By the end of October 2019, Chinese President Xi Jinping gave a speech embracing blockchain technology and calling on his country to advance development in the field and soon after, on November 12th, Reuters came up with the report on the project of digital yuan, citing Mu Changchun, head of the People’s Bank of China’s digital currency research institute, who has given a press conference in Singapore…
The works were slowed down due to coronavirus, but by the middle of April, we have a wallet of the China’s central bank digital currency (CBDC), and tests in the four regions – Shenzhen, Xiong’an, Chengdu and Suzhou.
At about the same time, U.S. Congress published another COVID-19 bill, the “Automatic Boost to Communities Act” (ABC Act).
Previous Bills in March from Democrats in Congress and the Senate suggested distributing immediate cash relief using Digital Dollars, but this wasn’t practical timing wise. Instead, the latest Bill proposes that Digital Dollar wallets should be available by the start of 2021.
The Bill demands a universal basic income (UBI) of $2,000 per month during the crisis and, after that $1,000 per month for a year. To be financed by the issue of two trillion in dollar “coins”.
So, the coronavirus “crisis” is effectively acting as an accelerator for the introduction of mass population control technologies. Pushing the idiotic story how paper currencies are helping spread the coronavirus infection, is an enormous incentive towards quick transition to ‘contactless paying options’. Imposing a centralized digital currencies through fear is by no means, most effective way of replacing one tragic fraud with an even bigger one, and at the same time, evading any discussion about the differences between centralized and decentralized digital currencies.
A centralized digital currencies will be much greater fraud than paper fiat currencies, and also most dangerous means of totalitarian control you’ve ever imagined. With it, every transaction will be under the control of central authority, an effective issuer of the digital currency, and the same authority will be able to cancel all the assets of those people who are not ready to obey.
Seeking complete control
On November 12th, Mu Changchun, head of the People’s Bank of China’s digital currency research institute, said following at a press conference in Singapore:
“We know the demand from the general public is to keep anonymity by using paper money and coins ... we will give those people who demand it anonymity in their transactions, but at the same time we will keep the balance between the ‘controllable anonymity’ and anti-money laundering, CTF (counter terrorist financing), and also tax issues, online gambling and any electronic criminal activities. That is a balance we have to keep, and that is our goal. We are not seeking full control of the information of the general public.”
It is completely irrelevant if they are seeking full control or not. Centralized digital currency IS BY ITS PROPERTIES a tool of totalitarian control.
Returning to gold?
Furthermore, as Reuters reported on April 28th, the president of the Shanghai Gold Exchange (SGE) Wang Zhenying, called for a new super-sovereign currency to offset the global dominance of the U.S. dollar, which he predicted would decline long term, while gold prices rally.
Looking from the side, it may look like his comments on a new global currency are actualization of a proposal to reform the international monetary system, launched because, and during the 2008/09 global financial crisis. On the second glance, it is not quite clear was he thinking about reform the international monetary system with or without IMF at its helm, or reforming it from the foundation, with all the new institutions, which will not have a burden of destroyed credibility. In both cases, reformed (or new) monetary system would have to have a natural anchor – and since Wang Zhenying is the president of the Shanghai Gold Exchange, we have to presume that will be gold. That presumption points toward two expected consequences: Demise of dollar, and introduction of global digital currency backed by gold. Neither of those two leaving much space for optimism.
Centralized global digital currency backed by gold
Although that might look like a good idea, history tells us it is not. Whether centralized global digital currency comes as an intergovernment agreement or through imposition of currency by a dominant economic force, it never ends well. All the paper money that has ever been printed, always ended as worthless fiat. It’s a con game. See whole episode if you can. The one who controls emission of the currency, always ends in ‘overprinting’, only now with a digital technology, that con game is so much easier.
No matter how beautiful words you hear from your ‘trusty intermediary’, no matter how noble ideas you hear from your ‘keeper of value’, no matter how good guarantees government is offering, its all a con game that will end like fiat dollar ended on August 15th, 1971, when Richard Nixon revoked gold backing. Since that date, dollar was zombie currency backed only by…
Demise of dollar
The only sensible thing a con artist with a Nobel Prize for economy, called Paul Krugman has ever said, was this: “Fiat money, if you like, is backed by men with guns.” Establishing a new financial order will require a change of power relations. We can assume that U.S. will not agree to any reform of the international monetary system that will exclude dollar as a global reserve currency. Then, we can first expect a showdown that will include gold reserves, and the country who has the most of it willing to support its own digital currency, will prevail – possibly initiating a hot war on global scale. When it is finished, the new power will revoke gold backing as soon as it gathers enough “men with guns” to keep a value of its fraud for some time.
Unfortunately, this scenario is getting speed with every day of Covid-19 hoax, and Chinese digital yuan testing.
Let’s hope people will turn to decentralized currencies before this scenario goes too far…
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