BRICS SDR to Bailout Eurozone
February 10, 2015 JC Collins Leave a comment
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
Thanks to: http://philosophyofmetrics.com