Tin Foil Hats, Economic Reality and the Total Perspective Vortex

rblong2us

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might be a good time to borrow loads ( but I see the banks are making it hard to borrow right now ) and watch it all burn in the re-set ......
 

pmbug

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China not just beating the drum, but pounding on it now. I have to wonder if the timing with the pending realization of China's CBDC is coincidental.

China’s top banking watchdog cautioned that U.S. dollar dominance combined with the massive stimulus unleashed by the Federal Reserve could push the world to the edge of another financial crisis.

In a rare act of public criticism, China Banking Regulatory Commission Chairman Guo Shuqing also lashed out at developed nations seeking to divert blame from their own failures to contain the virus outbreak and moves by the U.S. to blacklist Chinese companies and entities.

“In an international monetary system dominated by the U.S. dollar, the unprecedented, unlimited quantitative easing policy of the U.S. actually consumes the creditworthiness of the dollar and erodes the foundation of global financial stability,” Guo wrote in an article published in the Communist Party’s Qiushi magazine on Sunday. “The world may once again be pushed to the verge of a global financial crisis.”
...

China’s Ministry of Commerce is moving forward with its plan for a digital currency, according to a report by The Wall Street Journal (WSJ).

The plan will come with a large number of cities in which to test the currency, including Beijing and the provinces Tianjin and Hebei in the north, the Yangtze River Delta to the south, and the Guangdong province and the neighboring cities of Hong Kong and Macau along the country’s prosperous southern coast, WSJ reported.

The project’s policy design is set to be complete by the end of the year, although there’s no set date for when the expansion will begin.
...
 

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According to my analysis the world is heading towards a new monetary system that incorporates gold, although I do not know how that system will be structured. To get a better perspective I decided to interview Pentti Pikkarainen, former Head of Banking Operations at the central bank of Finland, member of the Voima Gold Advisory Board, and Professor of Practice at the University of Oulu in Finland. Pikkarainen thinks we are moving towards a multi-reserve currency system. My interpretation of Pikkarainen's view is that the dollar will lose its primacy status, and gold, the dollar, euro, yen, pound, renminbi, etc., will be competing each other.
...
 

rblong2us

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Yeah I saw that.
Theres quite a lot of speculation regarding' resets' and blockchains for everything.

This came across my screen a couple of days ago -


'Quantum Financial System (QFS) is building a Virtual Private Network (VPN) for the Cross-Border Interbank Payment System (CIPS). It's a network based on Sovereignty and Commerce. '

Possibly just speculation but I was amused with the closing image that said

'Trust in the Plan .....Q' Curiously this closer has now gone from the video (-;
 

pmbug

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It's interesting, but I'd like to see some corroboration of the info in that video. The video is a Powerpoint slideshow set to music and made/posted by "lambwins" who has a limited and narrowly focused selection of videos in his/her library. A quick internet search of "Quantum Financial System" didn't yield much that I would consider a solid reference/citation.
 

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August 13, 2020

Boston – The Federal Reserve Bank of Boston today announced a multiyear collaboration with the Digital Currency Initiative at the Massachusetts Institute of Technology to perform technical research related to a central bank digital currency. The research project will explore the use of existing and new technologies to build and test a hypothetical digital currency platform.
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The Boston Fed and MIT have structured the research collaboration into work phases that extend over two to three years. The first phase will involve jointly building and testing a hypothetical central bank digital currency for wide-scale, general purpose use. The objective in this phase will be to determine how to architect a scalable, accessible cryptographic platform to meet the needs of a theoretical U.S. dollar CBDC, including stringent design requirements for speed, security, privacy and resiliency.

In later phases, researchers will assess technology trade-offs by coding and testing various architectures, to see how they impact the CBDC’s design goals. The research results will be published jointly with MIT, and the code would be licensed as open-source software, so anyone can use or continue experimenting with it.

In parallel to the work with researchers at MIT, the Boston Fed will independently evaluate other systems to understand their potential pros and cons in supporting a central bank digital currency. Before any CBDC could be issued, a separate, extensive policy process would be required.
...
 

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In Berlin, where last week saw a two-day meeting of financial officials from Europe, central bankers discussed digital payments and the confines of digital, national currencies.

At a high level, officials said that the European Central Bank should be the only one that should issue digital currencies.
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Bundesbank President Jens Weidmann said at the gathering that cash will still have a place in the world.

“Many people value cash very highly, and for legitimate reasons. It provides privacy, and its use does not necessarily depend on technical infrastructure,” he said. At the same event, ECB President Christine Lagarde took note that there has been no decision yet to create a digital euro, though a task force’s findings are due to be presented within the next few weeks. ...
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... 80 percent of 66 central banks queried by the Bank of International Settlements (BIS) said they were working on CBDCs ...
 

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Global banks are preparing for the possibility that there will be no clear victor on the night of the U.S. presidential election, a scenario that could spark days or weeks of chaos in global equities and fixed income markets, several bankers said.

Over the past two weeks, major banks have run simulations to ensure they could cope with a spike in market, liquidity and credit risks, and have been advising clients on precautionary hedges and capital raising strategies if a contested election result on Nov. 3 leads funding markets to dry up.
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If the winner is too close to call, a legal battle and even a constitutional crisis could ensue, say bank strategists. Trump last week said he expects the result to be settled by the Supreme Court. Tuesday’s unruly first televised presidential debate has added to the uncertainty.

"If there is a constitutional crisis, we believe that the loss of political credibility and standing of the United States as a stable country could threaten its status as a safe haven with unfathomable consequences for the economy and for markets," BNP Paribas' BNPP.PA Head of Macro Strategy Daniel Ahn said.
...

Who is ready for blood in the streets?
 

rblong2us

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Interesting observations by Manly and further argument for not waiting to buy gold.
If he is right, the window will soon close.
 

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Planned or not, it certainly seems like there is more risk today than there has ever been for a global reset. I bought some gold not to long ago right near the most recent all time high...



... and I'm glad I did.
 

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... A crash in the dollar is likely and it could fall by as much as 35 per cent by the end of 2021.

The reason: a lethal interplay between a collapse in domestic saving and a gaping current account deficit. ...

Mainstream financial media now warning about a pending currency collapse and loss of global reserve status (exorbitant privilege).

~~~

Edit: Looks like the author, Mr. Roach, has been beating this drum previously...

Economist Stephen Roach warns next year will be brutal for the dollar.

Not only does he see growing odds of a double-dip recession, the Yale University senior fellow believes his "seemingly crazed idea" that the dollar would crash shouldn't be so crazy anymore. ...
 
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rblong2us

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Michael Every of Rabobank is not convinced of Prof Roach's logic -


Yesterday, the Financial Times published an article from Stephen Roach --formerly of Morgan Stanley, and now a senior lecturer at Yale-- in which he calls for the imminent collapse of the US dollar (which will decline by a third by the end of 2021, apparently) and its loss of global reserve currency status. Such pieces from Roach, always with the same theme, seem to appear once or twice a year now, and always get coverage in the financial press, regardless of the fact that they are nonsense. Two colleagues contacted me last night about the piece, which shows how much consternation it caused: one to double check that Roach’s arguments were indeed as silly as they looked and he wasn’t going mad.


Anyway, Roach is roaching that the USD will collapse because the US is running a vast fiscal deficit, and that will cause a vast current account deficit, and then foreigners won’t want to fund it, and then the USD will plunge, and then something else will emerge to replace it globally. This is what they teach at Yale today, apparently.


Naturally, this overlooks that the vast fiscal deficit --which looming stimulus would indeed make vaster-- represents a transfer from the public sector to the private sector, so the huge deficit on one hand is matched by a huge surplus on the other. Think of those cheques for USD1,200 going to households, and all the households who just bank it while working from home. In other words, if the US runs a 20% fiscal deficit, for example, it won’t run a 20% current account deficit too: private savings will spike at the same time, and it will only run perhaps a 4% deficit overall.
 

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G7 Finance Ministers and Central Bank Governors’ Statement on Digital Payments
October 13, 2020

WASHINGTON – The widespread adoption of digital payments has the potential to address frictions in existing payment systems by improving access to financial services, reducing inefficiencies, and lowering costs. At the same time, payment services should be appropriately supervised and regulated to address challenges and risks related to financial stability, consumer protection, privacy, taxation, cybersecurity, operational resilience, money laundering, terrorist and proliferation financing, market integrity, governance, and legal certainty, among others.

The public sector, through the provision of fiat currency and the conduct of independent monetary policy, as well as its regulatory and supervisory roles, plays an essential role in ensuring the safety and the efficiency of payment systems, financial stability, and the achievement of macroeconomic objectives. It is in this context, that a number of G7 authorities are exploring the opportunities and risks associated with central bank digital currencies (CBDCs). Confidence in the stability of domestic payment systems and the international monetary system is underpinned by credible and longstanding public sector commitments to transparency, the rule of law, and sound economic governance. We are committed to addressing existing frictions within payment systems and to fostering continual improvement.

The G7 continues to support the work of the FSB, FATF, CPMI, and other standard-setting bodies to analyze the risks associated with and determine appropriate policy responses to digital payments. In particular, the G7 underscores the importance of the G20 agenda to enhance the efficiency of cross-border payments and to address regulatory and public policy issues arising from global stablecoins and other similar arrangements. The G7 continues to maintain that no global stablecoin project should begin operation until it adequately addresses relevant legal, regulatory, and oversight requirements through appropriate design and by adhering to applicable standards.
...

That last (quoted) sentence is a doozy. G7 central banks don't want a CBDC unless the G7 can control it.

Hint: China isn't in the G7.
 
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mike

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might be a good time to borrow loads ( but I see the banks are making it hard to borrow right now ) and watch it all burn in the re-set ......
I don't think our debt we'll be forgiven. We're not in the club.

I predict the currency of the new system will have negative interest rates baked into it like an expiration date, so if you don't spend it fast enough, it just disappears. You heard it here first, folks!
 

rblong2us

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Hey Mike

good to see you back here.

Yeah theres a lot of hopefuls believing that all debt will be forgiven in the GESARA ? NESARA
Predictably, in times of economic uncertainty, demand for a sense of hope—even the false kind—soars; add a pandemic and a lockdown to the mix and it can quickly create a ripe terrain for financial scams looking to exploit people’s need for that hope....
Over these past few months, conspiracies about an imminent global economic reset, a mysterious act named NESARA, and a new era of gold-backed cryptocurrency to be ushered in by Donald Trump have been seeing a surge in popularity on social media. If any of this sounds remotely familiar to some of you, it may be because NESARA has been around for decades, fooling thousands (and counting) since first making an appearance in the late 1990s.
If someones debt is someone elses asset, ( eg old folks savings ) the only way this could happen is if the debt is wiped and the asset is credited with existing or any replacement money that gets rolled out ........ Yes this could be done now we have MMT but as you say, we aint in the club.
 
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