By JC Collins
On the eve of congressional elections in the United States it’s time to take stock of where we are and what we can expect as we move further into winter and the end of the year. Over the last 4 to 6 years the seeds of the Multilateral Financial System have been planted and it is now time to begin harvesting what has been grown.
Tomorrows elections are expected to see the Republicans win a majority in both the Senate and the House. The outcome of the election will do little to change the macro outcome of the emerging MFS or the necessity of Congress to pass the required legislation supporting the International Monetary Fund’s 2010 Quota and Governance Reforms.
The reforms were agreed upon by all 188 members of the Fund and the United States is the only country which hasn’t passed supporting legislation. Both the Executive Branch of government and the Treasury have joined the demand by the rest of the world, including the G20 countries and BRICS countries, to have Congress honor the original agreement.
The Democrats have put forward bills which contain the supporting legislation, but unfortunately they also attempted to attach other matters to the IMF Reform bill, such as the IRS Rule Change which would change the tax exempt status for non-profit political organization.
This IRS Rule Change would in effect stifle political speeches in the periods leading up to elections. The Republicans have vehemently rejected these rule changes and have refused to pass any IMF Reform Bill that contains them.
Back in March when the Ukraine CSI began, the Democrats used that particular crisis as leverage to attach the IMF Reforms to an aid bill. The Republicans refused to pass the bill as it was written and subsequently the IMF Reforms, including IRS tax rule changes, were removed from the Ukraine aid package.
It is interesting to note that the Republicans would have allowed the IMF Reforms to be attached to the aid bill but not with the IRS rule change also attached.
The Democrats have refused to separate the IMF Reforms and the IRS rule change.
As stated previously, the G20 countries, including the BRICS, along with the Executive Branch, Treasury, IMF itself, and a host of other international and national interests, have demanded that the IMF Reforms be passed by the end of this year.
Congress has dragged this process out as far as possible and the end game is very near.
If the Republicans win both the Senate and the House, as expected, then the Democrats are likely to write a bill for the IMF Reforms that the Republicans can accept and pass before the power exchange happens on January 6, 2015. The reason for this is very clear, the Democrats, knowing that Obama is about to become a lame duck president, will seek to leverage their current position to enact legislation while they can.
They will now give up on the IRS tax rule change in order to get passage of other important legislation with an eye on the 2016 Presidential elections.
One could expect that the Republicans would give no quarter and simply wait to take control over both the Senate and the House on January 6th, at which time they can pass whatever bill written whichever way they choose. But there is little satisfaction or advantage in waiting the Democrats out.
The Republicans will likely give a concession to the Democrats in exchange for a strategic win, represented in the form of symbolic surrender by the Democrats. The political momentum and strategic advantage for the Republicans by having the Democrats surrender one of Obama’s high light reels will be too attractive to pass up.
The Democrats, for their part, will look to build on this loss and focus on building up their next presidential candidate. The dirty rotten scoundrels of both parties will be backroom talking with their industrial and business supporters on how best to leverage the outcome of this election. The clear and immediate winners will be the Koch brothers by way of the Republicans.
And I suppose us Canadians in Alberta will also benefit, because the likely Democratic concession will be the approval of the Keystone XL Pipeline, which Obama and the Democrats have strategically held back in anticipation of a Republican victory in the mid-term elections.
Neither party really cares that much about the IMF Reforms, they have only used it as leverage in their attempts to get other legislation passed. Now, with tomorrow’s outcome all but certain, we are likely to see an exchange of Keystone for IMF Reforms. It would be a huge symbolic win for the Republicans, one that the Democrats can live with. And the Koch brothers will be happy because they own the holding facilities in Hardisty, Alberta, where the pipeline begins.
In turn the Democrats will have a symbolic win, by way of IMF Reforms, before passing majority control to the Republicans. And that my friends is the bigger game, keep the viability of both parties intact so that the disorganized masses continue to accept the dialectic of modern politics.
It’s just as likely that the IMF Reforms will get passed once the transition takes place on January 6th, but that would not satisfy the international power brokers who secure the interests of the Bank for International Settlements.
In addition to the congressional elections, we are seeing the CSI, Cultural and Socioeconomic Interception, of deflation begin to broaden as the economic policies of central banks around the world further deepen the monetary challenges. These challenges will continue to herd the countries of the world into the liquidity crisis and solution to the liquidity problem by way of SDR denominated bonds.
As Russia’s Putin recently stated about the west, “playtime is over”. The Democrats and Republicans have had their fun leveraging the IMF Reforms back and forth, but it’s now time for action and forward motion on the larger macro mandates of the MFS.
Wealth is being consolidated on a massive scale which is why there are so many distractions to divert the attention of the disorganized masses away from the process. The harvest of our time and labor is about to be trucked away in the dumps of deflation.
This will be followed closely by the new liquidity of SDR bonds. Every country in the world is on the verge of collapse, herded to the precipice of disaster, by the machinations of the Bank for International Settlements. Nothing has been left to chance. Resistance in actualization is non-existent, and only fabricated stories of pointless complexity keep feeding the gossip vine of the disorganized masses.
The harvest is upon us. – JC