THOUGHTS ON “THE REDBACK REVOLUTION” Part 2
Ozymandias 3 MARCH 5, 2015 AT 7:44 PM Mr. Collins: Although the planned collapse of the $USD is expected to occur soon, I was curious to know your thoughts as to whether the $USD will collapse before or after the renminbi is depegged from the $USD. Your thoughts. Oz
Sergetomiko MARCH 6, 2015 AT 5:22 PM The United States remains the most powerful nation in the history of mankind. It is impossible for the USD to collapse as long as this is true. Money is the projection of sovereign power. It does not collapse until the sovereign authority that issued it collapses.
JC Collins MARCH 6, 2015 AT 6:20 PM I agree with this statement. The USD will not collapse. Though it will be adjusted and re-engineered to fit within the multilateral.
~GetReal MARCH 6, 2015 AT 12:39 AM JC, Have you seen the following? LINK
sketchydetail MARCH 6, 2015 AT 6:34 AM Interesting detail – The billboard erected in China to announce ‘The New World Currency’ it’s written in English.
Matt McBride (@MattMhmmcbride) MARCH 6, 2015 AT 2:15 AM I’m thinking an ETF that tracks the SDR/USD 80% & OUNZ 10% & IXC 10% maybe of interest over the next 2 years.
I would just have to guestimate what the new SDR basket allocation % will be once the yuan is included to mirror the SDR using FX trades on the underlying currencies.
Bill Reeves MARCH 6, 2015 AT 3:27 AM The Chinese have put out billboard ads announcing the renminbi as the new world currency bySimon BlackonMarch 4, 2015
China-rmb-world-currency March 4, 2015 Bangkok, Thailand
When I arrived to Bangkok the other day, coming down the motorway from the airport I saw a huge billboard—and it floored me.
The billboard was from the Bank of China. It said: “RMB: New Choice; The World Currency”
Given that the Bank of China is more than 70% owned by the government of the People’s Republic of China, I find this very significant.
It means that China is literally advertising its currency overseas, and it’s making sure that everyone landing at one of the world’s busiest airports sees it. They know that the future belongs to them and they’re flaunting it
And it’s true. The renminbi’s importance in global trade and as a reserve currency is increasing exponentially, with renminbi trading hubs popping up all over the world, from Singapore to London to Luxembourg to Frankfurt to Toronto.
Multinational companies such as McDonald’s are now issuing bonds in renminbi, and even sovereign governments are issuing debt denominated in renminbi, including the UK.
Almost every major global player out there, be it governments or major multinationals, is positioning itself for the renminbi to become the dominant reserve currency.
But here’s the thing. Nothing goes up and down in a straight line. And China is in deep trouble right now. The economy is slowing down and the enormous debt bubble is starting to burst.
A lot of people, including the richest man in Asia, are starting to move their money out of the country.
So while the long-term trend is pretty clear – China becoming the dominant economic and financial superpower – the short-term is going to look incredibly rocky.
We talk about this in today’s short podcast with Sovereign Man’s Chief Investment Strategist, Tim Staermose, which includes a few ways to actually make money from China’s short-term unwinding.
Have a listen here: http://www.sovereignman.com/podcast/034-heres-exactly-how-you-can-profit-from-chinas-short-term-unwinding-16312/
Our goal is simple: To help you achieve personal liberty and financial prosperity no matter what happens.
If you liked this post, please click the box below. You can watch a compelling video you’ll find very interesting.
Will you be prepared when everything we take for granted changes overnight?
Just think about this for a couple of minutes. What if the U.S. Dollar wasn’t the world’s reserve currency? Ponder that… what if…
Empires Rise, they peak, they decline, they collapse, this is the cycle of history.
This historical pattern has formed and is already underway in many parts of the world, including the United States.
Don’t be one of the millions of people who gets their savings, retirement, and investments wiped out.
sergetomiko MARCH 6, 2015 AT 5:30 PM “Our goal is simple: To help you achieve personal liberty and financial prosperity no matter what happens.”
This is the Luciferian fiction. There is no liberty. We are all bound by the rules of nature and God, and for the human being – it is our dependence upon others from the moment we are born.
History is replete with fools who wished to challenge the fates. What you propose is pure hubris on a personal level, and it is a dangerous path.
Roger Parness MARCH 6, 2015 AT 6:57 PM Everybody’s trying to make a buck especially Lucifer.
I’d agree that the pursuit of Liberty is a dangerous path. Worthwhile all the more.
Norman Ball MARCH 6, 2015 AT 3:47 AM “Don’t be one of the millions of people who gets their savings, retirement, and investments wiped out.”
Nope, I wouldn’t want to be one of those people. Is the Sovereign Man engaging perhaps in a little hyperbolic sales talk?
Roger Parness MARCH 6, 2015 AT 7:05 PM You sir, of all, can understand engagement in hyperbole.
Due respect, I read and enjoy your work.
Speedspirit MARCH 6, 2015 AT 1:02 PM JC How about your predictions for the next 12 months? Things like the economy, price of Gold and Silver, the stock market. Two years out? Your grasp should lead to some interesting forecast?
My prediction is a head fake dip in the markets. But the real economy stumbles along. Technology will improve but no real production of goods for the USA.It will become an economy of those who have and those who do not.
Middle East troubles especially Israel. I have to believe they will eventually get permission to rebuild that Temple at some point. They are just flush with cash and want to spend it.
Gold and Silver see new once in a lifetime lows. People just do not have the mentality to seek truth until its about to run them over. Then we will see new highs and rather quickly. Nothing astronomical but with war their time to peak will be at hand. Figure 2020.
Sergetomiko MARCH 6, 2015 AT 5:18 PM “There are a number of reasons supporting this measure, but none more so than the need for stability in global liquidity.” Why is this a need?
JC Collins MARCH 6, 2015 AT 6:22 PM The Triffin Paradox, which is the imbalances created when a domestic currency is used as the primary reserve unit of account amongst countries. This “paradox” is the fundamental reason for the multilateral.
Roger Parness MARCH 6, 2015 AT 7:21 PM I’m assuming this same Triffin dilemma applied to the British Pound prior to it’s fall from reserve grace. Of course the US dollar emerged with a covertly controlled central bank. New boss, same as… Is the central bank of China also a BIS et al tool?
JC Collins MARCH 6, 2015 AT 8:15 PM The Governor of the PBoC sits on the executive board of the BIS.
quest2bone MARCH 6, 2015 AT 8:27 PM Thanks so much JC, Without this sight I would be lost. Although I don’t understand very much, I do read all of your blogs and I am learning way more than I ever imagined. I think I am understanding that the yaun will increase in value but should I assume that this may not happen before China will take some losses?
I invested in this currency some months ago however I read just the other day that wealthy businesses and investers alike are bailing out for fear of economic lost I’m concerned that I may have missed something.
Matt McBride (@MattMhmmcbride) MARCH 7, 2015 AT 1:05 AM United Nations – Five options for the orderly restructuring of sovereign debt [Excerpt]
Option B: Statutory solution to address holdouts by minimizing litigation risks in the Eurozone
A recent proposal was made for the European context by a committee of experts and academics which suggests that the Treaty establishing the European Stability Mechanism (ESM) could be amended so that the assets of a sovereign located within the Eurozone would be immunized from attachment by those creditors not participating in the sovereign’s debt restructuring where that sovereign was benefitting from a financial assistance program from the ESM. This approach might be a model for a global policy.
Option D: A statutory regime
c) Sovereign Debt Adjustment Facility
This would be a facility at the IMF which would combine IMF lending with debt restructuring. A set of pre-defined criteria would need to be developed to access this facility.
The proposal envisages an amendment of the Articles of Agreement of the IMF to shield countries undergoing a restructuring from holdout creditors when decisions had been reached by a super-majority of creditors.
irrelevant111 MARCH 7, 2015 AT 1:58 AM JC, When the world realizes we are all the same in every respect, times may change. The world is connected. Media subverts progress. Thank God for the internet and exchanging of ideas. Times are changing for the good of man, given time…
Bill Reeves MARCH 7, 2015 AT 11:56 AM JC you make this statement below but what does it mean?
Define (adjusted and re-engineered). You have written and made the argument concerning this macro shift of economic authority away from the dollar to the SDR and China, but what does adjusted and re-engineered mean?
How will it domestically affect peoples lives financially in the US and Canada. If the dollar turns into a regional currency how will that impact our domestic economy. Example If the US govt. can’t get other countries to buy it’s debt how will it fund it’s huge military?
There are going to be several aircraft carriers and the flotillas accompanying them coming home to park.
The US is presently so economically influential in the world that a sift of the magnitude you are writing about cannot just have everything domestically continue as status quo.
By only writing about this shift to the SDR without measuring the impact to the US, since it is so financially influential in the world, is like trying to complete an algebraic equation without looking at what goes on the other side of the equals sign.
Words like adjusted and re-engineered concerning the magnitude of the world and domestic economic shift you are writing about are just to loosely defined to be really meaningful.
Understand I’m not attacking your articles I find them very compelling, but some statements are just to broadly stated and being without real meaning.
JC Collins MARCH 6, 2015 AT 6:20 PM I agree with this statement. The USD will not collapse. Though it will be adjusted and re-engineered to fit within the multilateral.
JC Collins MARCH 7, 2015 AT 3:03 PM The US military is being reduced to it pre-WW2 levels by 2020. The USD will still be one of the main currencies in the SDR.
Much of this info has already been covered many times here in other blog posts and comments. And there will be additional information and analysis in future posts. Feel free to seek more meaningful info elsewhere if you are unsatisfied with the free service I’m providing here.
Speedspirit MARCH 7, 2015 AT 1:57 PM This new multilateral currency needed to bring stability to global liquidity is a FARSE. “They” went in to Ukraine and stole all the Gold reserves because this is what is really going to back global liquidity down the road when this SDR program fails. Get Gold and Silver while you can.
From the Wealth Watchman
In the dead of night, at 2 a.m., a mysterious convoy of black trucks, and several minibuses arrived at the Kiev airport with all their tags missing. Whereupon at least 15 men, wearing Kevlar, black masks, and armed with machine guns, loaded up a nearby, unmarked plane, with over 40 heavy boxes they’d transported to the site.
Once the plane had been loaded with these boxes, it immediately took off from Borispol airport, in Kiev, and the unmarked cars left without a trace. At first, folks wondered what that ordeal could’ve been about.
Shortly afterward though, it was revealed that one of the first orders of the brand, spanking-new bankster regime, had been to send “all the gold reserves of Ukraine to the United States.”….for the “people’s own good”, of course!
As usual, the alternative media led mainstream outlets in providing this news, as it the Ukraine central bank finally made their shocking admission:
“In the vaults of the central bank there is almost no gold left. There is a small amount of gold bullion left, but it’s just 1% of reserves.”
The Ukrainians now have less purchasing power, and a lower minimum wage than even 3rd world countries like Zambia or Ghana! One consumer good at a time, is now slowly disappearing, hiding away within the pantries of citizens who’ve lost all confidence in their government.
In some instances, people are having to wait in line for hours, at ATM’s, and grocery lines, to get whatever’s left.
This is the fate of EVERY country that falls prey to the IMF and SDR solution. It will come to the USA and Canada get your insurance NOW.
Roger Parness MARCH 7, 2015 AT 5:44 PM Interesting that the theft of Gold continues despite the disparagement and manipulated lowered prices of this archaic relic.
As the reserve currency is prepared for multilateral devaluation someone apparently still sees value in Gold and is stealing just as much as their black ops swine can grab.
Perhaps the castle dwellers and the captains of finance still want Gold hoards along with their art and wines and various collectables. Fill the vaults boys we’re the world’s police!
Norman Ball MARCH 7, 2015 AT 6:47 PM I find it serendipitous speedspirit that you would belabor the they with ” ” lol:
““They” went in to Ukraine and stole all the Gold reserves because this is what is really going to back global liquidity down the road when this SDR program fails. Get Gold and Silver while you can.”
What ‘they’ do you mean? What ‘they’ does anyone mean? My sense has been for some time that most people invoke that pronoun carelessly.
By the way, we give more power to the ‘they’ when we have them appearing everywhere once like an ubiqutious god. I’ve never been a rabid goldbug.
And yet…in a word parched for monetary meaning and desperately seeking the terra firma of sanity (we actually live on a planet that boasts a dervative complex notional value of $1.2 quadrillion), gold is one very strange thing.
Okay, points for it being ‘merely’ notional…let me suggest a synonym for quadrillion: ‘yeah right’. When someone mentions quadrillion in terms of currency and with a straight face, it’s time to close your ears. Because there is no rational discussion that can be hung around that number.
The intended SDR scheme is exactly more of the same. I think JC has said as much. It continues an age-old plan to expand the denominator of real stuff so that imaginary stuff has an extended field of play.
Eurasia has real stuff, Iran, Afghanistan, etc. They are the ‘missing denominators’ that the numerator class needs desperately. Remember a zero denominator is ‘undefined’… If there’s no stuff underneath, the justification for any numerator collapses.
There is a group on this planet that has watched fiat currency fulfill its 100% failure rate time and again. In fact I have a more cynical definition of fiat currency:
It is a scheme designed by Old Money to build a reservoir of Labor trust in a phantom called ‘store of value’ only to pull the plug at the zenith of this misplaced trust.
The chips always end up back in one pocket. This SDR thing is not a grand climax though. It is an attempt to prolong the confidence game on a global scale, sort of sliding the pea under a different shell.
Let me toss out my equally cynical definition of prosperity. Those were the token chips we were handed so we would stare at our 401k plans while they build the surveillance state over our heads.
It will all be gathered back in time once they complete the control paradigm. Let me add that I think it all worked rather swimmingly for them.
The misdirection campaign against gold has a purpose. If ‘they’ can chase you from the real (leaving you with really nothing), then their imaginary numbers, when they collapse, will swallow the REAL world because those imaginary numbers have the power of law behind them.
Am I banging the table for gold? Well first, I’m not in the business of offering investment advice. Gold could yet get caught up in a massive deflationary swoon because, well, part of its complex identity is as a commodity.
But I’m fascinated that gold even EXISTS. What a weird fly in the ointment! And I’m equally fascinated at how powerful interests, whenever they get a chance, have a habit of STEALING it.
So, back to your ‘they’. I was all over that yesterday, oddly enough.
irrelevant111 MARCH 7, 2015 AT 9:47 PM JC n My Bunky’s, Does anyone on this blog understand the dynamic of man?
The Secret of Life - by Alan Watts https://www.youtube.com/watch?v=iZ8so-ld-l0 Best to all