THE SHIFTING SCRIPT
With the first month of 2015 in the books, the year, thus far, has met
the expectations of the volatility which has been previously discussed amongst
us here on the site. So many readers and contributors have written and
shared links to massive amounts of material that it leaves very little for me
to write myself.
Which is something of a good thing lately as my work has completely
consumed me. The last few weeks have been full of travel and meetings and
strategy sessions on how best to deal with the changing labor and materials
markets surrounding Canadian energy production.
It’s somewhat exciting as the company which employees me is likely to
see some growth in this downturn and potentially some major moves into new and
developing markets around the world. The downside is that many around me are
beginning to feel the crushing force of massive deflation.
This deflation has been held back since 2008 by all governments and
central banks around the world.
When it comes to philosophyofmetrics.com and the analysis we have been
building here for the last 13 months, it fills me with an odd sense of
achievement that so many of the macroeconomic scripts and methodologies
presented here are in fact manifesting as expected and discussed.
The exchange rate volatility and growing sovereign debt crisis,
alongside the broadening civil unrest, such as in Spain, Greece, and elsewhere
around the world, has been happening as expected. This procedure and
scripting continues to match the Hegelian Dialectic and CSI engineering which I
have presented throughout the SDR’s and the New Bretton Woods series, as well as endless articles since.
As is starting to become apparent in the unfolding Greek drama, any talk
of debt reduction or forgiveness is being slowly shifted into a debt
restructuring or debt swap script, exactly as discussed here over and
over. The IMF will soon present the SDRM, or Sovereign Debt Restructuring
Mechanism, back into the macroeconomic framework which is being constructed
around the collapsing USD framework.
There will soon be the beginnings of a debt exchange for SDR
liquidity. The BRICS institutions will lead the way with the western
institutions taking up the rear positions as the restructuring closes
formation. As presented in the post The SDR Purpose of BRICS.
Any European crisis, or any other crisis, such as currency crisis,
sovereign debt crisis, bond crisis, equity crisis, etc., will all direct the
shifting international financial architecture in the direction of the
multilateral framework, which, for the most part, has been negotiated behind
the scenes of the geopolitical and economic events over the the last 6 years.
The separate oil pricing platforms, such as WTI and Brent, will soon be
consolidated and pricing fixed in SDR, but not before the valuations continue
to spike and crash back down in a repeating pattern of cyclical economic
punishment.
International volatility will create the demand for the stability which
is being engineered in the multilateral framework of the supra-sovereign SDR.
The year has just started and we are in for much more.
Sorry for not writing more lately or being further engaged with the
comments. Many of you are doing a fantastic job of keeping the
conversation going, and for that I thank you. Hopefully I will be able to
write more over the next few weeks. –
JC
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