This is an interesting perspective on the current crisis in the Ukraine and its implications for the global economy. Can’t say that I agree with all the conclusions but it sure makes for a thought-provoking read.
“The coming of a new international financial system can no longer be denied. We are now seeing the beginnings of restrictions on cross border capital movements and additional tightening of bank and capital regulations as detailed in the Basel 3 regulations of the Bank for International Settlements. These restrictions and tightening of regulations are the forbearers of a return to a fixed exchange rate regime.
After the 2008 financial crisis the G20 countries conveniently asked the BIS and IMF to develop the framework for a macroprudential policy to reduce risk and implement a new fixed exchange rate system.
It has been my proposition that this new fixed exchange rate system, though likely volatile at first, we eventually settle into the SDR supra-sovereign system. The process of all currencies and commodities unpegging from the US dollar and pegging to the SDR will in all probability happen piecemeal with the Eastern regions quickly jumping on the BRICS bandwagon. The Western regions will eventually be dragged along as both Eastern and Western regimes are consolidated under one massive agreement.
This agreement will also include the restructuring of sovereign debt through the IMF’s Sovereign Debt Restructuring Mechanism, or SDRM.
At some point throughout this process we will see the modification of the International Monetary Fund to more fairly reflect the economic reality of the international community. The IMF will see its first non-European Managing Director, most likely the current Governor of the People’s Bank of China, Zhou Xiaochuan.
Russia is taking the lead role in the dollar destruction script so China can maintain a level of approachability for the restructuring.”
“Another challenge to the SDR system will be in getting sovereign countries to give the IMF the authority to issue SDR’s as it sees fit too when needed. This is the quintessential movement towards a method of global governance.”
“The common denominator to all events, countries and institutions is the Bank for International Settlements.”
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.
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