"Here is the financial system in picture form. I'm not including hard assets such as gold, real estate, or the like. We're only talking about relatively liquid financial assets items that can be sold (turned into cash) quickly."
"Of course, Wall Street will argue that the derivatives market is notional in value (meaning very little of this is actually "at risk"). However, even if we remove derivatives from the mix, the system is still very clearly based on credit, with only a small sliver of actual physical cash outstanding:"
And then he says this (which is true):
....when the 2008 Crisis hit, one of the biggest problems for the Central Banks was to stop investors from fleeing digital wealth for the comfort of physical cash. Indeed, the actual "thing" that almost caused the financial system to collapse was when depositors attempted to pull $500 billion out of money market funds.
A money market fund takes investors' cash and plunks it into short-term highly liquid debt and credit securities. These funds are meant to offer investors a return on their cash, while being extremely liquid (meaning investors can pull their money at any time).
This works great in theoy... but when $500 billion in money was being pulled (roughly 24% of the entire market) in the span of four weeks, the truth of the financial system was quickly laid bare: that digital money is not in fact safe.
To use a metaphor, when the money market fund and commercial paper markets collapsed, the oil that kept the financial system working dried up. Almost immediately, the gears of the system began to grind to a halt.
Cash is a threat to the charade that the Central Banks, the markets, and our governments have constructed. Even though it is a small sliver, it threatens the corrupt financial monstrosity.
We have been moving towards cashless for quite some time, but as the author stated, it has now gone into "hyperdrive." It will be sold as a tax revenue generator, as more "healthy" (money carries germs), as a way to stop the illegal drug trade (yeah....right), and many other false strawmen.
We are moving at warp speed towards the Antichrist system and the Mark.
Something Very Disturbing Spotted In A Morgan Stanley Presentation