Reader Comments On "The Barbarians At The Gate" By JC Collins
Bruce Ostrander DECEMBER 10, 2014 AT 2:26 AM only have read your site for a month or so but you seem to have your finger on the pulse of the world.cool,calm and collected you are.i await more truths from your fingers.
Steve Henningsen (@Stevephenni) DECEMBER 10, 2014 AT 3:20 AM “The end of all empires are stricken with not only the debasement of currency, but also an obsession for sex, and the promotion and propagation of sports and entertainment. ” Perfect JC – Panem et circenses
Bread and Circuses; the cycle continues. We are such simple creatures.
Reminds me of one of my favorite Jeremy Grantham quotes when he was asked what people would learn from the whole financial crisis, “In the short term a lot, in the medium term a little, in the long term, nothing at all. That would be historical precedent.”
Cramley DECEMBER 10, 2014 AT 3:09 AM I think China has something other than the SDR in mind.
JC Collins DECEMBER 10, 2014 AT 3:18 AM We’ve been down this road Cramley. In order for the RMB to be included in the SDR it must first be internationalized, which is what all your links above are describing.
China themselves are supporting and pushing for IMF reform, as well as inclusion in the SDR. Are we to think that you have a better idea than the Chinese on what the, well, what the Chinese are doing? Its laughable sir. These aren’t opinions, they are facts.
Cramley DECEMBER 10, 2014 AT 3:35 AM This one is big.
China might keep its currency bifurcated. One internal and one external. The external adopting the role of a multilateral reserve asset, subsuming the IMF/BIS complex and its SDR concept.
Curious how you don’t see China pounding the table for the IMF reforms.
JC Collins DECEMBER 10, 2014 AT 3:41 AM “Curious how you don’t see China pounding the table for the IMF reforms.” I’m not sure what you mean here, as I am openly stating that China is calling for IMF reforms.
Matt McBride (@MattMhmmcbride) DECEMBER 10, 2014 AT 4:18 AM JC, Great article! I agree with your 2 suppositions as to why the IMF 2010 Reforms have been delayed.
However, I do see the US Veto’s hindrance on future rapid general reserve expansion a greater concern to the moneychangers (who generate power and get their way/crush opponents through controlling quick and easy money expansion). For this reason, Plan B seems the likely result.
The rent seeking Elite in China and Russia have been sold on the fact that Plan B can reduce the US strangle hold on their aspirations of greater international power and wealth transfer.
The US rent seeking elite of the Dem/GOP have been bought off (like they always have throughout history) and scared/threatened that if the IMF does not succeed, the Chinese centric alternatives may greatly destroy their future power and employment opportunities.
I don’t see the Ruble forming part of the SDR composition in July 2015.
However if Gold and a shadow basket of currencies (which includes the Russian Ruble and Indian Rupee) is added to the SDR composition along with the Yuan in 2015, this may be enough to keep the Russias, BRICs and US Neo Cons happy enough to get the tip of the IMF penis in and started.
Once the moneychangers get the SDR reliquidfying the system, I am sure they will be happy for (or even promote) the East and West fight geopolitical power games over gas pipelines until the next SDR composition is considered in another 5 years time.
Who even wins gets great SDR composition and power in 2020.
chuc1997 DECEMBER 10, 2014 AT 6:06 PM The oil exporters will likely not agree to any new system that does not have a gold component…if peak oil is ever a reality in their nations, a fully paper SDR does not work for them.
The flip side of that is that the US in particular does not want any inclusion of gold…hence the US’ (failing as we speak) moves to “export oil”…
The BIS understands that “Oil & Gold” have the say here; the Chinese and Asia are willing to “play ball” – witness their gold moves.
The US insisted it wanted to use oil to even out trade balances, at the expense of existing oil exporters. That has been ended by Russia and OPEC.
How much pain does the US have to take to acquiesce? In America, the bond market has driven all political decisions for 20+ yrs…that’s what happens when your debt is 350% of GDP, all-in. The HY market is beginning to go “boom”, starting with energy spreads…it will spread. Buckle up.
Matt McBride (@MattMhmmcbride) DECEMBER 10, 2014 AT 8:53 AM It has just been announced that the IMF 2010 Reforms have not been attached to the U.S. 2015 budget vote that is in congress.
The detonator fuse has been lit.
JC Collins DECEMBER 10, 2014 AT 11:27 AM Thanks Matt. Perhaps the new Congress can pass them after Jan 6th, but I highly doubt it at this point. Should be an explosive start to 2015.
Rick Shade DECEMBER 10, 2014 AT 6:21 PM The following is an interesting read. If true, there will be a lot of unrest to follow….
JC, did the politicians really sign legislation enabling the banks to cover their derivative losses with middle class future earnings? How criminal is that? wow
JC Collins DECEMBER 10, 2014 AT 6:28 PM Yes, it was pushed through on the spending bill yesterday. The people simply shrug and lumber onward.
Matt McBride (@MattMhmmcbride) DECEMBER 10, 2014 AT 11:41 PM I did not see the IMF 2010 reforms not even being attached to the 2015 budget!
I was expecting a stalemate in congress over the budget and more particularly the reforms…I failed to factor in the importance of passing the derivatives laws.
It seems that the moneychangers got both of their goals achieved last night
1. The Derivatives rules passed without much attention
2. The end of year IMF reform deadline will not be met resulting in the US loosing its veto
The track has now stopped ladies and gentlemen in our global game of musical chairs whilst the passengers scramble for the seats the first class passengers have been lowered into the lifeboats.
Put your life jacket on yourself and your family and act on your plan you have evolved the last few years
…little do the other passengers know that the titanic has hit an iceberg an is minutes away from its first dive under.
Rick Shade DECEMBER 10, 2014 AT 7:04 PM bank runs, here we come
matt (@speedspirit42) DECEMBER 10, 2014 AT 7:30 PM The fact that these bank bail in’s will reduce people’s savings to $100k limit thanks to the FDIC so they say is Social monetary sterilization.
The FDIC does not even have enough money on hand to cover the $100k they only have 1.5% of that meaning everyone will only receive $1,500.00. Then comes the solution to the crisis Digital currency!
Rick Shade DECEMBER 10, 2014 AT 8:34 PM timetable? and what do you do with a little cash? stuff a mattress? convert it to silver?
buy a one way ticket to Dominican Republic? and if you converted it all to silver, how do you leave country with it? bankers are such nice guys
Fullcirclelife (@fullcirclelifeO) DECEMBER 10, 2014 AT 8:00 PM It appears as if the United States(dollar) has a large devaluation coming with all assets about to be priced in something else, most likely the SDR?
With the United States crippled I guess that sets up everything nicely for the money changers with no opposition from the rent sent seeking elite. All other countries are on board with the agenda.
Tommydelicious DECEMBER 10, 2014 AT 9:48 PM JC, what do you think of the increasing amount of big players (central banks, sovereign wealth funds, etc) moving into the dollar or dollar denominated assets (stock markets in the US)?
What will the rising dollar do to this IMF plan as the Yuan, Yen, and Euro devalue? As gold goes down (which we both feel it must), the dollar rises equally. Is this all part of the end game?
Thanks for the research and due diligence. I enjoy your work.
JC Collins DECEMBER 10, 2014 AT 10:59 PM Foreign reserves, and possibly other financial assets, will be exchanged for SDR assets through substitution accounts. But there will always be a percentage of not only USD financial instruments, but other currencies as well, including the RMB.
platos75 DECEMBER 11, 2014 AT 11:57 AM Dear JC and tommydelicious Don’t you think that as Plan B is going to be in force, and the position of all interested parties in IMF quota will not be only the subject to peaceful negotiation but rather the fight (not necessary military one but unconventional military measures might be used),
the risk of the conflict escalation is significantly growing, the price of gold should in such circumstances go much higher – as it might be one of the most important instrument in hard negotiations. It looks that China and Russia recently are preparing themselves to it, buying record quantities.
Ozymandias 3 DECEMBER 11, 2014 AT 2:27 AM Mr. Collins: The parallels between the USA at present and ancient Rome before its final fall are overwhelmingly simular and striking. Oz
Tommydelicious DECEMBER 11, 2014 AT 1:37 PM platos75, Bear markets do their work. They flush out all hope and drive prices down below sane values. It’s just what they do.
The end of the bear market in gold must come, and yes, the price will escalate (and escalate in typical gold fever style) once the bear is finished with its work.
This has not happened yet. Look for that price that seems silly, like 750 or something similar. Then, when everyone is bearish on gold, yes, the next bull will come and show some horn. Enjoy the ride.