Tag Archives: Central banking

Central banking, Complexity, Great Reset, Liberty, Monetary reform, Social development, Tyranny

CBDCs: why their future is not so bright

CBDCs are an expression of bankers’ fantasy of total control. Their first pilot program lasted 108 days and ended in total failure, lost elections and prison time.

This post was originally published on Alex Krainer’s Substack

Will the dreaded Central Bank Digital Currencies (CBDCs) become a thing? Will they be as awful as the ruling parasite class has intended? Will they be able to enforce compliance with whatever rule they choose to impose, oppressing us under a draconian system of arbitrary restrictions and prohibitions? Rest assured, they will not.

Over the last few months I was asked about CBDCs in a number of podcast interviews. The questions generally reflect the unease and anxiety about the prospect of finding ourselves in a totalitarian dystopia. CBDCs would allow our banking overlords to ‘see’ every purchase we make and condition our access to money through a system of permits that would enable them to micromanage any and all of our transaction choices in real time. This is what they mean when they say, “programmable” CBDCs.

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Central banking, Economics, History, Inflation, Policy, Politics

About that imminent banking crisis… don’t hold your breath. We get inflation instead.

A subtle understanding of economic change comes from a knowledge of history and large affairs, not from statistics or their processing alone…

Arthur Burns[1]

Those of us who spend time analysing financial markets have been anticipating an impending banking crisis for years now. A number of Global Systemically Important Banks (GSIBs) as well as many lesser banks have been struggling under an increasing burden of bad debts and deteriorating credit quality in their balance sheets. Deutsche Bank, probably the worst offender, has been on death watch since 2016. But as years went by and doubts about the bank’s solvency multiplied and compounded, no banking crisis materialized.

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Central banking, Economics, History, Inflation, Monetary reform, Stock market

Financial bubbles and their human toll

Bursting of an asset bubble can have grave consequences for the economy and the society at large – so grave, it’s worth paying attention at this point. I’ll elaborate.

In only six trading sessions from the 20th February peak, the S&P500 shed more than 12%, one of the fastest declines on record for the index (only the 1987 black Monday was worse). Only a week before this event I posted the article, “Bubbles Always Burst…”on SeekingAlpha, warning about the risk of this happening.

Whether last week marks the beginning of the bubble’s bursting remains to be seen, but this is only a matter of time. Bubbles always burst, no exceptions. But what’s important to understand is this: bubbles are meant to be burst! For guidance, let’s look again at the bursting of Japan’s own everything bubble of the 1980s. Continue reading →

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Central banking, Economics, Monetary reform, Policy, Social development, Uncategorized

Central banks – what are they good for?

In 1912, the United States had no central bank and no personal income tax. It nevertheless managed to generate a $3 million fiscal surplus. Today, after a century of Federal Reserve’s management of the nation’s currency, the country is mired in unpayable debts, unending overseas military adventures and massive fiscal (and trade) deficits. Here’s a comparison, courtesy of Jim Quinn (the Burning Platform blog): Continue reading →

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