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
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Best Regards
Graham Summers
Chief Market Strategist
Phoenix Capital Research
Comments
Just think how easy asset forfeiture will be.
Ammo! The new currency for the people.
In reply to Just think how easy asset… by Umh
will he be nailgunned soon?
In reply to Ammo! The new currency for… by boattrash
Lemme guess: Buh guld.
In reply to will he be nailgunned soon? by HenryKissinger…
How i buh muh weed?
In reply to Lemme guess: Buh guld. by DownWithYogaPants
Weed will be free. They want you to have it.
In reply to How i buh muh weed? by johnQpublic
This is one of the big stories we should all be watching ... not that this will do us any good. If “they” want to do this - and they obviously do - they will do this.
sigh.
In reply to Just think how easy asset… by Umh
Exactly!
BitCoin was the BETA Testing.
In reply to This is one of the big… by Give Me Some Truth
Indeed, this article is powerful!
What's powerful and important, most people will not care!
In reply to Exactly! BitCoin was the… by Chupacabra-322
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.
Let me guess... 'phoenixcapitalmarketing.com' heavily pushes buying gold...
Wow, I guessed right
In reply to Dear Mr. Coeure, please… by Mr.Danglemeat
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?
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.
In the long run,
Fact 1: CTRL+P will continue.
Fact 2: UBI will come.
There's no way around it, because growth must happen!
In reply to If one were to ponder about… by DistortedPictures
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.
absolutely... by suppressing labor central banks have avoided inflation unleashing a red-pill moment upon the masses. little by little, step by step, transforming the fruits of our labor to their fruits of graft (nod to Wayne Jett).
In reply to Bartertown folks. Because… by VWAndy
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 Bartertown folks. Because… by VWAndy
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 Barter AND honest labor. … by Alananda
Right on the nuts, no other way to put it. (Golf Clap)
Along with Barter and Honest hard work ...
In reply to Once the stupid has its… by VWAndy
Long line of cars at every yard sale around here, people basically paying half retail for better quality. haven't seen a botcoin or a credit card yet. Online sale or trade same thing places are hopping Barter town will look a lot like a Flea market, except i expect the hookers to set up a tent.
In reply to Bartertown folks. Because… by VWAndy
2 things I got from this, keep stacking and digital wallets are for morons.
+1 and confirms what I have realised for a while Keynes is a NIRP concept if you add the inflate and deflate together as a inslge transaction in time.
In an underlying system the policy will be forced in the end to become NIRP.
You will pay to exist.
In reply to 2 things I got from this,… by oddjob
Yes, once labor is reduced to entries on a digital ledger we will "pay to exist."
The beast draws near. I can smell his stench on the breeze.
In reply to +1 and confirms what I have… by GreatUncle
Bartertown wont be all that bad for actual producers.
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.
Stranded or solid?
In reply to Metals will be gladly… by photonsoflight
When the next bubble bursts BECAUSE of central banking policies ALL central banks should be abolished and all the Central Bankers should be executed.
Youll have to elminate the Rothschilds and Rockefeller organizational personnel trees too (Among other global power broker trees).
There are only a certain amount of kernels at the needle point of this mess.
In reply to When the next bubble bursts… by P'Od_Accountant
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 ??
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.