It doesn't matter if it's Bretton Woods 2.0, the great reset, or the Coronavirus lockdown… You need to realize that all of it is just an intent to increase centralized power.
The IMF, the World Economic Forum and politicians, see the world the exact same way, whenever there's a problem, the cure is always more central planning. And more central planning means more control.
It's time for us all to be rebel capitalists, to fight these Marxist agendas and to stand up for free-market capitalism and personal Liberty.
In this article, I explain all you need to know about the IMF's plan to control everything, and how they plan on doing it through the central bank's digital currency.
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Central Planning Cowbell
As you can imagine, this revolves around Central Banks' Digital Currency, and potentially a global digital currency from the IMF using SDRs.
I'm going to explain this to you and I will start with the central planning cowbell. And yes, it's just like the Saturday Night Live skit with Christopher Walken.
These people at the IMF, the World Economic Forum and politicians, see the world the exact same way, whenever there's a problem, the cure is always more central planning.
Just like the cure for every single part of that song in the Saturday Night Live skit was more cowbell.
Have a problem with poverty?
No problem, more central planning.
We have a problem with clean air?
Not a problem, more central planning.
We have riots and looting, GDP is down 20% because of the coronavirus and unemployment is up over 10%. No problem! All we need is more central planning.
Their Bretton Woods 2.0 plan has three main objectives, and here is the evidence from the IMF's website you can read here:
- First, they want to micromanage the economies using central bank digital currencies.
- They want equal outcomes. They don't ever talk about equal opportunity. That should be the focus. They want more inclusion. They want a fairer economy. They want everyone to cross the finish line at the same time.
If we have a society that focuses on fairer outcomes, instead of opportunities, as Milton Friedman has shown us, you're going to have big problems.
That's why I always say these initiatives from the IMF, the World Economic Forum, or from these global elites, always have these overtones of Marxism.
- Their third objective green energy. I don't want to go down that path in this article because that's a whole different rabbit hole, but we need to understand that electricity is a less dense energy source than petroleum.
It's going to be very difficult for us to transition to that without decreasing our standard of living.
I understand that wind and solar is becoming more viable, but how many petroleum products are used to create that one solar panel you have on your roof in California?
I'm all for clean air, but it's a cost/benefit analysis. As Thomas Soul has taught us many, many times:
There are no solutions, there are only trade-offs.
But let's stay focused on the monetary component of Bretton Woods 2.0.
The IMF's own Fiat currency is the SDR: Special Drawing Right. The Genesis for the SDR goes all the way back to 1944 in the original Bretton Woods. Keynes saw Triffin's paradox coming in the future.
He said, “this isn't going to work.” He was very hesitant about the dollar being the world reserve currency. He thought it should be something outside of any one country.
If you're not familiar with what Triffin's paradox is, make sure you check the last article I recently did on The United States. You have to think about it this way:
The United States is about 30% of global GDP…
But dollars are used in about 70% of the transactions…
In order to create all those dollars outside the United States, theoretically, we have to run a trade deficit year, after year.
We have to import goods and export those green pieces of paper so the global economy can run at maximum efficiency.
The problem is it hollows out our manufacturing base, therefore, we end up not producing anything of our own and all the foreigners own our assets.
Because they take those green pieces of paper and they don't burn them, they go in and they buy treasuries, real estate, and stocks.
Keynes saw this problem all the way back in 1944, and we have to give him credit for that.
As a result, the IMF and the World Bank were created. They were created as a result of Bretton Woods, and the SDR became their Fiat currency based on the ideas of bank Corp and Keynes himself.
To better understand SDRs, here is a transcript of a video from the IMF's website.
The SDR was created by the IMF in 1969.
Currently, the amount of SDRs stands at just over $204 billion.
Its value is based on a basket of four key international currencies, the US dollar, the Japanese yen, the British pound, and the Euro. There are no notes or coins denominated in SDRs, but the SDR does play a role as an interest-bearing international reserve asset. The IMF allocates SDRs to its members in proportion to their standing in the organization, which is largely based on their share of the global economy.
The allocation of SDRs boost member country's official reserves. While SDRs cannot be used to purchase goods and services directly, countries can exchange them amongst themselves.
Once the SDRs have been added to a member country's official reserves, a country can exchange its SDRs for hard currencies, such as the US dollar, Euro, yen, or pound, through voluntary trading arrangements with other IMF member countries.
If a member purchases SDRs and its holdings rise above its allocation, it earns interest on the excess.
Conversely, if it sells SDRs and holds fewer SDRs than allocated, it pays interest on the shortfall.”
(End Of Transcript)
The way this would work is the IMF would be in control of everything.
Shocker. I know you can't believe it. Wow. It's amazing how that works.
Going back to cowbell. “We just need more central planning.” The IMF is in charge of everything, they solve all of our problems, but there's no free lunch.
The IMF would give the central banks of the different countries, on my whiteboard, SDRs as this backup reserve asset in exchange for data and control.
The central banks would have their own central bank digital currency, that would allow them to get around the banking system and lend directly to the private sector, more specifically, the corporations.
In their mind, they think this is our main problem because the banks themselves are required to create the majority of the money supply.
Unless the governments are just going into more debt through deficit spending and the central banks monetizing their debt.
In other words, creating more funny money to buy the bonds directly from the government, or in this shell game process we have in the United States, with the primary dealer banks.
And if this sounds familiar to you, it's very similar to the swap lines the fed came out with during the coronavirus going back to March. But those didn't work either because they stopped at the banking system.
None of the banks wanted to lend to the corporations that had this dollar-denominated debt, but all of their cash flows were coming in another currency. That was a big problem.
Why didn't the banks want to lend to the corporations?
Because they knew they didn't have a liquidity problem, they had a solvency problem. Way different than in 2008.
They didn't have enough cash flow coming in to service their existing debt, let alone, more debt thrown on them by the banking system itself. That's one of the main reasons why the Eurodollar system is broken.
Something that my good buddy, Jeff Snider, has been talking to us about for years now. Quite frankly, until he's blue in the face and no one other than us listens to him. Those central bankers should tune into his podcast called ” Making Sense.”
This is the problem the IMF sees, there's no way to get liquidity, the excess dollars, SDRs, or currency from the central banks to the corporations in the private sector to create inflation, to plug any holes, or for UBI stimulus.
The way the central planners think we can get around the problem of having to rely on the commercial banking system inside and outside the United States, whether it's country XYZ, ABC, or 123, is to have the central banks themselves have their own digital currency.
Here is a transcript of part of a clip of Jerome Powell discussing central bank digital currencies with the IMF.
Jerome Powell: We have an obligation to stay on the forefront of policy and technological innovation and developments as it regards payments, cross-border payments, CBDC, all of those things.
We do think it's more important to get it right than to be the first. And getting it right means that we not only look at the potential benefits of a CBDC, but also the potential risks, and also recognize the important trade-offs that have to be thought through carefully.
We have a responsibility, both to the US and to the world, that any steps taken for US digital currency be taken safely.
(End Of Transcript)
One thing I want to point out with the video of this transcript is that is Jerome Powell or any of the global elite are wondering why we don't trust them, it's because when anyone asks them a question, they never look into the camera and just give an honest answer.
He sits there and reads it off the page. It's obviously prepared. That's one of the main reasons no one trusts J Powell.
So if he wants people to trust him, he needs to look right into the camera, look us in the eye and give us an honest answer.
Although this may achieve the objective of the central banks being able to get funny money into the real economy, it presents a bigger problem in the sense of the IMF would be in control of everything.
I don't like the fact that the United States has the world reserve currency. I think there is a better alternative. But let's think this through.
At least right now, the United States is incentivized to help out the other countries in the global economy.
Those other countries:
1.Make our stuff.
2.Buy our debt
3.Keep our interest rates low, allowing the American public to have a higher standard of living because we are able to consume more than we actually produce.
So, the US has that incentive structure in place, and those incentives are aligned to a certain degree with other countries.
What would the IMFs incentive be to make sure the global economy is functioning properly or to its maximum capacity?
There isn't any incentive.
In fact, we need to understand the individuals that work at the IMF, that are in control, they're not even elected by the citizens of the individual countries. They're elected by the bureaucrats and the central planners themselves.
When you look at the fine print, you see that there's a lot more to this Bretton Woods, 2.0 than just the three objectives, the central banks, digital currency, and the IMF giving the central banks reserves in the form of SDRs, so the system runs more smoothly.
There are no certainties, but I think there's a probability that the Bretton Woods 2.0 is more about total control of the entire global economy.
According to the IMF:
A number of analysts- Richard Cooper, Barry Eichengreen, and Tommaso Padoa-schioppa- have suggested that any ambitious reform of the SDR should also embrace the private use of this global currency.
Right now, you can't buy groceries at the grocery store with SDRs, but they're saying that they want that to be a reality in the future.
This could include using SDRs to denominate private or government bonds, or as a unit of account in commercial transactions, for example, in commodity pricing. A virtual SDR could facilitate the SDRs use in private transactions, creating a global cryptocurrency.This would certainly be preferable to the existing crypto assets, all of which have experienced highly volatile prices.
They're taking dead aim at Bitcoin and they want the SDR, or a crypto digital version of the SDR, to be the global currency that they control. If you control the money, you also control the people.
Why More Cowbell Won't Work
It's actually very simple how Cowbell won't work.
If we look at the financial economy and the real economy, on the left side of the whiteboard, the IMF wants to insert themselves right at the top.
They want to control everything below them, the central banks, like the fed, the government, the primary dealer banks and the stock market.
But on the right side, you can see the real economy. They're in charge of producing all the goods and services, all the stuff we use on a daily basis.
Think this through.
How does a society become richer?
By just simply creating more currency units, regulation, and micromanagement?
Or does a society become richer simply by creating more stuff, more efficiently, at cheaper prices over time?
If we think of an extreme, it really illustrates this point well. If we're on a deserted island and the only thing we have is a stack of money…
Let's say we have a billion dollars, but the only thing around us is sand, a couple of coconuts, and maybe some saltwater. How rich are you?
You're dirt poor. You don't have anything because this pile of a billion dollars won't buy you anything because there's nothing. The production side of the equation has to come first.
As long as we're producing goods and services like the guy on the right side of my board, in a very simple economy with cows, corn, and cotton, it will allow the rest of the members of society to go out and produce other things because they don't need to produce the items for themselves.
So, they can go out, become engineers, doctors, nurses, teachers, and society, as a whole gets richer.
We don't need more top-down micromanagement, financialization of the economy, money printing, and artificially low-interest rates.
We need individuals just like you and me, to go out there and create more goods and services. That's how we improve the standard of living for society at large.
But as you would imagine, the IMF has a different view.
Prudent macro economic policies and strong institutions are critical for growth, jobs, and improved living standards.
Basically what they're saying is you plebeians in the real economy are just too stupid and ignorant to create more goods, services, and economic productivity on your own.
So, you need the guidance of all of these central planners at the IMF.
Their solution is more Cowbell like I've been saying. In other words, more central planning, and money printing, which over the long run always creates inflation and devaluates the currency.
Here is a chart of the dollar going back to 1913, when the Fed was started. You can see it's lost 95% plus of its purchasing power.
They also come in and want to stimulate the economy by creating excessive debt by lowering interest rates, so they're artificially low.
But we know the only thing that does is create asset bubbles. It forces the productive individuals to go further and further out the risk curve.
It turns them into gamblers because now they can't keep their money at the local community bank anymore and just park it in a savings account.
By the way, that money could be distributed better in the economy, more efficiently to do what? Create more goods and services.
They can't do that anymore because they're going to lose purchasing power to inflation because the central bank and the central planners are debasing that currency over time, intentionally, ironically enough.
So, people have to take their net worth and put it into the stock market, in WeWork or Tesla. They have to do whatever they can to just maintain their purchasing power, let alone to actually increase it over time.
What ends up happening is the real economy gets smaller and smaller, and the financial economy grows and grows.
Now, let's talk about some solutions. If the cowbell doesn't work, what can we do? It's very simple. We always tend to overthink this, but all we need is consistent rule of law, that's it. That's the first thing.
I know this because I've traveled the world. I've been to over 40 countries and I've been in countries where you don't really have to worry about things changing overnight.
I've also been in countries like Ecuador, where the rules change almost hourly. You never know what the new rule is going to be. You go from communism to capitalism, to socialism, to communism, to Marxism. You never know what you're going to get. It's absolutely crazy.
That's why there's very little investment in the local economy. It's just like playing a baseball game and every single night there are different rules.
The umpire just decides at will whether there's going to be 1 strike in your out or 10 strikes in your house, who knows? You could never play the game, and it's the exact same way with the economy.
That's why I always say the best thing that politicians could do when they're elected is take four years off and then quit. Just go straight to the golf course. Never go to the office. Don't do anything.
We have something that works pretty darn well. It's called the constitution. We don't need anyone coming in, making all these additional rules just to buy votes in pander to your constituents.
The other thing you need along with a consistent rule of law is sound money. We don't want to always lose value. We want it to stay the same, if not increasing in value. That's why Bitcoin and Gold are so important.
But if we had the consistent rule of law and sound money, we would have:
- More investment. Which means more stuff being created.
- The more stuff that's created, the more jobs we create.
That's what creates the demand for this stuff. Then, we'll have a positive feedback loop going up and up and up, taking society to the next level.
It's the complete opposite of the doom vortex feedback loop we get with more and more IMF, cowbell, world economic forum and Bretton Woods 2.0.
The End Game Warning
This may be the simplest step I've ever gone over in one of my articles, but it's definitely the most important.
There's an inverse relationship between centralized power and the ethics, morals, and character of the individuals who seek that power.
As centralized power increases, the ethics, morals, and character of the individuals who seek the power, decrease.
This makes sense, because if you think about what it takes to be a good politician or win an election, you have to be a fantastic liar. You have to have no values or principles whatsoever.
You have to be willing to say whatever is required to get the vote. You have to be incredibly greedy and have an insatiable lust for power.
We can see that clearly with today's politicians, the individuals at the IMF, and the world economic forum.
If centralized power is very low, we're most likely going to get one of the people that's vying for the position, and eventually will be in charge.
If centralized power is incredibly high, you're most likely going to get the guy with the redhead I drew on my whiteboard, calling the shots sooner or later.
So, whether it's Bretton Woods 2.0, a great reset, or the lockdown for the coronavirus, you need to realize that it's increasing centralized power. Therefore, the probability of us getting the next Mussolini, Mao, or Joseph Stalin is increasing.
It's time for us all to be rebel capitalists, to fight these Marxist agendas and to stand up for free-market capitalism and personal Liberty.