Freeport-McMoRan (FCX)

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Today we are going to step back in time and discuss what exactly is a deficit in relation too international law.

A foreign entity can’t come into another’s country with foreign debt holding foreign collateral for its debt.

In other words you can’t have foreign nationals taking control of assets of a foreign country.

If this was the case then America could buy out other countries.

This will be revealed by Muller as Mr. Trumps campaign to have his financial statements revealed to the world. This will be to resolve a lot of issues around the world that foreign nations feel this is what is happening to them.

So how does this work. Well simply enough by the exchange of dollars between two countries with the collateral being held by the country who loaned the capital.

The foreign entity with its foreign dollars exchange there dollars for collateral held in the country who’s assets are in there countries currency.

In short the collateral assets are now represented as currency of the country the assets are in.

This is not saying that all companies are structured in this way. If part of there portfolio is held in none foreign currency’s then you would have a real miss mash of liability risk in the portfolios it self.

This is where a portfolio has to be all apples and oranges not a mix match of this and that as currencies goes.

An ADR for example is held by a foreign currency and traded on a currency exchange of another currency.

So a complex agreement has to be set up between the two countries between a nutral mediator “COW”. A new mediator is in the works that I have in past posts talked about a special curency being adopted by international interest around the world to further resolve the issue of who actually does control foreign assets around the world. In short the people of the country the assets originated in.


We are truly coming into understanding the new world order that has been put in place sense the last war and the development of the nucular age to hold world peace in check. It is not until now that technology has the world adopting a new world currency to take the complex burdensome expensive administration process out of foreign trade.

Now ask your self if the base line is to low knowing now what maybe coming into our future.