Tag Archives: World Bank

GUEST POST: De-Dollarization is Now Assured – SDR Bond Issued by World Bank in China

Rory Hall of The Daily Coin hits it out of the park with this one – a very important story with prescient commentary, and yet more evidence of the Hegelian “East-West Changeover” so often discussed here at Stateless Homesteading. The “writing on the wall” for SDR-denominated bonds in China has been visible since at least April of this year, when the PBOC began releasing data on currency reserves denominated in SDRs (which we covered here). 

First the Yuan’s rapid integration with the IMF’s SDR basket (as predicted by this author in Summer of 2015), then the AIIB’s joint World Bank development pact, now SDR-denominated Chinese bonds issued by none other than the World Bank. Is this an Eastern effort to launch a “Trojan Horse of Reform” into the heart of the Western financial system, or are these merely China’s outward attempts to fully integrate themselves as a multilateral “partner” in the Globalist borg? Can a meat grinder be “reformed” into a cow?

Only with the retrospection of history will we know the outcome, though this author’s personal take on the matter is likely known to you by now. Thanks as always for reading and check back for more updates soon!

Rusticus

Original Author: The Daily Coin

This just hit the wire and confirms what we have been discussing for the past couple of weeks. The World Bank (International Bank for Reconstruction and Development, IBRD) has approved the People’s Bank of China to issue the SDR Bond. This is a major first step in delivering a realistic blow to the dominance of the U.S. dollar as world reserve currency. It is no secret that China has been making international moves to make the Renminbi (RMB) a more attractive currency on the global stage. This latest move solidifies the RMB as a world currency.

There has not yet been set a launch date for the first issuance of this new SDR Bond, however, in previous communiques there has been discussion to launch as soon as the end of August.

A lot of you are probably thinking “big deal, who cares”. Well, once this bond reaches it’s 3rd, 4th issuance and the demand begins to grow the impact this will have on U.S. Treasuries could be significant. The United States is the largest debtor nation in the history of the world and the U.S. Treasuries are the financial instrument that creates and maintains that debt. Once all these U.S. Treasuries begin flowing back into the U.S. economy that has the potential to create a lot more inflation that we are currently experiencing. That is merely one aspect of the overall. So, yes, it’s a big deal.

One of the main characteristics of this new SDR Bond is it will be issued in SDRs and redeemable in Renminbi (Yuan). The significants of this can not be overstated. This means that an investor in America who purchases the new SDR Bond will now have exposure to the RMB and hold fewer dollars in their portfolio. These investors can then use those SDR Bonds as collateral to make other purchases. The renminbi will now be on a level playing field as the other currencies that make up the SDR Basket of currencies. Currently the SDR Basket of currencies is made up of US dollars, Euro, Japanese Yen, British Pound Stirling and as of October 1, 2016 the Chinese Renminbi.

This is a big deal and has the potential to forever change the U.S. dollar and the bond market. Nay-sayers will be quick to point out these bonds were tried in the past. While that is true, the economic times were not as they are today.

As Eric Dubin, The News Doctors, described the beginning phases of this new bond “will be like flicking grains of rice into the bond market“. While I wholeheartedly agree with this sentiment, over the coming months and years the impact will be very real. As the AIIB, BRICS Bank, New Development Bank, PBOC and other banks around the world begin, in earnest, to convert their bond holdings to the SDR Bond the market will begin evolving and once it reaches critical mass the hordes will rush in, just as they always have in the past.

According to the World Bank:

The size of the World Bank’s new issuance program is 2 billion SDRs (approximately equivalent to USD 2.8 billion). The bonds will be denominated in SDRs and payable in Chinese renminbi (RMB). The precise timing of issue and individual bond terms will be based on market conditions at the time of issuance.

During the 1970’s we did not have Quantitative Easing, Zero Interest Rate Policy nor Negative Interest Rate Policies. We also did not have derivatives, nor “too big to fail” banks. So, yes the SDR bonds first appearance was a failure, however, everything has changed and the world looks and acts a lot different than back then.

World Bank explains further:

“This is a landmark development for China’s bond market and for the SDR as an international reserve asset,” said World Bank Group President Jim Yong Kim. “We are very pleased to support China’s growing role in global financial markets. World Bank issuance of SDR bonds in China will support the G-20’s objective of expanding the use of SDRs and help promote the development of China’s domestic capital market. It will also increase Chinese investors’ access to foreign currencies in the domestic bond market, while opening up new opportunities for international investors seeking high-quality investment products in the country.”

Since I am a betting man my money is on these bonds being supercharged right out of the gate. My bet is there are nations around the world looking for an alternative to the U.S. Treasury and world reserve currency system. Change has arrived. The dollars days are numbered. How long it will take for the dollar to transform is yet unknown, however, what is known is this – China is on the rise, China has the wealth, the gold and support of the banking cabal around the world. What China also has is more than $1 TRILLION in U.S. Treasuries that she will begin converting to SDR Bonds over the next several months and years. Count on it.

Global Banks Carve Up the World Ahead of COP21

As individuals and Nations alike wait in anticipation for COP21 a month from now, described as the United Nations’ “legally binding and universal” update to the ever-deleterious Agenda 21, banksters at the supranational level have shown little hesitation in offering their seemingly sage opinions on how their usurious reserves will be put to use in enacting this “Global Sustainable New Deal.”

From veterans of monetary Technocracy like the IMF and World Bank to the “New Kids on the Trading Bloc” represented by the BRICS and AIIB, monetary institutions around the world are poised to receive their slice of the sustainable pie – at the expense of what little freedom and financial security the individual still retains.

Leading the charge on the Western front is none other than the Bank for International Settlements, the “central bank of central banks” as identified by Georgetown Professor Carroll Quigley in his magnum opus Tragedy and Hope. Echoing the credo of “sustainable developers” at the UN and World Bank, the BIS has seen fit to reinforce the meme that the problem of climate change cannot be tackled without complete digital serfdom in the form of an electronic, biometric global I.D.

Euphemistically entitled the “Identification for Development” (or ID4D) program by the World Bank, it represents their “unique” interpretation of the UN’s Sustainable Development Goals; a reading that’s as draconian as it is creative. The UN, World Bank, and BIS are calling for nothing short of a completely pervasive global surveillance grid to be implemented by no later than 2030, all under the auspices of “saving the planet.” ict_id4dconference

Of course, the BIS is also resolute in declaring the World Bank’s “important role” in fighting the phantom foe of climate change – not only in implementing the Technocratic ID4D program, but assembling the cast of private financiers to accompany the torrent of supranational capital:

Some of these “larger private sources of capital” have also positioned themselves in advance of COP21, one example being the marriage of Eastern and Western financial juggernauts in the solar energy market. This was witnessed recently in the merger between China’s solar giant Shunfeng with American-based Suniva – owned in part by the Warburgs (Warburg-Pincus) and Goldman Sachs. These private banking elites and families of antiquity, investing in the petrol-free, carbon-capped future described as a “historic opportunity” by the International Monetary Fund, will doubtlessly be underwriting much of the “green infrastructure” loans called for by COP21.

Screenshot from 2015-08-14 14:02:47

But it’s not just Chinese solar tycoons assembling the capital and infrastructure for humanity’s (Soylent) green future; the recently birthed multilateral giants of the East, the Asian Infrastructure Investment Bank (AIIB) and BRICS NDB (New Development Bank), are also all aboard the sustainable train to globalized Nirvana. In accordance with the United Nations’ assertion that the BRICS NDB is a “dream coming true” for the financing of UN-mandated sustainable development projects in developing economies, the BRICS saw fit to reinforce this notion at the first official meeting of the BRICS Environment Ministers earlier this year.

Don’t take my word for it, or the UN’s, for that matter – the BRICS are crystal clear in their position on Agenda 21:

We  reaffirm our commitment to implement the Rio Declaration, Agenda 21, the Johannesburg Plan of Implementation (JPOI), and the outcomes of the Rio+20 Conference in our respective countries, and through our cooperation within the framework of BRICS in accordance with the Rio principles, including the principle of common but differentiated responsibilities.

We acknowledge the progress made on the Millennium Development Goals in the preceding two decades and reaffirm our commitment towards accelerated implementation of the unfinished task. In this context, we look forward to the adoption of ambitious, transformative and equitable Post-2015 development agenda with Sustainable Development Goals at its core.”

BRICS Statement from the First Official Meeting of BRICS Environment Ministers in Moscow, April 22nd, 2015

These disconcerting official remarks by the BRICS on Agenda 21 stand in stark contrast with recent prognostications by Vladimir Putin to the contrary; this seeming conflict between actual policy and mere rhetoric, designed to seed cognitive dissonance within the minds of the public, is a clear example of a unique brand of propaganda developed in Russia by one Vladislav Surkov.

The alternative media, not immune to the effects of this “non-linear media warfare,” spread the story of Putin’s seeming “climate skepticism” to the Ends of the Earth without so much as a whisper about the Kremlin’s documented support of Agenda 21 as exemplified by the BRICS Summit in Moscow this April.

Put simply, the BRICS cannot simultaneously be against Agenda 21 and adherents to it.

Not to be overshadowed by the NDB, the “lean, clean, and green” (their words, not mine) AIIB are also happy to play their part in financing the latest iteration of Rio ’92. In addition to their publicly stated desire to work with the World Bank and Anglo-American controlled Asian Development Bank, some think-tanks believe the AIIB will be key in financing Pan-Asian energy infrastructure, chiefly natural gas:

In a recent paper by Grenatec, aptly titled “COP21/AIIB and the New World Order,” it is emphatically stated in no uncertain terms that the answer to  the woes posed in Al Gore’s 2006 “scare-you-shitless docu-drama” for the Far East is none other than elite bankers lining the pockets of multinational gas companies. How convenient. Those in the West needn’t worry about being left out of this Eastern development “Renaissance,” though, as the People’s Bank of China is intent on financing city-to-city Agenda 21-compliant high speed rail projects throughout the (People’s) Republic of California.

While it may be a relatively new phenomenon for Americans to be on the receiving end of the digital Panopticon and usurious infrastructure projects, the high-tech beneficiaries of Western capital in the East have long been acclimated to the world envisioned by COP21. Those living under the riches (and dictatorial autocracy) of nations like China and Singapore have had 3G phones in their pockets since the turn of the Millennium. Tracking (and taxing) of automobile usage via GPS by the State has been around just as long, as have electronic ID.

If this was the Singapore of nearly 15 years ago, it’s doubtless that the implements of COP21 like the ID4D program will be welcomed with open arms:

Looking at the success of projects like the joint Chinese-Singapore Tianjin Eco-City, the East is already making a smooth transition to Eco-Serfdom; this cashless, microchipped, carbon-credited “Wonderland” is, after all, virtually indistinguishable from the society in the video above… from 2002.

Using the centuries old threat of ecological disaster, the central planners of COP21 are resolved in holding the globe hostage; their insistence being that one cannot have the freedoms, conveniences, and benefits provided by technology without binding them by an eco-friendly Surveillance State. The infrastructure for such bewildering “green” snitch technologies, to be financed by the supranational banks of the multipolar World Order, will be solidified at COP21 this December. The Paris conference represents the most realistic opportunity for achieving the foundation of this Technocratic World Order since the failure of Copenhagen in 2009, a setback the elite would rather not see repeated.

Unfortunately, there is little we can do to stop the ink from drying on this Neomalthusian treaty, and increasingly less international impetus to do so.

Now more than ever, Free Humanity must work towards perhaps the only tactic capable of subverting the lamentations of COP21: The development of a counter-economy as vigilant and decentralized as the “Globalized Economy” is rigid and exclusive.

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