It is so well explained here that the U.S. politicians and bankers would never admit that they are the ones that want to kill the dollar, so the Ukraine fiasco will provide the necessary cover story to the corrupt TV and the press for all the world to see .
The Dawn of Macroeconomic Stability
By JC Collins
“We are working with Congress to approve the 2010 IMF quota legislation, which would support the IMF’s capacity to lend additional resources to Ukraine, while also helping to preserve continued U.S. leadership within this important institution,”
– U.S. Treasury Secretary Jack Lew, Mar 4, 2014.
“An attempt to announce sanctions would end in a crash for the financial system of the United States, which would cause the end of the domination of the United States in the global financial system.”
– Russian Senior Adviser Sergei Glazyev, Mar 4, 2014.
“We are also discussing with all our international partners–bilateral and multilateral–how best to help Ukraine at this critical moment in its history.”
– Managing Director Christine Lagarde, I.M.F., Feb 27, 2014.
This part of the series is important because it contains valuable and timely information that both confirms and builds on the concepts as presented on this site. Through seven parts we have defined the structure of the emerging multilateral SDR financial system and how it will work in theory.
Now we begin the transition from theory to practice.
I would suggest that readers first ensure they have a good understanding of the main themes and components of the other seven parts. It will make part eight that much more rewarding to read and understand. All seven links are included at the end of this post.
Ukraine is being fought over by the United States and Russia. Both countries desire to give the Ukraine a bail-out loan denominated in Special Drawing Rights. The International Monetary Fund is patiently waiting for an agreement to be made so that the process of debt restructuring and currency allocation can continue. The winner will have control over the resources and energy industry of the Ukraine and all of Europe’s natural gas supply. This will help their SDR composition in the new system.
The same process is unfolding in Syria and other regions. There is not much negotiating room left though as the clock ticks closer to the time where its either collapse or consolidation. Ukraine, like Syria, is a vital chess piece in this grand game of strategy and resource allocation.
Today Senior Russian Advisor Sergei Glazyev stated that they would sell all their U.S. debt if sanctions were put in place against them. On top of that he suggested that Russia would drop the dollar in its international trade. This clearly states that the U.S. dollar would no longer be considered the reserve currency by Russia.
Considering China has made it known that they side with Russia over the Ukraine situation, it doesn’t take a stretch of the imagination to see China also selling their U.S. debt.
Though I do not think this will happen. These threats are keeping with the Hegelian Dialectic pattern which we have been discussing. The sovereign debt crisis and currency crisis around the world will be used as the pretext to shift the reserve currency status away from the dollar and to the SDR. Problem, reaction, solution. See SDR’s and the New Bretton Woods Part Three – The Real Global Currency Reset.
As the major monetary changes take place we can watch for changes to the dollar and its reserve status as a sign of the coming integration to a multilateral system and reset of the world’s currency and commodity values as they unpeg from the American dollar and peg to the SDR. See The New Exchange Rate System.
The end goal is the SDR as the multilateral reserve currency and sovereign debt consolidated or restructured through the International Monetary Fund. So Russia threatening the dollar fits perfectly within the script being presented.
In order for the SDR’s status to be expanded the United States Congress must pass the IMF 2010 Code of Reforms, also known as Governance Reforms and Quota Reforms. These reforms allow the Executive Board of the IMF to be restructured to more accurately reflect the economic reality of the world today. The emerging markets, mainly represented by the BRICS countries, Brazil, Russia, India, China, and South Africa, require equal power within the IMF.
It is collectively agreed that the dollar is now causing all the economic problems in the world. With equal representation on the Executive Board it will be only a matter of time before the dollar is pushed aside and the SDR made the multilateral reserve currency.
This will lead to macroeconomic stability through centralization. This macro centralization will be off-set by regional and local decentralization with a focus on micro economic growth and resource commodity production. Some of these micro regulations will put into place self-limiting legislation to prevent further transfer of wealth from the large disorganized masses by the small rent seeking elite. See What Are Conspiracy Theories?.
These Code of Reforms were agreed to by all G20 countries in 2010 but the United States Congress has refused to pass the required legislation to support the changes. Last month the G20 met again in Australia and once more pushed Congress to pass the legislation by April of this year.
This is where we come back to the crisis in the Ukraine.
Today, top Republican Senator in the Senate Foreign Relations Committee, Bob Corker, who is writing the legislation for Ukrainian aid said that the IMF Code of Reforms were “on the table”.
The U.S. Treasury itself is asking Congress to connect the Code of Reforms with the Ukrainian package.
On top of that, the Obama administration snuck the Reforms into its proposed 2015 budget which was released today. This budget begins in October of this year.
And the G20 all want the reforms implemented by April.
The Ukrainian crisis is the textbook example of the process which we have been learning about here. Expect more of the same as the system shifts further away from the dollar and closer to the SDR composition. America could never openly admit that they “killed the dollar”. It will have to be hidden within a series of events which create a form of plausible deniability.
The pressure is on Congress to get the Reforms passed so implementation of the new SDR system can begin. The transition from the old dollar system to the new SDR system has begun. Ukraine unpegged their currency from the dollar last week. Russia is now threatening the same. China is not far behind.
The stage is set for the real life drama which we have been exploring. – JC Collins