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GLOBAL FINANCIAL MELTDOWN
2023 IS THIS THE YEAR WHEN THE GLOBAL FINANCIAL MELTDOWN CRASHES ONTO THE REAL ECONOMY. NO LONGER WILL THE TERM GLOBAL FINANCIAL MELTDOWN BE VIEWED AS A JOKE. HAVING SAID THAT THE COMMON PEOPLE NEED TO PROTECT  THEMSELVES AND AVOID BEING DAMAGED. IF THIS CRISIS IS ADDED TO THE EXISTING WOES OF INFLATION, ENERGY, WEATHER GEOENGINEERING , FOOD SECURITY, RECESSION AND WARS WE WOULD BE VERY NEAR TO WHAT CAN ONLY BE DESCRIBED AS THE PERFECT STORM.

THE QUESTION NEEDS TO BE POSED HAVE MODERN SOCIETIES FORGOTTEN ABOUT SURVIVAL? THIS THEME WILL BE RETURNED UPON.   



OMINOUS MILITARY & FINANCIAL NUCLEAR THREATS COULD ERUPT IN 2023

Egon von Greyerz
January 10, 2023
https://goldswitzerland.com/ominous-mili...t-in-2023/


The world is today confronted with two nuclear threats of a proportion never previously seen in history. These threats are facing us at a time when the world economy is about to turn and decline precipitously not just for years but probably decades.

The obvious nuclear threat is the war between the US and Russia which currently is playing out in Ukraine.



The other nuclear threat is the financial weapons of mass destruction in the form of debt and derivatives amounting to probably US$ 2.5 quadrillion.



If we are lucky, the geopolitical event can be avoided but I doubt that the explosion/implosion of the Western financial timebomb can be stopped.



More about these risks later in the article.



There is also a summary of my market views for 2023 and onwards at the end of the article.



CURIOSITY AND RISK



With a business life of over 52 years in banking, commerce and investments, I am fortunate to still learn every day and learning is really the joy of life. But the more you learn, the more you realise how little you really know.



Being a constant and curious learner means that life is never dull.



As Einstein said:



The important thing is not to stop questioning.



Curiosity has its own reason for existing.”



There has been another important constancy in my life which is understanding and protecting RISK.



I learnt early on in my commercial life that it is critical to identify risk and endeavour to protect the downside. If you can achieve that, the upside normally takes care of itself.



Sometimes the risk is so clear that you want to stand on the barricades and shout. But sadly most investors are driven by greed and seldom see when markets become high risk.



The end of the 1980s was such an obvious period, especially in the property market. Stocks crashed in 1987 but if you are not leveraged, stock crashes normally don’t wipe you out. But in commercial property the leverage can kill a lot of investors and sadly did in the early 1990s.



The end of the 1990s was another period of very high risk in the tech sector. I was involved with a tech business in the UK and told the founder in late 1999 that we must sell the business for cash. This was the time when tech businesses were valued at 10x sales. Virtually none of them made a profit. So we managed to sell the business in 2000. We actually got shares as payment but were allowed to sell them immediately which we did. Thereafter the Nasdaq crashed by 80% and many businesses went bankrupt.



At those particular moments of extreme overvaluation, you do not have to be clever in order to get out and take profit. Super profits should always be realised when the valuation of businesses doesn’t make sense and the prospects don’t look good.



RISK OF MAJOR ESCALATION OF WAR



So let’s get back to the massive risks that are hanging over the world currently.



In my estimation this is not a war between Russia and Ukraine but between the US and Russia. Russia found it unacceptable that the Minsk agreement of 2014 was not kept to. Instead, the bombing of the Donbas area continued, allegedly encouraged by the US. As Ukraine intensified the bombing, Russia invaded in Feb 2022.



I won’t go into the details here of who is at fault etc. But what is clear is that the US Neocons have a major interest for this war to escalate. For them Ukraine is just a pawn and the real enemy is Russia.  Why would the US otherwise lead the initiative to sanction Russia and send weapons and money to Ukraine but send no peace keepers to Russia?



Let us just remind ourselves that ordinary people never want war. The American people doesn’t want war, nor do the Russians or Ukrainians. It is without fail always the leaders who want war. And in most countries, even in the so called democratic USA, the leaders have total power when it comes to starting a war.



Most of Europe is heavily dependent on Russian oil and gas. Still Europe is shooting itself in the foot by agreeing to the sanctions initiated by the US. The consequences are disastrous for Europe and especially Germany which was the economic engine of Europe.  Germany is now finished as an economic power. Time will prove this.



The global economic downturn started before the Ukrainian war butthe situation has now severely deteriorated with the European economy weakening rapidly. Still, Europe is digging its own grave by sending more weapons and more money to Ukraine much of which being reported to end up in the wrong hands.



The Ukrainian leader Zelensky is skilfully inciting the West to escalate the war in order to achieve total NATO involvement.



The risk of a major escalation of the war is considerable. Russia’s main aim is for the Minsk agreement to be honoured whilst the US Neocons want to weaken Russia in a direct conflict. Major wars are often triggered by a minor event or a false flag.



The Neocons know that a defeat for the US in this conflict would be the end of the US dollar, hegemony and economy. At the same time, Russia is determined not to lose the war, whatever it takes. This is the kind of background that has a high risk of ending badly.



THE CONSEQUENCES ARE UNTHINKABLE



Since there is not a single Statesman in the West, dark forces behind the scenes are pulling the strings. This makes the situation particularly dangerous. 



The risk of a nuclear war in such a situation is incalculable but still very real.



There are 13,000 nuclear warheads in the world and less than a handful of these would wipe out most of the West and a dozen, a major part of the world.



Let’s hope that the West comes to its senses. If not, the consequences are unthinkable.



FINANCIAL WEAPONS OF MASS DESTRUCTION



The other nuclear cloud which is financial will fortunately not end the world if it detonates but inflict a major global setback that could last many years, maybe decades.



I have in [b]numerable articles (link) and interviews (link) outlined that the global debt expansion will end badly.[/b]



This can be illustrated in a number of pictures so let us look at two self explanatory graphs.



The first one shows how global debt has grown 75X from $4 trillion to $300T since Nixon closed the gold window in 1971.

The graph also shows that the world could reach debt levels of maybe $3 quadrillion by 2030. That sounds like a sensational figure but the explanation is simple. Derivatives were around $1.4 quadrillion over 10 years ago as reported by the Bank of International Settlement (BIS) in Basel. But with some hocus-pocus they reduced the figure to $600 trillion to make it look better cosmetically. The BIS decided just to take just one side of a contract as the outstanding risk. But we all know, it is the gross risk that counts. When a counterparty fails, gross risk remains gross. So as far as I am concerned, the old base figure was still $1.4Q.



Since then derivatives have grown exponentially. Major amounts of debt are now created in the derivatives market rather then in the cash market. Also, the shadow banking system  of hedge funds, insurance companies and other financial business are also major issuers of  derivatives. Many of these transactions are not in the BIS figures. Thus I believe it is realistic to assume that the derivatives market has grown at least in line with debt but probably a lot faster in the last 10+ years.  So the gross figure is easily in excess of $2 quadrillion today.



When the debt crisis starts in earnest which could be today or in the next 2-3 years, major defaults in derivatives will become debt as central banks print money on an unprecedented scale in a futile attempt to save the financial system. This is how debt can grow to $3Q by 2030 as the graph illustrates.



US GDP GROWTH IS ILLUSORY



The second graph shows that the US, the world’s biggest economy, is living on both borrowed time and money.



In 1970 total US debt was 1.5X GDP. Today is is 3.6X. This means that in order to achieve a nominal growth in GDP, debt had to grow 2.5X as fast as GDP.


The conclusion is simple. Without credit and printed money there would be no real GDP growth. So the growth of the US economy is an illusion manufactured by bankers and led by the private Federal Reserve Bank. As the graph above shows, GDP can only grow if debt grows at an exponential rate.



The gap between debt and GDP growth is clearly unsustainable. Still with hysterical money printing in the next few years, in an attempt to save the US financial system, the gap is likely to widen even further before it is eroded.



There is only one way for the gap to narrow which is an implosion of the debt through default, both sovereign and private. Such an implosion will also lead to all assets inflated by the debt – including bonds, stocks and property – also imploding.



Temporarily the US has achieved this illusory wealth but sadly the time is now coming when the Piper must be paid.



THE END OF THE DOLLAR



The days of the dollar as reserve currency are counted. A currency that has lost 98% in the last 50 years hardly deserves the status of a reserve currency. A combination of military might, petrodollar payments and history has kept the dollar far too strong for much too long. Since there is no immediate alternative, it is possible that the dollar temporarily will remain strong for a while as the Ukrainian conflict continues. The economies of other currencies (Euro, Pound, Yen) are clearly too weak currently to be realistic reserve currency contenders.



The days of the Petrodollar are also counted.



Major moves are now taking place between the world’s biggest energy producers (excluding the US) which will gradually end the Petrodollar system.



A GLOBAL RECEPE FOR DISASTER



But firstly let’s understand that in spite of the climate zealots, there will be no serious alternative to fossil fuels for many decades. Fossil fuels account for 83% of global energy. 



Global growth can only be achieved with energy. Since renewables today only account for 6% and are growing very slowly, there will be no serious alternative to fossil fuels for many decades.



In spite of that, Western governments in Europe and the US have not only stopped investing in fossil fuels, but also closed down pipe lines, coal mines and nuclear power plants. This is of course sheer political and economic lunacy and a very rapid method to achieve a collapse of the world economy. Add to that the Russian sanctions and we have a global recipe for disaster.


Without fossil fuels, the world economy will collapse. In spite of that, political pressure has slowed down fossil fuel production substantially. As the graph shows, fossil fuel production is likely to decline by 26% by 2048. Increases in nuclear and, hydro and renewables will not compensate for that fall. The effect will be a fall in global GDP and trade. But more about the energy side in another article.

Few people understand the importance of global trade. Rome conquered many countries from Europe to Asia and Africa. But during the Roman Empire, the various economies prospered due to free trade. The Romans were clearly superior thinkers compared to current Western leaders.



MAJOR SHIFT FROM WEST TO EAST



The GCC countries (Gulf Corporation Council) consist of Saudi Arabia, UAE plus a number of Gulf countries have 40% of the oil reserves in the world.



Another 40% of oil reserves belong to Russia, Iran and Venezuela all selling oil to China at a discount currently.



In addition there are the BRICS countries (Brazil, Russia, India, China and South Africa. Saudi Arabia also want to join the BRICS which represents 41% of the global population and 26% of global GDP.



Finally there is the SCO, the Shanghai Cooperation Organisation. This is a Eurasian political, economic and security organisation headquartered in China. It covers 60% of the area of Eurasia and over 30% of global GDP.



All of these organisations and countries (BRICS, GCC, SCO) are gradually going to gain global importance as the US, and Europe decline. They will cooperate both politically, commercially and financially. As energy and oil is a common denominator for these countries, they will most likely operate with the Petroyuan as their common currency for trading.



With such a powerful constellation, minor hobbyist groups like Schwab’s WEF will dwarf in significance and finally disappear as the WEF members including the political leaders lose their power and the billionaires their wealth.



MAJOR MOVES IN MARKETS



This article is already very long but I will still cover what I see in markets in 2023 and coming years. I have covered this in many articles so I will be brief.



Stocks have just had a major down year globally. This is the mere beginning of the implosion of the extreme overvaluation based on printed money. I would be surprised if stocks on average decline by less than 90% in real terms. The measure for real terms is of course gold.



It will not be a straight line fall and many investors will buy the dips until they have exhausted most of their wealth.



Bonds will probably perform even worse than stocks. Many borrowers, both sovereign and commercial, will default.



The 40 year decline in interest rates has finished. Central banks will lose control of the interest markets as investors panic out of bonds.



The combination of high inflation, collapsing currencies and defaults on a massive scale will turn the bond market into a historic horror story.



The bond equation is simple:



Hyperinflation + Currencies going to Zero + Defaults = BOND VALUES ZERO



Good luck to bond holders. They will need it.



Investment properties will also fare badly. Low interest rates and unlimited credit have created a bubble of historic proportions.



In many countries it has been possible to borrow up to 15 year money at 1% or less. Anyone who didn’t take advantage of free money will regret it badly. The risk reward calculation was obvious. At 1%, rates could only go to zero which is a 1% fall. On the other hand, rates could go to 20%+ like they did in the 1970s.



Falls of 75-90% in real terms will be commonplace in the property market.



If you have no mortgage or a low one at a fixed rate, don’t worry. But just look at it as an abode and not an investment. 



Lastly and most importantly let’s look at GOLD.



We invested heavily into gold in early 2002 at $300 for ourselves and the investors we advised. This was based on our risk assessment of the financial system and a gold price which had declined for over 20 years. We were certain that gold was undervalued at the time and also that it was the ultimate wealth preservation investment.



Since that time we and our clients have not ever worried one day about our gold holdings.  As a matter of fact, gold today in relation to money supply is cheaper than in 2002 and therefore represents superb value.



2023 will be the start of another gold era. The circumstances are perfect for this.



Back in mid September I tweeted that gold was bottoming when the price was $1665 and that we would see $2,000 at least in 2022. Well as I often say, forecasting is a mug’s game and we are “only” at $1,875 today. See graph below which was Tweeted in Sep 21.







Considering the two nuclear risks discussed above, the gold price becomes irrelevant. Physical gold is the ultimate wealth preservation investment. The value should be measured in ounces or kilos and not in ephemeral currencies.







Gold is likely to reach levels that no one can imagine today. But to forecast a price in paper money serves no purpose without defining the purchasing power of the fiat money at some future point.



Gold is the metal of kings and should be the primary wealth preservation holding. Silver has a massive potential but is much more volatile and much bulkier.



It is extremely important how gold is stored. The principal part of your gold holding should be outside your country of residency. You should be able to flee to your gold.



Do not store gold at home. With crime rates surging globally and likely to go up much further, it is extremely unwise to store gold at home. Add to that likely social unrest in most countries, whatever valuables you store at home are at risk however well hidden you think they are.



There is no perfect country to store gold today. The world has become a generally unsafe place. Our company has carried out a major review of the best countries to store gold globally. This will be published at some future point.



Switzerland is still one of our favourites. The combination of the political system, history and 70% of gold bars being refined in Switzerland plus most private gold being stored here, makes it an obvious choice.



Our company also has a major advantage in being able to offer the only private vault which is nuclear bomb proof and can operate fully under any such circumstances. We also offer full data backup even against EMP risks (Electro Magnetic Pulse). I am not aware of anyone in our industry that offers this protection. The location of this vault is confidential. Here is a brief video which shows the uniqueness of the vault: https://youtu.be/efmHBDv9I0w 



To summarise, the risks today are greater than anytime in history. A full nuclear war between the US, Russia and China is the end of mankind and no one can protect against this kind of event.



But there are more limited situations, whether nuclear or with conventional weapons which necessitate the best protection possible of your wealth preservation asset.



Let’s hope that a major nuclear war will not take place. In any case, there is very little we can do about it.



The financial nuclear risk is very real and also very likely to be triggered in my view. Anyone who can has a responsibility to organise protection against this risk as discussed in this article.

Finally remember that in periods of crisis family and friends is your most important protection. Helping others will be essential in a coming crisis.




2023: THE ABC’s OF CBDC, THE GREAT RESET(s) & MORE CENTRALIZED CONTROL

Matthew Piepenburg
January 4, 2023
https://goldswitzerland.com/2023-the-abc...d-control/

If you want to understand modern CBDC, it may be worth considering the context of history, the philosophy of man, the math of debt and the geology of gold.


Broke Countries Do Bad Things


When broken, debt-soaked “developed economies” suffering from years of fantasy money printing to “solve” fatally rising debt levels collide with [b]history-blind and economically-ignorant policy makers, the end result is always the same: Liberty sinks, currencies die and control rises.[/b]




This is not sensationalism, but the toxic evolution of economic, political and psychological patterns seen throughout time.Sadly, our “times” (as well as the global abundance/convergence of weak leadership) are no exception.




Or stated more simply, inept financial and political leadership leads to even more dangerous financial opportunists and tyrannical policies masquerading as efficient solutions.



Toward this end, the [b]evidence is literally everywhere—left, right and center.[/b]



The Inevitable Klaus Schwab-Type



Nowhere is such will-to-power opportunism and fantasy (i.e., centralized) solutions more exemplified than in the so-called “Great Reset” authored by the head of the World Economic Forum, Klaus Schwab.



Like all opportunists and historical as well as current “types,” Schwab (like the IMF, the BIS, the Fed, the White House, the European or British Parliament etc.) is exploiting a crisis to enhance control while appearing humanitarian and visionary.



We’ve seen this demagogue movie before in Italy, France, Germany, Spain, Yugoslavia, Cuba, China, Russia etc.



In each example (from the 1780’s to the 1960’s to now), leaders who promised miracle solutions to financial disaster brought only centralization and disorder while erecting statues (or book deals and [b]Parisian shopping sprees) to themselves.[/b]



Never Let a Good Crisis Go to Waste



And what better crisis to exploit than the bat-made narrative of the Covid pandemic with its case fatality rate of less than 2%?



Post-Covid, it is now patently obvious to anyone who has taken the time to look unemotionally at the science, math and data (including courageous British journalists like [b]Matt Ridely, well-spoken celebrities like Russell Brand, dark horses like Bret Weinstein or the non-political [and hence more honest] scientists convening at Great Barrington) that COVID most likely came from a lab and that the policy reaction of a global shut down and forced vaccine was a moral, scientific, economic and political disaster for the record books.[/b]



Despite the fact that history has seen (and stoically survived) far greater per-capita death tolls in the form of cholera, the bubonic plague, small pox, or influenza, our policy makers, with the embarrassingly complicit support of a Pravda-like and politically-influenced main stream media, would have us believe they care so much about you and I. So, they locked us down, went trillions more into debt (and a hidden, [b]second market bailout) for our sake.[/b]



In fact, the IMF in 2020 compared the war on Covid to the Second World War and its 85 million deaths.



That’s an insult to history.



As an equally courageous Christine Anderson declared from the European Parliament during the height of the Covid hysteria (mandates, restrictions, masks etc.): Covid politics were [b]not about concern for the masses.[/b]



Despite such sober honesty and macabre math, Klaus Schwab, along with just about every other global leader, was taking a more dramatic and opportunistic approach, declaring that, “the Corona Virus pandemic has no parallel in history. It is our defining moment.”



Huh?



What he really meant in this classic Freudian slip was that Covid was his defining moment. Namely, the perfect crisis to exploit global fear and promote his new “Great Reset” vision as the leader of a better tomorrow, akin to Lenin’s losing-war promise/bribe of simple “bread and peace” in 1917…



And what is Schwab’s (and others like him) vision of a better tomorrow?



What is the “Great Reset”?



Like most politically and financially bad ideas (from Quantitative Easing to the Patriot Act), the Great Reset envisioned by Schwab has a seductive title and facade—namely “Stakeholder Capitalism.”



Unlike current shareholder capitalism, his concept of stakeholder capitalism aims to infuse global corporate board seats with a higher percentage of special interest representation (i.e., labor, environmental, social justice etc.).



In the USA, Elizabeth Warren has a similar, and indeed superficially noble, and more inclusive agenda.



China, whose leader-for-life (Xi Jinping) is a Schwab favorite and Davos keynote speaker, takes this autocratic vision one step further by simply inserting governmental agents into every Chinese boardroom.



For many, including myself, one can understand a desire to improve corrupt financial/banking systems and [b]fractured social structures. One can understand more inclusion and less corporate greed.[/b]



Toward that end, I don’t think Schwab is a transhumanist creature of a dark global conspiracy to depopulate the world and rule as supreme leader of a one-world government.



I actually feel he believes he can help himself (and others) at the same time.



And as for the current version of capitalism in which central banks like the Fed (and [b]derivative-sick commercial bankslike Credit Suisse) have become THE driving/liquidity force of supply and demand, I’ve written and spoken countless times on my view that true capitalism died long ago.[/b]



But what we are being told by folks like Schwab is hardly better; in fact, it’s much worse.



Schwab’s Flawed Premise: Institutional Faith



Like China’s Xi Jinping, Schwab’s Great Reset is based upon the notion that systemic risks like inflation, pandemics and geopolitical as well as economic distortion can be better managed by a global “coordination” of wise centralized and institutional players.



Like Xi, Schwab believes “giant ships survive storms, whereas small boats sink.”



But such faith (and premise) that massive and globally coordinated institutional wisdom is somehow safer and superior to individual freedom ignores the titanic example, of well…the Titanic.



In short: Big ships sink too—and usually with higher casualty rates.



Schwab’s vision of a “coordinated economy” and the redefining of the “social contract” to tackle real or exaggerated (pick your view) crises like climate change or future pandemics is based upon an inherently flawed premise that enlightened yet [b]increasingly CENTRALIZED institutions or even governments (like China?) can save us.[/b]



But what folks like Schwab (or for that matter Biden, Trudeau, Macron, Scholz, Johnson and just about every other embarrassing but modern national leader) failed to confess is that not once in the entire history of homo sapiens has a centralized system (fascist, Bolshevik, communist or socialist) ever brought an ounce of sustainable good to the world.



(Though such centralization certainly brought a lot of temporary luxury, wealth and power to folks like Castro, Lenin, Mussolini and Robespierre…)



The simple, tragic yet historically and (psychologically) confirmed reality is this: “Efficient” safety via central planning at the expense of individual freedoms NEVER works.



America’s Brief & Shining Moment



That is why the founding fathers of the greatest constitutional and democratic (yet now failed) experiment in history declared (via Ben Franklin) that “those willing to give up their freedoms for greater security deserve neither.”



For a brief and shining moment in 18th century Philadelphia, a document and vision of individual freedoms and constitutional protections declared the priority of the individual over the “security” of centralized tyranny as the cornerstone of its national vision.



America’s Flawed Premise: Faith in Human Nature?



Perhaps, however, these founding fathers under-estimated the human-all-too-human (nod to Nietzsche) susceptibility to self-interest and a desire for more personal and political control—i.e., the common extroverted psychopathy of most politicians—even those posing under a democratic flag.



That is why the same Ben Franklin casually (though sadly) remarked to a passer-by on the very day of America’s Declaration of Independence that “eventually all democracies die, and usually by suicide.”



This suicide has been gradual but undeniable, marked by such slow-drip turning points toward increasing centralization as exemplified by: 1) the 1913 birth of the Federal (Central) Reserve (against which Thomas Jefferson warned in 1806); 2) the now increasingly obvious and centralized (coup d’état) [b]murder of a sitting president in 1963; 3) the imperialist drift toward false flag wars of expansion (from “remember the Maine” of 1898, the Gulf of Tonkin Resolution in 1964 or the 2003 WMD fiction in Iraq) to 4) the exploitation of cataclysmic crises to slowly eradicate personal liberties in the name of “national security” under such euphemistically-titled legislation like the post-9/11 “Patriot Act.”[/b]



In short, given that all systems and experiments, be they liberty-based or centralized, are envisioned and then managed by human systems, the age-old (Hobbes/Locke) debate as to whether humans are intrinsically in a state of war or a state of peace (i.e., good or bad) remains the core dilemma and question.



The Modern Flawed Premise: Faith in Technology



This timeless dilemma, of course, has taken an entirely new course in a smart-phone era of increasing faith in a technological, virtual and even robotic solutions to man’s quest for a better, freer tomorrow.



There are many who believe that we can replace corrupt institutions (from Davos to Brussels, DC to Beijing) with wiser technologies, which can and sometimes do allow a freer and more decentralized flow of information (as evidenced by non-main-stream platforms like this one) and even money (as evidenced by the thirst for decentralized, encrypted currencies like BTC).



Rapidly evolving technologies, for example, allow more people to leave crime-infested (and police defunded) cities for more work-at-home personal freedoms or income and even more personal expression.



As technology advances, many rightly or wrongly believe that civilization will experience more freedoms and hence more of the “happy accidents” (nod to F.A. Hayek) which only freedom-based (rather than centralized) systems allow.



For them, technology offers a “great escape” from the dangers of the “great reset.”



This feels promising at first glance, but it too ignores the human-all-too-human reality that even advanced technologies are still steered by [b]un-advanced humans, as the recent debacle at FTX easily reminds.[/b]



In short, like faith in human nature or faith in institutions, faith in technology is no cure all.



Enter CBDC—The Latest Lie from Above



As we now see in the slow yet inevitable evolution of Central Bank Digital Currencies, technology can in fact be used to further diminish rather than enhance human liberties.



It seems that in 2022 and now 2023, everyone is suddenly asking about CBDC. And they should be.



But what is it?



To begin with, CBDC is not a new currency, it’s a new payment system—one that is digital and encrypted rather than paper-based. Instead of dollars, yen, lira and euros, we’ll soon have e-dollars, e-yen, e-liras and e-euros etc.



In short, more crappy fiat money—just in digital form.



Furthermore, CBDCs are not cryptos. Yes, they are digital, encrypted and kept in a ledger, but they do not involve blockchain.



In essence, and much like a Visa or Mastercard service, CBDC involves a similar ledger technology, but in this new and twisted case it’s a controlled (rather than distributed) ledger of encrypted digital currencies managed by central banks.



In this new payment system, we hold digital money accessed by apps on our smart phones with an account directly linked to a central bank with (as the policy makers remind us) far greater speed and less intermediary costs (otherwise typical to credit cards).



All good, right?



Not so fast…



The CBDC Official Narrative: Only Half the Story



Like all dangerous, centralized and controlling ideas, CBDC was snuck in with consoling words during times of crisis.



But CBDC is far more than just an evolving and technological “eureka” moment.



CBDCs were first openly announced by the IMF at the onset of the Covid Crisis, which the IMF used as a convenient pretext to excuse decades of their own and other central-bank-driven (and historically unprecedented) debt sins.



Crises always boost the power of the state, and the Covid crisis boosted the power of the IMF to create new ways to promote bad ideas while centralizing more power. Although ignored by the media in 2020, I immediately [b]warned of this in 2020.[/b]



Then came the BIS in 2021.



Like the IMF, the BIS telegraphed all the warm and fuzzy good news in a [b]calm little video of CBDC “efficiencies,” “safety,” and “speed.”[/b]



The BIS took credit for leading the technological CBDC charge alongside 4 other key central banks (i.e., the Fed, the ECB etc.) and a select handful of 20 other “participants” (i.e., the same disastrous commercial banks who gave us the GFC in 2008) to eliminate certain “pain points and friction” in hitherto inefficient cross border settlements and FX transactions.



Then came Powell.




In the midst of a global inflationary crisis, gyrating markets and an avoidable yet disastrous war in the Ukraine, the Fed stepped in with its own one-sided puff piece as the world was distracted by bigger headlines.



With a calm expression and forked-tongue, Powell causally announced that the US will have a CBDC as the Fed plays a “leading role” in its development.



According to Powell, “the Fed is charged with the safety and efficiency of payment systems,” and that by “embracing innovation,” we good citizens can help the Fed in this historical process as the modern world evolves from telegraph wires and clearing houses to the new “Fed Now Service” driven by CBDC to ensure “safer financial transactions.”



Powell kindly reminds us that distributed ledgers of cryptos are not safe, as their swings in value prove.



Despite admitting that stable coins (directly linked to currencies) are better, he said they too are riddled with risks and thus not nearly as safe as digital currencies under “the same regulatory measures as our banking and financial firms.”



(Apparently, Powell thinks the public has forgotten Bear Stearns, Lehman, AIG, Long Term Capital Management and other “regulated” enterprises of this corrupted ilk…)



Powell closed this blue-pill video by saying that the Fed’s focus with a CBDC is to improve on an already safe system—as a complement to, not a replacement of cash. He further promised to take into consideration issues of law and privacy, and warmly announced that, “we look forward to hearing your thoughts on this important topic.”



All warm and fuzzy, safe, innovative and democratic, right?



Again: Not so fast.



CBDC’s Other Story: One Big Lie of Many Omissions



There are many obvious yet omitted dangers (and motives) behind CBDC (as lies of omission are the most common symptom of benevolent tyranny).



What neither the IMF, the BIS nor Powell discussed are likely the most honest motives behind CBDC.



  1. Kill the Crypto Competition

As I’ve argued almost from the the success of cryptos would eventually become their ultimate undoing, as the concept of alternative digital currencies outside of the banking system was a direct threat to sovereign power.



If forced to choose a “winner” in a war between the power of a blockchain BTC and a corrupt banking system (tied to the hip of sovereign power), my bet (sadly) was always on the corrupt.



CBDC, in short, is a direct assault[/url] on the growing (and in many ways free and admirable) crypto narrative.[/b]


  • Debt “Reset:” Impose Negative Rates & Screw the People

As I’ve also argued for years[/b][/url], all debt-soaked regimes need negative rates to climb out of the bottomless debt hole they alone created.



By forcing citizens into a CBDC system, banks like the Fed can “efficiently and quickly” impose negative rates (i.e., where you pay banks to hold your money rather than receive positive interest for your deposits). This already happened in Europe.



Furthermore, given that all major nations are suffering debt to GDP ratios well past the fatal 100% level,  with capital to asset levels surpassing the 200:1 mark, it’s now patently obvious in a rising rate and declining tax-revenue environment that nations like the U.S. can’t afford to pay even the interest on their unprecedented debt piles.



In this sickening backdrop, CBDC systems allow indebted nations to better control, and hence steal from, their citizens.



When currencies are “reset” (like Germany in 48), the government can “convert” your old money to the new money while simultaneously (due to a “crisis”) keeping a percentage for themselves as a clever way to pay their debts via digital hold-backs (i.e., theft).



And given that the entire world is over $300T in debt, one can bet that a massive debt restructuring (akin to a global bankruptcy declaration) is inevitable. CBDCs are thus being rolled out beforehand to make this intra-bank and cross border restructuring (theft) more “efficient.”



But that’s just the tip of the iceberg when it comes to controlling citizen money and freedoms.


  • A Cashless Control State

Despite Powell’s words to the contrary (as unreliable as his transitory inflation promise), the longer-term aim and practice of a forced digital currency system is to take cash out of the system.



Under a CBDC regime, citizen money can be digitally monitored, withheld, frozen, taxed, penalized or otherwise controlled should such a citizen (or collection of citizens) challenge or threaten the state—rightfully or wrongly.



I’m thinking of those truckers in Canada…



But as Mussolini himself said: “Fascism is the perfect marriage of corporations and the state.” CBDC is a giant leap in that sadly familiar direction.



In short, financial and personal privacy slowly but surely disappears under a CBDC system, and you can be assured that if the Mad King George had access to CBDC in 1776, folks with poor social credit scores like Ben Franklin, Thomas Jefferson, George Washington or James Madison would have been monitored, frozen and made financially impotent long before they ever had a chance to freely assemble near the Liberty Bell in Philadelphia.



Thus, even if Powell promises legal and privacy rights today, what happens tomorrow when we inevitably (if not already) fall under another mad king?



Stated bluntly, CBDC is not about freedom, individual rights or privacy. It is pure control masquerading as a safer payment system and faster trans-national currency settlements.



But which would you prefer? What is more important– personal liberty or “efficient payment systems”?



Powell said he was “looking forward” to our thoughts. Well, now he has mine.



Frankly: Shame on him.



Gold, CBDC and a Shortage of Easy Answers



Given the case made above that no easy answers to our current global nightmare (political, financial or ethical) can rest solely upon a faith in institutions, individual leaders or even technologies, as each of these “solutions” is vulnerable to the human element of corruption and ignorance—what will save us?



Do I have an answer to these manifold and increasingly troubling signs and times?



I do not.



Gold, of course, can not solve the laundry list of fracturing faiths, economies, politics, societies, currencies, borders and systems making the headlines of each passing day.



That’s a human, or even spiritual question which I will not pretend to answer/solve here.



Nor can I fully predict the precise timing, measures and misuses of CBDC near-term or long term.



Will gold-backed SDR’s come? Will banking systems and credit card systems change immediately or slowly? When will gold free-float? When will derivative markets implode? What will trigger the next banking crisis?



Again: I can’t say or time. No one can.



What I can say, sadly, is that political and monetary corruption, from ancient China to modern DC, or from Roman coins or crappy paper dollars to “advanced” CBDCs is nothing new under the sun.



But gold (sourced from the periodic table rather than a periodic printer) has never been corrupted by the sun’s rays nor man’s mechanizations. It can’t be printed, mouse-clicked or digitalized. Alas: It’s harder for governments and banks to control.



Without exception, physical gold has always been the only form of real money that has survived the death of one system and currency after the next, be they debased by ancient metallurgists, modern money printers or digital cons.

As history continues its of more control, more debasement and more double-speak, I can only place portions of my faith and wealth in the one asset—the only asset—that has always preserved citizen wealth in a world where its leaders have consistently destroyed it (from coins, cash and digital) for thousands and thousands of years.
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GLOBAL FINANCIAL MELTDOWN - by moeenyaseen - 08-27-2006, 09:59 AM
RE: THE GLOBAL FINANCIAL MELTDOWN - by globalvision2000administrator - 01-10-2023, 02:45 PM

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