Trump’s “trade deal” – the IMF takeover of the financial system is confirmed !
The wording is very broad and lacking of specific details. There will be a lot of “regulations” each country will have to implement. It appears most of the details of the implementation of the agreement were left out and what was agreed on is that the two parties will work together to coordinate implementation. How convenient.
Reading through the agreement (i read sections of it), it does say China needs to open up their economy quite significantly. True 🙂
But there are some elements i want to point out. The details are not included in the agreement, but it’s easy to see where they are going with this.Article 5.1.2 acknowledges in the most general terms that a new international monetary system based on “strong fundamentals”
(read GOLD) is required, yet, of course no details provided on how that is to be achieved. That’s all part of the “implementation details”.
“the Parties recognize that strong fundamentals, sound policies, and a resilient international monetary system are essential to the stability of exchange rates, contributing to strong and sustainable growth and investment”
Article 5.1.3 stipulates that the parties will be “pursuing policies that strengthen underlying economic fundamentals, foster growth and transparency, and avoid unsustainable external imbalances”. So the objective is to eliminate the trade deficits (which are absolutely essential for an international gold backed monetary system to work).
Important to note here is the requirement for “transparency”. This is key. Blockchain technology is the prime candidate for implementation, watch that space.
The wording of the agreement says that basically the “currency war” is over and each party will be responsible for “achieving and maintaining a market-determined exchange rate regime”. Interesting! Again, the details will be in the implementation.
An important observation i need to make is that, as the document demands, parties have to stop all currency manipulation (as per quote above), that surely includes the dollar/gold exchange rate manipulation … the document talks about exchange rate manipulation in general but you need read between the lines… just as the US expect the Chinese to stop their currency manipulation, so do the Chinese expect the Fed to stop gold manipulation.
Another element important for a “gold standard” to work is found in article 5.3.1.b: “quarterly balance of payments for the sub-components of the financial account”. This is a hint that there will be a quarterly settlement of the trade balances (probably in gold).
The document, and this is MOST IMPORTANT, puts IMF in charge of enforcing the trade agreement! WOW! Article 5.4.2 says:
“If there is failure to arrive at a mutually satisfactory resolution under the Bilateral Evaluation and Dispute Resolution Arrangement, the U.S. Secretary of the Treasury or the Governor of the People’s Bank of China may also request that the IMF, consistent with its mandate …”
In fact the documents refers back to the rules and regulations of the IMF quite a lot …
