"The game is changing." - Mark Carney, one of the world's most powerful central bankers
(Read his full August 23rd statement here.)
Just that acknowledgement is huge. For years, many of us following the global financial situation have known that one way or another, it can't go on like this much longer. Normalcy bias prevented the mainstream from being able to see it. Some still don't realize their current way of life is coming to an end, despite the banks that run our lives announcing it openly.
"We need a completely new global monetary system", Carney says. Of course, the devil is in the details. A new global system could free mankind from tyranny and bring on a new Renaissance, or it could spell the end of freedom for most members of our species.
Carney (significantly!) admits the USDollar hegemony is failing, and claims China's currency - the Renminbi - isn't yet ready to assume world reserve currency status. He then claims there isn't enough physical gold in the world to act as money, and announces the new system will be "based on the virtual rather than the physical".
Birth of the cashless society
"Transactions are taking place increasingly.. through electronic payments over cash," Carney explains.
The world doesn't want to put up with US economic dominance anymore, he points out. Protectionism and instability threaten the current global economy with a liquidity trap.
The solution he proposes is a 'Synthetic Hegemonic Currency' (SHC), a basket of virtual currencies (like Libra) created by a network of central banks.
Backed by the same thing as the fiat currencies of today: Absolutely nothing but technocratic decree.
Carney believes implementation of the SHC (aka "Shec" or "Shekel") will require a TRIPLING of the current size and power of the IMF (International Monetary Fund).
Carney writes: "In the new world order, a reliance on keeping one's house in order is no longer sufficient. The neighbourhood too must change. We are all responsible." In other words, the individual is no longer sovereign and only the global system matters.
It is a rejection of the concept of individual liberty, and a call to globalism and collectivism. Fitting that the call comes from London.
Analysis
For us monetary theorists, moments like this are like when Nixon closed the gold window, like when Bernanke announced quantitative easing, when Congress signed the Federal Reserve Act. Usually, they're barely noticed by the majority of people when they happen, but these moments change the planet and the lives of everybody on it.
The central banks know if they're to retain control over the world's financial systems, and all the profit and power that comes along with them, they must act quickly.
But do we actually need central banks? Why should private groups decide interest rates, or set the value of currencies?
Do we even need banks, anymore? I don't need anyone to hold my currency for me - I have crypto wallets and private keys. I don't need their currency conversion (moneychanging) or their loans. I don't need them to store my precious metals - my safe does that. Increasingly, I don't even need them for making payments. Banks are obsolete, and they know it. They are grasping at anything to keep themselves powerful and relevant in a world that has outgrown them.
Mark Carney likened the SHC concept to Libra, FaceBook's virtual currency. Why didn't he liken it to the far more well-known digital currency, Bitcoin? The answer is because Bitcoin is a cryptocurrency, while Libra (and SHC) will be virtual currencies (like videogame gold). This signals the intention of the technocrats is to deny us privacy, adaptability, and decentralization.
The free market is impossible to destroy, and will always exist as long as there are free people.
But they're not done trying, and this time, they're playing for ALL the marbles. Consider this your final written notice of the New World Order.
DRutter
