The Key to Everything - Part 2
Post From KTFA By Memphis » March 12th, 2014, This 2nd installment is another layer in the discussion and it is good to recognize that much of the discussion here is drawing upon the provisions of Basel III regarding the manner in which nation's will support their currency's value.
I must confess that this journey is STILL a journey for me. I have not arrived at any high plateau or "destination". A prime example is the following quote from below:
"...the [U.S.] dollar will be split into an international exchange and an in country exchange. The Treasury being severed from the Federal Reserve."
Guys, I am still trying to wrap my mind around some of these things. This is not a disclaimer tho, I am not suggesting the Collins is wrong in his conclusions and in fact to the contrary I cannot (as of yet) DISPROVE him.
Read More Link On Right
This then leaves me (us) no choice but to occasionally leave a blank in the discussion to be filled in at a later time. Hope this makes sense. I plan at least one more posting in this essay later today and would like to have it all complete within a few days.
As we go along you will see him reference certain currencies such as the dinar and VND. Interesting stuff to be sure... Blessings, Memphis
Read: SDR’S AND THE NEW BRETTON WOODS – PART TWO JC Collins
JANUARY 23, 2014 LINK
The Key to Everything - Part 3
Post From KTFA By Memphis » March 12th, 2014,
New post in SC thread, the latest essay on:
SDR’S AND THE NEW BRETTON WOODS PART THREE
This material that I am bringing forward has (so far) been confirming of everything that I have been seeing develop in the world. The many speculations/conclusions that Nova and I have been seeing for months now are slowly proving themselves and NOT because of any great thinking but because we appreciate history.
The study of cycles with the knowledge that human nature always reacts the same way (regardless of the century) has brought so much....clarity!
I recently mentioned this (in a post) in the context of nation states with a currency fully backed in (minted in) precious metals? Lydia was the example put forward and the whole discussion of debasement of our money supply and "asset backed" vs. "fiat" goes back to the question of: "Who controls it?"
Even in Lydia (500bc) the coins were diluted with base metals (to pay for the war) until the silver/gold content was meaningless and the supply of money had grown far beyond the ability of the nation's economy to support.
A small part of tonight's latest essay has this quote:
"Currencies becoming asset backed is a good thing. The question is how long can it last. I would suspect that the currencies will only be asset supported by 50%. The other 50% will be fiat.
In 1944 during the Bretton Woods agreement the U.S. dollar was pegged to the value of gold by 30%. That lasted until 1971 when Nixon separated the two. That was a total of 27 years."
If you have not been "coming to class"? It's not too late.... Blessings, Memphis
A brief introduction for Part 3 of Collin's essay....
1) At the bottom, I have included a reply to this blog from a forum member on his website because there is some clarity and value in it.
2) Please consider that THIS material needs to be "chewed" and "digested". If you are reading these words and only have 4-5 min to skim over it? I would suggest coming back later! This stuff needs to be processed at it is a further building block to understanding this complex process and TRULY needs to be read thoughtfully.
3) Collin's makes a brief comment to the IQD in this post. I ask you not to get your hair on fire and bring this discussion to the main thread BECAUSE the subsequent essays will bring clarity to his thoughts.
Recall that I have already stated some reservations in certain parts of his conclusions.
Considering that it may be difficult for some people to receive that I disagree with the man on certain points , let's talk briefly about a side issue that I think has great importance and please don't think I am talking down to anyone here, I am not.
It is important IMO to be able to see the value in a thing, receive it, add it to our own model, and not be hung up on the fact that there will often be points of disagreement!
If we don't all recognize this then we are crippling ourselves as critical thinkers and will be unintentionally guilty of "throwing out the baby with the bathwater". Had I been crippled in such manner, I would have long ago passed by some great thinkers that have proven (over time) to be an asset in my own growth! (my purging of ignorance)
Again, hope that makes sense... Blessings, Memphis
Recaps Note – Though we have already posted all NINE of JC Collins series on the Bretton Woods we are re-posting this one here for ease of reading to go along with Memphis’ thoughts and comments on the article
SDR’S AND THE NEW BRETTON WOODS – PART THREE
FEBRUARY 4, 2014
The Real Global Currency Reset By JC Collins
Have no doubt about it, the so called Global Currency Reset is already happening, and it’s happening by the International Monetary Fund restructuring the world’s wealth through the emerging markets.
Sovereign debt is at a 200 year high. Fiat currencies are on the verge of collapse. Stock markets are hovering over nothing but the illusionary ether from which they climbed. And if you listen carefully you’ll notice that all countries are speaking from the same script.
So how did we get here?
Though this is a multi-part series, all the other essays on philosophyofmetrics.com have something to do with the process which has come to be called the Global Currency Reset or the Great Consolidation. Such a complex process is not easily understood or easily explained.
Revolutions are ideal methods to exact transformation upon a civilization. The banking powers which still control the world today gained that control through revolutions such as the French Revolution, the Bolshevik Revolution, etc. They are working within the same methodology today.
We are seeing mass protests against governments for the sovereign debt problem which is threatening the world with total collapse. What is little understood by the majority of the people is that the sovereign debt problems are being caused and facilitated by the very same banks that will stand to gain from any global currency reset.
The reset will be the solution offered in response to the reaction of the people, being the protests and revolutions, which stems from the problem of sovereign debt and currency collapse.
Can we not see through the smoke and mirrors too observe the obviousness of the Hegelian Dialectic at play? The banks take control of most of the countries of the world through revolution, war, famine, economic sanctions, and then set up central banks in these countries.
The central bank of each country quickly gets to work on lending the government of their respective countries the debt money it needs to function and maintain the carefully engineered economic equilibrium of the population.
Eventually sovereign debt becomes too large and the whole system is threatened with collapse.
Once again, how did we come to be here?
What we are witnessing is a carefully worded script to effect the problem, reaction, solution of the Hegelian Dialectic. This script is being written by the Bank for International Settlements. The B.I.S. decides and disseminates all central banking policies and regulations for the central banks of each country in the world.
Today’s “problem” began, for the most part, with the 1988 Basel Accord. This accord was engineered by the B.I.S. through its main location in Basel, Switzerland. The Basel One regulation set minimum capital requirements for the central banks of the world. This policy was trickled down to the chartered banks within each country. On the surface Basel One appeared harmless.
It wasn’t until the Basel Two regulations came out many years later that the first red flag should have been noticed. This regulation, along with the minimum requirements of Basel One, allowed the banks to increase their risk by way of leverage and investments.
It can be argued that Basel Two regulations were directly responsible for the subprime mortgage crisis of 2008. Therein the “problem” is given full birth.
From then on the “problem” develops into corporate bail-outs and eventually onto the sovereign debt crisis we are facing today.
The solution is found in the Basel Three regulations. In brief, these regulations force banks to increase assets and lays out the structure for currencies to become commodity supported. It is in this regulation that the Bank for International Settlements puts forth the final stage to the great consolidation, of which the global currency reset is but one part.
It’s interesting that many on the internet are saying that the banking powers of the world are about to be overthrown because of the Basel Three regulations and the economic reset which will come as a product of its full implementation by 2018. Isn’t it recognized that the Basel Three regulations are a product of those same banking powers? They’re certainly not overthrowing themselves.
What is happening is the tightening down of the bolts, the closing of loopholes, and the streamlining of processes. When it’s all said and done, the Bank for International Settlements will have more control than they do today. Period.
With that being said, there is evidence of negotiations taking place behinds the scenes. Let’s not rely on rumor and internet conjecture for this evidence. Let’s go directly to the International Monetary Fund itself.
In the I.M.F. press release dated January 23rd, 2014, it states the following:
“The Executive Board reiterates the importance and urgency of the 2010 Reforms for strengthening the Fund’s effectiveness and legitimacy. This includes ensuring that, as a quota-based institution, the Fund has sufficient permanent resources to meet members’ needs and that its governance structure evolves in line with members’ changing positions in the world economy.”
What they are saying here is that the implementation of the new Executive Board, which includes China and other BRICS countries (See SDR’s and the New Bretton Woods – Part One) needs to happen as soon as possible.
These new members will make much needed capital injections into the quota fund to meet overall member needs. Here we need to consider the sovereign debt of all the countries of the world and the consolidation of this debt through the I.M.F. as it was designed to be. It also makes clear that the governance structure of the Executive Board will reflect the “members changing positions in the world economy”.
Let’s continue with the press release.
Memphis note: for clarity let me jump in here and point out that when the following quote refers to "the Fourteenth Review" that it is speaking to the IMF 2010 Code of reforms that I have pointed to as being the pivotal point, the key to everything going forward for the US.]
“The Executive Board proposes that the deadline for the completion of the Fifteenth Review be moved from January 2014 to January 2015. Furthermore, the Executive Board recognizes that the immediate priority is the effectiveness of the Fourteenth Review and Board Reform Amendment.
Accordingly, the Executive Board proposes that the Board of Governors adopt a Resolution expressing its deep regret that the Fourteenth Review and the Board Reform Amendment have not become effective and urge the remaining members who have not yet accepted the Fourteenth Review quota increases and the Board Reform Amendment to do so without further delay”.
So in the first sentence the I.M.F. is clearly suggesting that the deadline for the economic reset be pushed out to January, 2015. On top of that, it’s calling for a “resolution” expressing their disappointment that some members have yet to accept the new quota regulations and are pushing those members to implement the changes “without further delay”.
Don’t let the “quota increases” term fool you. What they are talking about here is surrender of the economic sovereignty of member countries. In this simple term will be found the passage of ownership over the Federal Reserve System to foreign powers. And remember, as we learned in Part One of this series, Jack Lew of the Treasury is pushing Congress to pass legislation which will support what the I.M.F. is requesting.
As we move through the year and get closer and closer to the Great Consolidation it will be important to remain focused on what is really happening. The Great Consolidation will be the relinquishing of sovereignty and the Global Currency Reset will be one of the major steps towards this end.
We will hear more of the sovereign debt issue. We will witness the turmoil of the currency exchange markets. Revolutions will take place on the television right before our eyes. The people of the world will be told daily that the collapse of the whole system is imminent. At some point, the negotiations hinted at above will be concluded. The currencies of the world will be revalued and the debts of the world consolidated.
Make no mistake about it, the Global Currency Reset and the Great Consolidation will mean the end of sovereignty, including the sovereignty of the United States.
And at the same time, all the countries of the world continue to develop police state procedures along with the implementation of technologies to ensure successful management of the “reaction” stage of the Hegelian Dialectic Triad.
This is the real Global Currency Reset. Order out of chaos.
There were other matters which I wanted to cover in part three of this series. But I felt it was important to set a few things straight about the reset first. In the next installment we will get back on track and delve once again into the structure of SDR compositions.
We will take a closer look at specific regions, including Canada and the Keystone XL Pipeline, agreements between Iraq and Iran on oil strategies (hint: so called “dinarians” are not going to be happy), and how all sovereign debts, including historical bonds, will be included in the Great Consolidation. – JC Collins
End Note: There is so much involved in the creation of this “New Bretton Woods” that I will not limit the amount of expected installments in this series. I will keep writing and providing info until such a time as the system is in place or all processes and structures have been clearly defined, whichever comes first.
Comment By WP FEBRUARY 4, 2014 AT 11:39 PM JC, I like the way you think and find your articles very enlightening and please understand that my questions are based on my desire to clarify, not challenge.
In your post you said: “The banks take control of most of the countries of the world through revolution, war, famine, economic sanctions, and then set up central banks in these countries.” I assume we are talking about the last 30 or so years, not a new development?
Also: “We are seeing mass protests against governments for the sovereign debt problem” Where are these mass protests, I know we have seen the Arab spring sweep through the middle east but this was not a sovereign debt revolt. Do you feel the people really understand what sovereign debt even is?
My understanding of the Basel regulations is that they decreased the banks ability to leverage beyond a certain level “The Basel One regulation set minimum capital requirements for the central banks of the world.” you are saying it actually forces the banks to INCREASE liquidity, am I reading this correctly that you are using the word liquidity as I would leverage?
I interpretted that the regulations layed out a structure for currencies to become asset supported and the overall tenor of the “restraints” suggested as a positive direction. I must not be reading correctly. Of course as the regulations were drawn up by the same controlling members of the past 50 years so this does raise a red flag.
Reply By JC Collins FEBRUARY 5, 2014 AT 12:04 AM Thanks for your comments. First, in regards to revolutions and such, I’m referring everything between the French Revolution of 1793 and now. More than 200 years.
As for protests, research the European protests against austerity. Research the food shortage protests of other regions. These are all symptoms of sovereign debt.
It was only Basel 3 which is attempting to increase liquidity. Liquidity being the institutions ability to payback a debt. Leverage is defined as debt or credit. (EDIT: WP –
I’m probably making this more complicated than needed. Increasing liquidity increases the ability to pay or service the date. But in turn creates more debt.
What I was truly attempting to get at was that Basel 3 raises the amount of assets required so that the debt/asset ratio is leaner. My thoughts get convoluted at times. Thanks for forcing me to think this through further. I stand corrected.)
Currencies becoming asset backed is a good thing. The question is how long can it last. I would suspect that the currencies will only be asset supported by 50%. The other 50% will be fiat.
In 1944 during the Bretton Woods agreement the U.S. dollar was pegged to the value of gold by 30%. That lasted until 1971 when Nixon separated the two. That was a total of 27 years. JC Collins
Post From KTFA Member by hawger03 » March 12th, 2014 Memphis,
I understand why countries holding US debt instruments would want to see a different global currency to conduct international business as they have no control over the stupidity of the US government.
That makes perfect sense as I put myself into their shoes. I also gain clarity as to why the Iraqis would be sending trillions to fund the IMF reserves as they would like a seat at that executive board as well.....assuming they are one of the BRICS.
I am confused about some board of nations determining SDR allocation. If this is the GCR, would not the SDRs be allocated based of value of each country's assets?
Why would it take a board or group of nations to make those decisions? Numbers don't lie and each country should get what they are worth, plain and simple. Correct me if I'm wrong, but does the loss of status as world reserve currency also remove the Fed's ability to continue to print money?
My next thought is, our current group in the House of Representatives hold the lever and will chose which of the A or B scenarios plays out.
I tend to lean in the direction of the more moderate decline scenario as there will be less panic and desperation, I have to believe that in either scenario, there will be a financial market collapse.
To prove this point, just look at what happens to the market when there is even a hint of backing off of the Feds quantitative easing. How catastrophic would a complete halt to that program and a devaluation of 30-40 percent be?
In any scenario, I see this as a cataclysmic event in either scenario as the dominos will fall as predictably. Citizens life savings will evaporate and the middle class will be gone as only the haves and have nots will remain. In my mind, it would behoove us to watch what the big money players in the world are doing.
If it hasn't already happened, I see the Warren Buffets of the world pulling their assets out of the public stock market before the new normal kicks in. I think it will be more to our benefits to follow those who have assets and power than the average Joe.
How this all plays out to our group of dinar holders is that it gives us advanced knowledge of what's coming down the pike. Knowing that the USD is going to take major losses and that a Cyprus style raid is a very real possibility, we can make better choices:
1) How much dinar to exchange and the advantages to holding on to it (depending on where you are planning on making your investments) and
2) Where to invest and where future demand will be.
I have so many other questions but I'm sure others will grow weary of the length of my post. One more thing though, as this never is discussed.......who are the ones pulling the strings or is this path we are heading down one that is destined to be traveled just because the inevitability that history must repeat itself?
I find it amazing that as my knowledge grows, so do the questions to this new normal. The more I learn, the more I find out that I do not know. Thank you, once again, for your thought provoking messages. Blessings to you sir!!!
Hello Memphis, I have one more thing to throw out here. What if the scenarios presented in past posts has the country alignments wrong? Yes, Russia has land mass and possibly military might advantages over us but does not posses the economic power to make this happen by themselves.
It is suggested that China will be their ally until such time as they battle each other. Why would China align with Russia rather than the US? To my knowledge, China is very dependent on the US consumption or purchase of the goods they produce.
When our financial system went through the collapse of 2008, the American public severely cut their spending. This is very common that when things get tough, we keep things close to the vest and cut discretionary spending and send more of our dollars to saving.
I remember national news doing stories on the Chinese factories sitting idle and lines of "out of work" Chinese because our gigantic consumption engine was cut back. Would not the Chinese be cutting off their own heads by chopping ours? It has been the perfect marriage for many years.
If the US suffers a much larger collapse than 2008 and our dollar devalues to where it should be, who will consume the products of the Chinese manufacturing engine?
I believe they make inferior products but with the dollar being artificially held up and the Chinese currency being kept artificially low, Chinese products are cheap and represent larger profit for US corporations to import and thus their attractiveness.
Putting the GCR into motion, we hold onto our devalued money as it will become precious......devalued or not, the dollar tanks, the yuan increases and those who would consider purchasing a Chinese product now sees it not as affordable and does not buy. US imports dwindle to a dribble and China tanks as well.
Unless Russia takes the US place and consumes on a scale par to ours, I don't see how this is in China's best interest.