What would a Centralised Digital money future actually look like?
Our existing financial system consistently redistributes wealth from the masses to the elites. That’s very evident to anyone with a few decades of life experience as they have seen asset price growth (like houses) massive outstrip wage growth. (2/22)
https://www.thelondoneconomic.com/property/house-prices-almost-triple-over-past-two… Indeed, it was the creation of our current broken monetary system in 1971 that started this huge divergence. As from that point on economic improvements no longer benefited all citizens. Economic improvement accumulated in the finance sector. (3/22)
Prior to 1971 money was tangible, Gold. The paper was just so you didn’t need to carry metal around, you could walk into a bank, and they would give the bearer the equivalent in gold. But notes were so convenient people forgot, and didn’t much care about the change. (4/22)
So if not Gold, what exactly is our money actually based on now? The answer is shocking. But our money is based on debt. In his excellent video, Ray Dalio explains that total amount of credit in the US for example is $50 Trillion, of which actual Money is only $3 Trillion. (5/22)
So it’s easy to understand why our current monetary system is doomed. It’s mathematically impossible to ever pay off the debt. Worse, it’s impossible to pay off the interest on the existing debt – Without creating even more debt to pay the interest! How bonkers is that? (6/22)
Viewed like this it’s now easy to understand why the West is hell bent on running up ever higher debt, pushing debt out to all of us, even why they are so keen on mass immigration into the west. (7/22)
Because the debt levels that existing westerners can bear is almost capped out. So import as many people as possible and give them debt. The system depends on it. Savings is punished, debt is lauded. (8/22)
This is why the economic correspondents on MSM stress the ‘Dangers of Deflation’ and how that must be avoided at all costs. They never say why it’s bad. They can’t, because it’s not bad for you, it’s bad for the system, for the elites controlling the system. (9/22)
If you wanted to get into more detail than a twitter thread would allow, I’d recommend the excellent, Paper Money Collapse by Detlev Schlichter. He breaks down how close we are to the end of this very flawed system, if anything it’s amazing it lasted this long. (10/22)
Credit (money) gets created at the top of the banking system. Imagine a conveyor belt running from the Central Bank, through the finance sector, through industry and you at the far end. Everyone grabbing at it as the money goes past. Not much for you. (11/22)
With fixed supply of money. Your wealth would be your actual productivity. Also as technology improved things would get cheaper. You wouldn’t need to hunt around for risky savings products. Money would become more valuable over time The finance industry would be slashed (12/22)
Bitcoin for example does have a fixed supply, there will only ever be 21 million bitcoins. If this were to be the future of money an enormous shift in power away from Governments and the master of Finance to the people. They could not simply create money for themselves. (13/22)
You see why Gov are frantic to copy the Chinese digital Yuan, rushing out their own CBDC (Central Bank Digital Currency). They will engineer it so they can create new money, and give it to themselves, whenever they want. It preserves the existing power structures. (14/22)
That's scrapping the surface of what a CBDC can do, they're an absolute horror show! A CDBC wallet is held directly at the Central Bank, you only get to access it. So this means they can:
1.Track every single purchase you make and track every payment you receive. (15/22)
2.Work out from that exactly what they want in taxes, and deduct it without asking, or needing a tax assessment completed.
3.If you get a speeding ticket they can just deduct it immediately. (16/22)
4.They could decide that you are only allowed to spend £10 a week on red meat or alcohol or sugary foods.
5.They could fine you for using too much carbon that week, because you filled up your 4x4, or you took a plane somewhere, so they are give you a carbon fine. (17/22)
6. You did ‘wrong think’ on the internet so you get a higher tax rate. But 'Greta' is woke, so she qualifies for a low tax rate.
7. They could add expiry to money. Paid on Monday morning, and that money will cease to exist at midnight on Sunday if you haven’t spent it. (18/22)
You work, consume, work, consume. But never save. Suddenly, the propaganda behind the Great Reset makes a lot more sense. The great transfer of wealth from the people to the elites that started in 1971 could achieve its final horrifying form. (19/22)
I don’t expect all of this to happen on day one of a new CBDC. But then again in 1971 when the people allowed themselves to be taken off the Gold standard they had no idea they would struggle to buy an annuity and live the way a lifetime of work should allow. (20/22)
Or that their kids and grandkids would struggle to buy a simple family home. You see once they have a CBDC, everything I describe can be introduced, softly, softly, year by year. (21/22)
We are on the verge of a new monetary system, and if let them get their Vax passport and their CBDC we will be poorer, and our kids and grandkids will be cogs in a machine. Let’s stop cooperating, and while their still called Vax Passports. Let’s stop Digital IDs! (22/22)