CBDC Shocker: Project Goes UNDERGROUND | Future of Money

1 year ago
167

A digital dollar (CBDC) replacing the US dollar as it exists today is a major event in the financial system for a number of reasons. First, the US dollar is a reserve currency, meaning it is held by many central banks around the world as part of their foreign exchange reserves. This has been the case since the end of World War II, when the Bretton Woods Agreement established the US dollar as the international reserve currency.

Before the US dollar, other reserve currencies included the British pound, the French franc, and the Dutch guilder. The US dollar has remained the world’s dominant reserve currency despite the rise of the Euro and other currencies. China has been at the forefront of the CBDC movement, having recently completed a test of its own digital yuan. While the test was limited in scope, it demonstrated the potential of a CBDC to improve the efficiency of payments and reduce transaction costs. At present, numerous countries are exploring the potential of CBDCs, including the US, the UK, Canada, and the Eurozone. In addition, the Bank for International Settlements, which represents the world’s central banks, is studying the implications of a CBDC for the global financial system. Given the importance of the US dollar as a global reserve currency, the introduction of a digital dollar would represent a significant event for the financial system. It would open up new possibilities for payments, remittances, and foreign exchange, and could potentially challenge the existing global monetary system.

The 1970s were a tumultuous decade for the global economy. In the United States, inflation became a major problem, as prices rose dramatically in the wake of the 1973 OPEC oil embargo. The Federal Reserve, attempted to rein in inflation with a series of small interest rate hikes. However, these hikes were not enough to stop inflation from spiraling out of control. The Fed's policy of raising interest rates too slowly and too gradually allowed inflation to increase unchecked. Inflation expectations, or the belief that prices will continue to rise in the future, created a self-fulfilling prophecy. As people expected prices to rise, they increased their spending and borrowing in order to buy goods before prices went up. This increased demand, which in turn drove up prices even further. The Fed's failure to raise interest rates high enough and quickly enough caused inflation to surge and eventually forced the Fed to raise rates much higher in order to bring inflation back under control. Unfortunately, this policy of "stop and go" monetary policy created economic instability and contributed to the economic malaise of the 1970s.

Paul Volcker, the Chairman of the Federal Reserve in 1979, famously said "We didn't act soon enough. We didn't act boldly enough. We didn't move with sufficient force"

TOPICS AND TIMESTAMPS:
New Paradigm 0:00
Inflationary Spiral 7:18
2023 and Beyond 10:45

—————————————————————————————————

💵 HOW TO MAKE MONEY ON AMAZON: 💵
👉 http://TheAmazonGPS.com 👈

—————————————————————————————————

LOOK THROUGH MY BOOKS! http://books.themoneygps.com
MY FAVORITE BOOKS: https://youtu.be/Y_mwbfp1ULU

SUPPORT MY WORK: https://www.patreon.com/themoneygps
PAYPAL: https://goo.gl/L6VQg9

—————————————————————————————————

Buy GOLD and SILVER from Miles Franklin:
Call 1-888-81-LIBERTY (Tell them The Money GPS sent you)

—————————————————————————————————

Sources Used in This Video:
http://bit.ly/TheMoneyGPSSources2022

—————————————————————————————————

The Money GPS is the most active, most informative channel in the financial world. Day after day, breaking down the data and making it easy to understand. This channel is not here to help build a portfolio, give stock picks, or financial advice. It's simply data that is generally not found through conventional means.
#money #inflation #investing

Loading 2 comments...