The Great Currency Reset
Recently, Shelby and I discussed on the Revive The Table podcast how tokenization and digital, programmable “money” would be ushered in for common use. In this short report, I want to further discuss this and what the current Trump administration is perhaps trying to do behind the scenes.
The push for a digital, one world order currency has been in the books for quite some time. All the way back in the ‘80s, the London-based and Rothschild-affiliated The Economist magazine displayed infamous cover art with a phoenix - an occultic bird that rises up out of the ashes of destruction and shines forth a new light on a new age of beginnings and rebirth - standing over a pile of burning dollars and a headline that read, “Get Ready For A World Currency,” an early allusion to future central bank digital currencies (CBDCs), Bitcoin, stablecoins and tokenized assets. Fast forward 33 years later and The Economist then wrote in 2021 about “Govcoins,” saying, “Get ready for Fedcoin and the e-euro.”
As I have documented repeatedly in my research on tokenization, BlackRock CEO Larry Fink is of course a massive proponent of it; and his world-leading asset management firm revealed how governments and central banks plan to usher in CBDCs, stablecoins and tokenized assets.
In 2019, written in advance of the Jackson Hole, Wyoming, Symposium, BlackRock published a document titled “Dealing with the next downturn: From unconventional monetary policy to unprecedented policy coordination.” The document openly called for countries to explicitly inflate their currencies in a bid to transfer economies into CBDCs and stablecoin assets. The authors wrote:
“Unprecedented policies will be needed to respond to the next economic downturn. Monetary policy is almost exhausted as global interest rates plunge towards zero or below. Fiscal policy on its own will struggle to provide major stimulus in a timely fashion given high debt levels and the typical lags with implementation.
“Without a clear framework in place, policymakers will inevitably find themselves blurring the boundaries between fiscal and monetary policies. This threatens the hard-won credibility of policy institutions and could open the door to uncontrolled fiscal spending.
“This paper outlines the contours of a framework to mitigate this risk so as to enable an unprecedented coordination through a monetary-financed fiscal facility. Activated, funded and closed by the central bank to achieve an explicit inflation objective, the facility would be deployed by the fiscal authority.
The rise of central bank-issued electronic money (not cryptocurrencies) might achieve these objectives in ways that were not previously possible.”
In August, I wrote an article citing comments from Chris Giancarlo, former chairman of the U.S. Commodity Futures Trading Commission (CFTC), who said the quiet part out loud: the dollar and other world currencies would be devalued and face a “consolidation point,” resulting in CBDCs and stablecoins.
Giancarlo sees stablecoins as an attractive alternative to the failing dollar.
“Dollar-based stablecoins are going to functionally replace failed currencies in many parts of the world. But that’s only one use. They’re also going to supply in many parts of the developed world a 24/7/365 ability to move money around the globe.
“And let’s face it, our existing traditional financial system has done a terrible job of providing low-cost, fast ability to move money. If I were to fly to London tomorrow, and I needed to get $10,000 there, it’d be much quicker for me to stuff the cash in a suitcase than it would be to wire it to London. And that’s just a failure of the existing system.
“And that’s something that stablecoins have very much in their crosshairs. So this is coming.”
In July, when Americans were distracted by the Jeffrey Epstein debacle, President Trump signed the Genius Act, which provides federal regulations for stablecoins. The bill allows corporations to become “banks” and issue their own tokenized money assets backed 1:1 by the dollar and U.S. treasuries. Per the White House fact sheet: “The GENIUS Act will generate increased demand for U.S. debt and cement the dollar’s status as the global reserve currency by requiring stablecoin issuers to back their assets with Treasuries and U.S. dollars.”
Stablecoins, as I detailed at the time, are identical to CBDCs, but differ in that stablecoins are are privatized and allow third-party companies and banks to manage and issue the digital tokens, which are then linked back to the Treasury Department which, of course, has a direct line leading back to the central bank, the Federal Reserve.
No comments:
Post a Comment