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by Brandon Smith
April 30, 2024
from
Alt-Market Website
Global reserve currency status allows for amazing latitude in
terms of monetary policy.
The Treasury Department understands that there is constant demand
for dollars overseas as a means to more easily import and export
goods.
The dollar's petro-status also makes it essential
for trading oil globally.
This means that,
the central bank of the US has been able to
create fiat currency from thin air to a far higher degree
than any other central bank on the planet while avoiding the
immediate effects of hyperinflation.
Much of that cash as well as dollar denominated
debt (physical and digital) ends up in the coffers of foreign
central banks, international banks and investment firms where it is
held as a hedge or used to adjust the exchange rates of other
currencies for trade advantage.
As much as one-half of the value of all U.S.
currency is estimated to be circulating abroad.
World reserve status along with various debt instruments allowed the
US government and the FED to create tens of trillions of dollars in
new currency after
the 2008 credit crash, all while
keeping inflation under control (sort of).
The problem is that this system of stowing
dollars overseas only lasts so long and eventually the consequences
of overprinting come home to roost.
The
Bretton Woods Agreement of 1944 established the framework
for the rise of the US dollar and while the benefits are obvious,
especially for the banks, there are numerous costs involved.
Think of world reserve status as a "deal with the
devil":
You get the fame, you get the fortune, you
get the hot girlfriend and the sweet car, but one day the devil
is coming to collect and when he does he's going to take
EVERYTHING, including your soul...
Unfortunately, I suspect the time is coming soon
for the US and it may be in the form of a brand new Bretton
Woods-like system that removes the dollar as world reserve and
replaces it with a new digital basket structure.
Global banks are essentially admitting to the
plan for a complete overhaul of the dollar-based financial world and
the creation of a CBDC-centric system built on "unified ledgers."
There have been three recent developments all announced in
succession that suggest the dollar's replacement is imminent (before
this decade is over).
The IMF's XC Model - A Centralized
Policy for CBDCs
The IMF's
XC platform was released as a
theoretical model in November of 2022 and matches closely with their
long discussed concept of a global Special Drawing Rights basket,
only in this case it would tie together all CBDCs under one umbrella
along with "legacy currencies."
It's promoted as a policy structure to make cross-border payments in
CBDCs "easier" and this model is focused primarily on currency
exchanges between governments and central banks.
Of course, it places
the IMF as the middle-man in
terms of controlling the flow of digital transactions.
The IMF suggests that the XC platform would make
the transition from legacy currencies to CBDCs less complicated for
the various nations involved.
As the IMF noted in a discussion on
centralized ledgers in 2023:
"We could end up in a world where we have
connected entities to some degree, but some entities and some
countries that are excluded.
And as a global and multilateral institution,
we're sort of aiming to, you know, provide a basic connectivity,
a basic set of rules and governance that is truly multilateral
and inclusive.
So, I think that is - the ambition is to aim
for innovation that is compatible with policy goals and that is
inclusive relative to the broad membership of, say, the IMF."
To translate,
decentralized systems are bad.
"Inclusivity" (collectivism) is good...
And the IMF wants to work in tandem with other
globalist institutions to be the facilitators (controllers) of that
economic collectivism.
Bank for International Settlements
Unified Ledger
Not more than a day after the IMF announced their XC platform goals,
the BIS announced their plans for a unified ledger for all CBDCs
called the ‘BIS Universal Ledger.'
The BIS specifically notes that the project is
meant to,
"inspire trust in central bank digital
currencies" while "overcoming the fragmentation of current
tokenization efforts."
While the IMF is focused on international policy
control, the BIS is pursuing the technical aspects for the
globalization of CBDCs.
They make it clear in their white papers that a
cashless society is in fact the end game and that digital
transactions need to be monitored by a centralized entity in order
to keep money "secure."
As the BIS argues in their
extensive overview of Unified
Ledgers:
"Today, the monetary system stands at the
cusp of another major leap.
Following dematerialization and
digitalization, the key development is tokenisation - the
process of representing claims digitally on a programmable
platform.
This can be seen as the next logical step in
digital recordkeeping and asset transfer."
"...The blueprint envisages these elements being brought
together in a new type of financial market infrastructure (FMI)
- a "unified ledger".
The full benefits of tokenisation could be
harnessed in a unified ledger due to the settlement finality that
comes from central bank money residing in the same venue as other
claims.
Leveraging trust in the central bank, a shared
venue of this kind has great potential to enhance the monetary and
financial system.
There are three major assertions made by the BIS in their program:
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First, the digitization of money is
unavoidable and cash is going to disappear primarily because
it makes moving money easier.
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Second, decentralized payment methods are
unacceptable because they are "risky" and only central banks
are qualified and "trustworthy" enough to mediate the
exchange of money.
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Third, the use of Unified Ledgers is
largely designed to track and trace and even investigate all
CBDC transactions, for the public good, of course.
The BIS system deals far more in the realm of
private transactions than the IMF example.
It is the technical foundation for the
centralization of all CBDCs, governed in part by the BIS and the
IMF, and it is scheduled to go into wider use in the next two years.
There are already multiple nations testing the
BIS ledger today.
It's important to understand that whoever acts as
the middle-man in the process of the global exchange of money is
going to have all the power, over governments and over the populace.
If every movement of wealth is monitored, from the shift of billions
between governments to the payment of a few dollars from an
individual to a retailer, then every aspect of trade can be
throttled on the whims of the observer.
SWIFT Cross Border Project -
Another Way to Control the Behavior of Countries
As we've seen with the attempt to use the SWIFT payment network as a
bludgeon against Russia, there is an ulterior motive for globalists
to have a high speed large scale monetary transaction hub.
Again, this is all about centralization, and
whoever controls the hub has the means to control trade... to a
point.
Locking Russia out of SWIFT has done minimal damage to their economy
exactly because there are alternative methods for transferring money
to keep the flow of trade running.
However, under a CBDC based global monetary
umbrella, it would be impossible for any country to work outside the
boundaries.
It's not only about the ease of shutting a nation
out of the network, it's also about having the power to immediately
block the transfer of funds on the receiving end of the exchange.
Meaning,
any funds from any Russian source could be
tracked and cut off before they are allowed to get into the
hands of, say, a recipient in China or India.
Once all governments are completely under the
thumb of a centralized monetary system, a centralized ledger and a
centralized exchange hub, they will never be able to rebel and this
control will trickle down to the general population.
I would also remind readers that the majority of nations are going
right along with this program. China is most eager to join the
global currency scheme.
Russia is still part of the BIS, but their
involvement in CBDCs is still unclear.
The point is, don't expect the BRICS to
counteract the new monetary order, it's not going to happen.
CBDCs Automatically Require the
End of the Dollar as World Reserve
So what do all these globalist projects with CBDCs have to do with
the dollar and its venerated position as the world reserve currency?
The bottom line is this:
A unified CBDC system completely excludes the
need or use-case for a world reserve currency.
The Unified Ledger model takes all CBDCs and
homogenizes them into a puddle of liquidity, each CBDC growing
similar in characteristics over a short period of time.
The advantages of using the dollar disappear in this scenario and
the value of currencies becomes relative to the middle-man.
In other words,
the IMF, BIS and other related institutions
dictate the properties of CBDCs and thus there is no
distinguishing aspect of any CBDC that makes one more valuable
than the others.
Sure, some countries might be able to separate
their currency to a point with superior production or superior
technology, but the old model of having a big military as a way to
ensure Forex and trade favors is dead.
Eventually the globalists will make two
predictable arguments:
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"A world reserve currency under the
control of one nation is unfair and we as global bankers
need to make the system 'more equal'."
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"Why have a reserve currency at all when
all transactions are moderated under our ledger anyway? The
dollar is no longer any more easy to use for international
trade than any other CBDC, right?"
Finally, the dollar has to die because it's an
integral part of the "old world" of material exchange.
The globalists desire a cashless society because
it is an easily controlled society. Think of the Covid lockdowns and
the attempts at vaccine passports:
If they had a cashless system in place at
that time, they would have gotten everything they wanted.
Refuse to take the experimental vaccine?
We'll just shut off your digital accounts and you will starve...
This was even partially attempted (think Canadian
trucker protests), but with physical cash there's always a way
around a digital embargo.
Without physical cash you have no other options
unless you plan to live completely off the land and barter goods and
services (a way of life most people in the first world need a lot of
time to get used to).
I believe that a sizable percentage of the American populace will go
to war before they accept a cashless society, but in the meantime,
there is still the inevitability of a dollar crash to deal with.
Globalist organizations are pushing CBDCs to go
active VERY quickly, and as this happens along with the centralized
ledgers the traditional dollar will swiftly lose favor.
This means that those trillions in greenbacks
held overseas will start flooding back into America all at once
causing an inflationary disaster well beyond what we are witnessing
today.
As much as the economy has benefited from world reserve status in
the past it will suffer equally as the dollar fades, only to be
replaced by a framework even worse than fiat.
That is, unless there's a dramatic upheaval that
removes the globalist order from the equation entirely...
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