A New World Monetary Order Is Coming
Via Activist Post, Bitcoin.com
The global coronavirus pandemic has accelerated several troubling trends already in force. Among them are exponential debt growth, rising dependency on government, and scaled-up central bank interventions into markets and the economy.
Central bankers now appear poised to embark on their biggest power play ever.
Federal Reserve Chairman Jerome Powell, in coordination with the European Central Bank and International Monetary Fund (IMF), is preparing to roll out central bank digital currencies.
The globalist IMF recently called for a new “Bretton Woods Moment” to address the loss of trillions of dollars in global economic output due to the coronavirus.
In the aftermath of World War II, the original Bretton Woods agreement established a world monetary order with the U.S. dollar as the reserve currency.
Importantly, the dollar was to be pegged to the price of gold. Foreign governments and central banks could also redeem their dollar reserves in gold, and they started doing so in earnest in the 1960s and early 1970s.
In 1971, President Richard Nixon closed the gold window, effectively ushering in a new world monetary order based solely on the full faith and credit of the United States. An inflation crisis followed a few years later.
In response, the Federal Reserve took the painful step of jacking up interest rates to defend its wilting Federal Reserve Note and tame rising prices.
Fast forward to 2020, and the Fed has assumed for itself novel policy mandates that are a precursor to a new monetary system.
But the monetary masters aren’t contemplating a return to sound money. Rather, they’re planning for even more debt, more inflation, and picking of winners and losers in the economy.
The Fed has unceremoniously thrown its statutory dual mandate of full employment and stable prices out the window. It now gives itself an unlimited mandate to inject stimulus and bailout cash wherever it sees fit (including, recently, “junk” bond exchange-traded funds).
Instead of pursuing stable prices, the Fed is now explicitly embarking on an inflation-raising campaign with the goal of generating annual price level increases above 2% for an undefined period.
The next frontier of the Fed’s unlimited mandate could be “FedCoin” – a central bank digital currency.
Earlier this month Chairman Powell participated in an IMF panel on international payments and digital currencies. He touted electronic payments systems and raised the possibility of integrating them into a central bank digital currency regime.
Powell has so far declined to outright endorse a move toward a fully cashless system which countries including China and Sweden are spearheading. But he is on board with the larger globalist agenda of expanding the role of monetary policy in shaping economic and social outcomes.
Under a central bank digital currency, direct credits and debits could replace stimulus checks and taxes. It would be the vehicle through which modern monetary theory could be fully implemented – with the central bank becoming tax collector and funder of all government operations.
If depreciating the value of the currency through the inflation tax wasn’t enough, the Fed could also stick dollar-holders with a direct tax in the form of negative interest rates. Once paper notes are phased out, holding cash itself would no longer be a way for individuals to escape negative rates.
The only escape hatches would be volatile alternative digital currencies (such as Bitcoin) or hard money (gold and silver).
Under a monetary order where electronic digits representing currency can be created out of thin air in unlimited quantities, the best hedge is the opposite – tangible, scarce, untraceable wealth held off the financial grid. Full Article By Stefan Gleason @ Actvist Post
The Great Financial Reset: IMF Managing Director Calls for a 'New Bretton Woods Moment'
As the global economy shudders from the disastrous effects of central planning, the International Monetary Fund (IMF) managing director in Washington, DC, Kristalina Georgieva is calling for a “new Bretton Woods moment.” Georgieva spoke about the juncture on October 15, and she stressed today’s economic hardships are the same as the difficulties the world faced at the end of World War II. Free market advocates on social media and forums believe the IMF managing director’s recent Bretton Woods speech should invoke increased suspicion.
On Thursday, October 15, the IMF published a speech written by the IMF’s Washington, DC managing director, Kristalina Georgieva called “A New Bretton Woods Moment.” The article has caused sound money and free-market advocates to grow concerned that a big change is coming and possibly a great financial reset. Economists, analysts, and bitcoiners have been discussing the IMF managing director’s speech since it was published on the IMF website on Thursday.
A few days later on October 18, macro strategist Raoul Pal said Georgieva’s article alludes to a “huge” change coming to the global financial system. . .Full Article By Jamie Redman @ Bitcoin.com