from Birch Gold Group:
This week, Your News to Know rounds up the latest top stories involving gold and the overall economy. Stories include: What to watch out for in the coming financial crisis, Citi thinks $30 silver is a lowball forecast, and how to solve the debt ceiling stand-off with a single platinum coin…
TRUTH LIVES on at https://sgtreport.tv/
Gold is the best defense in a financial crisis of privacy, property and ownership
Stansberry Research’s George Gammon joined Daniela Cambone in an in-depth interview detailing the imminent financial crisis. One of the primary assertions Gammon makes is that the crisis is going to differ from previous ones. That much has already been beaten in, to the point of even the IMF saying it will be unlike previous crises. But what’s the difference?
Gammon believes central bank digital currencies (CBDCs) are going to take center stage in what’s shaping up to be a decade-long financial tumult. It will have similarities to 1940s, along with some rather controversial developments. In fact, Gammon tells us we was roundly criticized in 2019 for promoting “conspiracy theories.“ A lot of these predictions have either already materialized or are in the works. The Federal Reserve is rolling out FedNow, while both the International Monetary Fund (IMF) and the Bank of International Settlements (BIS) are having ominous meetings over some kind of global digital currency.
FedNow, says Gammon, isn’t a CBDC per se, but the groundwork to implement a digital dollar more rapidly.
Interestingly, Gammon feels that despite FedNow’s existence, the U.S. might be the nation most intolerant to a national digital currency. (For some background on this, check out Lance Wallnau’s recent article What, Exactly, Is the Point of a Digital Dollar?)
How would the federal government implement such an unpopular solution, then? Gammon says the crisis of regional banks is the perfect excuse to roll out CBDCs, because a central bank can’t go bust even if it goes negative. Other incentives could include access to the Federal Reserve’s much higher interest rates (currently 4.83%) compared to those offered by commercial banks (current average 0.24%, or 1/20th the rate offered by the Fed, directly to banks). That, alone, might be enough to encourage significant and even enthusiastic adoption by citizens more afraid of inflation than of the government.
In a scenario where a CBDC is rolled out in the U.S., every citizen’s money will be moved to the Fed’s balance sheet. From there, the implementation of the good old social credit score and monetary controls would be trivial – there are probably off-the-shelf software packages already for sale that would enable comprehensive financial surveillance.
And “financial surveillance“ is only the beginning – just a short step away from “economic enslavement.“ Gammon uses the example of limiting citizens’ access to their money if they aren’t “environmentally friendly” enough.
While we watch the troubling saga of CBDCs unfold, we have more overt issues in the form of inflation and interest rate manipulation on another. Gammon likens the coming decade to the 1940s, where the U.S. would go to 20% inflation, then dip into deflation, and then back. On one hand, Gammon feels like near-term inflation might have peaked. On the other, experts are expecting a pullback by as much as a hundred basis points by the Fed by year’s end. So it looks like another CPI spiking cycle is in the books.
