A Central Banking Insider Just Revealed the Blueprint For When the Next Crisis Hits

If you’re looking for insights into what Central Banks have planned when The Everything Bubble bursts, on Monday one of the European Central Bank’s (ECB) top bankers provided a blueprint.

Benoît Cœuré, has been a member of the Executive Board of the ECB since 2011. As such is one of SIX individuals who have dictated ECB policy during that time.

This means he’s been involved in:

  • The second and third Greek bailouts.
  • The Spain bailout.
  • The Portugal bailout.
  • The second and third Romania bailouts.
  • The Cyprus bail-ins.

Cœuré has operated at the highest level of monetary/ financial policy during a period in which numerous financial/banking systems were experiencing systemic risk.

Put simply, there are fewer than 100 people on the planet who are as familiar with how Central Banks perceive the risks in today’s financial system as well as the policies said Central Banks will unleash when the next crisis hits.

With that in mind, let’s take a look at what he had to say regarding both in the speech he gave titled The Future of Central Bank Moneyat the International Center for Monetary and Banking Studies in Geneva yesterday.

In my remarks this evening I would like to share some more general thoughts on the role of the central bank’s balance sheet in the economy. My focus will be on central bank liabilities – that is, money created by central banks to be used as a means of payment and store of value…

What distinguishes the discussion today from previous discussions, however, are three new facts: 

The first is that we are seeing a dramatic decline in the demand for cash in some countries, in particular Sweden and Norway.

The second is that central banks today could make use of new technologies that would enable the introduction of what is widely referred to as a “token-based” currency – one based on a distributed ledger technology (DLT) or comparable cryptographic technology.

And the third “new” fact, at least from a long-term perspective, relates to the role of central banks in setting monetary policy, and more recently to the emergence of negative rates as a policy instrument and the consequences for the transmission of monetary policy.

Source: ECB

Reading between the lines, Cœuré is talking about:

  • Potential cash bans in tandem with negative interest rates (the problem with physical cash is it allows you to avoid paying interest via NIRP because you can simply store it yourself instead of keeping it in a bank).
  • Shifting over to a completely digital currency controlled by a Central Bank.

Cœuré finishes by stating that the near-term benefit of this is minimal, but that in the medium term

…a more incremental reform could consist of giving a broader range of financial market participants access to the liability side of the central bank’s balance sheet,provided that this can help strengthen the transmission of monetary policy in an environment of excess liquidity.

Source: ECB

Put simply… discussions of ending physical cash and introducing strictly digital money are taking place within the highest circles of Central Bankers.

If you think this isn’t coming to the US, you’re mistaken.

Indeed, we've uncovered a secret document outlining how the Feds plan to take hold of savings during the next round of the crisis to stop individuals from getting their money out.

We detail this paper and outline three investment strategies you can implement right now to protect your capital from this sinister plan in our Special Report

Survive the Fed's War on Cash.

We are making 100 copies available for FREE the general public.

To pick up yours, swing by….

http://www.phoenixcapitalmarketing.com/cash.html

Best Regards

Graham Summers

Chief Market Strategist

Phoenix Capital Research

 

Comments

Quantify oddjob Thu, 05/17/2018 - 18:38 Permalink

Weed and heroin are completely different substances. Weed is fairly benign while heroin is completely destructive. Its an opioid which kills several hundred thousand people every year. Weed doubtfully kills more than a few who are stupid enough to smoke while driving. I dropped a roach once while driving and hit another car fortunately I was only doing a couple miles and hour....lol. I was young and dumb, but I was never stupid enough to take heroin 

In reply to by oddjob

Dangerclose Oldwood Fri, 05/18/2018 - 07:10 Permalink

All this talk about having "physical" and cash sounds great until one has to realize it can be seized by the gov. I'm not saying that it has to be one or the other but all these gold bugs better not dismiss the power that cryptos can bring in keeping wealth out of the reach of everyone but its rightful owner.

In reply to by Oldwood

opport.knocks Dangerclose Fri, 05/18/2018 - 10:49 Permalink

"Digital cash" (0s and 1s on a bank computer) can easily be seized by governemnts.

"Physical cash" (large bills or precious metals in a private safe) is not so easy, unless it is stolen gradually through inflation or it is outright banned.

Cryptos are a little better than digital cash, but not a whole lot better, unless you control the server farms where they are stored.

In reply to by Dangerclose

broke-but-hopeful silverserfer Fri, 05/18/2018 - 10:40 Permalink

Governments taking physical cash out of circulation and telling you only the government's "crypto" currency can be used for financial transactions means the government will know and track all your transactions and what you buy.  The government crypto may look as though it has blockchain protection/security but they will have a way to snoop on you.  Right now the government has access to your bank, credit card data and examines your tax forms as to your financial life.  Without the dollar bills and coins, we will have no way to fly under the radar and even barter may be banned.  I'm not thinking about doing illegal buying but as an old-style conservative, I fear big government as it always ends evil.

In reply to by silverserfer

messystateofaffairs Chupacabra-322 Thu, 05/17/2018 - 06:31 Permalink

I think bitcoin gave them the idea. Their crypto code will allow for expansion/contraction of currency in circulation along with the added bonus of traceability, its designed to be traceable centrally controlled fiat. Free market crypto code is designed not to be expanded/contracted or traced, its designed to be anonymous specie. All cryptos are not the same. Hackers will have a field day with central banker cryptos and free market denizens will strengthen specie crypto invulnerability via open source code. Quantum computing will present real challenges to all code that rely on strong encryption, both fiat and specie and all other computer security systems. Nevertheless the fight is on between freedom and slavery and while the vast majority of people, zh commenters included, don't understand the game, enough people do, and that will ensure that free market specie crypto currencies are here to stay, irrespective of what central banksters throw at them.

In reply to by Chupacabra-322

Greendawg messystateofaffairs Fri, 05/18/2018 - 13:23 Permalink

Lol its so amusing watching unintelligent trash like you resort to lying to pump your shitty wares.  Not even one of the shitcoin s is a free market they are all manipulated by the crooks who have access to the most space on the ledger.  (I won' t entertain your simple mind by calling this access to a poorly programmed ledger a coin)  Please get a job and stop attempting to live off the backs of civilized members of society through your blatantly obvious scam you useless eater!  You a bitcoin pumptards truly deserve to die a slow painful death for your crimes against humanity!!!

In reply to by messystateofaffairs

1033eruth Give Me Some Truth Fri, 05/18/2018 - 13:20 Permalink

HA!, They desperately want to ban guns too.  I think they are a little bit over budget and over schedule.  Seems like they just can't get the job done.  We're going to need a few dozen more school shootings before it happens.  

Just think, it only took ONE mass shooting For the Overlords in Australia to get guns banned.  They are still working on the perfect angle to get Americans to endorse it here.  And you think that because they want to do this, they can just wave the magic wand and it will be done?  You're funny and kind of ignorant, ignoring other major clues like their difficulty with the gun ban.  

In reply to by Give Me Some Truth

supermaxedout Umh Thu, 05/17/2018 - 06:45 Permalink

Well said, thats one point. I want to add a few thoughts.

1. Cash is becoming eliminated to great a extend within the next 5 to 1o years. This will kill the "small man's or woman's" tax saving scheme making them even more vulnerable as they are already today. Repairs and services in and around the house will be not afordable anymore or not worth to lift an arm. The same accounts for many, many services be it haircutting, labor intensive maintenace and repair, sexual services, gastronomical services, caretaker services for very old or young ones. And so on. Jobs or better said income will dissappear quick and never come back. Will be picked up by big corporations with the help of robots or foreign slave labor.

2. Electronic cash comparable to Bitcoin will be the way the CBs are preparing for us. The Swedish Ryksbank has already given a licence to a company to manage and ocersee a bitcoin-style official Swedisch Krona (which is more or less pegged to the Euro).So to say the first bitcoin backed by an official CB located within the EU.  It will be the forerunner for the Euro in bitcoin style.  By doing so the profits of the Seigniorage are going to privatized within the Euro zone just like in the US where the Fed is the profiteer of the Seigniorage since 1913, not to mention the astronomical interests the Fed receives for this money "made out of nothing".

3. But what is the worst consequence of the plans laid out in the speech of the Central Banker in Geneva, in my opinion,  is the following fact: Negative interest rates will have the effect than no one can accumulate by saving a first "working capital" to start an enterprise. This will make the banks  indispensable toget a permission to start a business and the position of a future entrepreneur is much weaker than it is today. The banks will know then everything and own everything.

In other words, when you save some money to have a small capital to start a business in the not so far future you will be crippled by the new tax which is called negative interest rates. Saving is punished and you have to borrow it all from the banks at unfavorable rates due to the lack of a sufficient own capital.

In short without the banks blessing and knowledge no "small man or woman" can in the future open a business because saving is destroying capital. It is the total surrender of society to the money lenders. Good Night, land of the Free, you do not exist anymore when this becomes reality. Land of the bank slaves would be the correct title for all the areas what we call now the Western World. More control is simply not possible anymore except in prison or concentration camps! 

In reply to by Umh

hvl626 Umh Thu, 05/17/2018 - 16:58 Permalink

Asset forfeiture is the new kid on the block.  The Fed has been used for 100 years to conceal the FRBNY's auctioning of Treasury securities with the money being concealed by the FRBNY's exclusive control of the accounts.  Ref. 31 CFR 375.3.  The BOG sets all guidelines for audits and these are client accounts--not operational accounts.  They have never been audited.  The GAO has reviewed the control in digital software developed by FRBNY so auction bids can be received online some 15 years ago but no audits have occurred.  Ref. 31 CFR 375.3. 

 

TreasuryDirect identifies the "new cash" (deficit spending) securities.  These funds cannot go to the government.  Where do they go ??    Ref.  https://ppjg.me/2017/11/09/fiscal-bliss-ignorance-is-bliss/

 

In reply to by Umh

Mr.Danglemeat Wed, 05/16/2018 - 11:22 Permalink

Dear Mr. Coeure, please remember to look over your shoulder...constantly,..

because ideas like this are,.... an invitation to get "roughed-up",....like, a ride in the trunk of an Audi 100.

 

Hanns Martin Schleyer, his driver and three police bodyguards say Schoene Gruesse!

(note: Wikipedia states Schleyer's cause of death was "gunshot", the correct cause of death is plural - "gunshots".

 

Just saying....

Love, 

Ulrike und Andreas,...

p.s.... we'll be back, fucker.

tangent Wed, 05/16/2018 - 11:43 Permalink

It was a good story until "we've uncovered a secret document". Wow, boring, I'm only looking for stories about mysterious or strange documents. Have any?

DistortedPictures Wed, 05/16/2018 - 11:55 Permalink

If one were to ponder about the future, it is easy to see that at some point digital currency will replace physical cash.  There are too many positives for the banks and central banks and governments to switch to all digital.  Also, at some point negative interest rates will be employed.  Most likely the next recession or all out depression.  As far as the central banks are concerned, their past and current monetary manipulation has worked fantastically.  So, it stands within reason that they will do it again, and this time to a higher degree.  Another inevitability is UBI.  Like it or not, this will pacify the masses for a little time.  Thus, the use of digital.  It is not a matter of if, but when, sadly.