QUESTION: Interest on savings instruments (i.e. CD) for 1 yr terms is non-existent at <= 1.0%. Why would interest rates increase in a digital currency system/world?
IS
ANSWER: The only reason rates would rise is by simultaneously converting the debt to perpetual. They have to end Keynesian Economics. They cannot raise rates as long as they have to buy the debt as in Europe. Therefore, we see most countries preparing for the real BIG BANG which is the default on dent by converting outstanding debt to perpetual, then they no longer need to artificially suppress interest rates they cannot raise if the debt is still issued.
I tend to get called in because they know I will say the truth. I do not take funds from any group and we pride ourselves on independence. It is a club because unless you have been called in by one government you will not get into others. Very interesting criteria. Nevertheless, I believe you will see this simultaneously. A digital currency swap will allow then the perfect excuse to change the debt structure and then they do not have to outright default.
Big Bang began in 2015.75 within about one year of them moving to negative interest rates in 2014. The next crack is due 2021 and the big break post-2024. We are now entering the next phase and we are running out of time. That is what these lockdowns are really about. They know civil unrest will rise when the public realizes that the old financial systems are collapsing.Categories:Bonds
QUESTION: Marty, you mentioned several times now, that the ECB MUST convert to a digital Euro. I have done speeches about that based on a paper from the IMF (Christine Lagarde) last year, in which they too discuss how to do it. But I have a serious question regarding timing.
I live in Germany and I would say that WE (the country) are not ready for such a move yet. Let alone many people. I have people in my family who still don’t have smartphones (just plain mobile).
I am completely with you that this move is coming (I am also part of a crypto community but as a critical member (I am the party spoiler there)).
But how can they move to a digital Euro to prevent bank runs, when I can’t see the infrastructure in place to do so.
Especially in such a short amount of time rg. the date you mentioned. They can eliminate cash withdrawals, yes, but paying with my smartphone reguires technology .. ?
Thanks a lot,
A
ANSWER: We are talking about bureaucrats. They only think in concepts much like Klaus Schwab’s Great Reset. The practical application of what they are doing is not there. They lack even the infrastructure, as in California, to force all cars to be electric. They do not have the power grid to support that.
I was in meetings where they actually told me with a straight face that they had to take trading the Euro away from Britain. I asked if they were going to take it away from the USA, Japan, Hong Kong, Singapore, etc? They looked at me puzzled, and said no! Just Britain. I asked if they really wanted to control the Euro just convert it into the old Soviet Union ruble. No free market at all.
Then there was all the rage that in London the big banks all threatened that they would move their trading to Frankfurt if BREXIT took place. But again, neither Frankfurt nor Paris has the telecommunication capacity of London. They could not possibly set up shop in Europe. There is no infrastructure to match London.
The problem that is the hidden crisis is that they have DESTROYED their own bond market. The ECB cannot even allow its balance sheet to shrink as debt matures. The Federal Reserve was not rolling over the debt they bought back in the 2007-2009 crisis. As it matured, they cashed it in.
The ECB is trapped. It cannot shrink its balance sheet for there is no market for the debt. They have finally agreed to fund this Coronavirus destruction they organized by creating combined Euro Debt for the first time. That is because nation-states cannot raise the capital.
They lack the infrastructure on every front. That does not mean they will not try. They have run out of opinions. They are desperately trying to revive their debt market, but they have wiped it out with negative interest rates since 2014.
This is what I keep warning about. INFLATION has nothing to do with the money supply any longer. Those are an old idea from the time of Gresham’s Law in advising Queen Elizabeth not to debase the currency as her father did.
We must understand that the exchange value between the various currencies back then was the metal content. Therefore, inflation was a factor of the exchange rate rather than the money supply. The more the coinage was debased, the more people hoarded the old currency. Hence, Gresham’s Law became that bad money drives out good. As this process takes place, the money supply DECLINES because of hoarding. This forces the state to debase even more to create money to pay its expenses. Roosevelt confiscated gold in 1934 for the same reason – people were hoarding gold. The German hyperinflation was the result of the 1918 Communist Revolution which scared people and they converted their money to foreign currencies and hoarded precious metals. The greater the hoarding, the more the money supply shrank, which in turn forced the government to print more.
We find hoards of Roman coins during the 3rd century in particular after Valerian I (253-260AD) was captured by the Persians. That broke the confidence of the Roman people and other barbarian tribes in the north saw the weakness and began to invade.
The coinage collapsed in metal content in just 8,6 years. We find hoards of even the debased coinage because people lost confidence in the government. We see the very same patterns in human behavior over and over again.
This is a hoard of Arab gold dinars. We see always the same pattern of hoarding when there is a decline in the confidence of the government in power at that time.
The ECB can cut rates to try to stimulate and that failed. People are hoarding cash in Europe and that creates deflation. There is NO AMOUNT of money that can be created to offset the DEFLATION when people lack any confidence in the future. Then they are imposing this “New Norm” of lockdowns and destroying jobs and they actually expect to sell debt and keep interest rates at negative and somehow this will stimulate the economy they have worked so hard at destroying? The increase in the money supply of all these central banks is still less than 20% of the economic contraction globally.
QUESTION: Hi, Mr. Armstrong I noticed that the national news agency in my country had an article about a local digital currency in Maricá, Brazil. It is called Mumbuca. What I read about Mumbuca sounds good and all that, but I am curious if the news is just conditioning people to a new age of digital currency. Do you have any comments about Mumbuca? Thank you for your time and what you stand for. Best Regards AA
ANSWER: It is important to highlight that Mumbuca is a local digital currency whose name is a reference to the main river and to one of the native peoples of the city. A unit of Mumbuca is equivalent to R$ 1.00 (US$ 0.19). What is interesting is that this is a local city currency much like the Depression Scrip of the 1930s. This is really an experiment of guaranteed basic income. Increasingly, customers in the city don’t pay with cash but with this digital currency. They receive it as part of the town’s basic income program. They pay with a quick scan of a QR code, using their phones. So far, just over 42,000 inhabitants can pay local merchants with Mumbuca.
This is Brazil’s first big experiment with digital currency. Those without smartphones can pay using a card, which has a scannable barcode. They are way ahead of the game and, actually, it is being followed closely internationally.
The NBA championship had historically low viewership; NFL and NASCAR audiences are shrinking faster than Biden’s mental dictionary; and now the Über-woke ESPN announces another round of layoffs to stem the financial bleed. Yup, ‘get woke – go broke‘ continues.
(NJ.COM) – ESPN could lay off hundreds of employees in the coming weeks … One source pegged the potential number of job losses between 300 and 700 employees. Another estimated 400 possible lost jobs.
The cuts are expected to hit hardest among ESPN employees who work behind the camera. But some on-camera TV and radio talents could be impacted — particularly if their contracts are expiring this year. The network may also ask its highest-earning talent and executives to take a reduction in salary. The goal is to potentially cut tens of millions in salary, said sources.
[…] The job cuts would come as Disney — ESPN’s parent company — is bleeding money because of the COVID-19 crisis, which has slashed theme park, cruise ship and movie theatre attendance.
ESPN has shed payroll a few times in the last three years. It went through a pair of purges in 2017, which saw some of the network’s most popular on-air talent and some of its longest-tenured studio production employees receive pink slips. In 2019, ESPN the Magazine was shuttered.
QUESTION: I thought big police forces are malinvestment just like big government. doesn’t returning to hard money reduce malinvestments?
BF
ANSWER: These people can no longer fund themselves by borrowing. I have been advising in Europe that the Euro could never become a major reserve currency without a single debt. They are now looking at that option and the European Commission is expected to sell consolidated debt into the bond market this month for the first time on a large scale to fund its coronavirus-relief programs. Meanwhile, the European Central Bank on Friday took a step closer to issuing a digital version of the euro. Even Goldman Sachs admits that Biden’s tax plan will hurt the economy. We already have the IRS being investigated for using your location data to tack you for possible hidden assets. Do you really think these people would EVER return to hard money that they cannot spend whatever they want? Socialism would have to end under hard money. This is not a rational expectation from people embracing MMT because they are running out of other people’s money to spend.
We have run out of other people’s money. They are hunting money like a starving animal. They see Modern Monetary Theory as the answer – create money at will under the new theory that there will never be inflation.
The nation was shocked as surveillance video showed earlier this month as a person ambushed and shot two sheriff’s deputies while they sat in their patrol car in Compton. Both deputies were shot in the head and face; however, they were able to radio for help as they triaged their injuries. The entire event was horrific.
Today investigators arrested a suspect and District Attorney Jackie Lacy said attempted murder charges have been filed against 36-year-old Deonte Lee Murray.
Los Angeles – Investigators have arrested and charged a man in connection with the shooting of two Los Angeles County sheriff’s deputies earlier this month as they sat in a squad car, authorities said Wednesday.
Attempted murder charges were filed against Deonte Lee Murray, 36, District Attorney Jackie Lacey said in a press conference.
Murray was arrested two weeks ago in connection with a separate carjacking and he was expected to be arraigned later Wednesday. (more)
I am often asked about what has gone wrong with our system of government. I answer that nothing is wrong with the system—there is something wrong with us.
We have not held ourselves or our elected officials accountable for their actions. We have not confronted them about their promises made and those promises not kept. We have not challenged them when they come home to visit—if they come home—to explain why they campaigned on one platform and then, the moment they get to DC, they immediately cast themselves as swamp creatures. They turn their backs on their constituents and, even if challenged on fundamental issues, give us the Potomac Two Step Shuffle to avoid answering tough, direct questions. More on this very issue in my VA section later in this newsletter.
Why do we not hold our school boards and administrators accountable
Why do we not hold our school boards and administrators accountable, particularly after we see the garbage our children are being taught? Why do we not go to school board meetings and demand that parents be surveyed about what they, the parents, want for their children as this pandemic hypocrisy plays itself out? Why do we not demand what is best for the families as opposed what is best for teacher unions? Why do we not hold board members accountable for their rubber stamping stupid, dangerous rules that put outputs ahead of out-comes for your children? Why? Explain that to me.
Why do we not hold our governors and legislators accountable for the fact that, in Iowa, it continues to be the worst state in which to do business? Why do we not hold those same individuals accountable for not having school choice options where taxpayer dollars follow the child instead of the school district. In Iowa, there needs to be charter schools, online options, homeschooling options and a voucher program. Why are taxpayers, including those who no longer have children in school, not demanding that our elected officials give parents as many options as possible?
Taxpayers need to ask their governors and legislators why tax structures have not been fixed so that states are more attractive to businesses? Why do Iowans stand for the fact that one man and his backers have a near strangle hold over who gets elected and who doesn’t? When are we going to wise up, find our voices and “throw off bad magistrates?” Remember, these jackabouts work for us. We do not work for them.
Conservatives & Conservatism Scare Republicans
I am so tired of having people be nice about things. We have lost civility in our culture, I get that, but the time for being nice to our politicians is over. We hoist these people onto pedestals. Trust me, they do not deserve it. Most are unscrupulous, self-serving and have lost their moral centers. I know, I have been around so many and fitting into the stereotype is consistent across the board. What is most disturbing is not what the Democrats do but what we get out of our Republican side. We know what the Democrats will do. We have their playbook and know their approach inside out. What we don’t expect is what we get out of the Republicans.
The Republicans suck in newbies and those newbies, star-struck with the attention they get, become arrogant and narcissistic. That is why when they come home and you confront them, they get defensive, haughty and condescending. They treat us like petulant children, pat us on the head and ask us to sit in the corner.
They will take care of things, because we don’t have the knowledge, skills or wisdom to worry about these “complicated” issues.
What is really happening is that conservatives and conservatism scare them.
Conservatives are principled individuals who will not bend to the intoxicating aspects of being on Capitol Hill, regardless of where that is.
I have created this site to help people have fun in the kitchen. I write about enjoying life both in and out of my kitchen. Life is short! Make the most of it and enjoy!
This is a library of News Events not reported by the Main Stream Media documenting & connecting the dots on How the Obama Marxist Liberal agenda is destroying America
Centinel2012 