CBDC Means Central Bank DIRECT Control (Central Bank Digital Currency Is Frought With Moral Hazard Risks)

Confounded Interest ^ | 08/13/2023 | Anthony B. Sanders

[Kaiser8408a]

Central bank digital currencies (CBDCs) are the digital form of a government-issued currency that isn’t pegged to a physical commodity (in other words, CBDCs are digital FIAT currency). They are similar to cryptocurrencies, except that their value is fixed by the central bank and equivalent to the country’s fiat currency, which is the US Dollar.

The US Federal Reserve has not created a CBDC … yet. Our woefully corrupt El Presidente Jose Biden (more of a Latin American, tinhorn Banana Republic dictator than as US President) has ordered the study of a CBDC. Since everything Biden touches reeks of “boodle” I am suspicious as to Biden’s motives.

There are some positives to a CBDC, mostly with WHOLESALE CBDCs. Wholesale CBDCs are similar to holding reserves in a central bank. The central bank grants an institution an account to deposit funds or use to settle interbank transfers. Central banks can then use monetary policy tools, such as reserve requirements or interest on reserve balances, to influence lending and set interest rates.

Here is chart of the purchasing power of the US Dollar (blue line) since the creation of The Federal Reserve system and core CPI YoY which is still relatively high at 4.86%. That is over twice The Fed’s target rate of 2%.

I am sure that Billions Biden doesn’t understand moral hazard risk. For him, there is no risk, But for the middle class and lower wage worker class, CBDC represent a clear moral hazard risk, particularly if cash vanishes and Congress tries to ban cryptos.

The face of why so many Americans don’t trust The Fed. Or The Biden Administation.

Or this face, Urban Joe Biden (Stalin was Country Joe).

[Kaiser8408a]

Biden and The Fed are out to screw the middle class.

[E. Pluribus Unum]

Can only spend it on government-approved purchases. No guns. No ammo. No meat.

If you don’t spend it in the designated time frame, it expires and you get nothing.

No savings account for you. We will own everything and you will own nothing.

[BobL]

“Can only spend it on government-approved purchases. No guns. No ammo. No meat. If you don’t spend it in the designated time frame, it expires and you get nothing. No savings account for you. We will own everything and you will own nothing.”

Tell me, again, why I need to be OBSESSED with Putin and Ukraine, when this crap is going on in DC?

[oldasrocks]

Basically the guberment will take all your money and hand you a a Debit card then make promises like SS. In the meantime all your money will disappear.