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THIS WEEK’S EDITORIAL
FEDERAL RESERVE CBDC STATEMENT: The Federal Reserve released a “study” on CBDC’s last week — Central Bank Digital Currencies — on Thursday. It stated that any US CBDC would have to “complement, rather than replace current forms of money and methods for providing financial services.”
They are “looking forward to engaging with the public, elected representatives, and a broad range of stakeholders as we examine the positives and negatives of a CBDC in the US”. BOOM interprets that the opposite way — they have no real desire whatsoever to hear from anyone but they are pretending to do so. They said The Fed “does not intend to proceed with issuance of a CBDC without clear support from the executive branch and from Congress, ideally in the form of a specific authorizing law.” Why? Because they can’t, that’s why. And they would also need clear support from their clients and owners — the commercial banks.
As BOOM has outlined previously, CBDC’s are actually electronic, non-interest bearing cash and that is a fine ambition, even essential as credit money demand slowly declines over time due to changes in demography. But all such proposals by most central banks to date have appeared confused.
Even statements from the BIS — the Bank for International Settlements — have been confused. Why? Because the central bankers are confused on this matter, that’s why. They are caught between their commercial banking clients and The People (as represented by the Government).
They (generally) do not issue currency as cash — that is most often done by Treasury departments directly or by the central banks under an arrangement with the Sovereign or with the national government in a Republic. So it would be a big step for any central bank to launch a CBDC without deep consultation — possibly an act of suicide — both for themselves and possibly for their national currency.
As usual, the answer lies in BOOM’s proposal — Quantitative Boosting. There is no need for CBDC’s but there is a need for non-interest bearing electronic cash. That problem can be easily solved via a Tripartite Agreement between central banks, their commercial banking clients and national governments. It’s time to get on with implementing it.
QB EXPLAINED: https://boomfinanceandeconomics.wordpress.com/2019/12/15/boom-as-at-15th-december-2019/
RUSSIA BANS CRYPTO: In clear language, the Bank of Russia has decided to crack down hard on Bitcoin and other Cryptos. They are proposing to ban transactions from the Russian market, prohibiting digital “coins” and tokens from being issued and preventing financial institutions from investing in them. They are also “proposing” to ban the mining of cryptocurrencies and the ability for investors to transfer back into Rubles. They intend to prosecute anyone breaking these diktats.
This is big news because Russians are very big traders of Bitcoin and other Cryptos, using international exchanges to do so. And Russia is also a hotbed of Crypto mining. This means that Russia and China have now stated their case — they will not tolerate the creation and use of Bitcoin and other Cryptos inside their borders.
And because they are the leading nations in the Shanghai Cooperation Organization, they will almost certainly impose that stance on the other nations in their circle of influence which could amount to 80 % (or more) of the people on the Planet. Nine countries, including China, have banned cryptocurrency completely, and another 42 have instituted restrictions making it extremely difficult to use.
In response, the US Dollar price of Bitcoin plunged to below US $ 40,000. It is trading below $ 35,000 now (at time of writing) while the price of Ethereum has fallen off a steep cliff to US$ 2,330. It was at $ 4,800 in early November so that is a fall of 50 % in price in less than 3 months. The rest of the Crypto markets are a sea of red as investors bail out with the Total Market Capitalization plunging below $ 2 Trillion to $ 1.6 Trillion. The Peak Market Cap was at $ 3 Trillion in November. Next Stop looks like US$ 1 Trillion (?) or less.
None of this would be any surprise to BOOM readers. You were warned in numerous editorials.
CHINA LOWERS MORTGAGE INTEREST RATES AND ONE YEAR FIVE YEAR LOAN PRIME RATES: China lowered their mortgage lending benchmark rates on Thursday as monetary authorities stepped up efforts to support the economy and especially its property sector.
The cut to the one-year and five-year loan prime rates (LPR) followed surprise cuts by China’s central bank on Monday to its short- and medium-term lending rates, and came days after the central bank’s vice governor flagged more moves ahead.
So China is lowering rates while the US Federal Reserve is looking at raising rates. This puts the Fed in a very difficult position. If the Fed raises rates, BOOM expects a token effort — 0.25% at the most and probably 0.15 % or 0.1 %.
China lowered its one-year loan prime rate (LPR) by 10 basis points to 3.70% from 3.80%. It also lowered the five-year LPR by 5 basis points to 4.60% from 4.65%. The 5 year loan prime rate is generally considered to be a reference rate for home loans. Watch for a boom in credit growth in February in China plus a CBDC release. China can easily cut interest rates because its CPI inflation rate in 2021 was only 0.9 %.
CHINA YIELD CURVE: The Chinese sovereign bond yield curve in its entirety has been very carefully lowered over the last 12 months right out to the 30 year yields. They are real money masters, no doubt. Soon in February, they will launch a huge stimulus of new money supply. The only question now is by how much and in what form? It will be a mix of new credit and new electronic cash.
BOOM expects the cash will be given to all Chinese people as a gift, probably on a household basis. Consumption will get a big boost as the middle class spends this new money in a whirl of transactional money velocity. The Chinese GDP will be as strong as ever as a result during 2022.
This is The Year of the Tiger with the Chinese New Year falling on Tuesday February 1st and ending on February 11th. Watch for fireworks in a monetary sense. Notably, last week some central banks raised their official overnight interest rates including Moldova, South Korea, Romania and Ukraine. Poland, Uruguay, Argentina and Peru have already raised rates this year.
CHRISTIAN PERRONNE — THESE ARE NOT VACCINES: On the Covid genetic injection therapies, Professor Christian Perronne stated in France last week — “these are not vaccines”. “The biggest scandal of this epidemic is that we have been made to believe these are vaccines. They are not vaccines at all.” He should know. He is a super expert in vaccines. Link: https://doctors4covidethics.org/strong-and-clear-statement-made-by-professor-christian-perronne/
He is: President of the Communicable Diseases Section of the Conseil supérieur d’hygiène publique de France from 2001 to 2007. President until 2016 of the Communicable Diseases Commission of the High Council of Public Health (HCSP). Member of the Scientific Council of the Institute for Research in Microbiology and Infectious Diseases (IMMI, INSERM) until 2013. President of the National Council of Universities (CNU), Infectious and Tropical Diseases Sub-Section13.
Also, he is a Former member and Vice-Chair of the European Advisory Group of Experts on Immunization (ETAGE), an expert group advising vaccine policy in the European region of the World Health Organization.
In economics, things work until they don’t. Until next week ………… Make your own conclusions, do your own research. BOOM does not offer investment advice.
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My reading reveals that The Shot is a failed Fake Vaccine at best, and it is attempted murder by spike proteins and Graphene Oxide at best, and much worse in about 10% of the doses which contain Genocidal mRNA segments (cancer, mad cow prions, AIDS) that purposely cause a myriad of human ailments and fatal diseases. PS: The Rothschild Central Bank System is the last place on Earth to charter our future money; their CBDC would become the ultimate 1984 Big Brother Financial Trap of the Beast we were warned about in Rev 13:17. Once the Central Bank gets its’ legal digital currency, all others will ultimately become illegal (even silver and gold, just buy stuff with your Eagles now and you get arrested). If the CBDC passes, then if you say one word TPTB doesn’t like, you won’t be able to buy a hotdog, travel, live.
I agree with you entirely rhs jr and thanks for the information. I was convinced that the Globalist oligarchs will go the CBDC route for total control, working with the CCP where they see it working out already:
The WEF Young Global Leaders groups, and others, coordinated all significant arenas: Big Media, Big Finance, Big Pharma, Big Government, Big Science, Big Medical etc. Everyone on the planet in a position of influence had been bought and paid for.
AND: Some of the people: https://www.informedchoiceaustralia.com/post/wef-and-their-young-global-leaders-program
Their plan had been in the incubator for many decades and is encapsulated in UN2020, UN Agenda 2030 and ID2020 – it’s all easily accessible on the web. But this is only the social/political part and actors like Gates, Buffet, Schwab et al are merely the front guys – the storm troops – the pawns on the global chessboard. The real powers behind the curtain are the Banksters. Yes, it’s all about the money.
Larry Fink confirmed in his report Q4 2021 that the global financial system is imploding and there is no way the ‘Masters of the Financial Universe’ will hold it together much longer. This followed the carefully hidden events around September 16 2019 – the Repo crisis and 2008 GFC before that. Here is Larry talking:
“We wrote in August 2019 about the nearly exhausted monetary policy toolbox and the challenges it poses for dealing with the next downturn. This has now come to the fore – and that’s why it is time to go direct with policy support. Simply using up the limited monetary policy space remaining – interest rates, forward guidance or even quantitative easing – could quickly put the macro focus on the lack of tools left and thus backfire. The only way to address this is to add further lines of defense and make fiscal policy an explicit part of the crisis response toolkit.”
https://www.blackrock.com/corporate/insights/blackrock-investment-institute/publications/coronavirus-policy-response
Embedded in his report above is: “……and make fiscal policy an explicit part of the crisis response toolkit.”. Do you know what this means? It means that the Banksters are planning to take over government in toto during the next crisis which is due very soon.