Are we going to get a Global Financial Reset soon?

Are we going to get a Global Financial Reset soon?

By RealSociology | Economic Musings | 20 Dec 2020


I've heard talk recently of a new Bretton Woods style global reset, but this time with digital money potentially issued by central banks.

It's discussed in this video here in which Bank to the Future founder Simon Dixon, who apparently predicted the 2020 economic crisis 10 years ago, makes some new predictions (not time based this time) based on Recent references made to Bretton Woods by the IMF Managing Director.

In case you're not aware of the IMF's role in the World Economy, these are the guys who give countries credit ratings and hand out trillions of dollars worth of emergency aid to countries in financial crisis, if they agree to neoliberalise their economies in exchange.

Dixon imagines a future in which the IMF play an increasingly central role in the World Economy - interestingly he refers to them as a socialist institution, which is odd because I've always associated them the complete opposite end of the political spectrum.

I guess he'd rather see states just collapsing altogether>?

His prediction is basically this:

  1. Rather than bail outs for private banks this time around, you let them go bust, along with the debt based currency issuing system.
  2. Central banks will create new digital currencies that account holders will get to replace any money they had held in the regular private banks - all you'd need is an app. Central banks become the main debt-free (for now) new global currency issuers
  3. You then get currency wars in a 'debt free' economy as currencies battle for significance.
  4. The private banks have to re-invent themselves as Fintech companies.
  5. He mentions that real estate is going to be hit pretty hard, but doesn't really talk too much about this.

Restriction of Individual Freedoms...

The likelihood is that these new central bank digital currencies will be linked to individual identification networks and online activity, allowing governments to tax whatever they want - privacy is already dead, this is nail in the coffin.

A new role for Bitcoin?

He's not all-in on Bitcoin, but he does imagine a role for it in 'regulating the regulators' in monetary terms at least - completely outside of the coming new central bank digital system.

Also of course, Bitcoin allows us to control our own money, which will be more desirable as people realise they don't own their money in any kind of banking system!

Am I convinced by this argument?

Well national bank digital currency already exists in China, and there it's linked to social media in what seems to be something of a dystopian financial milieu, and I know a lot of central banks and the EU are interested in digital currencies - I mean just imagine how much easier control would be!

And I also know the IMF are more than happy to step in and prop up national banking systems of developed countries.

And then there's the fact that with the dollar being printed in such numbers... you know it wouldn't surprise me if that's a deliberate attempt to devalue fiat, brining on the move a new digital currency the Fed's probably already got one lined up for you!

Solutions....

Well for my it's Bitcoin and Barter, bypassing the state globally and locally!

Posted Using LeoFinance Beta


RealSociology
RealSociology

Blogging about Sociology and Extreme Early Retirement


Economic Musings
Economic Musings

Thoughts on economics - systemic, investments, and cryptocurrencies

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