Tuesday, December 16, 2014

Case In Point

It's becoming clearer and clearer with each passing day that our WORLD SYSTEM is a DOLLAR system. And those who understand this are gaining perspective.

Case in point: Emerging Currencies are Crashing. A title which begs the question "against what?" The question is never asked - the assumption is taken so for granted. All things in our world today are measured against the dollar.

And as we do this, witness the carnage.

The great "revelations" of our Western mindset are so obvious to some, yet so opaque to others. If these emerging currencies are stable with one another, their bloc is stable, and it is the dollar which serves as the aberration. Do we peg our future to the aberration or trade outside its withering consumption centered bloc?

We see Russia's energy production costs stable in Ruble for 10 months and counting, and it's dollar denominated sales declining - we can only assume the 30 year deal with China expresses costs and profits denominated in ruble/yuan, with China, Russia's most important energy trading partner.

Likewise, the changing perspective measures the BRIC currencies exchange stability among one another, and their relative stability to gold, commodities or any other real world asset ... such a measure speaks volumes to the stability of a de-dollarized global monetary system.

In such a system, where the monumental debt / derivative overhang of the dollar is not supported by the rest of the world, the dollar becomes "just another national currency" at par with other currencies, measured by the FREE market's RELATIVE valuation of the dollar without artificial support and without systemic primacy.

Will a quadrillion in dollar-debt denominated hedges continue to dominate a status quo condition of stagnation across the planet? Will the current prospect of another global "lost decade" be enough to usher in as substantial a paradigm shift as WWII did when thoughts of a generation of "doing without" ushered in the (long-term debt as a money asset) dollar experience?

In THAT world, producer nation currencies will not "collapse", oil will be fairly priced, and such things as Twitter and Facebook will fade as "technical ingenuity of the developed world".

In THAT world, we will finally see interstellar travel, inter-dimensional transport, superior genetic and nanotechnology advancements doubling or tripling the human life span, and incredible developments beyond our imagination, vs. malinvestment in the next declining empire diversion (driven by selling shares rather than developing anything of any real consequence).

The people who need to understand are growing in numbers, and their actions speak to their understanding. It is the dollar that is about to be isolated, but before it is, there is one last show of systemic strength before all charts are turned upside down and the new / old role of gold inverts the Western mindset.

It was predicted, and is playing out now for all to see.

9:00 am Update - Sinking in yet? The question is, what is the perception? Some see this as good for US and bad for Russia. Others see the exact opposite ... today ... I see the irrelevance of the current FX (Forex) market to the Ruble. What do you see?

Welcome to the changing perceptions that precede a paradigm shift.

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