From Nation State to Global Community

SUPERLATIVA-sun-passport

In this post I’m trying to reply to a publication from the Strategic Foresight Club[1], and represent an update of one an older article on linkedin BE, it was 2015 and the forecast trend is growing. cool

Well, in my opinion we’d  introduce the concept of  Nation State vs Corporate State, about that, we all are experimenting from the opposite fronts the echoes of the, till now, Financial World War III raising from the ancient caves of human stupidity.

Now, what’s the academical definition of Corporate Citizenship:

DEFINITION of ‘Corporate Citizenship’[2]

The extent to which businesses are socially responsible for meeting legal, ethical and economic responsibilities placed on them by shareholders. The aim is for businesses to create higher standards of living and quality of life in the communities in which they operate, while still preserving profitability for stakeholders.

As demand for socially responsible corporations increases, investors, consumers and employees are now more willing to use their individual power to punish companies that do not share their values. For example, investors who find out about a company’s negative corporate citizenship practices could boycott its products or services, refuse to invest in its stock or speak out against that company among family and friends.

Someone’s is still considering this hypothesis as naïve, someone call it CSR[3] but I’d like to offer a free energizing and vigorous cool shower to every sceptic.

Everything’s started one day in a little State named Swiss, a tiny hole surrounded by a cumbersome and hyper-bureaucratic giant baptized Europe[4]

This funny, eccentric State decided to become the very first Corporate based currency, in fact the Swiss National Bank – a central bank – had been one of the biggest buyers of AAPL stock in the first quarter, when it added 3.3 million shares to its existing position, or 60%, bringing the total to 9 million shares, for a grand total of $1.1 billion. Moments ago, the SNB which unlike the Fed and the other “serious” central banks releases a 10-Q divulging its equity holdings, updated on its latest stock portfolio.

So what are the Swiss hedge fund with nearly $94 billion in equity holdings? Here is the full breakdown.

SNB top holdings 2016

$94 billion is nothing in the world contest but means a lot in a small state that has always made the difference in the financial hi-class world.

What’s happening in china since this question was upstretched from a provocation of prof. Zhao Tingyang:

Prof Zhao Tingyang, a Chinese philosopher, has created a stir by proposing that ‘the world’ should be the primary unit of social organization, instead of the nation-state. He rejects an international system, which is based on relations between nation-states, and advocates a global system. In his philosophical framework, all people on the planet should have loyalty to ‘the world’ and participate in its affairs as global citizens, not as representatives of their nations. In such a world, the United Nations Organization is irrelevant. Zhao would prefer some other form of the world government.[5]

Realistically today China believes in Gold working to be the next World Super State:

Graph_Estimated-Total-Chinese-Gold-Reserves

On July 17, 2015, the People’s Bank of China (PBOC) updated its gold reserves holdings for the first time since 2009. The PBOC reported adding 604 tons of gold to their reserves bringing the total from 1,054 tons to 1,658 tons.

The PBOC announcement was widely anticipated as a pre-requisite of China’s application for inclusion in the International Monetary Funds’ (IMF) Special Drawing Rights (“SDRs”).

Several observers think China holds a portion of its gold at the PBOC as reserves with the rest held elsewhere in China.

The PBOC’s updated gold reserves are five times more than England’s and certainly enough to show the financial heft required for admission to the SDR. The PBOC doesn’t need to report thousands of tons of gold to get into the SDR and they don’t need to upstage their largest single country trading partner, the United States at this point (whose stated gold reserves are 8,135 tons).

Gold-reserves

*The percentage share held in gold of total foreign reserves, as calculated by the World Gold Council. The value of gold holdings is calculated using the end of month LBMA Gold price published daily by ICE Benchmark Administration. In October 2016 the end of month gold price was $1272.

China’s recent update to its gold holdings put it in fifth place among gold holding nations, (hey Italy looks wealthy too ).

Objectively it seems that China’s primary objective is not acceptance into the SDR but rather to establish a viable parallel international financial structure to rival the IMF.

Indeed: The World most prominent financial trader are blind in the medium long term, just think to the last crisis and to the very old “Tulip fever” of 1637[6], when you don’t consider it a fact don’t continue reading this post.

De-dollarization accelerates while the U.S. Dollar Index (DXY) also rises.

The DXY has risen nearly 20% the past year despite an acceleration of de-dollarization initiatives including increasing sales of U.S. Treasury Bonds by Russia and China and most recently, the creation of the Asian Infrastructure Investment Bank (AIIB).

The dollar’s rise is based on the premise that the U.S Federal Reserve (Fed) might be raising interest rates, something they haven’t done in nearly a decade. All the focus is on that potential.

Forgotten is that over the past decade the Fed has recklessly created a housing bubble and bust and then compounded their error by printing over $4 trillion to buy near worthless mortgage backed securities from the too big to fail banks and to purchase over $2 trillion in U.S. Treasury Bonds, thereby assisting the U.S. government in increasing its massive deficit.

The Price of the “Recovery”

fredgraph

What Chinese De-Dollarization Looks Like:

While much of the financial media attention is focused on what Janet Yellen and the Fed might say or do, international de-dollarization efforts are accelerating.

China’s de-dollarization efforts are less focused on selling U.S. Treasury Bonds and more focused on increasing global use of the Chinese Renminbi or Yuan, including the following initiatives:

Asian Infrastructure Investment Bank

The most ambitious Chinese de-dollarization initiative to date is the recent creation of the AIIB. The AIIB was set up to finance infrastructure projects throughout Asia.

U.S. and NATO allies have disregarded U.S. entreaties not to join the AIIB. Despite U.S. objections, Australia, Netherlands, Brazil, Turkey, UK, Switzerland, New-Zealand, Luxembourg, Italy, Germany, France, Austria, Denmark have signed on to participate in the AIIB.

U.K. Prime Minister David Cameron has been quoted as saying with regard to the U.K’s involvement with the AIIB: “There will be times when we take a different approach. We think that it’s in the UK’s national interest.”

Inclusion of China in the SDR Scheme?

China is making a bid for inclusion in the International Monetary Fund’s (IMF) Special Drawing Rights (SDRs) basket of currencies later this year. If such inclusion does not happen or on terms suitable to the Chinese, China is setting up the infrastructure to perhaps bypass the IMF entirely. For more on SDR’s, see http://bcove.me/7qou4729

Conclusion

We can philosophize as we like but the reality is that we have David, (the Swiss system), and Goliath, the new Chinese Ruler who will shape the future world, unless, everyone’s like me will  build or join his private Nation, in my case, S.U.Nhttp://www.superlativa.it/sun/ since I and You are somebody and we all together  can make the difference using our individual power, the power to buy or to ban., and why not to shape a new #blockchain value, named @1trueid

Images in this post are considered to be in the public domain since found on the web and media therefore supposed to be copyright-free images – it’s not intended from the author of the post to violate any copyright right infringement laws, or to offend anyone; in the case you advise a violation, would you advise me and I’ll promptly remove them. The post it’s also an expression of my personal opinion, and do not intend as well to have any commercial purpose.

[1] http://strategicforesight.com/ Strategic Foresight Group (SFG) is a think – tank engaged in crafting new policy concepts that enable decision makers to prepare for a future in uncertain times. Founded in 2002 to create new forms of intellectual capital, our body of work today encompasses over 50 countries, across four continents.
[2] http://www.investopedia.com/terms/c/corporatecitizenship.asp#ixzz3iPFJZ9nS
[3] https://en.wikipedia.org/wiki/Corporate_social_responsibility
[4] From fecund EUROPA: a Phoenician princess carried off by Zeus in the form of a white bull and by him mother of Minos, Rhadamanthus, and Sarpedon, but somone says also  from the Phoenician word EROB, meaning where the sun set (west of Phoenicia,west of Bosphorus, Sea of Marmora)
[5] http://strategicforesight.com/publication_pdf/67141BQOT.pdf
[6] https://en.wikipedia.org/wiki/Tulip_mania