READER THOUGHTS ON “ONE HUNDRED PERCENT OF NOTHING”
Mika Keskitalo JANUARY 28, 2015 AT 1:08 AM Hi JC. On 2/1 you posted
“I’m working on a series of e-publications titled The Economic Transition Papers, which will be segmented into the three stages and will offer more detailed information on the processes and structure of the multilateral architecture. Each will be around 50 pages in length and my goal is to produce one a month. The first installment is titled “Reengineering the Dollar”, and should be available sometime next week.”
Are you still working on these? Did any of the recent event (SNB) change your thinking?
JC Collins JANUARY 28, 2015 AT 1:18 AM Mika, I’m still working on the first installment, about 50% complete. I’ve been extremely busy with work and traveling every week. It’s coming though. Thanks for holding me accountable.
Matt McBride (@MattMhmmcbride) JANUARY 28, 2015 AT 2:34 AM I look forward to its release JC.
“The first step in the review of the basket is an informal board meeting in May, followed by a formal review in the autumn. Any changes would come into effect in January 2016 but would require a 70 or 85 percent majority on the IMF council.”
Two events will be certainly required before the Yuans formal inclusion in Autumn:
1. Depegging from the USD (to ensure further diversification and stability of the SDR, and a certain preference to the USD)
2. The updated Gold Reserve figures (proving sufficient market transparency)
Both have the ability to cause system shocks.
Despite the certainty of its inclusion this year, it makes sense from an appearances and housekeeping perspective that the Chinese should ensure both are completed prior to the informal meeting in May.
The US will probably lose their veto under “Plan B” at the same time.
JC Collins JANUARY 28, 2015 AT 3:41 AM Thanks for the updated info Matt. It’s certainly going to be dramatic, one way or another.
Matt McBride (@MattMhmmcbride) JANUARY 28, 2015 AT 5:11 AM Hi JC It seems the movement of Russia to their own Swift alternative system as a certainty.
Do you see Russia being kicked out of swift (and the resulting retaliation) as likely, and an excuse to help accelerate the movement toward the multilateral system?
Like the sanctions on Russia over the last year, it seems to have the potential to aid the deflationary spiral that will enable the system crash and reset…and to provide a distraction of the masses
JC Collins JANUARY 28, 2015 AT 10:56 AM That storyline is certainly being developed. Out with the old and in with the new.
tablet1077g JANUARY 28, 2015 AT 8:15 PM What is the implication of such an action with respect to treasuries? It would seem to me that kicking a nation from SWIFT is akin to a default on the foreign obligations, for SWIFT would be the primary mechanism for spending the digits once said treasuries are redeemed. Am I off my rocker? Because if I’m not, it’s time for many a foreign nation to divest of US financial instruments.
JC Collins JANUARY 28, 2015 AT 9:31 PM The USD system and SWIFT have been abused through sanctions, etc.. It’s part of the script.
Daneackerman JANUARY 28, 2015 AT 12:10 PM Hello JC. Its interesting to read this essay this morning. As I was getting ready for work the news was promoting how well the Canadians have preserved there national parks and wildlife.
Interesting how our zoo expert (our television star) is taking a student on a wildlife trip to the Canadian Rockies. Lots of publicity hitting channel 10 local news this morning. The other side of the coin could be in preparation of the “opportunities” coming to that region.
Let the globalization begin…well or continue. I hope we (humans) will find the will power to develop these up and coming countries/regions better than we have done in the past.
OpenSystemsEnrgetics (@OpenSystmsNrgtc) JANUARY 28, 2015 AT 2:21 PM Would not that storyline have the Yuan abruptly appreciating against USD? What would it do to Chinese exports?
JC Collins JANUARY 28, 2015 AT 2:57 PM You are correct, the yuan would begin to appreciate and it would affect the countries export model. But what isn’t widely communicated is that is exactly what China wants.
It’s focus is now on moving away from the exporting model it has used for decades and towards domestic consumption. And interestingly enough, their growth is beginning to slow, just as it should at this time. This is why all those “empty cities” were built in China. They are building a middle class.
See this link.
As a side note of interest, when the yuan appreciates, cheap imports from China are not going to be cheap goods anymore. Dollar stores, Walmart, and any other business model that was based on cheap goods from China will suffer.
The retail closures and bankruptcies in the west over the last few years, along with China’s shift away from the export model, are very telling signs of the shift in the western consuming culture.
The multilateral world is changing everything.
Daneackerman JANUARY 28, 2015 AT 3:19 PM I believe what you say is evident in this Walmart statement.
“Investing in American Jobs
At Walmart, we believe in making a difference on the issues our customers and communities care about. We believe we can create more American jobs by supporting more American manufacturing.
Jump-starting the manufacturing industry and rebuilding the middle class requires a national effort by companies, industry leaders, lawmakers and others.
Together, we can help spark a revitalization of U.S.-based manufacturing. By making production more affordable and feasible in the United States, we can bring our customers more U.S.-made products and manufacturers can create more jobs in America.”
Cooper (@coopersmith648) JANUARY 28, 2015 AT 3:40 PM that link is a really good read, thanks JC. Researching that article brought the Hukou Reform to my attention and like you say, “This is why all those ‘empty cities’ were built in China. They are building a middle class.”
Currently, the CCP has set a goal of urbanizing 100 million rural Chinese. Doing so without reforming the cumbersome hukou system would have proven impossible.
Additionally, hukou reform plays a part in the CCP’s bid to shift China’s economic growth model into a more consumption-focused, demand-driven one.” http://thediplomat.com/2014/07/china-announces-limited-hukou-reform/
Matt McBride (@MattMhmmcbride) JANUARY 28, 2015 AT 11:20 PM Great article JC Peter Schiff in the below video explains the implications if the Chinese depeg the USD.
The standard of living would increase dramatically for the Chinese people as they turn into internal consumption. Different ASEAN nations will happily pick up the industrial drop of from the Chinese
Also the Saudis are struggling to justify holding the USD peg with a historic deficit set for 2015.
Silver Watchdog (@Silver_Watchdog) 29/01/2015 8:37 am Saudi Arabia wresting to maintain Riyal-dollar peg pic.twitter.com/dAHaiuL1I8
Cooper (@coopersmith648) JANUARY 28, 2015 AT 2:59 PM is the whole world starting to use Autocue in the build up to this (meh, not such a big deal – it’s a BIG DEAL) renminbi internationalisation for inclusion into the SDR basket?
“Why Choose Autocue the Original Prompter People?
Autocue is the world’s oldest and original teleprompting company, with over 100,000 users worldwide.”
Out from the gates like clockwork were the usual MSM suspects with a quote from Wim Raymaekers head of banking and payments treasury market, SWIFT:
…the internationalisation of the RMB and confirms… “its transition from an ‘emerging’ to a business as usual payment currency”.
Seems like the best vantage point one can take for observing this roadmap towards SDR integration continues to be http://www.philosophyofmetrics.com.
It’s going to be interesting to watch the ‘storyline’ with you all and observe how the Russians will convince the Americans of their necessary inclusion… or is that the other way around?
Daneackerman JANUARY 28, 2015 AT 4:29 PM Here’s an interesting move. Loretta E. Lynch may be the next US attorney general. So a key question might be…what did she do about stopping, prosecuting or correcting Wall Street banks?
Here’s some insight to that ” Currently, she is the U.S. Attorney for the Eastern District of New York. In this New York office, she brokered what’s called a deferred prosecution agreement (DPA) with HSBC, one of the world’s largest banks. HSBC admitted to massive criminal money laundering.
Rather than indict the firm or any individuals, the DPA required HSBC to pay a fine — $1.9 billion, or roughly a month’s profit.
Sen. Charles Grassley (D-Iowa), who will chair the Senate Judiciary Committee hearings, asked current AG Eric Holder why the U.S. Department of Justice (DOJ) didn’t bring criminal charges against HSBC in a hearing two years ago. Holder responded that some firms are just too big.”
Matt McBride (@MattMhmmcbride) JANUARY 29, 2015 AT 3:52 AM Latest press release from the IMF 1/28/2015 http://www.imf.org/external/np/sec/pr/2015/pr1520.htm
Due to the US still not approving the 2010 reforms, the Fifteenth general review of quotas which was originally set for January 2014 and then postponed till now, January 2015, has not been met, and thus has been postponed again till December 15, 2015.
I suspect, by delaying the 15th general review of quota’s till December 2015, this will allow the below to occur before the significantly large 15th quota is calculated and announced in order (in conjunction with a US and derivatives substitution account) to save the system:
1. China to depeg;
2. Chinas announcement of its gold reserves;
3. A system shock to occur in the developing and emerging nations;
4. The Yuans inclusion in the SDR
5. The US veto removal
What are your thoughts JC?
JC Collins JANUARY 29, 2015 AT 6:12 AM Matt, I agree. The shift continues. Thanks for helping stay on top of all this. The other readers, as well as myself, are grateful.
Daneackerman JANUARY 29, 2015 AT 10:26 AM Hello Matt. JC is so correct. It comforts my heart to see him have help developing the economic side of this all. At times I feel many of us are like fish nibbling away at JC “picking flesh from his bones comes to mind.” I am learning so, so much from you guys. Thank you and everyone for helping me put the pieces together.
Matt McBride (@MattMhmmcbride) JANUARY 29, 2015 AT 10:22 PM Hi Dane No problem at all.
I enjoy the further studies, and use JC’s work as a compass to direct my attention and investigations.
JC is providing a great community service with this site.
I mentioned to him early on that I would have happily paid good money for him running an Skype/online based education course on this. He is a gracious and generous guy. Enjoy your end of week.
Matt McBride (@MattMhmmcbride) JANUARY 29, 2015 AT 10:23 AM No problem at all.
Some different perspectives on the announcement
Nb the June deadline described is only a few short weeks after Mays informal meeting regarding the SDR basket review.
Cooper (@coopersmith648) JANUARY 29, 2015 AT 11:30 AM Is the U.S. really such an ‘immovable object’ standing in the way of the an ‘unstoppable force’ known as the 2010 IMF Reforms?
This ‘unstoppable force’ is currently made up of 163 members representing 79.6% of total quotas and 146 members representing 77.1% of total voting power. Let’s take a look…
Oooooh.. ouch. Postponed AGAIN till December 15, 2015 puts a damper on the credibility, legitimacy, and effectiveness of the Fund moving forward.
“2010 Reforms and Fifteenth General Review of Quotas—Report of the Executive Board to the Board of Governors
…The Executive Board is committed to work expeditiously on interim steps to make meaningful progress in the key areas covered by the 2010 Reforms, pending their full implementation, to provide a basis for IMFC discussion at the 2015 Spring Meetings…
…calling on the Executive Board to work expeditiously and to complete its work as soon as possible on interim steps in the key areas covered by the 2010 quota and governance reforms, pending their full implementation, and thus to enable the Board of Governors to reach agreement on steps that represent meaningful progress towards the objectives of the 2010 Reforms by June 30, 2015…”https://www.imf.org/external/np/pp/eng/2015/012815.pdf
What are these interim steps?
“IMF begins work on ‘Plan B’ as US blocks reforms January 29, 2015
…The executive board stressed in a statement Wednesday that it does not see the alternative measures of Plan B as any replacement for the plan decided five years ago.
“The proposed resolution stresses that such interim steps should not in any way be seen as a substitute for the 2010 reforms, which remain the highest priority,” it said…” Yahoo News link
So ‘Plan B’ is in fact the interim steps required to get to ‘Plan A’ because said ‘Plan B’ is no substitute… so says the Executive Board. Hmmm. So in other words….
Wow, watching the efforts that the ‘Powers’ go to to usher in change is getting slightly boring. Even with all the ‘bait & switch’ – false flag scripts. They are hardly something to aspire for..
Here’s some of the main actors we can expect cameo’s from:https://www.imf.org/external/np/sec/memdir/officers.htm
Comments may be made at the end of Part 2 Thank You