Davos Will Use CBDCs To Destroy Commercial Banks

INTEREST RATES, BRICS, AND DIVERGING INCENTIVES

Consider this a thought experiment.

We review the various moving parts of the system, consider who benefits or not (and where and how), and then run probabilities while watching the participants’ statements and actions.

What we know, in no particular order:

  • The BRICs want trade settlement without the USD, and they want it backed with commodities.
  • The US wants to retain control of energy markets and trade. They need to retain the ability to set price controls.
  • The BRICs understand that commodities retain value and as such are working to form a currency of their own. They recognize that commodities outbid inflation as energy can’t be printed.
  • Using first a “health” scare and now a “climate” scare, The Club of Rome, now reincarnated as the WEF, are intent on de-industrializing the world with its Malthusian anti-human doctrine.

With that in mind. The Fed seems to have perplexed everyone.

The markets thought they’d pause on rate hikes. They didn’t, and they told the market that they had no intention of doing so anytime soon.

Market participants believe they’ll pause when the market feels too much pain. Maybe. Maybe not.

Let’s ask ourselves “cui bono?”

The Fed is owned by commercial banks. What are the risks to them?

Well, a stalling faltering economy is certainly one. We can argue that this is why they’ve always paused or loosened monetary policy in the past.

Keep the economy cranking along and keep lending as that’s their bread and butter.

Based purely on looking at that component, I can see why expecting the Fed to reverse course makes all the sense in the world.

Now, let’s look at the world ignoring (for a minute) the US market.

The introduction of CBDCs is coming hardest and fastest from the pointy shoes over in the EU. This makes perfect sense.

They are in a much more desperate situation, and hence it is crucial for them to get their “great reset” implemented before things fall apart.

The thing to understand here is this.

A CBDC would eliminate the need for commercial banks as transactions would take place directly between the central bank and the retail consumer.

The ECB, the BOE, the BOJ — they’re all government-owned and operated entities. The Fed is not.

So while commercial banks in Europe, the UK, and Japan will all get screwed with the introduction of CBDCs they aren’t tied to the commercial banks, and the level of influence isn’t the same as in the US.

In the US the central bank is actually owned by commercial banks. Literally.

What if the Fed doesn’t want to lose its power?

In other words, what if the Fed sees CBDCs rightfully as a threat to their own operations, profits, and power?

Most folks see Powell or Yellen or whichever podium donut happens to be sitting at the helm of this criminal coalition of banks and forget that they’re a mouthpiece for the banks that own them.

So really, shouldn’t we all be asking ourselves what the incentives of the likes of JP Morgan are?

If you’ve not figured it out yet, Wall Street will shill anything to make a buck. That’s the nature of the beast, and they’ll shill ESG products if they can make a buck on them.

But if they’re not going to make a buck or indeed hurt them, they’ll be the first to jump ship.

We’re talking about some of the greediest, unscrupulous folks to grace this ball of dirt we live on.

They don’t care about “carbon neutral” any more than they care about “Ukrainians” or BLM, diversity, pronouns, or whatever the “current thing” is.

If championing it makes them a buck, then champion it they will. They are there to fleece the sheep. Always have been and likely always will be.

Now, consider how this ties into government spending.

Well, all these ridiculous socialist programs, including the now war with Russia, will require extraordinary amounts of spending.

If they stop spending, the projects will crash.

This “great reset” requires Herculean printing. “Renewable/green” requires printing. Supporting the most corrupt country in Europe (Ukraine) requires printing. This printing requires that rates NOT be raised. This is where I see a conflict.

Why hasn’t Powell pivoted?

I think it’s for the reasons I just laid out. The Fed works for the commercial banks, and they are now at war with Davos man.

Think about it. They have to protect their business model. That requires dollar supremacy, and dollar supremacy can be maintained by literally crushing other central banks. That’s what they’re doing.

Why, for example, have there been no swap lines extended (except for with the SNB) in this chaos?

2008 wasn’t even as dramatic, and they opened swap lines faster than Hunter Biden opens the door for his coke dealer. Right now they retain control of the currency system.

Bring in CBDCs and you’d wipe out the very commercial banks that own the Fed. That’s a problem.

Don’t be surprised if the Fed says, “to hell with government deficits” and keeps raising in an attempt to bring all under dollar control.

The problem, of course, is they’ll bankrupt the government in the process.

Something’s going to break here.

In the meantime, I don’t see how the USD doesn’t continue to outperform the other global currencies.

Smart investors are already preparing for what’s coming…

For those looking to prepare and profit from this mess, we can show you how. Just click on the links (below my name) to find a solution that works best for you.

– Chris MacIntosh
Capitalist Exploits | Glenorchy Capital Macro fund | Subscribe to Insider | Rebel Capitalist Pro

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