The Last American Alamo JC Collins Part 1
May 3, 2014
The Approaching Reset of International Currencies By JC Collins
It has become increasingly clear to even the most patriotic analyst that the last days of American dominance and hegemony are unfolding within the geopolitical reality of Ukraine.
All but the most blind amongst the wasted western hordes, comprising America, Canada, and the European Union, can see the approaching thunderclouds on the horizon.
Never has the structure mechanisms and operational methodologies of the west been so exposed and obvious than in the desperate attempts to retain dollar dominance in a world that has become openly opposed to continuing its own subjugation.
Even the propaganda being directed at the western masses is a sad and pathetic simulation of what use to pass for patriotic fervor. The obvious contradiction between the facts and the fallacies is a thorn in the minds of those who pay attention to such matters.
Plausible deniability is born from such diametric inconsistences and the western populations have been well seeded.
What isn’t so obvious is that the simplicity of the unfolding events are manufactured by the complexity of a much larger and almost undetectable engineering.
This engineering is directing the flow of events to the ultimate conclusion of dollar fault and a reversal of dominance. There are some obvious giveaways to this scenario, the first of which is the United States refusal to support the agreed upon International Monetary Funds 2010 Quota and Governance Reforms.
There has been much discussion about these reforms on this blog in the series SDR’s and the New Bretton Woods. Many of the readers here have participated in the collection of supporting documentation and evidence to support the thesis that a method of Hegelian Dialectic is being used to herald in a supra-sovereign replacement to the dollar.
This replacement comes in the form of the SDR – Special Drawing Rights – as issued by the IMF. We have covered how both China and Russia have called for the implementation of an SDR system. We have watched as the expected problem/reaction/solution technique has unfolded in the Ukraine and elsewhere.
April has come and gone with no passing of the required Congressional legislation to support the 2010 Reforms.
The G20 has issued a collective statement giving the United States until the end of this year to enact the legislation. Yet both Russia and China, who are implementing currency swap agreements and trade agreements with other countries in an effort to bypass the dollar, are also G20 members.
The actions of Russia and China fit the overall pattern of the IMF’s vocal approach to using aggressive measures to bypass the dollar and remove the American veto power on the Executive Board.
So what are we to think when the G20 gives America a life line?
More importantly, what are we to think that the IMF just pushed Ukraine into action in the eastern region of the country by stating if they didn’t get control of the country than the IMF loan would have to be restructured?
What are we suppose to make of the fact that the central banks of all the countries, including America, Russia, China, Britain, etc., are all controlled by the Bank for International Settlements? See the post“The Bankers Midwife”.
And now we have announcements coming from the BRICS countries that they are in the process of setting up an alternative to the International Monetary Fund.
It all seems like madness and chaos.
Yet it is anything but.
The IMF has been consistently sold as being an American institution born out of the Bretton Woods Agreement at the end of World War Two. It is said that the IMF has always been the tool of western nations to control and direct the economic policies of the undeveloped countries. Point of note being that the IMF has never had a non-European Managing Director.
The 2010 Reforms proposed a restructuring of the Executive Board and a change to the quotas of all 188 participating countries. But what isn’t openly revealed or discussed is the ineffectiveness of the board itself. In actuality the board is too large for any effective group decision making.
The 24 permanent members representing all 188 countries is something of an American stooge with the US having majority voting power. If the US doesn’t agree than it doesn’t happen. The 2010 Reforms were not going to make any significant changes to this veto power.
From this we can determine that the warmongering appearance of the IMF this week over Ukraine will ultimately be blame shifted back on America. This will be one of many realities used to strip the US of its power position within the institution.
In essence, the 2010 Reforms were always meant as a red herring which would lead into an even greater restructuring of the IMF to the acceptance of all other countries, including the BRICS.
They were never meant to be passed but only to draw the worlds attention to the inherent deficiencies within the institution and the American reluctance to give up power.
The BRICS threat to counter the IMF with their own version is simply one part of the bigger “reaction” process of the Dialectic.
Two opposing versions of the IMF is not competition but economic dysfunction. As stated previously, the two institutions may run parallel for a short period of time but the partition will only lead to a tighter resolution on consolidation of sovereign debt and the implementation of a new fixed exchange rate system based on the SDR as an anchor.
Let’s step back for a moment before moving forward.
The Bretton Woods Agreement of 1944 was set up as a means to economically rebuild the world after the war. All countries agreed to use the American dollar as the reserve currency by which trade would be balanced. A fixed exchange rate regime was put in place and all appeared right with the world.
By the 1950′s it became obvious that the Bretton Woods arrangement really only benefited the western world. The West saw the highest economic growth, full employment, and relatively modest inflation.
As covered in the previous posts titled “The New Exchange Rate System” and “Why the Vietnamese Dong Will Reset”, dollar inflation poured into undeveloped countries as a form of dumping grounds.
The disparities and level of dollar printing eventually lead to the threat of other countries moving away from the dollar arrangement.
Without getting into all the details, as I’m sure most readers already have a basic understanding of the sequence of events, in 1971 the US removed the dollars peg to gold and by 1973 their was a floating exchange rate system in place. This was the end of the Bretton Woods as agreed upon in 1944.
Floating exchange rate regimes lead to extreme shifts in rates. This effect is multiplied dramatically when the dominant currency has the ability to use institutions like the IMF and World Bank to their advantage.