There is an old saying in society that goes, if you can't beat them, join them. But an even greater axiom takes that adage and expands it to become, if you can't beat them, join them, and then take them over. It is this expanded axiom that is quickly being manifest in the banking industry as after three years of trying to destroy the concepts of bitcoin and crypto-currencies, the blockchain technology that underlies these alternative forms of money is being seriously looked at as a means to bring all money under one digital roof, and help usher in absolute control which the New World Order advocates have sought since the days of the discovery of the New World.
In a speech given last week by Andrew Haldane, who is a Bank of England economist, the analyst spoke on the faltering monetary system that is based on central bank control over cash and other monetary policies tied to physical money, and suggested that the success of Bitcoin as a digital currency via the blockchain is something that could be used to not only fully integrate the global financial system, but also allow central banks infinite power to regulate the value of money through interest rates tied directly to a digital currency.
In a talk given at the Portadown Chamber of Commerce in Northern Ireland on September 18, Andrew G Haldane, Chief Economist at the Bank of England (BoE), has hinted at the possibility that the U.K. government might issue a digital currency. Though the disclaimer “The views are not necessarily those of the Bank of England or the Monetary Policy Committee” ensures plausible deniability, Haldane’s talk seems to indicate that the BoE is at least seriously considering the possibility.
Haldane focuses on the inability of central banks to set negative interest rates to stimulate economic growth, which hinders the effectiveness of monetary policy and is known as the Zero Lower Bound (ZLB) problem.
“A central bank cannot reduce nominal interest rates below zero,” explained a 2014IMF working paper cited by Haldane. “This constraint arises from the existence of an asset, cash, with a guaranteed return of zero. A negative interest rate would mean that someone lends $100 and receives less than $100 in the future. Such a loan would never occur, because the lender could do better by putting cash in a safe deposit box.”
Therefore, Haldane suggests looking for technological means for implementing a negative interest rate on physical currency. More than a century ago, German economist Silvio Gesell proposed a stamp tax on currency to generate a negative interest rate. Modern variants of the stamp tax on currency have been proposed – for example, by randomly invalidating banknotes by serial number.
Another possibility is to abolish paper currency, which would also represent a way to fight criminal activities that rely on cash exchange.
Yet another possibility would be to issue government-backed currency in an electronic rather than paper form.
Interesting to note that both bankers and government officials ALWAYS tie their tracking of money to assumed criminal activities by common citizens, and never in regards of their own fraudulent and criminals schemes because doing so is would result in the destruction of confidence in both money, and their own policies.
The real purpose behind Bitcoin and Blockchain technology was to create a DE-CENTRALIZED system by which people could conduct commerce in a currency that was outside the control of banks, and government agencies. But when the former Metals Chief (manipulator) for J.P. Morgan Chase left the bank early last year, many thought she was being used as a scapegoat for several of the dozen or so frauds and crimes that J.P. Morgan was fined for over the past five years. However, with her creation of a new Blockchain technology company called Digital Asset Holdings, it appears now that she was directed by someone within the elite to harness the power of blockchain technology and see how it could be integrated into the formation of a complete digital monetary system that would be compatible with every bank, and eventually lead to a singular global digital currency.
Blythe Masters is talking her book in a cover story for Bloomberg’s magazine. She’s CEO of Digital Asset Holdings, a New York tech start-up she’s promoting blockchain, the digital ledger software code that powers bitcoin. Masters says the software will enable banks, investors, and other market players to use blockchain technology to change the way they trade loans, bonds, and other assets. The report says Masters is a “financial engineer” who helped create the credit-default swap market, which peaked at $58 trillion, in notional terms, in 2007 but was blamed by many for exacerbating the damage done by the subprime mortgage crash in 2008.
Not everyone’s a fan of the development. Jon Matonis, a founding director of the Bitcoin Foundation, a Washington group that promotes the cryptocurrency, told Bloomberg a private blockchain run by banks could end up as just “another cartel” and function as poorly as the payments consortium. Masters was also recently named chairman of Santander Consumer USA Holdings SC, -0.93% , the subprime auto lender controlled by Spain’s Banco Santander that faces scrutiny by U.S. regulators.
People continually ask economists and other analysts for exact dates for when the next crisis or paradigm shift will take place, but this is not what economists do. Instead it is our job to read the signposts and attempt to put together all the pieces of a puzzle so that investors, businesses, and even Joe Six Pack can take this information and make decisions and choices to protect themselves from what is coming, and what the future might look like. And with multiple banking cartel agents a this very moment in time calling for an end to cash, and a move towards a completely digital currency that the central banks can not only better use their monetary policies of QE and interest rate manipulations on, but as a result help remove one of the most important freedoms to mankind out of the hands of the people, and be able to control every aspect of your lives through the absolute control of money.