Tyranny of CBDC as reward-punishment system, distorting economy’s key vital signs.
By now you’ve heard of the coming Central Bank Digital Currencies (CBDC’s). Already in use in China, we’re not far behind. The authorities will dress it up with great marketing copy, of course!
“Convenient, sanitary, and a perfect vehicle to deliver stimulus right to your smartphone. Now who wants free money?!?” The announcement will come from Jerome and Janet (hips thrusting, Powell and Yellen, together at last, Biden propped up stage-left, black eyes glazed, staring in space…).
“May the odds be ever in your favor!”
Most of us plebes will welcome the news, numb and brutalized by 14 months of emergency authorizations, lockdowns and pandemic protocols. We’re now used to the giant baton thrusting at our backside.
Propaganda aside, CBDC’s are an inevitable Hail Mary as the money system is desperate for a reset. The towering edifice of hollow, bloated promises can only collapse inward if they don’t inflate the money supply fast enough to reduce the real value of debt and entitlement obligations.
The other bonus of CBDC (if you’re an empty-headed bureaucrat or an evil-minded busybody, and few others survive in government) is that through this mechanism, they can impart totalitarian control over where and how money is spent, a rewards-punishment system just for the plebes.
It’s diabolical, and pure tyranny.
In Asia already, expiration dates are pegged to digital currency via smartphone for the Chinese guinea pigs. Next, they’ll pinpoint not just when, but where money can be spent.
If we get this in America, we can stop calling it a ‘free country’. It won’t carry the brand, except in Orwellian fashion (admittedly, awfully fitting).
Connecting the dots to economic collapse
History is littered with examples; central planning doesn’t work.
Remember this when the blowhards on social media hoot and bark about arbitrary rules to improve society. If you like high standards of living, look backwards.
You either believe in liberty, or remain confused.
The only choice now is (a) willfully stop printing new money, resulting in crashing markets, business failures and a deep but temporary downturn correcting decades of malinvestment, reallocating resources into productive hands, or (b) a total collapse of the currency via hyperinflation.
We should choose option (a), take our comeuppance, and return to gold-backed money.
But we won’t. Instead, as we create money at a furious pace, we choose (b), mainly because (a) happens now (ouch), and (b) in the future (so, laissez les bons temps rouler…).
Staring into the dark abyss of Joe Biden’s black eyes, most of us have lost the will to care. Dispense the fix to our veins now, push the pain for our children later.
Even more alarming, the Central Bank together with the Federal leviathan actually think CBDC can save the day. Why? Because of the control aspect.
With it, they can dial up (or down) both money supply and velocity with knobs and dials from a control room, shrimp cocktail and hairless cats in hand.
If some prices start to run (lumber, anyone?), they’ll dial back demand by reducing the supply of money that can be used for it.
Want to inflate away the debts of your friends and donors? Presto, new money earmarked only to be used to pay off those debts.
Is some kook tarnishing the good name of the ruling party, writing children’s books to teach kids to question authority? No CBDC for you! Time to comply!
Want everyone vaccinated, then branded with digital bar codes? Sticks and carrots, carrots and sticks, the perfect reward-punishment system for plebes.
What could possibly go wrong?
Like textbook busybodies, the clowns and string-pullers see only intended consequences. The 2nd and 3rd order effects are missed.
The real risk for the ruling elite (aside from revolution) is that this whole cockamamie idea overlooks the primary vital sign for any and all economic activity: The price signal.
Money itself is not wealth, but simply a way to measure and transfer it.
Wealth comes from production, directed by a price signal. Price communicates demand to entrepreneurs who invest capital to produce for profit.
Using laser-guided money to manage demand will send unreliable, distorted signals that misallocate capital, putting people and resources into just the wrong industries at just the wrong times.
It’s the Head to the Soviet Union’s Tale, who had bureaucrats in Moscow dictating to factories how many shoes to produce.
The hubris is mindboggling.
In closing, there is no way around it: Collapse by central planning is inevitable, and CBDC’s cannot stave off the day. The disease is control, and the only cures are liberty, or collapse.
So, what can you do? You need a Plan B (and then C, if you can). We’re discussing our ‘lines in the sand’, perhaps when CBDC’s or mandated vaccines are introduced, that’s when we’ll know to seek liberty elsewhere. Draw your lines now, or you may be a frog in the pot as the water warms.
And if you cannot afford plans B and C? Just keep educating yourself and building resilience. You’re not a sheep, and for that you are already well ahead of the herd.
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