Monday, April 21, 2014

The Coming Stock & Precious Metals Collapse - JC Collins

By  JC Collins         
April 21, 2014

The overall theme of this site is one of pattern recognition.  The focus is on the process of how macro patterns become micro patterns and vice versa. 

The application of this process, based on a technique of philosophic analysis, is often running against the grain of accepted reality.

As the majority of the world and other sites and analyst’s are calling for an overthrow of the western banking system by the BRICS countries, this site is proposing that the western and emerging eastern systems are both controlled by the same unified banking interests, as represented by The Bank for International Settlements.
The propagated divisions are only illusionary and small figments of a larger centralization process where a multilateral financial system will be implemented.

This new financial system will consolidate and restructure all debts through an IMF SDRM initiative.  The International Monetary Fund’s process of Sovereign Debt Restructuring Mechanism will ensure the global debt crisis is handled by a shift away from state based bond issuance and to a more stable and multilateral SDR – Special Drawing Right – bond system.

This site first stated back in January that the forthcoming BRICS Development Bank would become a monster allocator of SDR bonds once the system fully shifted towards the multilateral. 

Any talk of the BRICS Bank competing with, or running as a separate parallel system to the IMF is nonsensical and unworkable.  Especially since the central banks of all countries are controlled by the BIS.



How would commodities and currencies be anchored?  How would international trade be accommodated when both  pegging systems are in direct competition with each other?

Many of my astute readers have been providing endless links and articles proving the interconnectedness of the worlds business and financial systems.  Two separate systems are just not feasible.  Any talk and propaganda in this regards, outside of a temporary crisis creation mandate, is only a part of a larger problem/reaction/solution script to facilitate the acceptance of the multilateral SDR system.

Keeping this theme in mind, I’m going to make a few propositions in this post which will most likely be widely debated and largely discarded.

First, it has been eagerly contended by the alternative media, while purposefully ignored by the mainstream media, that the price of gold and silver, as well as other commodities, have been manipulated to keep the price down.  Let’s discuss.

Beginning with oil, it becomes obvious to the abstract thinker that the price per barrel has been pushed upward to ensure that petrodollar printing can continue unabated.  The price of oil leading up to the crisis of 2008 was around $150.00 per barrel.  It could even be reasoned that oil was manipulated upward to that price to manufacture that crisis.

Oil has since been held relatively stable in and around the $100.00 per barrel mark.  But the price of oil from 1973, when the petrodollar was created, has increased from its historical lower range. 

See chart below were oil was priced in 1900 and where it has increased at a similar rate to the printing of US dollars and the creation of widespread sovereign debt since 1973.  The spike around 1980 represents a confidence crisis in the dollar.  The US and OPEC had to increase the price so the world had to swallow more dollars.
Moving on with gold, we can also see a similar increase in spot rates as more and more dollars were printed and debt added to the system.
  This pattern repeats across the board from commodity price increases, currency devaluations and wide spread inflation, all the way down into our everyday lives in the form of wage increases.

The way the dollar creation system works forces a never ending expansion of the M1 money supply.  This M1 money supply has to go somewhere, so the increase in commodity prices and inflation simply accompany and facilitate this expansion of debt.

We say debt for the obvious reason that money creation is a method by which the debt is expanded by way of credit markets.  For those who don’t understand this very important part of our financial system, I suggest doing some rudimentary researching on money creation.

Most of us will remember how easy it became to get credit cards and home equity loans.  This was an expansion of the credit markets so more and more money could be printed.  Once the process begins, it can only be ended by a complete crash of the system or a restructuring of debt.

Since all countries are now suffering from a sovereign debt crisis, it is to be reasoned that there will be a restructuring as opposed to the widely propagated crash which will herald in the end of the world and WW3.

Returning to gold, I content that the spot rate has not been manipulated down but manipulated upward.  The mass movement of gold is always preceded by a sharp increase in the spot price.  Once the gold has been moved, the spot price always adjusted downwards.

We have been watching the mass movement of gold to China for a few years now.  China is, outside of the US itself, the largest holder of dollar debt.  How these two pieces fit together is not easily arrived at with all the propaganda about dollars, debt, and gold.

Which brings us into the second segment of this post.

The argument is made that the spot price of gold, silver, other commodities, etc.., will spike upward as the dollar begins its inevitable fall.  It is reasoned that these prices will have to increase to make up for all the debt in the world.  This sounds likely on first inspection, but only when we view the world through the Hegelian Dialectic being scripted by the BIS.

When we consider that all countries, western and eastern, are moving in the direction of a multilateral financial system dominated in the SDR bonds, and corresponding debt restructuring through SDRM’s, we can begin to reason that spot prices will in fact begin to decrease, if not devalue dramatically once the system fully shifts.

The price increase and inflation which we began to experience in 1913 with the creation of the Federal Reserve, and saw take a more dramatic upward turn when the dollar was removed from its 35% gold peg in 1971, to the creation of the petrodollar in 1973, could very well recede back in the direction it came.

Are we too believe that prices will always continue to increase for ever?  This is the same hypnotic trance the dollar has kept the world in since 1913.

The price of gold and silver do not need to keep moving upward to compensate for the level of sovereign debt in the world when that very same sovereign debt will be reduced through a mechanism of debt restructuring in the IMF.

The only conclusion that makes any sense based on the events in the world right now is that the financial systems of the world are being readied for a major debt restructuring and consolidation which will be followed by the full transition to a true multilateral system dominated and denominated in an SDR supra-sovereign bond.

All gold, silver, oil, and other commodities and currencies will be pegged and anchored to the SDR.  As such, it is reasonable to expect that the prices which have been pushed upward to facilitate dollar debt creation will now be able to move back to a more balanced and workable range.

Unfortunately, both the mainstream media and alternative media are controlled by the same source and will ensure that the system is rigged to capture the full wealth transfer from the large disorganized massed to the small organized elite.

It can be fully expected that today China is allowing it citizens to purchase massive amounts of gold only so they can confiscate down the road under a pretext of debt and currency crisis.

Though currencies will ride the rough seas for awhile, once a full peg to SDR’s becomes a reality, many will see windfalls as exchange rates are adjusted to reflect the economic reality of production volumes and marketability.

Those who follow the mainstream news sources will take massive losses in the stock market and those who follow the alternative media will take massive losses in the precious metals and commodities markets.

It will be a full spectrum wealth transfer.  All peoples are being played in the greatest game their ever was.

And that game is setup to ensure the largest transfer of wealth in the history of the world and the introduction of a full on multilateral financial system.

Its been my contention all along that corruption is being wiped out of the old system before the new emerges for the same reason that the old sovereign debt has to be restructured, it simply cannot be allowed to function in the new system.  It would defeat the purpose of a true multilateral system.

We can only hope that the self-limiting of rent seeking which we are seeing in the BRICS countries, and other peripheral ones like Vietnam, will transfer into the new system so there is a balance between the bi-directional flow of wealth and capital between both disorganized masses and organized elite.

The last few weeks I have specifically and intentionally focused my posts on mans inward journey.  This is for a reason.  The new financial system will emerge as it is designed.  Nothing and no one can stop it.  Mere political factions in one or another country can barely delay it, much less stop it.

The old system was designed to feed on human greed and desire, as both are mandatory to support a debt based system.  I can’t say for sure, but I have reasoned that we are moving towards a production based system.

As such, man will require an adjustment to the attitudes and reference points from which he interacts with the world.  It is clear that the pattern of micro to macro which is taking place within the global financial system is also taking place across the spectrum of civilizations support pillars.

The religious, ideological, and economic paradigms are being determined for us, whether we like it or not.  This site is modestly attempting to encourage a journey of inward exploration for man so he is not lost to the world of the future.

It is often stated that you must determine your own future or someone else will determine it for you.  We must all become master craftsmen of the greatest game there ever was, which is the path of individual enlightenment.

Know thyself.      – JC Collins

http://philosophyofmetrics.com/2014/04/21/the-greatest-game/