The Big Call for Thursday Dec. 18th is at 9PM ET

The Big Call for Thursday Dec. 18th is at 9PM ET

We will discuss the latest about the economic reform occurring throughout the world…subjects for future calls…and talk about how to be ready for our exchange. Join us tonight to be part of the precelebration.  

Participant Line is 559-726-1150 and Listener Only line 530-881-1150

No access code is needed for either line.
Q and A is still working fine  

Playback number: (559)726-1159
access code 123456#

Link will be given to Dinar Recaps following the call.  

Thank you for posting. We appreciate Dinar Recaps for the wonderful effort they make!

Bits and Pieces in Dinarland Early Thursday Evening

Stage3Alpha:

Dr. Mark December 18, 2014 at 4:33pm Exo,You have spent quite some time, along with Bandito to provide us a fair amount of information that demonstrates Global financial turmoil over the past 12 hours.

Manipulation at its finest created thru theft, marginalization, or profit it does not matter.  
The world is in trouble and the US market is growing, albeit for now we believe will be short term.

I believe the picture you portray is the need for some order and stabilization and transparency.  A calming effect so to say.

It is evident that the sins of the past are beginning to haunt those perpetrating this cycle that has been repeated for centuries based on now understood evidence.  Therefore, could one logically expect a financial “catastrophic” event to initiate global monetary order?  Is this the pictogram you are expressing?  

Would you call it a GCR? 
    Just reading and thinking out loud….
….

EXOGEN > Dr. Mark RESET OF PLANET EARTH-CORRECT

LVegas > Dr. Mark I think you hit it right on Sir, I am really surprised we had such a high last night and felt ready for full Santa and ready for S4. But here we are Thursday afternoon/evening and no such sign. Just currency turmoil around the world.

Jon Brady > As I posted early this am, most RV’s have been on Friday, announced in the Mosque first , to better inform the residents, IMO

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D.K.C. December 18, 2014 From KTFA:HUGE ABADI STATEMENT ON VIDEO USE CBI RESERVE TO ACTIVATE REFORM. I WILL GET IT MONDAY IF NEEDED.   DELTA

Kentara > D.K.C.  What does this imply?

D.K.C. > Kentara  I Assume the “Reform” Delta refers to is Currency Reform…….hope its good news for us…also “If needed” Delta said that yesterday as well….implying that- IMO- If it RV’s no CC is needed…

Ranger4564 > D.K.C.  I agree with your interpretation… CBI can use reserves, rather than live revenue which is shrinking due to oil price collapse, to prop up the Currency reform, presumably. Unless Abadi was talking about another banking reform which the CBI can fund. If needed refers to, if it’s not obvious before then. :-)

changinghistory December 18, 2014 at 4:22pm

Dow up 421   S&P up 48   Gold up 4.00   $index up 14 cents

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I4U:

[BigDog-OH] Copied From Twitter:

@JCR3758: Confirmed that Iraq is working with representatives of various countries including USA (in Iraq) on the release. Things are still in motion

@JCR3758: Guys pls I can’t share date or rate although I heard them. Pls keep the faith and don’t listen to any nonsense. We are in a great position.

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TNT:


DON:  The Stuff Is Already Hitting the Fan in the Currency Markets – http://www.zerohedge.com/news/2014-12-18/stuff-already-hitting-fan-cur​rency-markets

DON: BRICS countries lead global capital flight: report – http://www.reuters.com/article/2014/12/16/us-markets-emerging-brics-fl​ight-idUSKBN0JT2I520141216

DON:  BRICS countries lead global capital flight: report – http://www.reuters.com/article/2014/12/16/us-markets-emerging-brics-fl​ight-idUSKBN0JT2I520141216

DON:  China Stocks Worth Double Other BRICs Combined: Chart of the Day – http://www.bloomberg.com/news/2014-12-17/china-stocks-worth-double-oth​er-brics-combined-chart-of-the-day.html

DON: Barclays chief says more money needed to settle FX probe – http://hereisthecity.com/en-gb/2014/12/18/barclays-chief-says-more-mon​ey-than-initially-thought-needed-to/

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Azjeff:  We could hear anytime…..it doesn’t strike me that Friday, their time, would be a day that it would break….but since it’s already been announced, I would really think this weekend makes a ton of sense. It’s before Christmas, which would boost the trade, it would be a great year end coup for O to be able to show how much he has “shrunk” the defecit, and it would give a boost to the economy in the late fourth quarter….and into next year………I’m READY!!

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Ajax:Some of the sneakiest/underhanded political maneuvering historically takes place right around Christmas holidays- AND Fridays into weekends historically is when banking, RV, financial downplays can be accomplished without major “bells going off” in the public arena- to me- we are now entering the biggest WINDOW of OPPortunity for this to go live as ever in this process- get your plans out on the table- bring on the #800 call!! Woo hoo!

KTFA:

Aggiedad77:  This to me is great news…..there’s a new sheriff in town and he has plans to kick some butt, especially that butt which breeds on corruption and lack of integrity……it is fascinating to watch Abadi work…..IMO….he’s made big strides since taking office and he doesn’t back down or away from anybody…..those on the take in the past had best come clean, or find a way out of town….their livelihood is being shut down.  Aloha   Randy  (See Article Below)

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walkongstick
:Abbadi vows in front of the US Inspector for the reconstruction of Iraq to rein in rogue militias and the elimination of sectarian Security

DECEMBER 18, 2014

Washington «Quds Al-Arabi»: Iraqi Prime Minister Haider al-Abadi pledge in front of a senior US official a few days ago, BCBG rein in rogue militias and the elimination of sectarianism in the ranks of the Iraqi forces and the fight against corruption Aoannagaz country of security, political and economic problems.

Said Stuart Bowen Jr., the American former Special Inspector for Iraq Reconstruction he sat down at length with Abadi, a few days ago to discuss the fight against al «Islamic State» other and the fight against corruption only to discover that the latter has an ambitious agenda to combat corruption with a focus on five sectors are security, energy and law and order banking and government contracting framework.

Bowen, who visited Iraq more than 38 times since 2004 and added that Abadi pledged that his administration will focus on the competence and integrity after the stability of the battle to some extent with «Daash« thanks to increased air strikes launched by coalition countries and send more of additional US troops to strengthen the Iraqi ground forces and restore strategy for refinery «Peggy», the largest oil refinery in Iraq.

According to al-Abadi to Bowen, the administration will be additional reforms are necessary in the ministries of defense and foreign affairs, including rein in rogue militias and the elimination of sectarianism when security forces and to ensure that the trial of those guilty of graft in arms purchases, referring to the internal cleaning process carried out by the two ministries when more than 50 officials said incompetence and rampant fraud, also pointed out that these weaknesses undoubtedly contributed to the defeat of «Daash« Iraqi army in Mosul and mounting public anger over the presence of the so-called »ghost soldiers« on the payroll.

He pledged to reform the energy sector and to do additional steps, including strengthening transparency and accountability for all oil accounts and ensure equitable distribution of revenues between the provinces, despite the failure of the United States through the establishment of the Commission on Public Integrity and the system of the Inspector General in Iraq in 2004, however, Abadi has shown a willingness to reform in this area when recently issued an executive order not to arrest anyone without charge, he said he intends to carry out a comprehensive review of the judiciary and strengthen the capacity of the public prosecutor and strengthen the role of the functional departments of the fight against corruption.

The agenda of the Iraqi prime minister’s agenda, too, the banking system reform, especially with regard to the function of the central bank to protect the financial reserves and prevent money-related daily auctions worth hundreds of millions of dollars washing.

He was a senior Iraqi official has said recently that these auctions were a nest of corruption and it led to enormous losses in excess of $ 150 billion, but Abadi said he’ll move to fix this financial hole by increasing the fight against money laundering in the central bank’s management budget and the intensification of private banking investigations and the start of the initiative serious to restore Almsergh assets.

Bowen said in his personal blog that the government is the dominant engagements in Iraq entity was ambiguity in the operations led to the creation of a mafia of businessmen in Baghdad worked very hard to sustain a mysterious network but Abadi told him that he intended to enable the Commission review the limitations of screening all government auction before its release and punishment of any public official carries the burden of the government for personal profit.

The expectation of many observers «The End of Iraq» last summer when he took over the organization «Islamic State» to about 30 per cent of the territory of the country, but the American former inspector in Iraq seems optimistic Abadi’s ability to be a new beginning may be at hand, stressing The success of Iraq and the restoration of its territorial integrity requires Abadi commitment to unity with Sunni and Kurdish communities and the support of the international coalition against «Daash.»

http://www.faceiraq.com/inews.php?id=3341508

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jdtolle » December 18th, 2014, Passage of time

There’s absolutely nothing you can do to stop or to slow the passage of time. Yet there are countless things you can do to gain great value from each hour that does pass through your life.

If you’re facing a deadline, the last thing you want to do is worry about it or obsess over it. You cannot change the deadline, so let it be, and let yourself go about doing the work that’s due.

Do all you can with the time you have. Do all you can, being positive and productive, not concerning yourself with whether the time you have is too little or is passing too quickly.

Time will pass as it will, no matter what you think or how much you complain. So use your energy not to lament but to think, say, do, experience, explore, to move forward and to make real, meaningful progress.

You rarely get to choose how much time you have. However, you always get to choose how much good solid effort you put into each moment.

Time will go by, so watch it as it goes with the satisfaction of knowing you’re making great use of it. And as time moves relentlessly forward, so will you.

Ralph Marston  Wishing All a safe, warm and blessed afternoon/evening

P.S.If you are never scared, embarrassed or hurt, it means you never take chances. — Julia Soul

Deletion of Zeros: A Benefit?

Bob:    Article –  ”Deletion of zeros in 2014 .. project is ready and implementation of a deferred…”

I think what Kaperoni is saying is there is no way to say with absolute certainty the original plan to delete zeros is to our financial benefit. Following monetary policy that allows a countries currency to appreciate based on real factors such low inflation, productivity growth, economic and political stability makes more sense in the long run and would provide absolute assurance that we would profit significantly.

 

Wishful Thinking

Lizardlips:  I just heard from a friend with UST that Iraq TV is illustrating the new rates… now we just wait a little more… YeeeeHawwww

(Please lizadlips let us know why did you get some news?)

The friend that introduced me into this has been friends with a UST person for some time… the information has always been similar to Tony and Dc’s… today was a bit better…

(Q.   Are they saying what the rates are?)

A.  They did not say however, it seems to be scrolling from what the contact stated.

Comments On The SDR Purposes Of BRICS  Part 2

 READER THOUGHTS ON “THE SDR PURPOSE OF BRICS”  BY JC COLLINS  Part 2

m111ark  DECEMBER 18, 2014 AT 1:19 AM  Couple of things JC.  Several people I know have gotten letters from their bank saying they’ve got too much money held with said bank… adding that Jan 1 they will start charging for money on deposit with said bank.

As deposits are one bank liability they’ve used to calculate how much debt they can create, I’m wondering what’s changed.

Secondly, I’ve long wondered how they’re going to replace new money creation when the prime borrowers, us, fail to hold up our part of the debt-money agreement.

 I’ve thought that China was to replace us and that the proof was the movement of jobs in the 80’s and capital in present century to set the environment for a new middle class hungry for that credit fueled lifestyle.

Seems they’ve eliminated the need for peasant borrowers and gone straight to a world-wide governing body that will simply create money as needed – QE for the world and debt-money forever… debt-serfs and Oligarchs, what a world.  Set me straight – please.
~~~
JC Collins  DECEMBER 18, 2014 AT 2:10 AM  There’s a few interesting things to consider here. First, when you put your hard earned assets, say $1000.00, into your bank account, those assets now become the assets of the bank and the account itself becomes a liability.

 In essence, we surrender our assets to the bank for a statement of liability, which is our accounts.

Too much in “liabilities” by a bank and they will fall outside of the lending rules which are being trickled down from the Bank for International Settlements in the form of Basel 3 Regulations on Bank Lending. That would be the area I would explore further for a deeper understanding.

Secondly, people are extremely unlikely to “fail to hold up our part of the debt-money agreement”. The transfer of jobs to the emerging markets is all about balancing the service of debts.

Think of it this way, as the debt continues to increase, the amount of time and labor required to service that debt also increases. Time and labor increases with population growth and access to capital, which is really just debt anyway.

The emerging economies are offering the opportunity to continue servicing the debt, which is the dead give away that the multilateral system is indeed going to be implemented and balance created in the system. The billions of humans in the emerging economies will ensure a continuation of debt, not the opposite.

As important as we all think we are, and as much as we may deny this, but philosophers for thousands of years have been expressing their thoughts on the reality of human cultural and social divisions.

 The one common conclusion by all is that humans exist in self-imposed divisions of master and slave.

Of course we all want to consider ourselves as the master, but the sad reality is that the majority of us are the slaves, a classification which we unwillingly impose upon ourselves through inner conflict.

This inner conflict is often stimulated by outside interests to ensure a continuation of the master slave paradigm.

Does anyone not find it coincidental that physical slavery was abolished alongside the slow CSI creep of organized banking and commerce?

Based on what I’ve stated above, if debt was actually to be reduced in any meaningful way, say a complete collapse of the system, or reset, then I fear that the masters would not need as many slaves to service the debt.

 I’m often derided for the fine line I walk between economics and culture, but one cannot exist without the other. Both are locked in a dance of the macabre and mysterious. What happens in one affects the other.

If anyone truly understands what I’m stating here, they would wish for the system to continue until we are capable of overcoming this inner conflict and developing a new system which can effectively replace this one. The alternative is massive depopulation and horrifying cultural collapse.

 Human beings are amazing and imaginative creatures capable of correcting this wrong. But we need time. Debt-serfs is better than being dead-serfs. At least for now. Let us dream tomorrow together.

Somewhere over the rainbow perhaps.

tristero888  DECEMBER 18, 2014 AT 3:09 AM  funny, my last thought before going to sleep last night was that the only 2 books one needed to figure this entire charade out was Principles of Accounting & The Collected Works of the Marquis de Sade :)

Lordship & Bondage. Hegel nailed it in 2 words out of the millions that he scribed. not to denigrate the fine people who tune in here, but look at us : bonding ourselves into speculating as to which rocks & paper will allow us to cut through some fantastical future chaos that is being written by some self-styled Authorities who spend their entire lives devising devious ways to make everyone believe they are superior.

and why is any of this important? is this really the essential nature of humanity? is this truly the purpose of the neocortex? does life as we know it exist simply to play out these silly games with each other (ourselves) endlessly over and over and over again generation after generation after generation?

sorry, but i call b***.   solstice is approaching,   time to eat a mushroom…

Fullcirclelife (@fullcirclelifeO)  DECEMBER 18, 2014 AT 3:30 AM  The whole master/slave thing is more of a mental construct which in reality is an illusion.

 But as far as the debt based monetary system, unless it is changed over to a debt free monetary system it has to end in a collapse of the system or reduction of people to service debt as you mentioned above. Not really sure how else we change this system which has been in place for centuries?

 Most people are unaware of the thing which makes them debt slaves so I guess the first point would be recognizing the source of the “cancer” so to speak….

Gustavsaure  DECEMBER 18, 2014 AT 4:09 AM  Thank you for this deeply perceptive comment. It has really helped me understand where you are coming from.

Daneackerman  DECEMBER 18, 2014 AT 10:25 AM  Hey tristero888 lmao.  “sorry, but i call b***.  solstice is approaching,   time to eat a mushroom…”  Don’t those mushrooms grow from bullshit? Lol.

Dripfood  DECEMBER 18, 2014 AT 12:01 PM  The continuous rise of the population will buy us a lot of time to solve our inner conflicts. It will also boot us off of this planet, which is the main long term occult driver of the global consolidation of capital.

We need huge sums of capital to employ the many brains and hands that are needed for the kind of global projects we humans need to embark on to deliver us into the next phase of human civilzation.

The ‘elite’ serve a purpose with an expiration date. The disorganized masses will transform into organises masses, whom will never expire their purpose.

m111ark  DECEMBER 18, 2014 AT 3:07 AM  Speaking of Time JC, I think I’m going to need more of it to digest your reply.Frankly, not looking forward to the continuation of the debt-serf status we currently

JC Collins  DECEMBER 18, 2014 AT 3:10 AM  But each moment living is another opportunity to turn it all around. Take your time brother.

Daneackerman  DECEMBER 18, 2014 AT 10:27 AM  Very nicely said JC.

Unreasonablescot  DECEMBER 18, 2014 AT 8:33 AM Another insightful view putting reality first. Shame on US Congress for their combined ignorance and self interest in not approving plan A with IMF reforms. They need to tune into your excellent site – might make them think not least being portrayed as chimps!

My contribution is associated with the Historical Bond redemption which will put liquidity into the market but at “street level” creating work and sharing knowledge. As it happens I will keep you informed as if I am right it will have great significance to ”balancing” the world’s current woes.

daniel grig (@gelingrig)  DECEMBER 18, 2014 AT 1:02 PM  hello,  Exit the system of slavery, is the dream of human beings in the 21st century.  Exiting is the hardest question to answer.  Here are a possibility – through Natural Law.   http://youtu.be/-QpWL3mDJ5E      Maritime Admiralty Law by Maxuell

Someone knows your name and last name are written with letters majusculas in all his papers?

Birth certificate, identity card, driving license, marriage certificate, and all the other roles, in all our name is in big letters?   We are a company with our name backed by our living being.

The company is called eg DANIEL POPESCU and man called Daniel Popescu (lowercase letters).

Look at the papers of a company and you will see that the name of the company, is written in majusculas letters, like our corporate name in the passport, driving license, birth certificate etc.

You can order system down there about this process, but people are inoculated, used and formed cognitively, living in the shadow of the system.

Afraid to go out, maybe there is a way out.

People prefer expect some politico-economic, strength come to save us.

He prefers to believe in the BRICS, the White Dragon Society in Putin in China, in God, imagined any extraterestres … save us …

Thswarrior  DECEMBER 18, 2014 AT 5:11 PM  To daniel grig, who has much less faith in humanity than he should have. No fear.

Jack Jackson (@hugovictor54)  DECEMBER 18, 2014 AT 3:11 PM  ear J.C.:  Let me see If I have gotten this right. A liquidity crisis of substantial proportions is about to ensue.

The banks arising around the BRICS, with the assistance of the IMF and BIS, are the micro from which the macro SDR system will spring.

The present macro federal reserve dollar system is the macro about to become the micro to the new SDR system after having to capitulate to the more stable SDR system.  Sincerely,  Pdog

JC Collins  DECEMBER 18, 2014 AT 5:18 PM  You got it Jack.

Rick Shade  DECEMBER 18, 2014 AT 3:28 PM  JC….  Karen Hudes…..says there is a movement to replace the FRN’s with Treasury notes backed by gold. Is she a looney, or on to something?

IF you had money in the bank…would you take it out and stuff your mattress with it, or perhaps buy silver? I am a little leery holding a bank savings account right now. The Swiss are charging .25% to “protect” money. We are in serious deflation, and it will not be easily contained….

JC Collins  DECEMBER 18, 2014 AT 5:20 PM  That particular character is not a viable source of information. And I always make sure I have a little bit everywhere.

Rick Shade  DECEMBER 18, 2014 AT 3:36 PM

http://www.zerohedge.com/news/2014-12-18/putin-defiant-lashes-out-west-tells-russians-economy-may-stay-weak-two-years

Interestingly, Putin is not gonna be so stupid as to sell his gold to back the worthless currency….

get your popcorn and take a seat….game is ON….

Toknowyourenemy  DECEMBER 18, 2014 AT 4:38 PM  Why is debt the only fuel used by the …….dollar, euro, sdr et al/etc. machine? Equity (like diesel fuel) is stable and reliable and debt (like nitroglycerine) is uncontrollable and unpredictable. One gets you there and the other gets you there like RIGHT NOW!

If the goal was to have the balance and harmony the currency of these 27? families control – why grow the machine before its really ready to run long term – because at some point the battle will be within their borders and life will be a struggle to win or at least survive a zero sum game amongst those who have what they covet – each others power.

**  them, but along the way – why sdrs and not chicken bones, seashells, or cheetos in the image of pop stars? Did they just pull ‘SDR’ outta their ass and run with it?

All it does is turn us against each other at every.single.level. The unit of exchange in a fractional reserve credit based scheme found deep roots in the specialization of tasks and division of labor.

All your life your taught to deny immediate gratification so one day you can have lots of gratification? I need more.

Thswarrior  DECEMBER 18, 2014 AT 5:59 PM  Response to the poster who goes by “toknowyourenemy” who ended his heartfelt lamantation about the immediate future– and who is worrying about not having enough money– and by ending with this statement: “I need more.”

 Response: Oh well. All my life I was taught that no one has ever saved their way into real prosperity. Earning great wealth requires “investing” i.e., using the five real components of “wealth” which are– in order of most importance: Life, Time, Land, Labor and capital.

(Banksters would have us try to reverse that natural order.)

Toknowyourenemy  DECEMBER 18, 2014 AT 7:24 PM  I in no way was referencing money, assets, or financial instruments.

Cramley  DECEMBER 18, 2014 AT 6:04 PM  What are these two buildings?
Picture

Picture

Jose Johnson  DECEMBER 18, 2014 AT 6:35 PM

Nice looking towers. Reminds me of tower of Babel or the tarot card “The Tower”. Wonder if they are central bank divisions in China.

http://philosophyofmetrics.com/2014/12/17/the-sdr-purpose-of-brics/#comments

Biden: Kurdistan is the hope of a free world by fighting terrorism

Shafaq News/ The United States has acknowledged the role of Kurdish Peshmerga forces has played in pushing back the Islamic States (IS) militants in northern Iraq.

In a statement from Kurdistan Region’s Presidency, US vice president Joe Biden called Kurdistan Region President Massoud Barzani on Wednesday night and acknowledged Kurdish forces for being able to fight on behalf of entire free world.

During his conversation with Barzani, VP Biden reiterated that his country will continue to support Kurds and its forces in the face of attacks from the IS insurgents in Iraq and Syria.

“US will continue to offer its support to Kurds, because Kurdistan is a hope for all free world and for all of those who are against terrorism,” Biden told Barzani in the telephone conversation.

Biden also notified Barzani that all the coalition forces will continue its humanitarian and military support for Kurdistan region.

Kurdistan region and its Peshmerga forces has been engaged in fighting against the extremist group since early June this year and they have also send forces to Syrian Kurdish besieged city Kobani to help out its brothers in Syria and fight the terrorists.

LINK

Comments On The SDR Purpose Of Brics Part 1

 READER THOUGHTS ON “THE SDR PURPOSE OF BRICS”  BY JC COLLINS

Rick Shade  DECEMBER 17, 2014 AT 1:55 AM  Expecting a dollar devaluation vs other currencies….. though gold and silver may drop…premiums may rise. if silver goes to 12, the premiums may be 5-7 an ounce. 

I see deflation, but when USD de-couples as reserve currency, will there be war? or just rumors? 

what will silver be then? same as now…… silver. and a decent supply of it and or gold should help to mitigate the purchasing power of the dollar, which mathematically has to decline

thswarrior  DECEMBER 18, 2014 AT 2:06 PM  Using the previous ratio (gold worth 27 times silver) when silver goes to 12 gold will be 324, both out which apprear reasonable.
~~~

Gustavsaure  DECEMBER 17, 2014 AT 1:59 AM  Merci JC.

Matt McBride (@MattMhmmcbride)  DECEMBER 17, 2014 AT 2:21 AM  Thanks for the post JC.

Things are definitely picking up speed and moving in the direction you have been calling the last 12 months. Any reason why you would see the Aussie and/or Canadian dollars included in the SDR?

I agree that all assets including gold and silver will drop.

However, I expect that when it is announced that the US loses its veto in January 2015 under Plan B, the USD will be replaced by Gold (and to a lesser extent silver) as the safe haven bid until the SDR reliquification program is announced in July 2015.

JC Collins  DECEMBER 17, 2014 AT 2:45 AM  The IMF has started reporting on the Aussie and Canadian dollars in its official reserves, and central banks have been quietly increasing their accumulation of both.

If added they will be small weights, but will offer further stability as the commodity and mining markets come back to life between next year and 2018. Gold and silver are definitely wild cards.

Matt McBride (@MattMhmmcbride)  DECEMBER 17, 2014 AT 3:57 AM  Good pick up re AUD and CAD accumulation.

Both are legally stable commodity based countries which would give the SDR basket further hedging and strength.

Both also share a nightmarish property bubble and over leveraged middle class population.

Im from Sydney Australia. There will be tremendous pain in the deflationary wash out of our residential property market.  Sadly our happy go lucky middle class will be wiped out.  Dark times on the horizon.

Daneackerman  DECEMBER 17, 2014 AT 1:59 PM  Man Matt losing the middle class is horrible. Unfortunately many more countries will most likely suffer a similar fate.

Which is probably why they want to capture as much off shore taxes as they can. Here in the US they have been saying that we haven’t had a middle class for some time now. Should be interesting seeing how it will play out here.

There seems to be a property bubble here as well. Housing costs have nearly matched what they where back in 2008 already.

My house value dropped close to 70% in the crash back then and has already rebounded….or has it? Seems like a false assessed value to me, which would seem to mirror a housing bubble similar to what you are talking about happening in Australia.

On another level my parents retire this Friday so there livelihood or should I say survival is nearly completely reliant on there pension which is all invested in the stock market and well it doesn’t look good.

Surely I will be effected as well but on top of that I will feel the moral responsibility to help my family and friends as much as I can.

 Which actually picks me up because at that point I see a coming together of people. Unfortunately in my lifetime anyways it seems to take a catastrophe of some sort to get peoples hearts to melt together to form unity.  Best wishes for all of mankind.

Matt McBride (@MattMhmmcbride)  DECEMBER 17, 2014 AT 8:24 PM  Hi Dane  Thanks for the response.

It will be sad to watch the carnage.  You are correct. Tragedy and hardship does unite humans and bring out the best in people.  I wish you and your family safety at the apex of the chao.

Cramley  DECEMBER 17, 2014 AT 3:35 AM  There’s misplaced angst about how gold will perform in real deflation which we haven’t had yet. Gold will not drop, not nominally and not in real terms in a deflation.

http://maomoney-maoproblems.blogspot.com/2012/03/exter-pyramid-and-renminbi.html

chuc1997  DECEMBER 17, 2014 AT 2:24 AM  I still get lost here: If I am an oil producer, reliant on depleting oil fields for my income, why do I agree to swap the promises of a bankrupt US gov’t for the promises of bankrupt US, UK, Euro and Japanese gov’ts b/c they are in a basket altogether with a new name?

These nations cannot possibly make me whole in the future on a “real basis” for any oil I sell them today…so why not just leave the oil in the ground?

JC Collins  DECEMBER 17, 2014 AT 2:50 AM  Because GDP will collapse and access to liquidity will dry up. It is, after all,a multilateral system, not a “you go that way”and “I’ll go this way” system.

Oil can never be a unit of accountant,for obvious reasons. Oil producers will need to sell their product for something. The trade is done in SDR and than exchanged back into the domestic currency.

irrelevant111  DECEMBER 17, 2014 AT 3:45 AM  Mr. Collins, Now for something important as we discern…  Merry Christmas My Distinguished Friend

https://www.youtube.com/watch?v=FaOcFJHUnuo#t=100

chuc1997  DECEMBER 17, 2014 AT 2:17 PM  Agreed, but I am talking about the store of value.

Oil producers might agree to use SDR’s as their unit of account but they cannot agree to SDR bonds as their store of value, at least not at interest rates that appropriately compensate them for the risk of holding them.

JC Collins  DECEMBER 17, 2014 AT 3:04 PM  Which is what is being explained in the post and linked IMF paper.

Thswarrior  DECEMBER 18, 2014 AT 2:09 PM  Because there is no depletion allowance for sitting on oil.

b.klausen  DECEMBER 17, 2014 AT 2:45 AM  hey JC, you’ve written about Vietnam before, was wondering with the event of China stepping away from the USD, would there be an immediate effect on the Vietnamese economy / currency?

JC Collins  DECEMBER 17, 2014 AT 3:01 AM  The Pan Asian FX Trading center is already established so both currencies can be directly traded.

As things shift away from the USD the Vietnamese will seek to peg their currency elsewhere, as they stated earlier this year. At the same time they referenced pegging the dong to their largest trading partner, which is China, or a basket of currencies, a likely reference to the SDR or some temporary regional basket.

Whether the effect is immediate or drawn out over a period of time is difficult to discern, but one thing is certain, the current exchange rate system is going to change, and we may see a fixed exchange rate system like was originally intended with Bretton Woods.

 Parity between the majors is beginning to look likely, but the minors, like the dong, will revalue differently. Either way, holding some dong is a cheap and entertaining hedge.

tristero888  DECEMBER 17, 2014 AT 4:03 AM  Malaysian rupiah ain’t bad either, especially if you like Balinese coffee :)

tristero888  DECEMBER 17, 2014 AT 4:13 AM  after reading Chris’ comment in the last thread, i’m beginning to think that “Plan B” was Plan A all along, and “Plan A” was just a ruse to buy for time in the blame game. if so, it was a pretty well-played jiu-jitsu move actually. question is: against who?

Danielbradford  DECEMBER 17, 2014 AT 5:56 AM  JC,  Whether the Canadian dollar is added to the basket or not, it sounds as though you believe it will gain ground by mid-2015? Is it’s current low value against the USD just part of the script? Will the fact that the USD is Canada’s reserve currency pose any problems here at home?

Mark Green  DECEMBER 17, 2014 AT 2:05 PM  I wouldn’t bet on a bunch of psychotic, greedy, criminals sticking to a “plan.” Each is lusting for power and will go along only as far as it services their agenda…

Black swan: https://www.youtube.com/watch?v=vkWOse70Oyk

Thefourthobserver  DECEMBER 17, 2014 AT 5:34 AM  JC,  May I ask what we can expect during the transition? For example down here in the Sydney CBD I see that almost the whole city is a derivative of the banking system(firstly finance or supplying services to finance).

What level of carnage would you be anticipating in terms of market disruptions? Something 2008 like, where there is streamlining but BAU picks up again, or far worse?

See, with our property bubble as it is (Possibly 50% overvalued based on the old average house value = 5 times average income) I think the whole banking system here is toast if the market tanks. 70% of most banks loan books is residential property and they tend to self insure loans where borrowing exceeds 80%.

I understand a certain level of pain will accompany a transition to pave the way for acceptance, but the environment here is fragile enough that breaking the property market will break the whole CBD.

The property market is supported by the banking system (both loans and economically), but the real estate is supporting the banking system.  Many thanks,  Chris

JC Collins  DECEMBER 18, 2014 AT 2:21 AM  Chris, it’s hard to say how bad it could get. I certainly hope not any worse than 2008 and 2009. The real estate markets in both our countries are likely to be the catalyst for broader systemic risks.

Thefourthobserver  DECEMBER 18, 2014 AT 4:59 AM  Kind thanks for replying specifically to me. Some backstory on one of your readers if interested:

I sold out of most of my RE in 2009 anticipating Sydney to fall back in line with global markets. I also sold all my stock at the very peak of the GFC (at the time my microcaps were returning 55%YoY).

 I was right to sell stocks, but for RE I was dead wrong. The house I sold in 2009 is now valued at double the 2003 price. Since then I have noticed increased risk taking in the RE finance sector and adverts like low or no deposit mortgages on new houses have returned.

A friend works at a large prestigious RE agency. She told me that the only cash buyers left in our market are Chinese flyin’s. Most local buyers are in price shock. “If I don’t buy now we will never own a house.” and will leverage up as higher as they can.

With all the systemic risks building on all sides I decided to become a weekend farmer and build a retirement house. Buying 30ac with cash last year, building my own buildings and planting the first 1000 hazelnut trees recently.

 My observation is that rural leverage here tops out at a LVR of 50-60%, compared to an average of 90% in Sydney. So, diversifying my businesses in to CityCountry seemed prudent.

Further it gave me options for all those potentially really bad risks perpetually on the horizon. If I’m wrong, then I have a debt free farm which could earn a decent return and a nice weekend holiday home.

Maintaining a life as a ‘lightweight doomer’ is not so bad, there are plenty of fun things to try out and life is richer now than when we all just played computer games to pass the time.

We literally went from “Hey dad, how do you craft a bow in Minecraft and how many wheat squares do you need to make bread?” to literally making my own workbench buildings and grinding our own wheat to make pizza with tomato, basil from the garden, and homemade cheese. Soon I’ll be carving a bow, just for fun.

However as anyone who has ever planned for contingencies knows, you are always plagued with doubt. Did I do enough? vs Did I take things too far?

Toknowyourenemy  DECEMBER 17, 2014 AT 5:21 PM  Mr. Collins, what may I ask have you done to ….forgive the word, ‘prep’?

JC Collins  DECEMBER 17, 2014 AT 5:57 PM  A little bit of gold, a little bit of silver, a little bit of dong, and a whole lot of patience. Along with savings in CAD and other physical assets.

he biggest thing is to deleverage and not carry a lot of debt. Things will come back if you can weather the storm and not personally default. The problem is personal debt loads are too high and most will have a challenging time managing that debt in a deflationary period.

Gustavsaure  DECEMBER 18, 2014 AT 1:05 AM  Credit deflation, right? Bond price deflation. Real estate deflation. However for the US, inflation through the currency as USD is sold, to which the central bank will respond by jacking rates which will just feed into inflation unless they get way out in front of it like Volcker did which would be catastrophic at these debt levels.

And the Fed doesn’t have foreign currency to defend the dollar. You’ve said SDR bonds will serve to suck that inflation out of the US, but I don’t see how that happens. The more SDR that are bought, the weaker the dollar against commodities.

The USD will be one of many currencies interacting within a fixed exchange rate structure, with the SDR as the reserve asset, or unit of account. Based on GDP and other metrics, countries will be given quota amounts and will be debtor nations or lender nations.

Study the Turkey model and how it implemented tax reform, along with other “forced measures” to pay back its IMF loan. It is now a lender nation. Read the post The Ottoman Multilateral. The framework will change, as such the old way of viewing things will need to be adjusted.

Gustavsaure  DECEMBER 18, 2014 AT 2:36 AM  I guess what I’m asking concerns the XDR/USD exchange rate. If dollars are buying SDR this would devalue the exchange rate, no?

en that we expect oil and other commodities to be priced in SDR, there would be currency-induced inflation, or if you prefer stagflation.

JC Collins  DECEMBER 18, 2014 AT 2:42 AM  By “currency-induced inflation” I assume you are referring to cost-push inflation.   http://en.wikipedia.org/wiki/Cost-push_inflation

If the fixed exchange rate system is based on purchasing power parity we would not likely see this type of inflation.

Toknowyourenemy  DECEMBER 17, 2014 AT 6:54 PM  Do you worry about things such as civil unrest/etc.?

JC Collins  DECEMBER 17, 2014 AT 7:55 PM  I’m in Canada dude.

Gustavsaure  DECEMBER 18, 2014 AT 1:04 AM  Lol.

nanook73  DECEMBER 18, 2014 AT 2:39 PM  Ohhhh JC – remember what happens to Vancouver when they don’t win the cup?  Remember this?

https://www.youtube.com/watch?v=ihAx8WyXS9o

I suppose as long as the beer and smokes flow and we don’t have a team that can make it into the play offs we should be fine…. :-)

Daneackerman  DECEMBER 17, 2014 AT 8:54 PM  Try not to worry. Worry leads to fear. Fear clouds perception which could accidently create the civil unrest you worry about.

My work takes me into these areas of civil unrest we have been seeing on television and it really doesn’t look or feel like what they show on television.

 It seems they are reacting to the very CSI’s discussed here so it’s almost predictable. In fact in the city I live in permits were pulled by the protesters for the protest. So the cops knew when and where to shut down the streets to traffic. News didn’t tell anyone about that.

Toknowyourenemy  DECEMBER 17, 2014 AT 8:34 PM  True enough that the anchor line is wrapped around your ankles as well….how deep is the water though?

JC Collins  DECEMBER 17, 2014 AT 8:45 PM  Canadians are a mellow bunch. I’m sure there could be some civil unrest in the bigger cities, but I don’t see much unrest happening.

considering the complete lack of protest against the “bankers” spending bill that passed last week, I’d be surprised if even Americans protest or cause civil unrest, at least not over anything economic. Perhaps over some manufactured race issue. I think apathy runs deeper than anyone fully realizes.

Mark Green  DECEMBER 17, 2014 AT 9:41 PM  One day, in river guide training while floating under a bridge. Randy, our instructor said, “sometimes, people will dive of the bridge.”

Someone asked, “how deep is the water?”Randy replied, “depends on which rock your standing on…”

Toknowyourenemy   DECEMBER 17, 2014 AT 10:06 PM  I doubt if anywhere in the world people care much about economic and political values these days.

 But when it effect them – that would be the time for caution in my book. If the dollar is to be part of something – now at a much lesser weighting – well, somethings gotta give. Unemployed hungry people with few skills is a formula for trouble don’t you agree?

JC Collins  DECEMBER 18, 2014 AT 2:26 AM  It hasn’t been in third world countries. Mass populations can presumably find a level of comfort in all manner of socioeconomic structures. You may be right though.

Bgsv  DECEMBER 17, 2014 AT 11:53 PM  Don’t know if all you read this.  Brandon Smith appears to be on the same wavelength as JC. Its a good read:

“…. summary of a dangerous trend I have been concerned about for years; namely the strategy by international financiers to create a dollar-collapse scenario that will be blamed on prepositioned scapegoats. 

I have no idea what form these scapegoats will take – there are simply too many possible triggers for fiscal calamity. What I do know, though, is the goal of the endgame: to remove the dollar’s world reserve status and to pressure the American people into conforming or even begging for centralized administration of our economy by the IMF.”

http://alt-market.com/articles/2444-imf-now-ready-to-slam-the-door-on-the-us-and-the-dollar

JC Collins  DECEMBER 18, 2014 AT 2:27 AM  Thanks. Glad to see your still checking in once in a while.

Cramley  DECEMBER 18, 2014 AT 12:24 AM  Uh-oh! Somebody asking some intelligent questions over at the FOFOA blog today.

http://fofoa.blogspot.com/2014/12/global-stagnation.html?showComment=1418839629270#c3895764788420180449

Newbie with a brain: “After the transition, I’m confused as to whether this community believes that gold will outperform equities for long-term capital growth. Would we not want to continue investing in equities, and would they not continue to be the best means of long-term growth? ”

Brainwashed goldtard:” As long as you understand that Savings (in physical gold) are simply to preserve purchasing power since the price of gold will rise with inflation and that Investing (in what ever form you think will generate income) is a risk then you are closer to understanding Freegold.”

Notice the common misconception ” gold will rise with inflation.” The real price of gold does not respond to the growth of monetary aggregates. In fact it may actually decline during inflation.

Notice the normal healthy predilections of the newbie with a brain. This is how rational savers think.

Cramley  DECEMBER 18, 2014 AT 1:03  http://finance.sina.com.cn/world/20141217/234221101941.shtml

There is no Plan B.

JC Collins  DECEMBER 18, 2014 AT 1:27 AM  Cramley, I appreciate the link and encourage other readers to use a translation tool and read the material. But how you imply that the link suggests “there is no Plan B” is beyond my imaginings.

 The article clearly builds the case for IMF Reform and even supports what I’ve said in this post, mainly that the BRICS institutions are “helping along the way” towards the IMF system which includes a stronger representation by the emerging economies. 

Sometimes I feel like you are intentionally promoting false arguments. Don’t be surprised one day if your comments don’t get posted.

Comments may be made at the end of Part 2  Thank You

U.S. gives green light to allocate 24 million dollars to implement Obama’s plan for Iraq’s Sunnis

Shafaq News / US Department of Defense has allocated $ 24 million to support the Sunni tribes in Iraq with equipment

and weapons in order to fight the Islamic State of Iraq and Syria “ISIS” organization.

According to the final version of the foreign operations budget emergency referred to it sometimes as the war budget, this amount will be used to fund military equipment, including light machine guns type K.47 S and Ba.ar.ki.50 , rocket-propelled grenades, hand grenades, mortars, body armor and vehicles navigate.

Despite the small amount, but the move notes to the willingness of the United States to provide the Sunni tribes with quantities of weapons after the idea of the existence of the Iraqi National Guard became very acceptable in Washington, and a favorite policy of for the management of US President Barack Obama, who believes that the Sunni tribes play a major role in the destruction of ISIS and policy strategy for Iraq first of all.

According to the American definition, it is referred to these tribes on behalf of the Iraqi National Guard, which is a part of the Awakening movement has a former decisive role in US military service and the suppression of the resistance during the occupation period, it is clear that there is an American intention to activate the Awakening, which jumped to the forefront of events at lightning speed during US invasion of Iraq but faded after almost achieved its mission to enable US forces to extend its control over many of the hot areas, especially in Anbar province.

The National Defense Authorization Congressional law allows granting approval quickly on Pentagon requests regarding Iraq and processing training programs, including the training and equipping of Peshmerga , the Iraqi army forces and the Iraqi Sunni tribes, but the law did not explain how the tribes will be examined to give them weapons except those known for their loyalty to the government and the local forces, then the Congress returned to approve adjustments requires the US administration on a minimum to exclude individuals or groups associated with terrorist groups or with the government of Iran.

The exit of the former Iraqi Prime Minister , Nuri al-Maliki and the readiness of current Prime Minister , Haider al-Abadi to cooperate with the United States to encourage the US administration has helped to move forward in “Iraq is the first” policy, and there is optimism that Abadi maintains his promises and his desire to be more inclusive towards disgruntled Sunnis by allowing to train and process Sunni tribes in areas captured by ISIS which gives the best chance to beat the militants militant group, American optimism stems primarily from Abadi allowing immunity to the US forces in Iraq, a major point of contention with Maliki’s government that contributed in the failure of the US to keep a military force in the country after their withdrawal.

American views have escalated in recent warns of lack of success of the Awakening model again and that the US administration is making a big mistake by assuming that it can built tribal networks quickly, where many American officials believe that it is easy to get the support of the Sunnis after removing al-Maliki. These warnings also referred to the deaths of more than 1345 members of the Awakening in Iraq since 2009 by the Islamic state.

Some critics said that the consequences of the failure of this policy would be disastrous, as happened last summer, when the Islamic State defeated the Iraqi security forces and seized a large quantity of sophisticated weapons, which means that the failure of the current policy that could lead to the same fate.

The political and sectarian interests in Iraq constitute additional complications to this policy, as the National Guard plan is considered as a fundamental dilemma for the United States and Baghdad’s government to reconciled to maintain security at the local level and fight ISIS while avoiding unintended encouragement to fragmentation of the country along sectarian lines and formalize the rule of militias, not to mention the opposition militias affiliated to Iran categorically to this policy and that actually work outside of government control, but has a heavy weight in the decision-making and action.

American Analysts, including Frederick Harry, expert prominent in the Middle East affairs at the Carnegie Endowment for International Peace, and Kenneth Pollack of the Brookings Institution noted that the Islamic State organization has carried out contradictory policies toward the Sunni tribes that are not sympathetic with it , as sometimes resorted to soft non-hostile force and sometimes used extreme violence to coerce and intimidate the tribes where the militant group destroyed, for example, in late June, Anwar al-Asi’s home, a leader of al-Abeed tribe near Kirkuk city after he refused to swear allegiance to the Caliph Abu Bakr al-Baghdadi, following Asi’s announcement with another elder of the tribe named, Wasfi al-Asi to form a tribal council to fight ISIS but the group has dealt intelligently with the tribes in general they are not pursuing the tribal leaders who oppose it decisively and did not go in the campaign of beheadings, but on the contrary, ISIS has sent more than one envoy to tribal leaders to demarcate the mutual relations.

Some tribes have asked the support from Baghdad, but others resigned to the presence of ISIS for various reasons, the Sunni tribal leaders have asked in recent weeks in a series of meetings by Iraqi Prime Minister to address the problem of lack of weapons and the lack of support for them from Baghdad to confront the extremist group despite the vulnerability of many of their colleagues to the arrests and executions , The Washington Post newspaper quoted Sheikh Naim al-Qaood who is a tribal leader of Albu Nimr tribe said that the tribal leaders feel that they have been neglected and abandoned and they are demanding the Iraqi government to do something.

LINK

We will export 500,000 barrels of oil per day in 2015, says Kurdistan

(IraqiNews.com) On Wednesday, the Minister of Natural Resources of Kurdistan Regional Government, Ashti Hawrami said that the province will export 500.000 barrels of oil per day in 2015, while noting that the problem of the government’s right in the region to export its oil independently remains unsolved with Baghdad.

Hawrami said in a press conference held today in London, quoted by ‘Reuters’ and followed by IraqiNews.com, “The region will export 500.000 barrels of oil per day by the end of the first quarter of 2015,” noting that, “The region will become a contributor to the budget of Iraq by the end of next year.”

Hawrami added that the problem of the government’s right in the region to export its oil independently remains unsolved with Baghdad, but he for the first time pins hope on the possibility to resolve the longstanding dispute.

LINK

Turkey confiscates 80 million liters of oil belonging to ISIS

(IraqiNews.com) On Thursday, Turkish Foreign Minister Mouloud Jawish Ihsanoglu announced that, Turkey seized 80 million liters of oil coming from the wells controlled by the organization of the so-called Islamic State in Iraq and Syria (ISIS).

IraqiNews.com quoted Ihsanoglu on the sidelines of the first official visit to Tehran as saying, “Since the beginning of this year, Turkey confiscated 80 million liters of oil coming from the wells controlled by ISIS.”

Ihsanoglu denied the news about Turkey’s buying portion of oil sold by ISIS, adding that the Turkish authorities discovered and destroyed many of the oil pipeline built by the terrorist organization ISIS.

LINK