A Central Banking Insider Just Revealed the Blueprint For When the Next Crisis Hits

If you’re looking for insights into what Central Banks have planned when The Everything Bubble bursts, on Monday one of the European Central Bank’s (ECB) top bankers provided a blueprint.

Benoît Cœuré, has been a member of the Executive Board of the ECB since 2011. As such is one of SIX individuals who have dictated ECB policy during that time.

This means he’s been involved in:

  • The second and third Greek bailouts.
  • The Spain bailout.
  • The Portugal bailout.
  • The second and third Romania bailouts.
  • The Cyprus bail-ins.

Cœuré has operated at the highest level of monetary/ financial policy during a period in which numerous financial/banking systems were experiencing systemic risk.

Put simply, there are fewer than 100 people on the planet who are as familiar with how Central Banks perceive the risks in today’s financial system as well as the policies said Central Banks will unleash when the next crisis hits.

With that in mind, let’s take a look at what he had to say regarding both in the speech he gave titled The Future of Central Bank Moneyat the International Center for Monetary and Banking Studies in Geneva yesterday.

In my remarks this evening I would like to share some more general thoughts on the role of the central bank’s balance sheet in the economy. My focus will be on central bank liabilities – that is, money created by central banks to be used as a means of payment and store of value…

What distinguishes the discussion today from previous discussions, however, are three new facts: 

The first is that we are seeing a dramatic decline in the demand for cash in some countries, in particular Sweden and Norway.

The second is that central banks today could make use of new technologies that would enable the introduction of what is widely referred to as a “token-based” currency – one based on a distributed ledger technology (DLT) or comparable cryptographic technology.

And the third “new” fact, at least from a long-term perspective, relates to the role of central banks in setting monetary policy, and more recently to the emergence of negative rates as a policy instrument and the consequences for the transmission of monetary policy.

Source: ECB

Reading between the lines, Cœuré is talking about:

  • Potential cash bans in tandem with negative interest rates (the problem with physical cash is it allows you to avoid paying interest via NIRP because you can simply store it yourself instead of keeping it in a bank).
  • Shifting over to a completely digital currency controlled by a Central Bank.

Cœuré finishes by stating that the near-term benefit of this is minimal, but that in the medium term

…a more incremental reform could consist of giving a broader range of financial market participants access to the liability side of the central bank’s balance sheet,provided that this can help strengthen the transmission of monetary policy in an environment of excess liquidity.

Source: ECB

Put simply… discussions of ending physical cash and introducing strictly digital money are taking place within the highest circles of Central Bankers.

If you think this isn’t coming to the US, you’re mistaken.

Indeed, we've uncovered a secret document outlining how the Feds plan to take hold of savings during the next round of the crisis to stop individuals from getting their money out.

We detail this paper and outline three investment strategies you can implement right now to protect your capital from this sinister plan in our Special Report

Survive the Fed's War on Cash.

We are making 100 copies available for FREE the general public.

To pick up yours, swing by….

http://www.phoenixcapitalmarketing.com/cash.html

Best Regards

Graham Summers

Chief Market Strategist

Phoenix Capital Research

 

Comments

Mr.Danglemeat Wed, 05/16/2018 - 11:22 Permalink

Dear Mr. Coeure, please remember to look over your shoulder...constantly,..

because ideas like this are,.... an invitation to get "roughed-up",....like, a ride in the trunk of an Audi 100.

 

Hanns Martin Schleyer, his driver and three police bodyguards say Schoene Gruesse!

(note: Wikipedia states Schleyer's cause of death was "gunshot", the correct cause of death is plural - "gunshots".

 

Just saying....

Love, 

Ulrike und Andreas,...

p.s.... we'll be back, fucker.

tangent Wed, 05/16/2018 - 11:43 Permalink

It was a good story until "we've uncovered a secret document". Wow, boring, I'm only looking for stories about mysterious or strange documents. Have any?

DistortedPictures Wed, 05/16/2018 - 11:55 Permalink

If one were to ponder about the future, it is easy to see that at some point digital currency will replace physical cash.  There are too many positives for the banks and central banks and governments to switch to all digital.  Also, at some point negative interest rates will be employed.  Most likely the next recession or all out depression.  As far as the central banks are concerned, their past and current monetary manipulation has worked fantastically.  So, it stands within reason that they will do it again, and this time to a higher degree.  Another inevitability is UBI.  Like it or not, this will pacify the masses for a little time.  Thus, the use of digital.  It is not a matter of if, but when, sadly.    

VWAndy Wed, 05/16/2018 - 12:00 Permalink

 Bartertown folks. Because it really is all about the honest labor. The fiat is really just the way they get that labor without having to pay full price.

Alananda VWAndy Wed, 05/16/2018 - 12:38 Permalink

Barter AND honest labor.  Wife of 30 years (duration of marriage, not her age!) and I came to poignant, age-old realization yesterday.  Long story short, finding younger people to do a day's honest work -- even for an hourly wage well above "the minimum" -- has proved very difficult.  "You're a bottom feeder" said an architect to me once, leaning over the dinner table as he listened to my tale of woe about plumbers and electricians doing shitty work at high cost.  Fast forward 20 years, we seek honest labor for gardening and landscaping.  The realization:  We had best start hiring folks with an agreement to complete a discrete, well defined job according to our standards and specifications before getting full payment for the work.  The major limitation of barter seems this:  Too few producers with whom to trade!  More anon.

In reply to by VWAndy

VWAndy Alananda Wed, 05/16/2018 - 12:54 Permalink

  Once the stupid has its funding cut off everyone will catch on fast. Or fucking starve.

 Reality is a bitch. The sooner she gets here the better.

 I always thought it was funny to watch people talk before the game starts. Then once the game starts we find out who is who. I cant wait to see the poor schmuck that tries to fill my shoes fail. 

In reply to by Alananda

photonsoflight Wed, 05/16/2018 - 13:29 Permalink

Metals will be gladly accepted around here. Not so much gold but silver and copper. Maybe steal and pig iron too. I want long peices of copper wrapped in insulation. Never mind what I want it for. Hehehe.

Conax Wed, 05/16/2018 - 16:03 Permalink

Crooks like bankers and politicians have more need for cash than us nobodies.  Graft, bribes, payola, bug out bags, hookers and blow all depend on the cash. The spice must flow.

It's hard to believe they will give it all up just to screw us.  They already screw us daily, so ??

ALANBEEKMAN Wed, 05/16/2018 - 16:03 Permalink

Meanwhile, in Illinois, the Fed wants to steal the equity from people's

homes to bail-out the insolvent public employee's pension funds.

Truly, the central banks' evilness knows no bounds.