of creating it, and they have to buy in. They have to own it the same way as I said the United States owns… the Washington consensus… the current order…”

George Soros interview - 2 of 2 - Oct. 23, 2009 - World Economy- Financial Times
GSscAIN8Omo

All together in the same bed??

ThePythonicCow

20th January 2015, 00:06

Paul, you might find this article interesting as I found it linked by Joseph Farrell.
That's a recent article by Dimitri Orlov, originally posted at Peculiarities of Russian National Character (ClubOrlov) (http://cluborlov.blogspot.com/2015/01/peculiarities-of-russian-national.html).

Dimitri's ClubOrlov (http://cluborlov.blogspot.com) is on my list of daily sites to visit, looking for new posts. Dimitri has (as best as I can tell, from far away in Texas) some of the best insights into what is happening in Russia and the Ukraine of any English writing blogger out there. I recommend his blog highly.

ThePythonicCow

20th January 2015, 00:31

By the way, I am warming up to the idea of a BRISCA system developing which has the potential to operate independently of the petrodollar and the Babylonian banksters system.

At 0:12

“…So I think you need a New World Order that China has to be part of the process of creating it, and they have to buy in. They have to own it the same way as I said the United States owns… the Washington consensus… the current order…”

...
All together in the same bed??
Yes, as best as I can figure, the American neocon/neonazi/Bush/Rockefeller/... crowd has been a major player in China's economic/political/monetary power since at least the rise of Mao Zedong after the Second World War.

Well, actually, it goes back further than that, involving the British (and so presumably the Rothschilds) in such events as the Opium Wars between the British Empire and China, from 1839 to 1860, and (wild speculation here) the invasion of China by Japan in the 1930's, which aggravated long standing tensions in the region, and which let to a massive theft of Chinese gold, that conveniently ended up in the hands of the American Fascists, after the Second World War.

The apparently independent industrial, economic and monetary endeavours of the BRICS nations are likely at least in substantial part "controlled opposition", being used to break down the hegemony of the American Empire, and to create the chaos and depression out of which the next stage of the New World Order can be formed.

The enemy of my enemy (as in, for example, Russia's Putin opposing Obama and US military, financial, and intelligence operations) is not necessarily my friend (even if I do find it easy to cheer Putin on.) Perhaps I could say similar things about some Chinese leaders as I do about Putin, however the Oriental civilization is sufficiently outside of my awareness that I lack even such basic clues (or common confusions, as the case might be.)

I could use a good Club Wei blog and a China Today news outlet for Westerners. Then, perhaps, after a few decades of following such events, I might have some clues.

ThePythonicCow

20th January 2015, 03:09

The apparently independent industrial, economic and monetary endeavours of the BRICS nations are likely at least in substantial part "controlled opposition", being used to break down the hegemony of the American Empire, and to create the chaos and depression out of which the next stage of the New World Order can be formed.
While I was making this brief and hesitant post, Ken of Redefininggod.com was making this far more substantial post, saying much the same thing, in far more detail: George Soros and the elite’s China-fronted New World Order (http://redefininggod.com/2015/01/george-soros-and-the-elites-china-fronted-new-world-order/).

===============

Behold the engine that is driving humanity into the New World Order, the G20…

http://redefininggod.com/wp-content/uploads/2015/01/g201st2.jpg
…This picture was taken during their first summit, “The G-20 Summit on Financial Markets and the World Economy,” which was held in Washington, D.C. two months after the Lehman Shock in 2008.

Almost a year later, FT conducted an interview of George Soros in which he subtly laid out the banksters’ post-crisis plan for ushering in the NWO. When a reader first passed me a link to the interview, though, I couldn’t believe my eyes. I thought it might be faked, so I did some checking on its authenticity and found out it was actually real. Here was George Soros — who is unquestionably a Western elitist even in the eyes of the most ardent Kool Aid drinker — speaking of using China to bring in the New World Order. But it just goes to show that the banksters have never really hidden what they’re doing; they just reveal it in dry interviews and insufferably bland policy papers while the public is distracted by an emotionally charged, easily understood “good guy” versus “bad guy” fairy tale.

According to this fairy tale, which is offered by both the mainstream media outlets and the overwhelming majority of alternative media sources, the US is in conflict with Russia, and a determined band of freedom fighting nations (the BRICS) are on a quest to free themselves from the evils of Western imperialism once and for all. Well isn’t that precious? It’s also a load of childish bullsh*t.

In reality, both the Western powers and the BRICS nations are working closely together through the G20 to bring in the Central Banking Cabal’s New World Order. Here are the nations of the G20 (the 20th “nation” is the EU), with the core Western powers circled in blue and the BRICS circled in red…

http://redefininggod.com/wp-content/uploads/2015/01/g20-members.jpg
…Once their plans come to culmination, the world will be ruled by a multilateral / multipolar financial and political order that will feature China as the most prominent nation, supplanting the United States. But don’t take my word on this; take it straight from the gefilte fish-eating horse’s mouth…

http://redefininggod.com/wp-content/uploads/2015/01/sorospic.jpg
Starting at the 9:26 mark of this video (https://www.youtube.com/watch?v=YlG_zYgG05o&t=9m26s) and continuing on into the second part (https://www.youtube.com/watch?v=GSscAIN8Omo), George Soros tells us why the globalists used China to bring in the NWO…

>>> I think this would be the time, because you really need to bring China into the creation of a new world order — financial world order. They are kind of reluctant members of the IMF. They play along, but they don’t make much of a contribution because it’s not their institution. Their share is not commeasurate — their voting rights are not commeasurate — to their weight. So I think you need a New World Order that China has to be part of the process of creating it, and they have to buy in. They have to own it the same way as I said the United States owns… the Washington consensus… the current order, and I think this would be a more stable one where you would have a coordinated policies. <<<

So he is saying that the way to bring the Chinese into the NWO is to have them help create it and to give them “ownership” of it. This is not a new idea, of course, since the Rockefellers hinted at this strategy back in 1961 in their NWO blueprint book Prospect for America: The Rockefeller Panel Reports…

http://redefininggod.com/wp-content/uploads/2014/11/china75b.jpg
…(from page 75) This is the entry I wrote about the book: The Rockefeller Plan for the BRICS New World Order, in their own words (http://redefininggod.com/2014/11/the-rockefeller-plan-for-the-brics-new-world-order-in-their-own-words/).

I also wrote about the globalists’ China strategy and their use of a dialectic problem / reaction / solution scenario in an entry titled David Wilcock and the Real NWO, Part 2 of 2 (https://web.archive.org/web/20140209143251/http://blog.redefininggod.com/2013/07/16/david-wilcock-and-the-real-nwo-part-2-of-2.aspx)…

>>> Problem – The evil Western power elite are out to steal everything and kill everybody!!! (The engineered truth movement has ensured that we got this message loud and clear.)

Reaction – People are both angry and fearful, and are longing to end the old system and start something new.

Solution – The angelic BRICS power elite swoop in on white unicorns to save the day and give us a new financial system and all the money people need. (The false-light crowd has ensured that we’ll look at our “saviors” in this light.)

Pondering this problem / reaction / solution scenario begs the question…

Why China? Why would the Illuminati, whose home base is in Western Europe, have the Chinese front the public face of their New World Order?

===============

Ken's answers to that question, "Why China?", and more are to be found in his article George Soros and the elite’s China-fronted New World Order (http://redefininggod.com/2015/01/george-soros-and-the-elites-china-fronted-new-world-order/).

T Smith

20th January 2015, 03:38

ThePythonicCow

20th January 2015, 03:55

The thing about debt is: it does not have to be repaid, especially if enough nations and it's populations understand how debt is created and how the actual owners of IMF, BIS, and the Federal Reserve have no skin in the game and will not "lose" anything if the dollar collapses.

The IMF, BIS, and Fed will not lose anything if the dollar collapses (so long as their controlling factions maintain control of whatever new debt-based system replaces it), but it seems to me that there are still many influential power brokers who have everything to lose if the dollar collapses to zero, namely the CIA, NSA, Military/Security Industrial Complexes, Big Pharma, and the various other cartels whose relationship with debt is that of drug addict to dealer. I'm not sure the CIA et. al could continue to function with a dollar valued at zero, so it is in the collective interests of these power blocs to make sure the ponzi-scheme continues and governments and nations continue to play nice in the sand box, take their fixes, and continue to pay their debts.

If the BRICA nations, or even the host nations suddenly in an moment of enlightened epiphany suddenly refuse to play along, one can be almost 100% sure the addicts in control, and whose very existence depends on the dollar, will wage a World War before they allow the players to simply take their bats and balls and walk away.

My guess is that none of the Fed, BRICSA, the CIA, the NSA, or the BIS is ultimately in control of their choices. They are all likely caught in a larger web, playing their roles ... until such time as that role changes.

Of course, such changes are not sudden. An aircraft carrier is not in control of where it sails, rather its Captain is. But the one second shift in the Captain's intention might take minutes to turn the ship.

When betting on fixed horse races, one cannot win by analyzing the horses or riders. One must know how the race is secretly fixed.

gripreaper

20th January 2015, 05:04

The Rockefeller Plan for the BRICS New World Order, in their own words (http://redefininggod.com/2014/11/the-rockefeller-plan-for-the-brics-new-world-order-in-their-own-words/).

This is fairly succinct. Now I'm cooling back down about the BRICA alliance being in opposition to the NWO. It's more likely that this is controlled opposition, and what is even more scary, is that the alt/media, the patriot movements and the truther movements, are all serendipitously the foot soldiers to sell the game.

Kinda sad actually.

Thanks Paul for your continued effort to bring this game to light and to distill all of the competing and conflicting variables into the actual synthesis.

naste.de.lumina

20th January 2015, 16:08

While I was making this brief and hesitant post, Ken of Redefininggod.com was making this far more substantial post, saying much the same thing, in far more detail: George Soros and the elite’s China-fronted New World Order (http://redefininggod.com/2015/01/george-soros-and-the-elites-china-fronted-new-world-order/).

The propaganda for the construction of a new dialectic in alternative community (Awake (but not much) x sleepers) is doing very well.

Benjamin Fulford - January 19, 2015: Financial war coming to a head, Swiss join Pentagon/UK/BRICS alliance (http://hipknowsys.blogspot.de/2015/01/benjamin-fulford-january-19-2015.html)

The radical plunge in the Euro last week against the Yen, the US dollar and especially the Swiss Franc is a clear indication the battle over control of the financial system, and the world, is coming to a climax. The Swiss move to decouple their Franc from the Euro came one week before an elite summit meeting in Davos, Switzerland is due to kick off with a keynote speech by China’s number 2 Li Keqiang. This is the first time the Chinese government has sent any one significant to Davos in 5 years. The speech will focus on China’s take on the international situation and will offer possible solutions to various international problems. This Davos meeting is being called “A New Global Context” a name clearly meant to disassociate it with the fascist New World Order. In closed room sessions, Chinese government sources say Li will be discussing Chinese/Swiss financial integration. What this clearly indicates is that the Swiss banking world, including the central bank for central banks the BIS, have joined the BRICS/UK/Pentagon alliance.

More (http://hipknowsys.blogspot.de/2015/01/benjamin-fulford-january-19-2015.html)

ThePythonicCow

20th January 2015, 19:49

naste.de.lumina

20th January 2015, 21:19

The propaganda for the construction of a new dialectic in alternative community (Awake (but not much) x sleepers) is doing very well.
Well, when I read that, my first reaction was to wonder what you considered the "real story", and what the "propaganda" or (false, I presume) "dialectic".

But then I saw you had quoted something from Fulford, so I figured I had better read what you quoted first, as perhaps that might explain it.

Unfortunately, as usual, I came away from attempting to read Fulford more confused, not less.

So my original question remains: In your view, what's the "real story", and what's the "propaganda" or false "dialectic"?

:)

Li will be discussing Chinese/Swiss financial integration. What this clearly indicates is that the Swiss banking world, including the central bank for central banks the BIS, have joined the BRICS/UK/Pentagon alliance.

Dialectic:

The BIS 'joining forces' with the BRICS movement against the Rothschild's/Rockefeller's fascist New World Order.

All in the same bed together I consider the fact behind the smoke and mirrors

ThePythonicCow

21st January 2015, 00:32

naste.de.lumina

21st January 2015, 01:04

Dialectic:

The BIS 'joining forces' with the BRICS movement against the Rothschild's/Rockefeller's fascist New World Order.

All in the same bed together I consider the fact behind the smoke and mirrors

I'm still uncertain that I am understanding your post ... sorry :).

What part of this do you consider real truth (the fact), and what part do you consider to be BS (the smoke and mirrors) ?

In the face of that little communication problem , simplifying, I tend to agree with the view presented by Ken about it, in his blog: http://redefininggod.com/. Right?:thumb:

Hugs.

Naste.

naste.de.lumina

22nd January 2015, 14:28

https://philosophyofmetrics.files.wordpress.com/2015/01/revolution.jpg?w=672&h=372&crop=1

THE SHADOW OF TOMORROW - JANUARY 22, 2015 - From JC COLLINS blog (http://philosophyofmetrics.com/2015/01/22/the-shadow-of-tomorrow/)

When President Obama stated last night in his State of the Union Address that the “shadow of crisis has passed” it perfectly set the stage for the next phase of the CSI, or Cultural and Socioeconomic Interception. The CSI is a prolonged and multi-scripted methodology which is implemented over years and decades to engineer specific adjustments to the collective awareness of mass populations.

The economic manipulation from external forces in the years leading up to the French Revolution, and the script which shifted the blame onto the the monarchy, is one such example of the CSI procedure. Another is the recent representation of Russia and Putin in the western media as the aggressor in the Ukraine situation. The script is rolled out through the mass media in segmented flashes with just enough time in between to lull the viewer into a state of apathy and acceptance.

The CSI is not one single event, or a false flag incident, such as the Reichstag Fire in Nazi Germany or the Great Fire of London in 1666, but is a series of acutely engineered scripts which are melded together by the single false flag events. See post The First False Flags – Money Changers and the Great Fire of London in 1666, for a more detailed explanation of the CSI.

Back in the beginning of 2014 I began to explain how a method of the Hegelian Dialectic was going to be used in transitioning the world from the unipolar USD based financial system to the multilateral SDR based financial system. It was stated that the process of “problem, reaction, solution” would herd and manipulate the mass populations of the world into accepting the supra-sovereign governance of the global institutions.

Each region of the world has different and unique circumstances which require different and unique modifications to the CSI process. These micro scripts are intended to consolidate within the larger macro script as the full transition begins to manifest in the broader economy.

The micro CSI scripting is unfolding at a furious pace over the last few months, with increasing frequency in the last few weeks. The script of the economic recovery in America is the most obvious CSI which has been presented to the masses, and with the State of the Union speech last night, along with the “shadow of crisis has passed” phrase, we can determine that the recovery CSI has now been closed.

This analysis is extremely important because the macro CSI which has been slowly unfolding since the financial crisis of 2008, mainly from the emerging economies, such as the BRICS countries, and the Euroasian Trade Union, as well as some of the international institutions, has been promoting the script of systemic imbalances which have been caused by the USD reserve structure.

The script calls for a multilateral monetary framework to replace the unipolar USD framework. The shift away from a USD system, and the imbalances which have been created over the decades, such as exchange rate volatility and account deficits, will no doubt cause some dramatic lows and highs across the financial world. Some of the highs and lows are clearly visible today as the USD appreciates and drives further depreciation into any currency that is pegged to it.

As the multilateral continues to be implemented, this existing exchange rate structure will begin to fracture, as we witnessed last week with the Swiss franc, and the dollars held in the foreign reserve accounts of central banks around the world will be converted or exchanged for alternative liquidity, such as SDR bonds.

The recovery CSI has given the American banking and industry interests, represented in the colorful composition of the Democratic and Republican parties, the ability and confidence to shift-blame the massive deflation in the international financial system on external entities.

The script will read something like “external factors outside of American control have reversed the recovery and hard work of average Americans”. This script will focus mass awareness away from the coming internal governance measures, (required to integrate America into the multilateral system) and focus the confused and disappointed apathy of the masses onto whatever foreign and external source that is built into the macro script.

Any internal emotion will be swallowed in whole by manufactured racial tension and other methods of civil unrest.

The melding of the “American recovery” CSI script and the macro multilateral CSI script will require an “event” of undetermined characteristics and methodology. Now that the “recovery” script has been closed, we can expect to see this “event” take place at any time.

The “event” could be a geopolitical false flag, or some form of “sudden” crisis in the global financial system, or a combination of both. The candidates vary from an expansion of proxy wars in Ukraine and Syria, a sudden crisis between North and South Korea, or a fragmentation of the euro currency and consolidation of the European Union into the Euroasian Trade Union, and any other number of possibilities.

Perhaps an engineered global revolution with the end result clearly defined as a multilateral framework which “will reduce systemic corruption and correct financial imbalances”.

The intent of this post is not to scare or fear monger, which is why I carefully choose the words and language I use, but to bring awareness to the CSI process and how it is being implemented throughout mass populations around the world. It requires abstract thinking and the ability to recognize repeating patterns across the socioeconomic and geopolitical spheres.

The World Economic Forum and the IMF today called for a “central bank of oil”, which is code for regulating the oil pricing mechanism and ultimately using the SDR as the unit of account for not just oil, but all other commodities. This CSI scripting fits perfectly with what we have been discussing for the last year in regards to the multilateral transition. So far our analysis has been correct on both the methodology and scripting practices of the transition.

All central banks around the world are implementing their own micro CSI script for the purpose of shifting upward into the macro CSI script. This also includes Russia and China, both of which have been the most vocal about the need for the multilateral framework.

We are all like the people of France in the years and months leading up to the French Revolution. Please don’t accept any scripting which promotes the idea of the source of the problem becoming the solution to the problem. The French had no idea what hit them. We do. – JC

naste.de.lumina

25th January 2015, 21:43

Tsipras Addresses Greece, Says Bailout Agreements, "Troika Era" Are Over

by Tyler Durden on 01/25/2015 16:27

The first public address of Greece's new leaders, Alexis Tsipras has begun. The key highlights of his speech so far:

TSIPRAS SAYS GREEK PEOPLE HAVE WRITTEN HISTORY
TSIPRAS SAYS GREECE IS TURNING PAGE, LEAVING AUSTERITY BEHIND
TSIPRAS SAYS BAILOUT AGREEMENTS HAVE ENDED FOR GREECE
TSIPRAS SAYS TROIKA ERA IS OVER FOR GREECE
TSIPRAS SAYS SYRIZA GOVT READY TO NEGOTIATE, COOPERATE ON DEBT
TSIPRAS SAYS OLIGARCHS, ELITES IN GREECE HAVE BEEN DEFEATED
TSIPRAS SAYS SYRIZA VICTORY IS VICTORY FOR PEOPLES OF EUROPE

Europe will not be pleased.

Source: http://www.zerohedge.com/news/2015-01-25/tsipras-addresses-greece-says-bailout-agreements-troika-era-are-over

naste.de.lumina

26th January 2015, 00:29

Alexander Tsiparas the Greek 'revolutionary', can set an example.

How about a temporary moratorium until the end of an honest audit to make a survey of all government contracts with the globalist troika.

Fraudulent contracts will be void and those responsible are prosecuted. I think that would make a great savings if they cancel all it.

There must be a black hole of fraudulent agreements with trails that lead nowhere.

I also take care to not have accidents with nail guns, insect drones, etc.

http://videos.usatoday.net/Brightcove2/29906170001/2014/04/29906170001_3500592487001_video-still-for-video-3500241726001.jpg

Calz

26th January 2015, 09:05

Always love listening to this woman. Audio quality isn't great but worth the effort ...

___________________________

Catherine Austin Fitts-2015 Forecast Volatile & Violent

By silveristhenew | Published January 25, 2015

T9n4CHPST7A

Investment banker Catherine Austin Fitts predicts that 2015 is going to be “volatile and violent.” Fitts says, “I think 2015 is going to be a very rough year. I think you have to be prepared for wild swings. We’ve seen oil come down 50%.” Fitts also points out, “The creative destructive aspects are pretty scary.”

Are we going to have a big U.S. dollar devaluation at some point? Fitts says, “That’s a military question. Where the dollar comes out really comes down to both the covert and overt military capacity of the United States.”

On gold, Fitts says, “I think everybody believes they need some gold. Gold is central bank insurance. . . . Basically, what I say is you have to have a core position.”

Join Greg Hunter as he goes One-on-One with Catherine Austin Fitts, publisher and creator of the Solari Report.

http://usawatchdog.com/lawless-leaders-changing-the-world-catherine-austin-fitts/

ThePythonicCow

29th January 2015, 23:25

So far, I see several major points that should not be forgotten as we attempt to understand what is going on.

Regarding the basics of debt based money:

Debt money power grows out of the barrel of a gun: Money lenders ultimately depend on the control of superior brute force to collect (payments or collateral) in the future.
Debt money depends on promises of future returns in excess of present lendings: Eventually these promises exceed what actual goods, services, and resources can actually be provided, making cyclic collapses inevitable.
These cyclic booms and busts are further manipulated by the lenders to gain increased control.
Excessive debt discourages productivity. Why work and invest for the future, if one owes all one can earn to some lender?]
Excessive debt payments throttle future productivity gains, siphoning off earnings to pay off debt.
Excessive debt defaults result in the confiscation of productive assets that had been the collateral for failed debts, destroying productive capacity.
Eventually, debt based monetary systems self destruct.
These essential and unending increases in lending (to satisfy the even increasing promises of greater future returns and repayments) are eventually self-limiting, by destroying the productive capacity of the borrower.

Regarding the current geo-political-economic-monetary situation:

The depth, complexity and strength of the Russian-Chinese cooperation is underestimated. See this essential article: Vineyard of the Saker White Paper: the China-Russia Double Helix (http://vineyardsaker.blogspot.com/2014/12/vineyard-of-saker-white-paper-china.html), and the document it references, Larchmonter 445's Chinese Russia Double Helix (Mediafire, in docx, odt, pdf and zip formats) (https://www.mediafire.com/folder/fpid1fhd6nv59/China_Russia_Double_Helix).
The essential strength of the IMF, NATO and the European Union (EU) is based on the power of the Anglo-American empire, which is waning.
The essential premise with which I started this thread, the view of JC Collins that IMF SDR's will soon replace the US Dollar as the world's reserve currency, is essentially flawed ... it implies that the world's monetary system will remain under the control of such puppets of the Anglo-American empire as the EU and the IMF. That will not happen.
China especially, as well as Russia and the other BRICS nations, are rapidly building up trading and monetary associations, outside of the American and US Dollar hegemony, with many nations, around the world.
China, Russia and Iran have military superiority in their (vast) region of the world. Russia has demonstrated that they can totally disable our finest Aegis ship electronics (http://indian.ruvr.ru/2014_04_21/Russian-Su-24-scores-off-against-the-American-USS-Donald-Cook-5786/). Iran has supersonic cruise missiles that could sink the US Fifth Fleet within an hour. They all have air defense that is impregnable to US (or Israel) attacks. Russia has military superiority over all in space.

Finally:

Gold & Silver are money and the core of a new exchange and barter system to conduct trade. (Quoting Jim Willie's latest Hat Trick subscription newsletter.)

ThePythonicCow

29th January 2015, 23:36

“That’s a military question. Where the dollar comes out really comes down to both the covert and overt military capacity of the United States.”
Yes - it does - monetary power grows out of the barrel of a gun.

What Fitts hasn't been noticing so much, given her focus on money and the US Dollar, is that the military power of the Chinese Russian alliance, and the productive, economic, scientific, technology and resource base for such a military, is rapidly gaining dominance.

US Military power has been dominant, since December 7, 1941, when it entered World War II. It remains the most far reaching and visible military power in the world. But it has over reached, and is now falling to second place.

For example, the Anglo-American empire could no longer pull off a false flag of the scale of 9/11 -- it could no longer rely on the unquestioned (or at least unwitting) obedience of the various required participants. Too many people know too much; too many people, some in very high places, question the motives and integrity of the Anglo-American powers; too much power lies in the hands of those who would thwart or expose such an operation.

ThePythonicCow

30th January 2015, 00:15

For the last half century, we have seen the destructive power of lending used against lesser powers (individuals, corporations, local and regional governments, and nations), as documented for example by John Perkins in his book Confessions of an Economic Hit Man (http://amzn.com/0452287081).

We are now seeing this destructive power taking down the core pillar of the monetary system of the Anglo-American empire.

There is no longer an adequate supply of worthwhile collateral against which to lend. The Federal Reserve has to monetize US Treasury debt, because no one wants to hold even that most liquid, most fundamental, debt paper of the Anglo-American empire.

No one will lend a dime to a drug addict on their last legs, because no matter what the terms and conditions, there is no way they can pay it back, and nothing left of theirs to confiscate. The Anglo-American empire has now become such an addict. We've sold our daughters into slavery. We are homeless in our own land.

Any gold and silver held in Western bank vaults, no matter who the rightful owner, is being shipped East, at confiscatory prices, and in large and unrelenting volumes. We are selling our blood and our left kidney in order to maintain the illusion of American exceptionalism a few days longer.

The destructive power of debt based monetary systems is not like a gun, that one can choose whether or not to use against those one wants to rob from, or to keep from being robbed by.

No ... rather ... that destructive power is like a cancer, which turns against even the most powerful, eventually.

ThePythonicCow

30th January 2015, 00:37

My advice to others living in the West, based on the above: do everything you can to minimize your future dependence on promises to pay from others, be that paychecks, social benefits, insurance plans, pension plans, bank deposits or investments in stocks and bonds. We are living in essentially deflationary times. The "real" value of future receipts from work, savings, or benefits will decline; it has to. Far more has been promised to us than exists to be provided.

Reduce cash flow needs. Get out of debt. Reduce or eliminate essential payment streams, such as rent and utilities. Take control of one's own health so as to reduce or eliminate ongoing medical expenses.

Do whatever it takes, within one's abilities and foresight, to get by on less in the future. Transfer as much in the way of future earnings, payments, benefits, and wealth held by others in your name, into present holdings, held personally, which can be used to reduce future cash flow needs.

The immense monetization of debt by the Federal Reserve is not essentially inflationary. Back in times of actual and more substantial inflation in the US, such as in the 1970's and 1980's, it made sense to borrow, anticipating that one would have more cash in the future with which to pay it off easily.

Rather now the immense monetization of debt by the Federal Reserve is one phase in the semi-controlled, delayed as long as possible, collapse of the Anglo-American monetary system. Debt is being moved from weaker hands to stronger hands. But, with the vast over commitment of future debt and benefit repayments by even the strongest hand, the US federal government, and the corresponding (essentially so, as I explained just above) collapse in the productive capacity of the US, even these strongest hands are rapidly losing their grip.

Ron Mauer Sr

30th January 2015, 01:22

This debt based money system appears as if it has been designed (from the start) to fail.

Each layer of the monetary control system is likely designed to manipulate and control the layers below (something controls the banksters -> banksters control government -> government controls the military -> military controls the population).

But I’ll bet whoever or whatever is at the top layer of the monetary control system is smart enough to exempt themselves from failure and profit from whatever is planned for the lower levels.

So for me, the big questions and answers are:

(Q) What has been planned for us regular folks?
(A) Slavery, croaking and stress?

(Q) How can manipulation be mitigated?
(A) A few days without food or clean water and most will capitulate to whatever has been planned for us. Have a plan (http://ronmauer.net/blog/).
(A) Become more self reliant.
(A) Stay healthy and be very cautious about accepting mass inoculations.
(A) Stay out of fear. Spend some time each day giving thanks “In this moment I have everything I need and more.”

And remember that if you cannot touch your valuables, they will likely soon belong to someone else.

ThePythonicCow

30th January 2015, 02:03

This debt based money system appears as if it has been designed (from the start) to fail.
No doubt.

But I’ll bet whoever or whatever is at the top layer of the monetary control system is smart enough to exempt themselves from failure and profit from whatever is planned for the lower levels.
One thing that we don't know is whether there is someone at the top layer, or whether those higher layers, which are above the vicissitudes of our earthly monetary systems, are themselves at times in conflict and division.

I figure that there are layers of conflict and confluence, all the way "up".

Another thing we don't know is the time scale(s) on which these higher level processes ebb and flow. A conflict that will be conclusively resolved in a million years has a quite different significance for my day to day life, here and now, than a conflict which will be conclusively resolved tomorrow afternoon.

(Q) How can manipulation be mitigated?
(A) A few days without food or clean water and most will capitulate to whatever has been planned for us. Have a plan (http://ronmauer.net/blog/).
(A) Become more self reliant.
(A) Stay healthy and be very cautious about accepting mass inoculations.
(A) Stay out of fear. Spend some time each day giving thanks “In this moment I have everything I need and more.”

And remember that if you cannot touch your valuables, they will likely soon belong to someone else.
Yup - well said.

kevlor

31st January 2015, 12:01

hi paul, and ron mauer.
its interestisng to note your progressive writings, paul, on the worlds political and financial happenings. yes j c collins' view was based on america and NATO remeining in control. however the BRICS and a whole host of other countries have long ago lost hope in their integretry (sanity?).

i have taken onboard what you paul and ron recommend. that is - ways to remain sane in this insane world. have been doing so for a long time now. it however seems like nothing changes, though it is changeing all the time. (picking up pace of late) as the saying goes - the wheels turn slowly but surely.

i have been, and remain convienced, that the arrogance and ego of the leaders in america and NATO countries will not change and we are yet to see the real problems that they are capable of throwing at us. hunker down and protect yourself as best you can, its going to be rough... kev

ThePythonicCow

9th February 2015, 09:46

T Smith

10th February 2015, 02:20

Ken, of RedefiningGod.com (http://redefininggod.com), has an interesting update on what he expects to happen over the coming year or two.

He is expecting the US Federal Reserve (the 'Fed') to be discredited and shut down.

In his article The NWO Schedule of Implementation (http://redefininggod.com/2015/02/the-nwo-schedule-of-implementation/), Ken outlines the sequence of events he anticipates, which involve

the Fed making a "mistake" (perhaps raising interest rates "too soon", or "not soon enough" via more quantitative easing),
the US Congress passing a bill to audit the Fed,
various incriminating leaks from the audit of the Fed coming out,
another "Lehman moment" ... major financial institution or national collapse, resulting in
the election of a Ron Paul or equivalent in the November 2016 US Presidential elections, which leads to
the end of the Fed, and the withdrawal of the US from its hegemonic domination by financial, military and intelligence means of the rest of the world,
making room for the BRICS-overhauled UN Complex to take the lead.

This is very interesting... but these predictions leave me with more questions than answers. First, who, exactly, is going to shut down the Fed? What power structure on this planet has the power to do so that is not somehow already intertwined with the Fed? If there is such a power, what horrific counter moves should we expect the Fed to make (with we serfs dutifully playing the part as unwitting pawns, no doubt) to avoid existential oblivion? I'm open to plausible explanations. But if the hypothetical answer is the United States Congress, I'm not so sure the United States Congress would have the wherewithal or competence to shut down a water main if every last one of their lives were dependent on it and if every last one of them were all up to their nostrils in water. Perhaps there is some other shadowy power structure that can and will move against the Fed, but it's still unclear to me whether the IMF, BIS et. al are really just arms of the same power structure of which the Fed is part. And even if there were some type of Ron-Paulian political uprising (although I'm fairly sure the Fed has enough members of Congress completely bought and paid for to ensure an audit bill would never pass) I have to assume they have a lot of other tools to keep its detractors in line and to distract its enemies, a deep flash crash of the stock market, for example, with no bottom in sight, save for the Fed coming to the rescue of every last 401k in the country. In short, they have the power to make all our lives a living hell if they want to, soup lines and all.

I do agree there is going to be another Lehman moment however, likely sometime this year or early next year. It's coming. I'm not convinced (yet), however, that it's going to take the Fed down with it.

ThePythonicCow

10th February 2015, 02:52

This is very interesting... but these predictions leave me with more questions than answers. First, who, exactly, is going to shut down the Fed? What power structure on this planet has the power to do so that is not somehow already intertwined with the Fed?
The US Federal Reserve (the "Fed") is the public face of a tool - the centralization of monetary power, via the Anglo-American empire, on this planet.

"They" are moving that publicly visible central monetary power, to a more global location. The Anglo-American Nazi's (such as the Bush and Clinton families front for) drew the short straw. I'd not be surprised to see Jeb Bush vs Hillary Clinton vs a Ron Paul endorsed third party candidate in the next US Presidential race, with the third party winning!

Determining the actual power structure that rules over us on this planet is not easy. They hide, obfuscate and confuse, and likely the truth, even if spoken of openly, would be sufficiently complicated, shifting and subtle as to be difficult to understand.

There is little doubt in my mind that the US Federal Reserve, just as the Bank of England and other Western monetary power centers, has a "shelf life", past which their dominance is lost.

It sure looks to me like the Fed's shelf life has almost expired.

Yes, the US Congress couldn't wipe their own noses, if not allowed to do so by their controllers. But when their controllers dictate that a bill to end the Fed be passed, it shall be passed, no doubt.

T Smith

10th February 2015, 03:49

gripreaper

10th February 2015, 04:09

Marginalize the Fed, aggrandize the BRICS, trash the economies all around the world, and destroy a few currencies and it should be easy to get the world populace to buy into the BRICS saviors taking over, under the auspices of being good for all of humanity, and set up the global SDR system of full surveillance, full electronic transacting, and full compliance without any way out. In other words, total abject slavery.

http://www.youtube.com/watch?v=7Zz7wgCqmxI

Should be an easy sell to most.

ThePythonicCow

10th February 2015, 06:43

Should be an easy sell to most.
yup :)

Aspen

10th February 2015, 06:55

I wonder if the recent resignation of Canada's foreign affairs minister has anything to do with the coming shifts in power? John Baird quit and didn't tell the prime minister he was going to. Weird. The mainstream media is saying the prime minister found out from a newscast. Apparently our popular minister of foreign affairs has been offered a post at the UN. Angela Merkel is coming to visit with the Prime Minister. Maybe this has something to do with the BRICS? Apparently Canada has been leaning in that direction. Its so confusing because our prime minister has had a habit of wanting to please the American president and offering to help out the US military industrial complex and then suddenly one of his key ministers quits without notice . . . .

naste.de.lumina

10th February 2015, 23:07

Tomorrow Greece Decides: Europe... Or Russia

By Tyler Durden on 02/10/2015 16:17

There was much confusion earlier today surrounding the immediate fate of Greece, when first thing in the morning Bloomberg reported a rumor that the European Commission would grant Greece a 6 month extension (http://www.zerohedge.com/news/2015-02-10/europe-propose-6-month-extension-after-greece-warns-it-may-get-funds-russia-or-china), sending futures surging, and then several hours later, futures surged some more when Germany's finance minister crushed the first rumor, saying "it was wrong" and that without a Greek program (http://www.zerohedge.com/news/2015-02-10/schauble-shoots-down-stock-surge-catalyst-says-greek-6-month-extension-report-wrong), it was "all over".

Which means that the only relevant overnight news when stripping away the endless trial balloons and BS that Europe covers itself with before every important economic summit, was what the Greek defense minister said as reported by Reuters (http://www.reuters.com/article/2015/02/10/us-eurozone-greece-kammenos-idUSKBN0LE0JS20150210?feedType=RSS&feedName=topNews&utm_source=twitter), namely that Greece now has a Plan B if Europe refuses to budge - the same "plan" we hinted last month (http://www.zerohedge.com/news/2015-01-29/putins-unexpected-victory-germany-furious-greece-now-russian-sanctions-veto):

Greek Defence Minister Panos Kammenos said that if Greece failed to get a new debt agreement with the euro zone, it could always look elsewhere for help.

"What we want is a deal. But if there is no deal - hopefully (there will be) - and if we see that Germany remains rigid and wants to blow apart Europe, then we have the obligation to go to Plan B. Plan B is to get funding from another source," he told Greek television show that ran in to early Tuesday. "It could the United States at best, it could be Russia, it could be China or other countries," he said.
More (http://www.zerohedge.com/news/2015-02-10/tomorrow-greece-decides-europe-or-russia)

It will be interesting to observe...

ThePythonicCow

11th February 2015, 17:35

~~~

The best proof yet that the US Federal Reserve is losing out to the IMF:

http://thepythoniccow.us/Lagarde_Yellen_2.jpg
In the center, Christine Lagarde, Director of the IMF.

Over on the right side, Janet Yellen, Chair of the Federal Reserve.

The above image, originally from the Wall Street Journal, was found at Caption Contest: The Moment Janet Yellen Figured it All Out… (Zerohedge) (http://www.zerohedge.com/news/2015-02-11/caption-contest-moment-janet-yellen-figured-it-all-out%E2%80%A6)

This image was also posted at Life Imitates High School Chronicles (Jesse's Café Américain) (http://jessescrossroadscafe.blogspot.com/2015/02/life-imitates-high-school-chronicles.html).

Calz

11th February 2015, 17:54

... or as Ken has been documenting meticulously ... the elite script is right on queue ...

Soon ... the angry crowds will be placated with the demise of the fed and amerika ... the pitchforks will return to the sheds ...

Life will go on ... (at least for those zombies that don't get it)

New boss ... same as the old boss ...

:hail: LONG LIVE THE BRICS!!!

Honey ... the game is on ... can you please bring me a beer???

Forget it ... Dancing with the Stars is on ... get your own lazy ass up ...

imho (of course)

What??? We can't afford our cable tv anymore???

:shocked:

arwen

14th February 2015, 21:47

Thanks for this excellent thread.

It is very interesting to hear George Soros outline exactly what is happening now - how China will lead in the New World Order, how the US dollar will be replaced by a "basket of currencies" (the exact term being used in the negotiations) - in 2009. Everything he stated in this video from 7 years ago is playing out now.

TOjckJWqb0A

magnum

14th February 2015, 21:59

http://removingtheshackles.blogspot.be/2013/07/update-july-28-rv-and-new-financial.html

"...Now... about that RV and financial stuff ....

Scott Mowry's article has gone viral through the "dinar" and "Nesara" and "Prosperity Packages" and "New Age" communities. The article is very well written and sums up most of the intel that has been going round for the past 3 months in a concise and easily understandable manner. I love how Scott brought in the Quantum Physics information, opening up that area of information to whole groups of people who were not aware of it previously. Brilliant.

Actually, Scott's article is the most perfect example of manifestation that I can give in this moment. I wanted to write about the RV and "new financial system", because there are some very big puzzle pieces that are missing from most people's understanding of what's going on. I was working on how to outline this information, when a friend sent me a link to Scott's article and I thought "WELLA! There is the vehicle for me to use!"

ThePythonicCow

15th February 2015, 16:15

... and I thought "WELLA! There is the vehicle for me to use!"
Perhaps Scott's article is the vehicle for you to use ... but, if you please, this thread is not the vehicle for such material. Please.

gripreaper

22nd February 2015, 06:15

Russia Ratifies $100 Billion BRICS Bank

The Russian State Duma has ratified the $100 billion BRICS bank that’ll serve as a pool of money for infrastructure projects in Russia, Brazil, India, China and South Africa, and challenge the dominance of the Western-led World Bank and the IMF. The New Development Bank is expected to start fully functioning by the end of 2015, according to the Russian Finance Ministry.

http://www.zerohedge.com/news/2015-02-21/de-dollarization-russia-ratifies-100-billion-brics-bank

Come follow us, we are the new saviors who will save you from the evil Wall Street Banks! Just look at how our economies are growing and yours are not!

http://dont-tread-on.me/wp-content/uploads/2011/01/followmepiper-274x300.gif

ThePythonicCow

26th February 2015, 02:33

“That’s a military question. Where the dollar comes out really comes down to both the covert and overt military capacity of the United States.”
Yes - it does - monetary power grows out of the barrel of a gun.

What Fitts hasn't been noticing so much, given her focus on money and the US Dollar, is that the military power of the Chinese Russian alliance, and the productive, economic, scientific, technology and resource base for such a military, is rapidly gaining dominance.

US Military power has been dominant, since December 7, 1941, when it entered World War II. It remains the most far reaching and visible military power in the world. But it has over reached, and is now falling to second place.
Well, it only took a month ... Zerohedge agrees. In a post earlier today, Is This The Most Important Chart For The Future Of The World's Reserve Currency? (http://www.zerohedge.com/news/2015-02-25/most-important-chart-future-worlds-reserve-currency), Tyler Durden concludes:

===========

... in our view the one chart which, both literally and metaphorically, will determine how much longer the USD will reign as the world's reserve, is the following.

http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2015/02/size%20of%20us%20army_0.jpg

===========

ThePythonicCow

28th February 2015, 05:47

Jim Willie, of GoldenJackass.com, had been predicting late last year (2014) that China would reset the price of gold in a sudden and dramatic move, perhaps twice its current price, sometime in the first few months of 2015.

In the last couple of months, Jim Willie has not mentioned that exact prediction, but rather restated it in more vague terms.

Now perhaps we have a strong hint dropped as to how this will unfold, from news sources substantially closer to the mainstream.

InvestmentWatch (http://investmentwatchblog.com), CNBC (http://www.cnbc.com) and Reuters have just published the article China Plans Yuan-Denominated #Gold Fix This Year (http://investmentwatchblog.com/chinese-gold-demand-pushes-price-up-plans-yuan-denominated-gold-fix-this-year-trade-volume-up-near-60-on-year-to-18486-mt/) (as posted at InvestmentWatch), China plans yuan-denominated gold fix this year (http://www.cnbc.com/id/102461888?utm_content=12535406&utm_medium=social&utm_source=twitter) (as posted at CNBC):

=======

SINGAPORE, Feb 27 (Reuters) - China plans to launch a yuan-denominated gold fix this year to be set through trading on an exchange, sources familiar with the matter said, as the world's second-biggest bullion consumer seeks to gain more say over the pricing of the precious metal.

The Chinese benchmark would be derived from a new 1 kg contract to be launched on the state-run Shanghai Gold Exchange, a senior source directly involved in the process told Reuters.

China, also the top producer of gold, feels its market weight should entitle it to be a price-setter for bullion and it is asserting itself at a time when the established benchmark, the century-old London fix, is under scrutiny because of alleged price-manipulation.

If the Chinese fix takes off, it could add to the pressure on the London benchmark, which is used worldwide by producers, refiners and central banks to price holdings and contracts, although the two could exist side-by-side.

"We need a renminbi benchmark for Chinese producers and foreign suppliers to the market," said the source, using an alternative name for the yuan. "This renminbi gold benchmark can be complementary to the U.S. dollar gold-fixing in London."

The contract for the Chinese fix would be traded for a few minutes each day to make the process transparent - addressing one of the big complaints about the London fix - and the exchange would settle all trades, the source said.

=======

There is more at the last two links above.

This would send a massive shock through the world's monetary, financial, and foreign exchange markets. An openly traded, not grossly manipulated, gold market, trading in Chinese Yuan, not US Dollars no less, would mark the imminent end of the US Dollar as the "World's Reserve Currency."

ThePythonicCow

28th February 2015, 22:41

Most of the doom & gloom, gold & silver, financial websites and analysts that I read or listen to have been going on and on about how the Fed is Printing Money in the Trillions - HyperInflation is Just Around the Corner !!! Or the more historically inclined will explain how reserve lending means that banks lend out ten dollars for each dollar on deposit, or how when banks lend money, they just create it out of thin air, out of nothing, on demand.

Wrong.

In monetary systems such as the present US Dollar based system, money is lent into existence. It's cash now in exchange for repayments (or foreclosed property or privatized income streams) in the future. It is not fiat money. It is debt money.

The Federal Reserve cannot force inflation so long as this continues.

In situations such as the present, once the lenders (the banks) are too insolvent to lend, and the borrowers (individuals, businesses and governments) are too broke to borrow, more money cannot be lent into existence. But the existing debt still demands money for repayments, whether as direct repayments, taxes (to repay some government debt) or prices on goods and services that can go no lower (or else the producing business goes bankrupt, unable to service debt.) Increasingly bankrupt businesses and governments, and increasingly impoverished, under-employed, workers compound the problem.

This we have (1) less money being lent into the system, but (2) more money (due to compounding of interest) still being sucked out of the system.

This is Deflation. Money is getting scarce as hen's teeth.

Our present money is backed ... by promises of greater returns (repayment with interest, or foreclosed or seized property) in the future. Eventually all such debt-based monetary systems most collapse, when the future promises exceed the future potential too greatly. The final illness that overcomes such systems, the cancer of their last days, is fundamentally deflationary.

Fatal (hyper) inflation is what happens when a nation promises to pay back debt in money it can print, ad infinitum. This is what happened in the German Weimar Republic or in Zimbabwe.

Fatal deflation is what happens when the banks are lending the money into existence, rather than a nation printing it into existence. In that case, once that nation, its local governments, its corporations, and its citizens are too insolvent to borrow more or even make current payments, and once the lending institutions are too insolvent to lend more (due perhaps in part to their "assets", what they have lent already, failing), then the incoming supply of new money fails, while the outgoing drain on money to make debt payments continues.

That downward deflationary spiral will not reverse until a sufficient number of the money lending institutions (Wall Street, the lending banks, and the Federal Reserve itself, in the case of the present US Dollar system) have suffered a sufficient crisis that the central political authority can sell the people on the need to start printing money itself, rather than borrowing it from now failed banks.

Then, and only then, will we see the inflation that all my favorite gold bug analysts have been warning me about for at least a decade now.

As Jim Willie has been saying for some time now, the "The dollar will rise, and rise some more, and will do so right before it dies or collapses."

gripreaper

28th February 2015, 23:03

In situations such as the present, once the lenders (the banks) are too insolvent to lend, and the borrowers (individuals, businesses and governments) are too broke to borrow, more money cannot be lent into existence. But the existing debt still demands money for repayments, whether as direct repayments, taxes (to repay some government debt) or prices on goods and services that can go no lower (or else the producing business goes bankrupt, unable to service debt.) Increasingly bankrupt businesses and governments, and increasingly impoverished, under-employed, workers compound the problem.

This we have (1) less money being lent into the system, but (2) more money (due to compounding of interest) still being sucked out of the system.

This is Deflation. Money is getting scarce as hen's teeth.

I concur. This downward spiral is really hard to stop once it gets going too. Fewer dollars chasing debt, without the subsequent value added of the GDP, accelerates this downward spiral which triggers more and more insolvency and the retiring of existing dollars through bankruptcy.

We ain't seen nothing yet.

ThePythonicCow

1st March 2015, 01:29

... once that nation, its local governments, its corporations, and its citizens are too insolvent to borrow more or even make current payments ...
Jim Quin, of the popular investing and economic commentary website The Burning Platform (http://www.theburningplatform.com/), has just written an article detailing one aspect of this accumulating debt problem. He describes the increase in debt owed by Americans in the last few years and decades.

A few points from this article Breaking Bad Debt - Episode One (http://www.theburningplatform.com/2015/02/27/breaking-bad-debt-episode-one/):

Non-housing debt (credit card, student loan, auto loan, etc) has increased from $800 Billion in 1989 to $3,150 Billion in 2014.
Housing debt (mortgages) has increased from $2,200 Billion in 1989 to $8,700 Billion in 2014.
However the inflation adjusted household income available to pay this debt has decreased slightly from 1989 to 2014.

This chart, one of several good charts in this article, shows the change in US consumer debt (we're not citizens here, we're consumers <grin>) in the last 12 years:

http://thepythoniccow.us/fedcinsdebt.png

Consumer debt is, of course, just one slice of grand pie of "future promises to pay". Other slices include government (local and national), corporate debt, and promised social benefits, such as the Social Security retirement check and medical benefits promised to me, as a senior citizen consumer in the US.

ThePythonicCow

2nd March 2015, 03:03

Jim Willie, of GoldenJackass.com, had been predicting late last year (2014) that China would reset the price of gold in a sudden and dramatic move, perhaps twice its current price, sometime in the first few months of 2015.

In the last couple of months, Jim Willie has not mentioned that exact prediction, but rather restated it in more vague terms.

Now perhaps we have a strong hint dropped as to how this will unfold, from news sources substantially closer to the mainstream.

InvestmentWatch (http://investmentwatchblog.com), CNBC (http://www.cnbc.com) and Reuters have just published the article China Plans Yuan-Denominated #Gold Fix This Year (http://investmentwatchblog.com/chinese-gold-demand-pushes-price-up-plans-yuan-denominated-gold-fix-this-year-trade-volume-up-near-60-on-year-to-18486-mt/) (as posted at InvestmentWatch), China plans yuan-denominated gold fix this year (http://www.cnbc.com/id/102461888?utm_content=12535406&utm_medium=social&utm_source=twitter) (as posted at CNBC):
This report that the Shanghai Gold Exchange (SGE) expects to open a gold market, creating a yuan-denominated gold fix, later in this year (2015) has now been confirmed in a Bloomberg News article, published at SGE plans yuan-denominated gold fix (MineWeb.com) (http://www.mineweb.com/news/gold/sge-plans-yuan-denominated-gold-fix/):

=======

People close to the matter say the exchange plans to start a yuan-denominated gold fix this year.

Bloomberg News | 27 February 2015 15:39

The Shanghai Gold Exchange plans to start a yuan-denominated gold fix this year, according to people with knowledge of the matter.

The price-setting mechanism will be linked to the SGE’s one kilogram (32.2 ounces) contract and will be open to foreign banks and traders, said the people, who asked not to be identified because the plans haven’t been made public. The exchange wants the fix to be used a global benchmark for gold priced in the Chinese currency.

=======

ThePythonicCow

9th March 2015, 17:43

If one finds Preston James' The Hidden History of the incredibly Evil Khazarian Mafia (http://www.veteranstoday.com/2015/03/08/the-hidden-history-of-the-incredibly-evil-khazarian-mafia/) credible, then the SDR's of the International Monetary Fund (IMF) and Bank of International Settlements (BIS) in Basel will not assume the new role of the world's senior currency. The IMF and BIS are surely institutions of the Khazarian Mafia, and if the Khazarian Mafia fail, finally, as Preston James writes, then they will join the Federal Reserve, the US Neocons, the Zionists, and other such evil institutions in the dust bin of history.

In that case, then a fundamental premise of JC Collins, whose work initially inspired this thread, is wrong.

Good riddance to the Khazarian Mafia.

The analyst whose instincts I trust the most at present, Jim Willie of the Golden Hat Trick letter (goldenjackass.com) is also entirely confident that SDR's will not replace the US Dollar as the senior reserve currency.

Good :).

TargeT

9th March 2015, 19:56

ThePythonicCow

10th March 2015, 01:43

The analyst whose instincts I trust the most at present, Jim Willie of the Golden Hat Trick letter (goldenjackass.com) is also entirely confident that SDR's will not replace the US Dollar as the senior reserve currency.

Good :).

Better the evil you know, than the evil you do not?

On re-reading my post and your reply, I realize that what I wrote was confusing.

Jim Willie figures that the US Dollar is dead, just needing a death certificate, funeral arrangements and burial.

He figures that various arrangements, such as the BRICS are rapidly putting into place, will replace it, including a significant role for settling trade imbalances with gold.

But he laughs at the idea that the BIS/IMF/SDR/... will have any significant role.

ThePythonicCow

14th March 2015, 11:43

And they all fall down ...

I've seen this enough times in my life that I should start noticing the pattern. I've seen it with the USSR in 1989, with Japan in the last 20 years, and with the Asian Tigers in the late 1990's. The greatest thing since sliced bread in terms of the new Asian Economic Powerhouse collapses in on itself.

It's going to happen again ... with China:

A hundred million (or whatever) young men with no hope of marriage.
A massive dependency on exporting consumer goods, to a world facing economic depression.
Massive internal fraud and centralized control, making sensible, flexible, adaption next to impossible.
Massive internal debt in companies and local governments.
Massive investment in real estate, empty cities and empty condominiums, most of which will rot before earning income.
Massive over investment in manufacturing and commerce, that must be abandoned in a global depression.

And now ZeroHedge reminds us of another aspect of the problems that China faces: The Coming Chinese Crackup (http://www.zerohedge.com/news/2015-03-13/coming-chinese-crackup). This is a repost of an article originally posted on the Wall Street Journal (http://www.wsj.com/articles/the-coming-chinese-crack-up-1425659198).

The article begins:

===========

The Coming Chinese Crackup

The endgame of communist rule in China has begun, and Xi Jinping’s ruthless measures are only bringing the country closer to a breaking point

By David Shambaugh -- March 6, 2015 11:26 a.m. ET

On Thursday, the National People’s Congress convened in Beijing in what has become a familiar annual ritual. Some 3,000 “elected” delegates from all over the country—ranging from colorfully clad ethnic minorities to urbane billionaires—will meet for a week to discuss the state of the nation and to engage in the pretense of political participation.

Some see this impressive gathering as a sign of the strength of the Chinese political system—but it masks serious weaknesses. Chinese politics has always had a theatrical veneer, with staged events like the congress intended to project the power and stability of the Chinese Communist Party, or CCP. Officials and citizens alike know that they are supposed to conform to these rituals, participating cheerfully and parroting back official slogans. This behavior is known in Chinese as biaotai, “declaring where one stands,” but it is little more than an act of symbolic compliance.

===========

The article ends:

===========

We cannot predict when Chinese communism will collapse, but it is hard not to conclude that we are witnessing its final phase. The CCP is the world’s second-longest ruling regime (behind only North Korea), and no party can rule forever.

Looking ahead, China-watchers should keep their eyes on the regime’s instruments of control and on those assigned to use those instruments. Large numbers of citizens and party members alike are already voting with their feet and leaving the country or displaying their insincerity by pretending to comply with party dictates.

We should watch for the day when the regime’s propaganda agents and its internal security apparatus start becoming lax in enforcing the party’s writ—or when they begin to identify with dissidents, like the East German Stasi agent in the film “The Lives of Others” who came to sympathize with the targets of his spying. When human empathy starts to win out over ossified authority, the endgame of Chinese communism will really have begun.
===========

===

However, the above expectation of the fall of the current Chinese communist regime does not necessarily invalidate all my earlier discussions above of the rising influence of of China and the other BRICS nations in the world's economic, monetary, financial and political systems.

Rather it seems that the world's major systems are (and have been for decades) becoming increasingly entangled and fragile, even as the ordinary man on the street, whether in Cairo, Kiev, Baghdad, Paris, London, Beijing, Tokyo, Los Angeles, Rio de Janeiro, Delhi, Karachi, Theran, or New York, is becoming disillusioned with their major institutions and their lot in life.

Perhaps World War III will not be the simpler "kill, kill, and kill some more" event like the first two World Wars were (which is good - humanity's killing capacity is too great now), but rather more of a political, economic, financial, monetary, propaganda, ... affair, with the killing mostly localized "police" and surrogate military actions (drones, Blackwater and such.)

The increased participation by China in the world's monetary system sets up more interconnections and dependencies ... more ways for things to go really, really, wrong. It provides the means to rig the Western US Dollar financial system for demolition, while causing the sappers (demolition engineers) to be blown up as well in the ensuing maelstrom.

We are not reading a novel, the end of which we can feel in our hands will be coming up soon enough, quite reliably. We are living a seemingly never ending drama of War & Peace, which likely stretches out generations and millennia into the future, as it does into the past.

Cidersomerset

14th March 2015, 19:22

The Banksters are up to something. I just saw this report
now it is prudent to edge your bets, but when the city
Banksters look to jump ship , you know something big
is a foot ....Uhm. I thought the Fed and the bank of
England were run by the same cabal , maybe they
are trying to infiltrate the opposition , but they
cannot use the dollar obviously so they are bringing
on the sub off the bench, the royal pound..LOL

=============================

Et tu, Britain? United Kingdom to join China in the anti-dollar alliance

Saturday 14th March 2015 at 08:42 By David Icke

http://www.sovereignman.com/wp-content/uploads/2015/03/UK-rmb-gbp.png

‘In another awkward blow to the rapidly waning US-dollar
hegemony, America and Britain just had their “It’s not you,
it’s me” moment.

Late yesterday, the government of the United Kingdom
announced that they would be applying to join the
Chinese-led Asian Infrastructure Investment Bank… as
a founding member.

This is huge. Right now, the United States dominates the
global financial system.

But after years of endless wars, spying, debt, money printing,
bailouts, and insane regulations, the rest of the world has had
enough. And they’re looking for an alternative.’

Read more: Et tu, Britain? United Kingdom to join China in the anti-dollar alliance

http://www.sovereignman.com/finance/et-tu-britain-united-kingdom-to-join-china-in-the-anti-dollar-alliance-16482/

ThePythonicCow

14th March 2015, 19:57

I thought the Fed and the bank of England were run by the same cabal
The Fed is a front for the Bankster agents who co-opted the US. It is a dispensable player. The City of London is closer to the core of the beast.

The Fed will die or at least transform substantially, as the US Dollar transforms from being the world reserve currency, to being just another national currency; the City will adapt.

Cidersomerset

14th March 2015, 21:47

The Fed is a front for the Bankster agents who co-opted the US. It is a
dispensable player. The City of London is closer to the core of the beast.

The Fed will die or at least transform substantially, as the US Dollar transforms
from being the world reserve currency, to being just another national currency; the
City will adapt.

That's a better way of saying it , I can remember the vids about the Rothchilds are
in the belly of the beast and it spread its claws from there. The coup was Jekyl
Island I think , but you know that better that me ...LOL

RT take on it.....

'Hegemony Challenged': UK joins China-led bank, US slams decision

dC9x0MFB1AA

Published on 14 Mar 2015

The UK government considers membership of the China-led Asian Infrastructural
Investment Bank (AIIB) of British national interest. However, the decision was
given the cold shoulder by the US which sees the AIIB as rival to the Western
financial system. FULL STORY: http://on.rt.com/s4v4b4

Cidersomerset

14th March 2015, 23:59

Former US Budget Office president warns economy is nearing final stage of collapse

new Sunday 15th March 2015 at 07:58 By David Icke

http://www.davidicke.com/wordpress/wp-content/uploads/2015/03/USA-Foreign-Debts-Crisis-Collapse-587x330.jpg

‘The one-time director of the Office of Management and Budget under former
President Ronald Reagan has a dire warning for the world’s citizens: The global
economy has entered “the crack-up phase” that may lead to the evaporation of
much of the West’s wealth.

According to David Stockman, who is also a former businessman and GOP
representative from Michigan, the mismanagement of the global economy by the
world’s richest nations is about to reach its zenith and will be preceded, he
believes, by four events.’

Read more: Former US Budget Office president warns economy is nearing final stage of collapse

http://www.naturalnews.com/048994_economic_collapse_US_Budget_Office_debt.html

ThePythonicCow

17th March 2015, 20:33

Hervé

17th March 2015, 20:51

In that same vein:

America's European "Allies" Desert Obama, Join China-led Infrastructure Bank (http://www.zerohedge.com/news/2015-03-17/plan-b-major-european-allies-desert-obama-join-china-led-infrastructure-bank)

http://www.zerohedge.com/sites/default/files/pictures/picture-5.jpg (http://www.zerohedge.com/users/tyler-durden) Submitted by Tyler Durden (http://www.zerohedge.com/users/tyler-durden) on 03/17/2015 11:27 -0400

It appears the sea of de-dollarization has reached the shores of Europe. With Australia (http://www.zerohedge.com/news/2015-03-16/colossal-defeat-obama-australia-joins-chinas-regional-bank) and UK having already moved in the direction of joining the China-led AIIB, The FT reports (http://www.ft.com/intl/cms/s/0/0655b342-cc29-11e4-beca-00144feab7de.html?siteedition=intl#axzz3UarFFDWI) that France, Germany, and Italy have now all agreed to join the development bank as 'pivot to Asia' appears to be Plan B for Europe. As Greg Sheridan previously noted, "the saga of the China Bank is almost a textbook case of the failure of Obama’s foreign policy," but as The FT concludes, the European decisions represent a significant setback for the Obama administration, which has argued that western countries could have more influence over the workings of the new bank if they stayed together on the outside. As Forbes notes (http://www.forbes.com/sites/elizabetheconomy/2015/03/16/the-aiib-debacle-what-washington-should-do-now/), this leaves Obama with 3 uncomfortable options...

As The FT reports,

France, Germany and Italy have all agreed to follow Britain’s lead and join a China-led international development bank, according to European officials, delivering a blow to US efforts to keep leading western countries out of the new institution.

The decision by the three European governments comes after Britain announced last week that it would join the $50bn Asian Infrastructure Investment Bank, a potential rival to the Washington-based World Bank.

...

The European decisions represent a significant setback for the Obama administration, which has argued that western countries could have more influence over the workings of the new bank if they stayed together on the outside and pushed for higher lending standards.

The AIIB, which was formally launched by Chinese President Xi Jinping last year, is one element of a broader Chinese push to create new financial and economic institutions that will increase its international influence. It has become a central issue in the growing contest between China and the US over who will define the economic and trade rules in Asia over the coming decades. This follows Australia and UK...

Australia, a key US ally in the Asia-Pacific region which had come under pressure from Washington to stay out of the new bank, has also said that it will now rethink that position.

When Britain announced its decision to join the AIIB last week, the Obama administration told the Financial Times that it was part of a broader trend of “constant accommodation” by London of China. British officials were relatively restrained in their criticism of China over its handling of pro-democracy protests in Hong Kong last year.

Britain tried to gain “first mover advantage” last week by signing up to the fledgling Chinese-led bank before other G7 members.

Britain hopes to establish itself as the number one destination for Chinese investment and UK officials were unrepentant. * * *
Which, as Forbes explains (http://www.forbes.com/sites/elizabetheconomy/2015/03/16/the-aiib-debacle-what-washington-should-do-now/), leaves Obama with three options...

1) Continue to press its allies not to join the AIIB until governance procedures for the bank are assured;

2) Join the AIIB itself; or

3) Drop the issue.

Option one is clearly a losing proposition. There is no sense expending further political capital trying to persuade regional and other actors not to join the bank. It is a small-potato issue that is making the United States look weak at a time when U.S. influence in the region is otherwise quite strong.

Option two, which I—along with virtually every other China analyst outside the U.S. government—supported back in October is that the United States join the AIIB. There are several reasons why this is a good idea. It would allow the United States a seat inside the tent where it could be both a positive force for best governance practices and an internal critic if things go awry. It also would likely help ensure that U.S. companies have fair access to the bidding opportunities that will arise from the AIIB’s investment financing. Joining now will be hard to accomplish in a face-saving manner, but the United States could begin by publicly recognizing the need for the financing capabilities in Asia that the AIIB can provide and by moving quickly to work with Australia, South Korea, and Japan to work out common principles of accession.

Option three is for the United States to back away from the AIIB, release other countries from any pressure they might feel from the United States not to join, and let the AIIB rise or fall on its own merits. Chinese-led resource and infrastructure investment has encountered significant difficulty in a number of countries, including Zambia, Myanmar, Vietnam, Brazil, and Sri Lanka, among others. If the AIIB does not do a better job than China’s own development banks, it will be a stain not only on Beijing but also on all the other countries that are participating. If it does operate at the same standard as the World Bank and Asian Development Bank, then it will be a welcome addition to the world of development financing. The United States does not have to be in every regional organization in the Asia Pacific; it is not in the Shanghai Cooperation Organization, for example, and it is only an observer in the Conference on Interactions and Confidence-Building Measures in Asia. It can sit out the AIIB or assume observer status as well.

Washington’s priority should be on advancing U.S. ideals and institutions through the pivot or rebalance rather than blocking Chinese initiatives unless absolutely necessary. (Let’s not confuse China’s effort to develop the AIIB with its push to implement an Air Defense Identification Zone, for example.) Opposition to the Asian Infrastructure Investment Bank has become a millstone around Washington’s neck. It is time to remove it one way or another. * * *
De-dollarization continues... As Simon Black recently concluded, now we can see words are turning into action... (http://www.sovereignman.com/finance/et-tu-britain-united-kingdom-to-join-china-in-the-anti-dollar-alliance-16482/)

[The Allies] might be too polite to tell the US straight up– “Look, you have $18.1 trillion in official debt, you have $42 trillion in unfunded liabilities, and you’re kind of a dick. I’m dumping you.”

So instead they’re going with the “it’s not you, it’s me” approach.

But to anyone paying attention, it’s pretty obvious where this trend is going.

It won’t be long before other western nations jump on the anti-dollar bandwagon with action and not just words. * * *
Bottom line: this isn’t theory or conjecture anymore. Every shred of objective evidence suggests that the dollar’s dominance is coming to an end.

ThePythonicCow

18th March 2015, 13:32

The Financial Times of London is reporting that "Europeans defy US to join China-led development bank." (http://www.ft.com/intl/cms/s/0/0655b342-cc29-11e4-beca-00144feab7de.html?siteedition=intl#axzz3UanxVlwL):
France, Germany and Italy have all agreed to follow Britain’s lead and join a China-led international development bank, according to European officials, delivering a blow to US efforts to keep leading western countries out of the new institution.
One of my favorite sites, The Daily Bell, has an excellent analysis of this event. It's easy to read, perceptive, detailed, and (in my view) gets the big picture of what's going on quite well.

I am going to quote the entire article, Real Reason for the Asian Investment Bank – and Western Participation (http://www.thedailybell.com/news-analysis/36166/Real-Reason-for-the-Asian-Investment-Bank--and-Western-Participation/), wishing only that I had said as much, half as well:

===============

Published by The Daily Bell - March 18 2015

Defying U.S., European allies say they'll join China-led bank ... Germany, France and Italy said on Tuesday they would join a new China-led Asian investment bank after close ally Britain defied U.S. pressure to become a founder member of a venture seen in Washington as a rival to the World Bank. – Reuters

Dominant Social Theme: Asia will show the West how to run an investment bank.

Free-Market Analysis: High finance and international politics are subtle affairs. On its surface, the effort to create an Asian-oriented "world bank" is straightforward. But beneath the surface, currents swirl.

The putative reason for such a bank is that the current World Bank is often exploitative and takes advantage of countries in trouble. A second reason is that the advantages of a World Bank will now accrue to Asian members. Their influence and monetary power will expand accordingly.

But the third reason is the most interesting of all. A little more from the article, first:

The concerted move to participate in Beijing's flagship economic outreach project was a diplomatic blow to the United States, reflecting European eagerness to partner with China's fast-growing economy, the world's second largest.

It comes amid prickly trade negotiations between Brussels and Washington, and at a time when EU and Asian governments are frustrated that the U.S. Congress has held up a reform of voting rights in the International Monetary Fund due to give China and other emerging powers more say in global economic governance.

German Finance Minister Wolfgang Schaeuble made the announcement at a joint news conference with visiting Chinese Vice Premier Ma Kai, at which no questions were allowed. He said Germany, Europe's biggest economy and a major trade partner of Beijing, would be a founding member of the Asian Infrastructure Investment Bank.
The lure of lending to countries that need money is considerable. Control a monetary war chest to influence the world or at least a region that can gain from such resources.

In the US, the World Bank is accompanied by the International Monetary Fund. They operate as a kind of tag team, as we have often observed. The World Bank lends money with some assurance it will be squandered. The IMF comes in later to provide the "austerity" necessary to assure repayment and often garners privatized assets from the prostrate country for its members.

We spoke to John Perkins on this mechanism some years ago in an interview entitled, "Confessions of an Economic Hit Man and the Unsustainability of Modern Capitalism (http://www.thedailybell.com/exclusive-interviews/1791/Anthony-Wile-John-Perkins-on-His-Best-Selling-Book-39Confessions-of-an-Economic-Hit-Man39-and-the-Unsustainability-of-Modern-Capitalism)." Of course, Perkins's book, Confessions of an Economic Hit Man, details his experiences in advising The World Bank, IMF and other Western facilities on their activities.

Perkins went on to write several scathing exposes about how these bodies operate.

Here is some of what Perkins told us:

The World Bank is a tool of economic hit men, there is no question about it. It's the tool of big corporations, the IMF and most of what we call intelligence agencies of the United States, CIA and NSA. Essentially the job of all these organizations is to help what used to be just US businesses – now we call them multi-nationals – get themselves established around the world in positions where they can exploit the world's resources, natural resources and human resources.

... One of my jobs as an economic hit man was to identify countries that had resources like oil and arrange huge loans for those countries from the World Bank and sister organizations. But the money would never go to the actual country; instead it would go to our own corporations to build infrastructure projects in that country like power plants and industrial parks; things that would benefit a few very wealthy families.

So then the people of the country would be left holding this huge debt that they couldn't repay. We would come back and say, "well, since you can't repay your debt, you have to restructure your loan."

That's when the IMF comes in. So the World Bank makes the original loan and IMF shows up and says, "We'll help you restructure your loan, but in order to do that you have to meet certain conditionalities. You have to sell your oil or whatever the coveted resource is at a cheap price, to the oil companies without restrictions." Or they would suggest the country sell electric utilities, water and sewage, maybe even your schools and jails to private multi-national corporations. Or maybe allow military bases to be built; these sorts of things.
This is the model that China – and Asia – presumably want to overtake. The idea is that a bank led by China will be less obviously exploitative and will actually lend money that will find its way to projects rather than to Swiss bank accounts.

Obviously, there is an awareness of the deficiencies of the World Bank. A joint statement assured the world that new bank operations would "follow ... the best standards and practices in terms of governance, safeguards, debt and procurement policies."

Of course, being cynical about such things, we don't think for a minute that this new bank will operate much differently than the World Bank. Maybe for a while it will be "kinder and gentler," but why should one believe that the Chinese ultimately will operate their bank more altruistically than the West?

The real reason for an Asian world bank seems to us to have to do more with building a bipolar world that will eventually provide leverage for a truly international financial system.

Right now the creation of this new bank is being positioned as stemming from disenchantment with Washington. But over time it will be seen that China – Asia and perhaps Russia, too – are creating an entirely separate financial infrastructure.

Yet it is not one – despite current reports – intent on shutting out Western interests. The West, for instance, is now a big part of the initial creation of the Asian bank. In fact, the City of London itself, perhaps the most powerful Western financial player, is also significantly involved.

If the plan is to build and then merge a bipolar system, it certainly makes sense that the West would have significant interests in the new facility as well as the old one. The merger is presumably a ways off, but preparations are being made ...

We began by pointing out that international finance and power politics practiced in the 21st century can be subtle, indeed. The outward guise of a new financial system is being written about, but the underlying realities are not yet being covered.

Conclusion

Eventually, that may change.

Published by The Daily Bell - www.thedailybell.com (http://www.thedailybell.com/) - All Rights Reserved.

===============

So, in short, it seems that we're (well, they're) building a bipolar monetary/financial/... world, anticipating that it will fail catastrophically, justifying their "solution."

gripreaper

18th March 2015, 14:15

ThePythonicCow

23rd March 2015, 03:37

ThePythonicCow

23rd March 2015, 03:44

Let me see if I got this one straight Paul. The other large economies want more control in the raping and pillaging of natural and human resources, so that the balance of global imperialistic plunder and debt servitude can be more equitably distributed to the oligarchs in these countries and create a counter dialectic for synthesizing the total control of all of the planet under a new system of digital finance and surveillance which better controls these resources?
Yes (though, if you considering applying for a position in the Press Relations department of any of these distinguished institutions, I wouldn't recommend phrasing it quite like that.)

On another note, Russia was made a member of SWIFT.
No. Russia has been a member of Society for Worldwide Interbank Financial Telecommunication (SWIFT) since 1989 (the time of the fall of the USSR.) What Russia got just now (http://rt.com/business/239581-swift-russia-board-traffic/), instead of being kicked out as the US wanted, is a seat on the 25-member board of directors of SWIFT

ThePythonicCow

23rd March 2015, 13:41

Well, I'll be darned. South Korea was not the next holdout to take a more positive interest in the Asian Infrastructure Investment Bank (AIIB). South Korea and the US had been the last two major countries to be turning a cold shoulder toward the AIIB. The US just "blinked".

From Washington Blinks: Will Seek Partnership With China-Led Development Bank (Zerohedge) (http://www.zerohedge.com/news/2015-03-22/washington-blinks-will-seek-partnership-china-led-development-bank):

============

Don’t look now, but Washington just blinked. As we’ve documented exhaustively over the past week, pressure has been building steadily for the US to strike some manner of conciliatory tone towards China with regard to the Asian Infrastructure Investment Bank, a China-led institution aimed at rivaling the US/Japan-backed ADB. Britain’s decision to join China in its new endeavor has prompted a number of Western nations to throw their support behind the bank ahead of the March 31 deadline for membership application. Because the AIIB effectively represents the beginning of the end for US hegemony, the White House has demeaned the effort from its inception questioning the ability of non-G-7 nations to create an institution that can be trusted to operation in accordance with the proper “standards.” Now, with 35 nations set to join as founders, it appears Washington may be set to concede defeat. Here’s more, via WSJ (http://www.wsj.com/articles/u-s-to-seek-collaboration-with-china-led-asian-infrastructure-investment-bank-1427057486?tesla=y):

The Obama administration, facing defiance by allies that have signed up to support a new Chinese-led infrastructure fund, is proposing the bank work in a partnership with Washington-backed development institutions such as the World Bank.

The collaborative approach is designed to steer the new bank toward economic aims of the world’s leading economies and away from becoming an instrument of Beijing’s foreign policy. The bank’s potential to promote new alliances and sidestep existing institutions has been one of the Obama administration’s chief concerns as key allies including the U.K., Germany and France lined up in recent days to become founding members of the new Asian Infrastructure Investment Bank.

The Obama administration wants to use existing development banks to co-finance projects with Beijing’s new organization. Indirect support would help the U.S. address another long-standing goal: ensuring the new institution’s standards are designed to prevent unhealthy debt buildups, human-rights abuses and environmental risks. U.S. support could also pave the way for American companies to bid on the new bank’s projects.

“The U.S. would welcome new multilateral institutions that strengthen the international financial architecture,” said Nathan Sheets, U.S. Treasury Under Secretary for International Affairs. “Co-financing projects with existing institutions like the World Bank or the Asian Development Bank will help ensure that high quality, time-tested standards are maintained.”

============

There is more at the above link.

ThePythonicCow

23rd March 2015, 20:49

Calz

23rd March 2015, 20:58

Just because Obama's administration announces something doesn't mean that Congress will go along, or that it will happen.

Devil's advocate here ... what if ... the application was ***turned down***???

Has not happened to date ... but food for thought ... of the nonsensical desert variety obviously ...

Wouldn't that be a hoot???

http://imgfave-herokuapp-com.global.ssl.fastly.net/image_cache/1365921381803353.jpg

TrumanCash

24th March 2015, 18:40

ThePythonicCow

25th March 2015, 14:25

IMO, everything seems to be lined up for the ultimate global currency reset--a cashless, digital currency. A good article at The Economic Collapse website (http://theeconomiccollapseblog.com/archives/they-are-slowly-making-cash-illegal).
Indeed.

The idea that we peons might conduct business out of sight of their surveillance is not something they want to perpetuate.

3(C)+me

26th March 2015, 22:57

This guy states the crash of the dollar is going to happen this year and a gold standard will be re-established.

RVr1xIqsiDo

ThePythonicCow

27th March 2015, 20:18

This guy states the crash of the dollar is going to happen this year and a gold standard will be re-established.
The end of the US Dollar's reign as the world's reserve currency may well happen this year. JC Collins, after whom this thread is named, posted an excellent article a couple of days ago, When Will China End the Dollar Peg (http://philosophyofmetrics.com/2015/03/25/when-will-china-end-the-dollar-peg/#more-2381), spelling out the sequence of events that he anticipates, over the rest of this year 2015, as the world's monetary system transitions to national currencies, with exchange rates set by the BIS, and with major international debt and trade agreements denominated in SDR's, and with such up and coming institutions as the BRICS Development Bank, the Asian Infrastructure Investment Bank, the China International Payment System, the Shanghai Gold Exchange, and the ASEAN Economic Community playing major roles. This does not mean the US Dollar will crash entirely, but I anticipate it means that the US Dollar will lose some value in trade.

But I doubt that it means that the new monetary system will be based entirely on a gold standard. Rather the new monetary system will continue, in my expectation, to be fundamentally a debt-money system, with Banksters controlling the issuance and relative values of various currencies. The relative value of the US Military/Intelligence complex in controlling the value of the US Dollar will decline, and the resources (exports, oil and gas, and precious metals) of nations will be used as part of what determines the relative value of currencies, denominated in the common unit of accounting, SDR's.

This is not a classic gold or silver standard. I will not be able to take my silver coin to the grocery store in a year and get a loaf of bread for it. The clerk will still look at me funny if I try that.

===

Bix Weir is one of many who, in my opinion, are being distracted by a story from what's really going on. "There are eight million stories in the naked city." (http://mediacommons.futureofthebook.org/imr/2010/03/10/there-are-eight-million-stories-naked-city-has-been-one-them-procedurality-and-naked-city) That is one of them.

ThePythonicCow

27th March 2015, 21:09

As Joseph P. Farrell explained once again, yesterday, in the fine article GLOBAL DEBT NOW TWICE THE SIZE OF THE GLOBAL ECONOMY… WHAT DOES IT MEAN? (http://gizadeathstar.com/2015/03/global-debt-now-twice-the-size-of-the-global-economy-what-does-it-mean/), he (along with Catherine Austin Fitts) have been of the view that the primary reason that the visible world financial system is so overwhelmed with debt is that wealth has been being sucked out for a hidden system of finance, funding such things as a secret space program, amortizing immense future stores of resources (such as minerals mined from the asteroids and other planets) and energy (once the immense and hidden progress of science over the last century is leveraged in public).

I would claim that we don't know this. Debt is the result of using today what you have not yet earned. It is "fly now, pay later." It is pulling spending forward. It is anticipating future income and enjoying the potential increase in prosperity that that income will fund, before it is earned. Monetary systems based on issuing new money in exchange for debt are perhaps the grandest tool of enslavement ever visited upon humanity.

But there might or might not actually be such future income that could service that debt. Many young adult college graduates in the US are learning this the hard way; they went into great debt to pay for an education that would gain them a higher paying job, and that job did not materialize.

Wealth - actual, useable goods, services, infrastructure, technology and skills - is not the same as money. Debt based money is not a marker for actual future wealth; rather it is marker for extracting rent and taxes on future income streams, and for the future ownership of whatever property, resources, and labor might have been offered as security for that debt.

Money can be lent into existence, and spent on ephemeral pleasures, the service of previous debt (which includes rent and taxes), and the purchase of perishable goods, leaving only the debt, as a lien on one's future property, possessions, resources and labor. The "wealth" did not necessarily go somewhere, to be found later, other than, perhaps, as another tool for the enslavement of humanity.

There is, in my view, a profound confusion in the view of Farrell and Fitts on this topic. There might not be any "there" there, other than the enslavement of our descendents. Each generation must earn its own liberty and provide its own labor. The stories of some vast hoard of gold that could be distributed to every human being, making us all wealthy, are similarly false. No pile of bonds, mortgages, securities, derivatives, gold, silver or diamonds, no new form of energy, no new supply minerals mined by inter-planetary robots, ensures the prosperity or even the liberty of our children.

ThePythonicCow

28th March 2015, 00:33

Something I was just reading in Jim Willie's monthly subscription HatTrick newsletter (http://www.goldenjackass.com) reminded me, once again, that this next round of financial/monetary/economic crises will not begin in the US, but in the emerging markets (EM).

We are not seeing a flooding of the world with dollars thanks to quantitative easing (QE).

That's what it's "advertised" as, by many in the alternative media, but that's not what has been happening these last few years, since the 2008 financial crisis.

What's happening is that the primary source of generating new money that is in circulation, which is lending it into circulation (aka "debt money") has been breaking down ... failing. Lending is slowing down because there are no longer sufficient plausible excuses to lend. We hit bottom with the NINJA (no income, no job, no assets) home mortgages of the earlier 2000's.

What all that QE is doing is monetizing existing bad debt ... essentially building a giant carpet of dollars, under which to sweep the bad debt, but not to lend new money into circulation.

Those nations most dependent on cash flow, expanding economies, higher prices, and more debt, just to make their payments on existing debt, will be the first to fail.

The weak will fail first. Greece, as the weakest of the Euro nations, is one example. Japan, once the rising sun in the east, has been digging a debt hole for two decades now. While it is more of a decaying economy than an emerging economy, it too risks being one of the earlier nations to collapse fiscally.

We are in a deflationary spiral, not an inflationary spiral. Dollars are increasingly in short supply, because lending them into existence is happening much less.

That's why the Baltic Index is way down (index of economic shipping activity over the oceans).
That's at least one of the essential reasons that the price of Petro is way down, as oil exporting nations desperate for the continued cash flow continue to pump more oil for use by nations with collapsing economic activity.
That's why energy usage in many nations is down substantially.
That's why oil fracking companies in the US are going bankrupt (they borrowed money on the expectation of over $100/barrel oil, and can't make payments with oil under $50/barrel.)
That's why mineral mining companies are going bankrupt, and pushing out as much as they can, desperate to continue to meet loan payments (thus further driving down the prices of copper, silver, and other metals, both precious and industrial.)
That's why more debt burdened retail chains in the US are going bankrupt and closing stores.

Those nations, corporations, banks, and individuals who cannot meet debt payments on a reduced cash flow are becoming the first to fail.

The chaining together of all the major Western Banks, each entangled with the other in the massive derivative market, will force most of them to all fail almost at once, once a sufficient amount of defaults and bankruptcies bring down any one of them.

ThePythonicCow

29th March 2015, 06:12

The ultimate control mechanism: SDR's.

I was reading JC Collins' latest piece SDR Fundamentals (http://philosophyofmetrics.com/2015/03/28/sdr-fundamentals-future-announcements/), and asking myself what it meant for a particular national currency, such as the Chinese Renminbi (Yuan) or for gold, to be potentially included in the SDR's "basket of currencies."

My ongoing hunch has been that JC Collins is both more accurate than most in anticipating what will unfold over the next year or two in the world's monetary system, and is also a bit of an apologist for some of the key players in this system. In short, he's likely right in much of what he says, but likely not saying some key things.

I think I see what he's not saying ... that's of fundamental importance.

A key aspect of monetary systems is who controls the changing value of money over time. The Banksters have a long standing "tradition" of shifting back and forth between "easy money" and "austerity", which enables them to build their wealth and control, while stealing it from the rest of us. Debt is easier to pay off if money is "easy"; defaults, foreclosures and repossession of property are more likely when money is "scarce." Successful (profitable) savings and investing are easier if one knows or controls future monetary policy.

This harvesting of wealth and control by the Banksters has been going on for at least centuries, if not millenia. First they inject massive amounts of new money, with easy lending for stocks, bonds, houses, education, capital equipment, cars, whatever ... and then they tighten the money supply, causing a crash or depression, and handing vast wealth to themselves, for pennies on the dollar.

In short, it's pump and dump ... of money itself. It's a nice job if you can get it (helps if your father was in the business too.)

Long term contracts and trade agreements, as well as long term debt and investments are written in some unit of money - say US Dollars, Yuan, Euros, British Pounds, Yen, or SDRs. The key point of control of monetary systems is the control over the relative value of these currencies, between each other and against real goods and services. Nations, corporations and individuals have been driven into bankruptcy and austerity, their wealth confiscated by their most senior lender, many times ... many many times ... when they could no longer service their debt payments, which were denominated in some currency someone else controlled.

The new monetary system we are facing will have "Swiss gnomes" (whoever controls the Banksters that control SDR's) dictating the relative value of SDR's to all national currencies. No nation, not even the US or China, will have the "exorbitant privilege" of routinely issuing major debt in denominations of its own currency.

The "Swiss gnomes" will be able to destroy any nation by deciding that that nation's currency has lost some value relative to SDR's, which will make it more difficult for that nation to service its SDR-denominated debt. So long as the debtor nation has some reserves of whatever national currencies or precious metals are included in the SDR currency basket, then that debtor can use those reserves, at whatever SDR value the Swiss gnomes assign that currency or metal, to service debt. But the value in SDR's of those reserves is not within that nation's control.

We are entering a new variant of the same old system ... the real future value of SDR denominated debt, investments and contracts held in the present will be controlled by the "Swiss gnomes" who manipulate the exchange rates between SDR's and the major currencies and metals in the SDR currency basket.

The "Swiss gnomes" remain in the cat bird seat (the seat of control), but instead of having to work through some dominant nation's monetary system (such as through Venice, Portugal, Spain, Holland, France, the UK or the US), will now have their own catbird seat, from which they control the value of all the major national currencies, relative to the SDR units in terms of which major debt, investment and trade agreements are denominated.

So ... what does it mean to a particular currency whether or not it is included in the SDR basket of currencies?

Whether or not any particular national currency (such as the Canadian dollar (CAD) or the Swiss franc (CHF)) or a precious metal (gold) is included within the future SDR currency basket will perhaps determine who, or at least how, the relative value of that particular currency or metal is controlled, whether by the Forex and precious metal exchanges, or by the "Swiss gnomes" who set the value of each currency or metal in that basket, relative to SDR's. So, being in that basket might make a currency or metal more "stable" or less subject to currency manipulators such as George Soros. But manipulated it will still be ... just by different parties, or different means.
It's (another) good day to be a "Swiss gnome."

Ron Mauer Sr

29th March 2015, 13:17

It's (another) good day to be a "Swiss gnome."

I feel that there are higher levels of control, more powerful than the the "Swiss gnomes" (Swiss bankers). But my opinion has roots in other threads.

ThePythonicCow

29th March 2015, 18:29

I feel that there are higher levels of control, more powerful than the the "Swiss gnomes" (Swiss bankers). But my opinion has roots in other threads.
I entirely agree ... and I intended my phrase "Swiss gnomes" to be sufficiently vague and suggestive si as to leave the reader pondering, for a brief moment, who or what those higher levels might be.

ThePythonicCow

29th March 2015, 21:46

We are entering a new variant of the same old system ... the real future value of SDR denominated debt, investments and contracts held in the present will be controlled by the "Swiss gnomes" who manipulate the exchange rates between SDR's and the major currencies and metals in the SDR currency basket.
Mayer Amschel Bauer Rothschild is famously claimed to have said "Give me control of a nation's money and I care not who makes it's laws." (Detail: The quote is first claimed in the 1935 book "Money Creators," by Gertrude M. Coogan, without attribution or earlier reference.)

We might not see the New World Order One World Government that so many in the alternative media (including myself on some days) have been warning of for several decades.

All that matters, at this time, in the next year or two, to those ultimately controlling the monetary system on this planet, is that they get to control the relative valuation of various national currencies, in units of SDR's, and that major contracts, agreements, and loans are increasingly written in denominations of SDR's.

That one detail gives those bastards (whom I misleadingly called "Swiss gnomes" above) the key to our earthly kingdom.

Just as when the Federal Reserve came into being in the US in 1913, it might be a couple of decades before we witness the full potential of control over the affairs of nations and corporations through this means of controlling our civilization's monetary system.

"Give me control of the world's money, and I care not who makes it laws."

Such control is rapidly being realized, as both the primary reserve and lending institutions of both "sides", the World Bank and International Monetary Fund (IMF) on one side, and the Asian Infrastructure Investment Bank (AIIB) on the other side, fully agree to denominate their holdings and lendings in SDR's.

ThePythonicCow

31st March 2015, 04:44

Well, I'll be darned. South Korea was not the next holdout to take a more positive interest in the Asian Infrastructure Investment Bank (AIIB). South Korea and the US had been the last two major countries to be turning a cold shoulder toward the AIIB.
As reported at When the Dollar Dies, The World Will Go Down With It? ... NOPE (Prophezine.com) (http://www.prophezine.com/index.php?option=com_content&view=article&id=1096:when-the-dollar-dies-the-world-will-go-down-with-it--nope), today was the last day to apply to join the AIIB as a founding member. In the last few days, Taiwan, South Korea, Denmark, and Australia have applied for founding memberships. 40 countries (60% of the world’s GDP) applied.

ThePythonicCow

6th April 2015, 01:28

The new monetary system we are facing will have "Swiss gnomes" (whoever controls the Banksters that control SDR's) dictating the relative value of SDR's to all national currencies. No nation, not even the US or China, will have the "exorbitant privilege" of routinely issuing major debt in denominations of its own currency.
My phrase "Swiss gnomes" was a bit of a misleading euphemism.

What I meant was that the exchange values of the various national and regional currencies that are included in the SDR basket of currencies would supposedly be determined on the basis of something such as the trade balances or relative gross domestic products (GDPs) of those nations or regions. However, just as we see with the major economic statistics in the US today, such as inflation and unemployment, such statistics will be manipulated from behind the scenes for ulterior purposes.

Both the statisticians and accounts cranking the numbers to generate these statistics (the "Swiss gnomes", or the in the case of the US, employees of such government institutions as the Bureau of Labor and Statistics), and the results they produce, are controlled by covert (occult?) masters. The statistics are lies, through and through.

JC Collins spells out how this works, with a bit more detail and accurate naming, in his latest post: Hume’s Multilateral Adjustment Mechanism (http://philosophyofmetrics.com/2015/04/05/humes-multilateral-adjustment-mechanism/).

Such posts as this one of JC Collins will put most of us to sleep, most of the time.

However this particular post of his exposes, in more detail than we will usually see, a critical part of the inner workings of the "New World Monetary System" being imposed on humanity, to replace the US Reserve Dollar system, which is so "last century" (slang for "rapidly becoming obsolete.")

A fair (in my view) monetary system would have the key elements, such as exchange rates between various currencies, primarily determined by the collective action of many private individuals, each operating primarily in their own best interest.

The "New World Monetary System" mimics some aspects of such a fair system, but essential control is wielded by hidden masters, through control of critical parameters (such as the economic statistics that they choose to drive foreign exchange rates), as well as, of course, control over the major research, regulation, intelligence, military, police, and propaganda institutions.

What's in that SDR basket of recognized reserves, such as major currencies (Dollar, Renminbi, Euro, Pound, Yen, Ruble, ...), gold, energy and resource production, ... matters little, if the relative value of those items (in terms of a common denominator unit, such as the SDR) is determined by agencies controlled by covert powers.

We are witnessing world control shift from control via New York and Washington, to control via world monetary institutions (non-governmental organizations, NGO's).

Where the Vatican and the City of London fit into this I am not so clear on, but I doubt that they cease to have a major role.

gripreaper

12th April 2015, 18:32

Just got caught up on this thread, and I think Paul has a good grasp on what is going on relative to those who have their finger on the pulse. Let me put out some "high octane speculation" as Joseph Farrell calls it and write the script for the next two years.

In order to bring in the NGO (non government organization) global digital SDR (special drawing rights) system controlled by ____________ (you fill in the blank here), The Federal Reserve System needs to be the scapegoat and brought down in a massive fraud scandal. So, how does the Federal Reserve become the "Reichtag" fire and all nations buy into this new global system?

Well, I propose, in light of recent developments, that Rand Paul is the new potus puppet for this transition, just like George Bush was the potus puppet for 9-11. The presidential campaign between Hitlery Clinton and the neocon Jeb Bush is slated to be one of the nastiest campaigns ever witnessed, which will totally disgust the electorate as well as all people of all nations, and Rand Paul will be made to look like the new savior for America, who will expose the Federal Reserve and bring the house of cards down around the dollar, the current world reserve currency. He may, even though he is a Republican, jump out and become the moderate libertarian and usher in what appears to be a new party with new ideas and great hope.

The nations of the world, who are awakening to the demise of the dollar and the imperialistic nature of the "great satan" of America, will most likely embrace the new system with open arms, as most of them will not have any choice. The "reset" that will occur as a result of the Federal Reserve collapse and the new basket of SDR's will not eliminate debt, it will just reset the debt while stealing the rest of the wealth of nations and consolidate all assets and resources into the NGO in exchange for re-leveraging debt into future generations of debt slaves, with the promise of equitable exchange rates on currencies.

Then, these NGO's will manipulate the exchange rates to continue to create the booms and bust, the pump and dumps, the same game they have used for centuries to control all geopolitical skirmishes and human crowd control, and maintain their hegemony and power, from their centralized data centers. All transactions will be digital and all cash will be eliminated.

This system will make the current national systems of slavery seem like kindergarten playschool once it is fully implemented. There will not be ANY aspect of one's life which is NOT under full and complete surveillance and control, and all behaviors will be sanctioned and only very limited behaviors will be allowed, those which foster the confiscation and consolidation of wealth into the NGO's. All miscreants will be categorized and dealt with according to their level of resistance to this new system, and no aberrations will be allowed.

We have two years till this happens sometime in 2017.

ThePythonicCow

13th April 2015, 01:43

Just got caught up on this thread, and I think Paul has a good grasp on what is going on relative to those who have their finger on the pulse. Let me put out some "high octane speculation" as Joseph Farrell calls it and write the script for the next two years.
Thanks for the kind words.

I agree with the first half of your scenario - Rand Paul will become President and take down the Federal Reserve.

To set us (Americans) up for this "radical" change, there will be a serious economic collapse in the US in 2016, beginning later this year, 2015. We will be ready for an "outsider" (well, at least someone who is not a Clinton or Bush) to provide some "real change" by the time the US Presidential elections are held November 2016. There will be plenty of news headlines of riots, empty store shelves, and heavy handed police and Dept of Homeland Security interventions to "help" us understand that this is not "business as usual." More of the "real truth" of events such as 9/11 and of corruption at the highest levels of the US Federal government and Wall Street Bankers will be given a wider hearing.

Perhaps the Rothschild family members themselves need have no fear of being homeless in this lifetime, however at least some of their more trustworthy fronts, such as the US Military and Intelligence agencies and the US Federal Reserve, will be in for some serious down sizing and some seriously bad press, with some actually on trial for major crimes. In my view, though I know not in your view, the Rothschilds are in the process of a major demotion.

However ... I don't expect overt Orwellian 1984 slavery anytime soon. Rather, the BRICS nations and leaders will be the "saviours" of us all, leading a new world monetary system, which the average American will welcome, after going through a year or two of really hard times. Rand Paul will actually downsize the US Federal government domestically, and pull back the American military and intelligence from their dreadfully overbearing presence abroad. Austerity will come to America, as pension plans, banks, stocks, bonds, investments, real estate markets and government social benefit programs all fail. The new tyrants in the coming years will be large corporations such as Apple, Google, Amazon, Facebook, and Paypal, not as much the government in Washington.

Of course, the ground work for "Full-spectrum dominance" of all our human activity will continue to be laid, at every opportunity, however it will be for the most part (unless you're in a targeted group that's being made an example) the soft glove of tyranny, for the next few decades, until (almost) all who would rebel have grown quite used to such, their entire lives. Old farts like me, who could actually send a stealthy, encrypted, data packet across the Internet, or actually stay below the constant surveillance if we chose, and weren't already on a special target list, will be dead or too senile to create a fuss, when, and if, the next major round of tightening of the thumb screws on humanity is attempted, in another two or three decades.

First yet another "new" monetary system will be imposed on human civilization, which will provide world-wide control over national and regional governments (though control of the monetary system underlying major international debt and trade) sufficient to allow more open use of the black ops physics and technology that has been under development in secret for the last century. Of course, the intended beneficiaries of this "new found" (well, finally disclosed) physics and technology will not be us ordinary humans, but the bastards in power and whatever occult forces are behind them ... an arena of hidden powers that is likely as tumultuous as anything we can see openly.

Calz

13th April 2015, 07:00

ThePythonicCow

13th April 2015, 07:15

Hmmmm ...

__________________

Globalist Agenda Watch 2015: Update 20 – The Establishment strategy for electing Rand Paul
Yup - Ken over at RedefiningGod.com has a similar forecast. I linked to the same report over here: Excellent interview of Jim Willie by Rick Wiles of Trunews (8 April 2015) -- Post #2 (http://projectavalon.net/forum4/showthread.php?81423-Excellent-interview-of-Jim-Willie-by-Rick-Wiles-of-Trunews--8-April-2015-&p=951195&viewfull=1#post951195).

naste.de.lumina

13th April 2015, 16:25

Meanwhile below the equator line, Obama tells jokes at the summit of the Americas puppets.

http://tijolaco.com.br/blog/wp-content/uploads/2015/04/11139351_811933225562704_7014198253973102977_n.jpg

Translation:

In Brazil a woman had to come to power to begin cleaning up corruption. - Obama

Almost at the same time (04/12/2015) that Obama told the joke, hundreds of thousands of people in over 500 cities across the country went to the streets for empichemam precisely because corruption.

São Paulo City
http://zh.rbsdirect.com.br/imagesrc/17338534.jpg?w=640

Brasilia City
http://s02.video.glbimg.com/x360/4105073.jpg

Rio de Janeiro City
http://www.jornaldelondrina.com.br/midia/tn_658_645_Protesto_no_Rio.jpg

With each new scandal, the billionaires values of corruption of the previous scandal seem amateur thing.

Detail: Dilma Rousseff has just been re-elected and is already on a knife edge.

ThePythonicCow

13th April 2015, 22:40

As always, recessions (in a debt-money system, such as ours) begin with the banks retracting credit. They lend more and pump things up; they lend less and things retract. This is the way of the Bankster ... their perhaps most powerful means of control.

From "There Are Big, Big Problems" - The Shocker Crushing The Economy Revealed (ZeroHedge) (http://www.zerohedge.com/news/2015-04-13/unseen-recession-shocker-crushing-economy-revealed-credit-rejections-soar-most-ever):

=========

Of course, in a world in which the only economic growth comes as a result of new credit entering the economy (as opposed to Fed reserves being stuck in the S&P), the only thing that matters is how easy it is to get credit into the hands of those who need it. As it turns out it has never been more difficult to get credit.

No really!

According to the CMI, the Rejections of Credit Applications index just crashed the most ever, surpassing even the credit crunch at the peak of the Lehman crisis.

This can be seen on the chart below.

http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2015/04/20150413_NACM2_0.jpg
And without any new credit entering the economy, a recession is all but assured.

More details on what may be the most critical and completely underreported indicator for the US economy. The report continues, with such a dire narrative that one wonders how it passed through the US Ministry of Truth's propaganda meter:

By far the most disturbing is the rejection of credit applications as this has fallen from an already weak 48.1 to 42.9. This is credit crunch territory—unseen since the very start of the recession. Suddenly companies are having a very hard time getting credit. The accounts placed for collection reading slipped below 50 with a fall from 50.8 to 49.8 and that suggests that many companies are beyond slow pay and are faltering badly. The disputes category improved very slightly from 48.8 to 49, but is still below 50. This indicates that more companies are in such distress they are not bothering to dispute; they are just trying to survive. The dollar amount beyond terms slipped even deeper into contraction with a reading of 45.5 after a previous reading of 48.4. The dollar amount of customer deductions slipped out of the 50s as it went from 51.8 to 48.7. The only semi-bright spot was that filings for bankruptcies stayed almost the same—going from 55.0 to 55.1. This is the one and only category in the unfavorable list that did not fall into contraction territory and that suggests that there are big, big problems as far as the financial security of these companies are concerned.

=========

The next US recession has begun ... the US banks are pulling back credit. Less lending means less money in circulation, which creates more stress as borrowers cash flows (individuals, businesses and governments) can no longer service existing debt, causing more foreclosures, bankruptcies, repossessions, austerity, ...