Central Bank Digital Currency could be the next stage for central planners, which was alluded to as part of this Great Reset, proposed by WEF, a plan made public in 2020 during the pandemic global lockdown.
The apex of the human food chain sits on the throne, where power and wealth are derived from owning and controlling the medium of exchange, money, and the supply of it.
So central banks rule, and through their fiat currency, finance governments, corporate state monopolies, and finance armies, proxy armies destroy rivals they deem to be a threat to their throne.
“Central Bank Digital Currency could be the next stage for central planners”
WEALTH TRAINING COMPANY
Central banks are the central planners, the monarchy in a neo-Marxist communist state
One of Karl Marx’s ten planks in his Communist Manifesto to seize power is the “centralization of credit in the hands of the state, through a national bank with state capital and an exclusive monopoly.”
So the centralization and monopoly of money is not capitalism, nor is it democratic.
Central planners and central banks have eliminated price discovery
Since the 2008 financial crisis, central bank liquidity has been the deciding factor determining the trajectory of asset prices.
The Greatest stock bull market played out in 2020 with the global economy in lockdown. Markets have become hostage to central bank liquidity policies.
“centralization of credit in the hands of the state, through a national bank with state capital and an exclusive monopoly”
Central planners are trapped
If the supply of a currency exceeds the total production of goods and services and the supply chain is disrupted, due to sanctions, war that leads to inflation. Monetary tightening, hiking rates, and quantitative tightening in a recession will cause a Great Depression. A tsunami of loan defaults then destroys the currency. Fiat currency is a claim to someone else’s debt, it has third-party risk. If the government defaults on its loan obligations, the currency collapses.
Moreover, nearly half of the most advanced economies depend on government spending either directly or indirectly. So if central banks stop printing money to purchase sovereign bonds, which no investor wants to buy, people die in the worst man-made famine. Unsound money is the root cause of unsuitable growth.
But if the central planners keep creating currency to finance unsustainable public spending, then a hyperinflation depression plays out.
In this scenario, the currency becomes so weak all the purchasing power has gone, inflation soars, supply chains collapse, and the rule by debt fiat currency king is toppled.
“CBDC, the eventual phasing out of cash, could be the greatest wealth transfer of the century” – Wealth Training Company
Central banks will not be dethroned
So the central bank’s solution is to issue a new brand of currency, CBDC while keeping the existing currency in circulation.
CBDC, the eventual phasing out of cash, could be the greatest wealth transfer of the century.
Central planners will not convert all the existing currency into CBDCs
Investors do not want to be stuck holding assets that the central banks decide not to convert into CBDC. So if the plan is to hyperinflate public debt away, bond investors are the losers, and the winner will be the government. Other winners could be stocks in companies backed by the state.
Wages and rent could get paid in CBDC. Saving accounts within a threshold could also be converted to CBDCs. A chosen few will decide who are winners, be able to convert to CBDC, and who are losers, stuck with old worthless currency. Be prepared, and do not expect fairness from an unfair system.
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