Thoughts On “Analysis Of Recent IMF Report On SDR Adjustments “ Part 2 of 2
shawn smith: Hi Jcollins First time posting on POM but I’ve followed your work from almost the beginning. I really view it as one of the most straight forward and level-headed blogs on the web, the accuracy of information has been spot on as well. I can’t thank you enough for making this transition easier to understand.
As a Vancouverite I can’t help but feel everything over priced, I thought buying gold was betting against the system but I guess not.
Would going with the system and buying RMB be the better bet? I feel like stock, bonds, real-estate will all go lower and if metals stay flat or drift lower is CAD terms. Will there be any winner’s during or after the collapse?
Jcollins: Thanks Shawn. I’m uncomfortable giving financial advice outside of explaining the fundamentals of the transition. But diversification is always the best path. The more diversification the better.
Consider what is low and what is high. We need to buy low. Never buy high. Only sell high. Commodities are low. Real estate is high. Tech stocks are high. And we have a good idea, based on trade surpluses, which countries will need to appreciate their currencies.
And always hold a little Vietnamese dong for ** and giggles. There are always winners. Be patient and smart brother. Think long term.
shawn smith: Thanks for your reply! Sorry if I put you on the spot lol. It’s just really tough to envision this new world being born out of all this. I wonder what Canadian real-estate will look like 6-10 years from now? If the RMB is revalued much higher and 6X as many Asian’s have the money to buy abroad ….
Almost like how American’s bought vacation homes all around the world … right?
Rodriguez Perez: Hello, With this delay is expected that more QE is coming in USA and Europe till Septbre 2016? If not, how liquidity crisis situation will be solved? I do not believe Europe follow its own way?
Jcollins: Rodriquez, it is my conclusion that there will be no more QE. It is time for the system to drain liquidity in preparation for new liquidity. It’s callous to state it so bluntly when many will loss, but that is the reality which I see coming.
Jenifer Lytle: This offers additional clarification in a Question & Answer format. A good read.
Transcript of a Conference Call by Senior IMF Officials on the IMF Staff Report: “Review of the Method of the Valuation of the SDR — Initial Considerations”
Washington, D.C. Tuesday, August 4, 2015 http://www.imf.org/external/np/tr/2015/tr080415a.htm
Jcollins: Thanks Jenifer. Keep the good info and links coming.
Dottie Derewicz: Thanks Jennifer for the transcript/ the question and answer format. I found this extremely helpful.
Rodriguez Perez: I am asking about QE, JC, because nowadays invest money for privat people is really difficult. Low rates, overvalued assets and mainly a lack of confidence, do things almost imposible.
To invest in comodities or another assets, for example, have to be made through O-T-C, where you give “MONEY” and recieve “PAPERS” from unregulated market and without knowing who is behind the commitment. ( do not forget that with my level of English I need to read your posts several times before undestanting them.).
By the way, this one is an excellent explanation about how difficult should be the negotiations among the parts. I Think that, may be, we are, as well, in another Hegelian Dialectic, to justify positions. Thanks.
Frédéric Perron: Hi JC, You often said in the comments that this new system will only last for 15 to 20 years maybe. It would be pleasant to know why you think so. Regards
Jcollins: Frédéric, human nature is such that we continue to repeat the same patterns over and over. There is no reason to think that the economic pressure to expand the money supply to fund lack of production and growth will not infect the new multilateral system.
Normally I would have given this 50 years, but considering that the current levels of debt, or a large percentage of it, will be re-formatted into the new monetary framework, I see pressure beginning to build within the first few years.
The bancor, or world currency, which will evolve from the SDR basket (much like the euro evolved from the ECU basket), will be heavily promoted within 10 to 15 years, which will leave 5 years, or so, for that particular transition to progress.
The rise of the bancor in 15 to 20 years all but ensures a massive expansion of the money supply in the lead up years, whether its intentional and by design, or simply a product of human nature.
Frédéric Perron: I had hope for a more optimistic response, but I can deal with that reality. I just hope someone find and implant another way around before I leave this world so i can see it.
Paul Lane: JC, I am wondering how the time line you describe will affect the ultimate monetization/assignment of Chinese Historical Bonds, which are denominated in both gold and silver.
Here, I would like to know your thoughts on how the assignment of these bonds, an informal form of private redemption, would allow the Chinese to use their USD reserves to retire or as a minimum shelter these Historical Bonds.
Further, could we end up seeing the Historical Bonds, with BIS approval, end up as capital on Chinese Bank Balance Sheets? Best Regards Paul Lane
Jcollins: Paul, after much research and attempts at confirmation, I’ve been unable to find any supportive evidence in regards to the redemption of Chinese historical bonds.
Or any historical bonds for that matter. It is my final analysis on this matter that any historical bonds will not be honored and will have nothing to do with the multilateral transition.
The historical bond market has zero liquidity and so many have taken advantage of this little understood area to scam thousands out of their savings.
Phrases such as “private redemption” have become the working tools of this scam. The promises of instant riches keep believers purchasing more and more bonds which are worthless. People are paying anywhere from $500.00 per bond to $2000.00 per bond, depending on the scam script.
After years of waiting and waiting people will get disenfranchised and unload the bonds for whatever they can get, sometimes less than $100.00 per bond. Check ebay for proof of this.
(but they’ll tell you the ebay bonds aren’t the right ones)
The scammers purchase these bonds cheap (probably from ebay) and continue to sell them to others at the inflated prices. The story-line is so intriguing and believable initially that thousands of new “investors” fall into the trap and wait for their turn at private redemption.
The Iraqi dinar is a similar scam. Iraq will be lucky to survive as a country, let alone have its currency revalue into untold riches.
Sorry brother. I hope I haven’t disappointed you. I personally know people who are heavily involved in this and refuse to believe what I’m telling them. So I won’t be offended if you tell me to get lost. I’m here for you, and everyone else, regardless. I wrote post on this awhile back. Warning On Scams
Dottie Derewicz: I am glad you are here for us JC. It is important to be very careful in investing and check everything out completely.. inside out and outside in.. it is easy to get taken by promises of big money. Whenever I see that, I run.. too good to be true as JC says is just that ..too good to be true.
Jenifer Lytle: I read the IMF feed daily, particularly the Article IV Consultations on each country because it gives me a good idea of the state of the world economies, hence all my IMF posts . . . that said, I recall reading this post last week on Iraq I believe supports your conclusion JC.
This is one of many billions of dollars of loans the IMF has given to Iraq over the course of years to help keep them afloat: IMF Executive Board Approves US$1.24 Billion in Financial Support for Iraq
Press Release No.15/363 July 30, 2015 http://www.imf.org/external/np/sec/pr/2015/pr15363.htm
On July 29, 2015, the Executive Board of the International Monetary Fund (IMF) approved SDR 891.3 million (about US$1.24 billion or 75 percent of quota) for Iraq under the Rapid Financing Instrument (RFI)1.
The purpose of this financial assistance is to help Iraq address present and urgent balance of payment and budget needs in 2015 related to the ISIS insurgency and a decline in oil prices.
The IMF financing will support the authorities’ current economic program, which includes fiscal adjustment measures and structural reforms.
Following the Executive Board’s discussion of Iraq, Mr. Mitsuhiro Furusawa, IMF Deputy Managing Director and Acting Chair of the Board, issued the following statement:
“The twin shocks faced by Iraq from the ISIS insurgency and the drop in global oil prices have severely widened the government deficit and caused a decline in international reserves.
The authorities’ policies to deal with the shocks, including sizable fiscal adjustment and maintenance of the exchange rate peg, go in the right direction.
Access under the IMF’s Rapid Financing Instrument will help address Iraq’s urgent balance of payments and budget needs. However, large fiscal and external financing gaps remain.
“The large financing gap calls for the rigorous implementation of the authorities’ policies, but also additional fiscal adjustment measures and identification of domestic and internal financing. In this context, it will be important to implement the new electricity tariff schedule as soon as possible, or adopt compensatory measures.
Looking ahead, the authorities should lay the ground for medium-term structural reforms that would better support macroeconomic policy management and boost the economy’s resilience to shocks.”
Don McIntyre: The IMF will use the debt to Iraq much the same as they are doing now to Greece , and any other nation they can enslave with their debt. TPTB will own the resources and infrastructure of that nation and the nation will be bankrupt to the dust bin of history. Investing in paper currency of any indebted nation to the IMF is very risky business.
Ozymandias: An excellent analysis and explanation, Mr. Collins. Well done.
Rodriguez Perez: Undestood, JC,. Definitly, this post is really clarifier. Thank you.
daniel grig: These clarifications are needed, compared to a controlled alternative means tencion trying to distract and confuse people about SDR ideology. So JC have to be very careful!
Because this is the only blog in the world that is professional, pedagogical and continuous way, the subject so little known, in the alternative world to the SDR and the transition to a multilateral system.
Within the geopolitical framework, one must be attentive to an interesting move.
It seems that coalitions, unions in large power blocs as the European Union or coalition BRICS, will have no long-term future that for the program elite fragmentation of these geostrategic areas is anticipated, after they have served as institutions They have stripped all soberanidad countries.
… I take you back to the 1961 blueprint book NWO Prospect for America. This is from page 26 …
The globalists want the NWO to consist of “smaller units” Because smaller nations are less likely to be self-sufficient in Maintaining Their security and a modern standard of living. They want all the nations to be dependent on the multilateral framework for Their security and economic wellbeing.
Besides the Rockefellers’ NWO architects, can you guess who else is talking about “smaller units”? Ron Paul (In This interview on RT)
“I happen to believe in smaller units of government; the larger the unit of government, the worse things are …
So I think people Should Have the right to leave a larger unit of government. ”
And What Else Is Talking about Ron Paul? Secession in the US …
daniel grig: Hi Jared, I see my message does not appear that you have uploaded today and think …
Does it upset you my concern vis a vis the halucinogena experience you’ve had.
Possibly you have bothered to repeat that very careful with the phenomenal world.
I admit I was a bit pushy, heavy …
Now in this new post, I said again, but to be very careful as I had to go, I’ve gone without explaining better.
In the case that has bothered you say again “be careful” I have to explain that I meant the following situation.
You have to be careful because you’re the only one in the world that is the SDR issue in a professional and consistent manner.
It is very rare that such an important issue (such as SDRs) that is central to the economic dynamics of the future treaty is almost nonexistent in the alternative world.
It will be something that all sources manipulated largely avoided the topic or are not aware of this.
Then I see you as the central pillar supporting a dome of truth on an issue so clearly demonstrated and this is a risk.
This risk may translate into a possible intimidation, warnings, threats from those who do not want this truth to be known.
This is the sense that ehe given my last call attention telling you “be careful”.
I hope you are not angry. This message has to go if you like, you can delete it. Best regards.
Jcollins: Patience brother. I’ve been traveling for the last 10 hours. Your comments are welcomed. No worries.
Dottie Derewicz: Daniel..that is very kind of you to think of our mentor and friend JC. I have thought about what you are saying. Seeing as how the IMF does put out a lot of information concerning the new multilateral system.. I am not too worried about my friend JC.
He does put out the truth and sometimes the truth is hard to take. JC rarely, since I have been on here disallows a post..that is not the way I see him at all. He believes in being able to express, as long as it doesn’t become devicive and interrupts the flow of conversation.
JC is a rarity.. I certainly found that out, that was evident as soon as I started reading his blog. Hang in there Daniel..we like hearing from you.
Susan Morris: What comes after the Bancor?
Jcollins: Couldn’t say for sure. Probably an evolution of human time and labor in relation to the bancor.