This article was pulled from our very own Insider Weekly #209.
LAST GASP OF A FAILED EXPERIMENT
This is the end of the euro experiment. All trust has been eroded in the ECB, the European Union is a fracturing political union papered over by a currency, which since it has effectively repealed member states monetary sovereignty, has hamstrung member states and subsequently impoverished EU citizens.
The only parties who have benefited are the pointy shoes in Brussels who have used the subsequent bankruptcy of member states as a leverage tool over their own political agendas.
This is why lending to member states has been so strong. It isn’t because they are being virtuous but rather because they are using disaster capitalism.
Bankrupt the buggers, lend them money you know they can’t pay back, and then use that indebtedness to force through your own political agendas.
Now that the entire fustercluck of insanity is coming to a head (pension funds are dry and ECB now being forced to buy sovereign debt issuance) they are desperately trying to champion a “reinvention”.
Some of this comes down to being more broke than a crack addict living under a bridge and another part is the cost of living.
Inflation is always underreported by central banks because admitting that your purchasing power is being eroded kinda erodes confidence, and it is confidence that the entire ball of wax rests on.
This is going to be impossible to hide. The inflation. And you can’t have high inflation coupled with high levels of trust. Oil and water stuff.
Their answer comes in the form of CBDCs: central bank digital currencies. I simply don’t see how these will change any of the underlying issues or problems.
In fact, they’ll make it worse if only because CBDCs will make “money laundering” harder. I say this because keeping money from the clutches of the government means it can get put to productive use. Giving it to the government ensures it’ll be squandered.
So CBDCs will, if nothing else, simply cause the monetary system to collapse faster.
CBDCs will also allow the government to direct your actions like a puppet with taxation being direct debits to your account with the CB.
You will be caught inside this system and for anyone who is awake they will realize (and if you haven’t paid attention, this is your warning right here) that this is a form of capital control. You will want to have some assets outside of this system when it is brought in.
It is still too early to tell what “outside of this system” looks like. Worst case scenario is that there is a globally coordinated currency system and there is no “out”.
That seems less likely to me as we are seeing more, not less angst on a global geopolitical scale, and the idea that all these various sociopaths running the various countries will sing kumbaya together and play the same game seems a tall order.
I guess it could happen, in which case we’ve some real problems, but odds favour the world bifurcating.
Now, here is something to consider. If the ECB brings this out, without the US being on board with the same CBDC, I think we can expect the USD to rally hard.
Nobody trusts these monkeys now with the disaster they’ve created so why on earth would they trust in some new unknown currency issued by the same criminals?
No, where there is an exit valve the market will take it.
Still, if we step outside of the world of currencies and realize that oh my gosh, we don’t need to hold cash, then you could certainly do worse than owning “stuff”.
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