BRICS SDR TO BAILOUT EUROZONE
By JC Collins
The different angles of
geopolitical and macroeconomic events are beginning to coalesce into the direct
90 degree turn which will shift the global financial system in the
direction of the multilateral architecture. The apparent movement away from the
USD unipolar structure towards the multilateral framework which is being
implemented in stages is becoming more visible with each passing day.
This movement is taking the “two
steps away from the USD and one step back” approach, and with each
turn and shift the USD is being further removed as the primary reserve currency
used in global trade. The much promoted death of the dollar in the
alternative media is largely based on misinformation and unintended
breaks in analytical rationalization as the full scope of the multilateral
structure, and the global support from all countries of the world for such a
system, has been cleverly hidden behind a script of geopolitical tension, as
well as the dual crisis of growing sovereign debt and currency imbalances.
It should be stated that the USD
will categorically remain as one of many reserve currencies with it’s position
secure in the SDR basket composition, alongside the Chinese renminbi, among
others, potentially even the Russian ruble. The path of the Special
Drawing Right is being drawn along the transition points of the
multilateral structure. These transition points exist as both
geopolitical and macro-prudential positions which have been carefully scattered
across the global landscape.
Each point, like a
connect-the-dots picture, is being absorbed into the whole as the scripted
tension and policy initiatives are implemented under the guise of ideological
and political mandates. The Ukrainian crisis in Eastern Europe is one
such point where the existing USD order of the Eurozone is being
transformed into the Eurasian mechanics of the multilateral.
We are now seeing how the
Ukrainian geopolitical point is being connected to the macroeconomic point of
the debt restructuring script which is presently unfolding in Greece. The
newly elected government of Greece has threatened to accept the offered
financial assistance of Russia and China, which more broadly represents the
BRICS countries.
In turn, Greece, through Cypress,
has geopolitically offered Russia access to military facilities on the
Mediterranean island. This is the connectivity point between the
geopolitical Ukrainian crisis and the Greece sovereign debt crisis, which will
soon expand into the larger Eurozone monetary crisis.
The Greek contagion, as it is
being called, is threatening to spread to Spain and Italy, and eventually
across the whole of the continent. Ukraine, the seam between the old Eurozone
and the new Eurasian zone, could also be economically salvaged by the BRICS
countries when the USD interests eventually back away from the brink of a war
that no one wants, especially the European countries who would have to bear the
brunt of such a drastic geopolitical affront.
The latest free-trade agreement
between Russia and Egypt is also very telling of the transition points of the
multilateral shift. Egypt and Libya, both of whom recently evaded direct
American control and influence in their countries, are positioned extremely
well to capitalize on the growing mandates of the multilateral architecture, as
currently represented by the BRICS institutions.
Returning to the Greek situation,
the hardline stance of Germany on debt restructuring, or delaying, stands in
stark contrast to the overt pivot towards Russia which is being
established within the macro script. Germany and France are both
beginning to show signs of shifting away from the traditional geopolitical
alliance with the North American continent and standing with their “common
history” partner Russia.
And yet, Russia is supporting
Greece in their attempts to leverage, against Germany, the threat of a
Eurozone banking failure. This oppositional positioning at first appears
to be contradictory to the messages being sent by the leaders of each
country, but the transitional scripting is smoothly directing our attention
across the points which have been previously established., as discussed above.
Each geopolitical and economic
point in the transition script will eventually consolidate into larger macro
points of the multilateral framework.
But how does a large banking
failure across the Eurozone shift the world closer to the
multilateral structure?
The most
probable strategy is likely to intentionally force the
Eurozone banks into failure so that the European Stability Mechanism will have
cause and pretext to take over control of the European banking
infrastructure. The ESM would be the logical first shift towards a
broader SDRM, or Sovereign Debt Restructuring Mechanism, which would be managed
directly by the more macro FSB, Financial Stability Board, and the
International Monetary Fund itself.
Whether the initial first debt
consolidation, or restructured, offered by the BRICS Development Bank to the
Eurozone is denominated in SDR or RMB is something of a mute point as the
end consolidation will involve the more supra-sovereign SDRM, which will
obviously be denominated in SDR.
Another contradictory segment of
the transitional scripting can be found in the support of America’s staged
fight with ISIS in the Middle East. Russia, Iran, and China, are all supporting
USD interests in the region. All sides are reading from the same script which
is being promoted by Washington.
Much of this could have to do
with the Middle East being divided into southern and northern monetary
unions. It is hard to imagine the current borders of the Middle East
being maintained after the multilateral transition has been completed. With
China now moving into Afghanistan and Saudi Arabia shifting alliances, it’s
beginning to appear as if USD interests will remain entrenched within Iraq, as
a strategic reserve of energy and petroleum products.
The two big energy resource
regions, being the Middle East and the Caspian Basin, are being strategically
divided amongst the largest economic members of the multilateral in order to
facilitate a sense of balance in economic alliances. Once pro-American regimes
are beginning to fall and be replaced by alternatives, such as in the nation of
Yemen, the soft underbelly to Saudi Arabia and the petrodollar arrangement.
Canadian Finance Minister Joe
Oliver has recently stated that the USD system, though carrying the world, is
simply not sustainable. This is a clear reference to the systemic
imbalances which China and other countries have discussed in the months and
years after the financial crisis of 2008.
These imbalances, and what Joe
Oliver was referencing, are best explained in something called the Triffin
Paradox, which I will explain in further detail in the forthcoming ePublication
titled Re-Engineering the Dollar.
The attempts of others to ignore
the obvious connections between the SDR and the BRICS nations, as well as the
multilateral mandates, all of which are discussed in the official white papers
and publications of the nations treasuries and central banks, as well as other
institutions, are of questionable intent.
As detailed in the post The SDR Purpose of BRICS,
the New Development Bank will be the first issuer of SDR denominated
bonds. This liquidity will facilitate the SDRM process and ensure that
the multilateral architecture is established in staged intervals as the global
deflation continues to expand.
The broad failure of the banking
infrastructure in the Eurozone will lead into the transition point of a BRICS
bailout with SDR bonds and SDRM restructuring. The micro transition
points of the ESM, European Stability Mechanism, will shift into the macro transition
points of the FSB, Financial Stability Board, as the larger mandates of the
multilateral framework become more visible.
That is the real story, not
secret sources and banking overthrows, though the current system is being
“cleared” of witnesses and evildoers, to term a Bush phrase, as well as
adjustments to tax laws and capital flows, all meant to fit the broader macro
mechanics of the multilateral.
Now we continue to study and
observe as the increasing number of BSA’s, or Bilateral Swap Arrangements,
between China and the rest of the world sets the stage for the RMB’s inclusion
into the SDR composition which will facilitate the Eurozone bailout.
Europeans are being lead directly
into a systemic banking failure which will force the ESM to take direct control
of the banking system and shift the whole framework upwards into the
larger mandates of the FSB and IMF. This is why the alternative and
mainstream scripts of BRICS resistance to the international banking
order are so important. Any connection between the BRICS
institutions and the SDR of the International Monetary Fund are to be avoided
at all costs. A small army of alternative “analysts” have spread the
“overthrow” storyline far and wide. And the mainstream media have
been running the Greece far-right script on a regular basis. Nothing is
promoted in the mainstream unless it serves a purpose. Think it through.
– JC
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