Bank of America: Fed Will Use Digital Dollars To Unleash Inflation, UBI And Debt Forgiveness

(Activist Post) When we recently described the upcoming “Unprecedented monetary overhaul” which will come in the form of the Fed sending out digital dollars directly to “each American”, we explained that:

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Source – Activist Post

by Staff Writer, October 23rd, 2020

absent a massive burst of inflation in the coming years which inflates away the hundreds of trillions in federal debt, the debt tsunami that is coming would mean the end to the American way of life as we know it. And to do that, the Fed is now finalizing the last steps of a process that revolutionizes the entire fiat monetary system, launching digital dollars which effectively remove commercial banks as financial intermediaries, as they will allow the Fed itself to make direct deposits into Americans’ “digital wallets”, in the process enabling truly universal basic income, while also making Congress and the entire Legislative branch redundant, as a handful of technocrats quietly take over the United States.

In short, we laid out the Fed’s true reasoning behind the coming Digital Dollars not as how Fed Chair Powell recently described them, which as a reminder was as follows:

• Faster and cheaper transactions
• Addressing a decline in the use of physical currency
• Modernizing the payments infrastructure
• Reaching consumers who have been traditionally underserved by financial institutions

… but as a short circuit to a clearly broken monetary transmission mechanism, one which seeks to facilitate universal basic income and unlimited helicopter money, by completely overhauling how money reaches Americans.

Of course, it would be heresy to admit that the Fed’s true motive is to effectively spark runaway inflation as that would provoke howls of outrage from ordinary Americans if they only learned that the $1000 or so in “free money” they would receive from the Fed was not a gift, but a curse which would make their cost of living unbearable in very short notice. And yet none other than DoubleLine recently penned a scathing op-ed admitting just that, warning that “The Pandora’s Box Of Fed’s Digital Currency Will Ignite An Inflationary Conflagration.”

Today, none other than BofA chief investment strategist also takes the plunge into “tinfoil land”, which of course is where the truth can be found, and admits the truth about digital currencies.

Hartnett begins by laying out a short history of revolutionary monetary policies, writing that in the past 13 years central banks have cut interest rates 972 times, bought $19tn of financial assets via QE, introduced NIRP, ZIRP, YCC, TLTROs, resulting in a near-record $16.8tn of negatively-yielding global bonds.

Hartnett lays out the 15 key “revolutionary” events in monetary policy since the Bear Stearns collapse in the table below:

Here Hartnett echoes everything we have said recently on the matter, and there’s quite a bit of it…

• Did The Fed Just Reveal Its Plans For A Digital Dollar Replacement?
• House Stimulus Bill Creates “Digital Dollar” To Send Virus-Aid To The ‘Unbanked’
• The Fed Is Planning To Send Money Directly To Americans In The Next Crisis
• Fed’s “Direct Money Transfers” Are Coming: Brainard Says Fed Collaborating With MIT On “Hypothetical” Digital Currency
• In Unprecedented Monetary Overhaul, The Fed Is Preparing To Deposit “Digital Dollars” Directly To “Each American”
• ECB Trademarks “Digital Euro” As It Begins Experiments On Digital Currency Launch
• The Circle Is Complete: BOJ Joins Fed And ECB In Preparing Rollout Of Digital Currency
• DoubleLine: The Pandora’s Box Of Fed’s Digital Currency Will Ignite An “Inflationary Conflagration”

… and writes that “the next frontier for central bank revolution is use of digital currencies as conduit for policies such as UBI (universal basic income), MMT (Modern Monetary Theory), student debt forgiveness, to induce sustained rise in inflation expectations.”

And since his job is to summarize trends into an actionable recommendation, he has a simple one: “own inflation assets.”

That, or just bet on continued dollar debasement as can be seen in the following:

• US 5s30s yield curve now steepest (>125bps) since Nov’16,
• Chinese renminbi at 2-year highs, Bitcoin >$13000,
• gold best performing asset class 1st  time since 2010

Hartnett’s conclusion:

big picture of bigger government, smaller world, excess debt in 2020s will be financed via currency debasement, particularly reserve currency of US dollar; own volatility.

Too simple? Here are the parting thoughts from DoubleLine credit portolfio manager Bill Campbell, which we presented in their entirety 3 weeks ago:

With QE, central banks have printed excess reserves that have benefited  only  the  very  wealthy  and  large  institutions.  The innovation of a digital currency system as described by Mastercard could deliver stimulus directly to consumers. Such a mechanism could open veritable floodgates of liquidity into the consumer economy and accelerate the rate of inflation. While central banks have been trying without success to increase inflation for the past decade, the temptation to put CBDCs into effect might be very strong among policymakers. However, CBDCs would not only inject liquidity into the economy but also could accelerate the velocity of money. That one-two punch could bring about far more inflation than central bankers bargain for.

Stillness in the Storm Editor: Why did we post this?

The news is important to all people because it is where we come to know new things about the world, which leads to the development of more life goals that lead to life wisdom. The news also serves as a social connection tool, as we tend to relate to those who know about and believe the things we do. With the power of an open truth-seeking mind in hand, the individual can grow wise and the collective can prosper. 

– Justin

Not sure how to make sense of this? Want to learn how to discern like a pro? Read this essential guide to discernment, analysis of claims, and understanding the truth in a world of deception: 4 Key Steps of Discernment – Advanced Truth-Seeking Tools.

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Source:

https://www.activistpost.com/2020/10/bofa-fed-will-use-digital-dollars-to-unleash-inflation-universal-basic-income-and-debt-forgiveness.html