By Ernst Wolff.
While much of the world’s population is still staring at the spread of the coronavirus, a much more significant process for the future of the seven billion people on our planet is underway in the background, namely the preparation for the introduction of a central bank digital currency.
Here’s the context:
The world’s major central banks have saved the global financial system from collapse yet again this year, but in doing so they have reached a historic turning point. After all, they have only two weapons at their disposal in the fight against a financial collapse: Money creation and interest rate cuts. Since interest rates have reached zero worldwide as part of this year’s bailout and negative interest rates would destroy the banking system from within, this means that in the future the central banks will have only one means at their disposal, namely money creation.
But this puts them in an insoluble dilemma: Continuous money creation deprives money of its value. Since constantly higher sums are required to keep the system alive, this loss of value is progressing ever faster. This can currently be seen in the USA. This year, the U.S. central bank, the Federal Reserve (FED), has pumped by far the largest sums of money into the system. As a result, the U.S. dollar has lost more than ten percent of its value against the other major currencies in just seven months.
This development shows: The international financial casino, created by deregulation and increasingly out of control over decades, can no longer be permanently stabilized by conventional means. For this reason, those who rule the world, namely the digital-financial complex with Microsoft, Apple and Google at its head, together with the central banks are currently developing digital central bank money at full speed. The most important goal of this new money is to maintain and expand the existing balance of power even beyond the abolition of the previous monetary system. Its establishment will, on the one hand, put an end to the classic banking system in its existing form because lending will be placed exclusively in the hands of the central bank. Second, despite declarations to the contrary, the new currency will be semi-private, because its issuance and circulation will be in the hands of the large IT corporations.
The merging of the state with the digital-financial complex will thus not only be further advanced, it will herald a new age. Indeed, the new currency will give these two forces more power than all the other institutions in the world put together, because it will have properties that no form of money has possessed before. For one thing, it will have an expiration date, so that the recipient can be forced to spend the money within a certain period of time. But it will also allow the state to arbitrarily set and withhold tax rates or penalties, or to issue loans at different interest rates. In addition, loans can be issued at negative interest rates, so that selected recipients will even receive a bonus for borrowing money from the state. In addition, the state will be able to suspend interest and repayments indefinitely in individual cases and thus practically forego loan repayments. Finally, the state and IT groups will be able to shut down individual accounts at any time without anyone but the affected parties knowing about it.
No matter how you look at it, digital central bank money will no longer have much in common with money as we know it and as it has developed over several millennia. On the other hand, it will provide the basic monetary framework for a society in which the last remnants of democracy are abolished with the help of the monetary system and we are all subjected to the unrestricted arbitrariness of a tiny elite and completely subjugated to its rule.
Thanks to the author for the right to publish the article.
Picture source: sutadimages / shutterstock
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