That’s why today, we gathered numerous experts’ insights that outline the real implications of this measure to the fragile US economy, and explain how the shift to a digital currency might allow the institution to surveil every transaction ever made using their app. So stay tuned, and don’t forget to give this video a thumbs up, share it with friends, and subscribe to our channel not to miss the next unfoldings of the US economic collapse.
Recently, the Fed has accepted that its favorite stimulus pathway has failed to boost the broader economy, but instead of reviewing its current money-printing policy, Fed officials decided to put the blame on how it is intermediated, particularly the way it creates excess reserves that ultimately end at commercial banks instead tracking its path down to consumer level. That is to say, even though the institution doesn’t admit, since it introduced QE and NIRP, the Fed has only worsened the situation it has been trying to fix, while continued to expand the biggest asset price bubble in history.
Right after the start of the widespread shutdowns and the huge spike in unemployment, the Fed has tried to short-circuit this process, and hand in hand with the Treasury it has issued its first round of “helicopter money”, which provided the direct transference of funds to US corporations via PPP loans, and also to end consumers via the emergency $600 weekly unemployment benefits. But the trillion-dollar stimulus relief wore off at an extremely fast pace, even before millions of workers had the chance to file claims to receive some help.
Despite the economy increasing needs for a massive liquidity tsunami, the funds created by the Fed and Treasury still never managed to reach those who need them the most – the end consumers. Now, with the alleged goal of reaching consumers who have been traditionally underserved by financial institutions, the Cleveland Fed website has disclosed that “legislation has proposed that each American have an account at the Fed in which digital dollars could be deposited, as liabilities of the Federal Reserve Banks, which could be used for emergency payments.”
Although the measure might look like a form of assistance to the American people, analysts have been warning that this is the perfect opportunity for them to raise surveillance on the public’s transactions.
At some point, the Fed could also obliterate such digital currency and wipe out people’s accounts. But as experts have been pointing out, for the time being, their aim is to successfully disintermediate commercial banks, since it would both offer loans to US consumers and directly deposit funds into their accounts, in that way, the agency would have the power to actually make the entire traditional banking system obsolete.
And before you think this is some type of “tin-foil theory” Fed opposers are trying to propagate in order to discredit the agency, the institution itself admitted its intentions in a recent statement transmitted on their website. Here goes what they said word-by-word: “Other proposals would create a new payment instrument, digital cash, which would be just like the physical currency issued by central banks today, but in a digital form and, potentially, without the anonymity of physical currency. Depending on how these currencies are designed, central banks could support them without the need for commercial bank involvement via direct issuance into the end-users’ digital wallets combined with central-bank-facilitated transfer and redemption services.”
With that said, their plan to deposit “digital dollars” to “each American” essentially bypasses Congress and gives the agency targeted “fiscal stimulus” capabilities. In that sense, it could trigger a substantial reflationary spike since the marginal price setters for economic goods and services is the lower-income segment of the American society.
What we still don’t understand in why the media isn’t reporting this news just yet. Where are the reputable economists acknowledging the undeniable fact that China has just become the most powerful economy of the world? What we can surely say is that this signals the end of an era for the U.S. economy and the beginning of a whole new level of economic suffering.
Epic Economist website: https://www.epiceconomist.com