The Money of the Apocalypse is Rising in US Banks from the Ashes of the Cryptocrisis THIS WEEK!

The Great Recession

For years, I’ve written about the creeping approach of central bank digital currencies (CBDCs) as a replacement for coin and paper money that will give government much deeper control over you. Now the time has arrived … IN THE US. Yesterday, The Federal Reserve Bank of New York published the following notice: 

The Federal Reserve Bank of New York today announced that its New York Innovation Center (NYIC) will participate in a proof-of-concept project to explore the feasibility of an interoperable network of central bank wholesale digital money and commercial bank digital money operating on a shared multi-entity distributed ledger.

The Federal Reserver Bank of New York

“Distributed ledger” implies something like a crypto currency, but in this case, a digital currency that is centrally controlled though a ledger the Fed operates that is distributed among all banks. Essentially, the system will allow all banks that are members of the Federal Reserve system to transact their customer’s digital currency on a ledger that works between all banks before they settle through central-bank reserves automatically.

In simple words, the Fed is beginning to work out its operations with actual banks for the introduction of a digital dollar to replace the dollar we now have. However, this digital dollar will be much more integrated with the Fed and Feds than cryptocurrencies are.

The cashless society is becoming real — very, VERY real, very, very fast

A few years ago, I reported in my Patron Posts on China’s roll-out of its test version of a CBDC just before they actually rolled it out. Then this spring, I reported how President Biden had just issued an executive order in March to prepare by November for the early stages of a roll-out of a digital dollar. And now we see it happening.

First, I reported in a Patron Post last March how President Biden had said at a business roundtable,

Now is the time when things are shifting and there’s going to be a new world order out there, and we’ve got to lead it. We’ve got to unite the rest of the free world in doing it…

— President Joe Biden at a business roundtable on Monday (Real Clear Politics)

Of course, another “new world order” will include a new-world currency at some point to maintain US hegemony, and the president within days made that clear as well. So, in April I wrote another Patron Post saying,

That’s why we finally witnessed this month actual news of the Biden Administration taking a significant step toward the introduction of a US CBDC from the Fed. This month we shifted from an internal central-bank-level discussion to having all government agencies join the conversation during the next six months about actual implementation and how introduction of a CBDC will impact their agency for better or for worse:

“The [executive order] directs the U.S. Treasury, and other federal agencies, to study the development of the new CBDC and report back within 180 days of the potential risks and benefits of a digital dollar. The EO also directs the Treasury Department, Office of the Attorney General and Federal Reserve to produce a ‘legislative proposal’ to create a digital currency within 210 days, about seven months. The digital dollar is coming, and it’s coming quick.

“To be clear, the adoption of a digital dollar by the U.S. government, as Biden intends, would be one of the greatest expansions of federal power ever made. The digital dollar would be much different than a digital version of the existing U.S. dollar. It would also be much different than cryptocurrencies like bitcoin and ethereum, which are decentralized. Digital dollars would be traceable and programmable. The Federal Reserve, or some other government agency, would have the ability to create digital dollars at whim. Moreover, the digital dollars could be programmed to have various rules and restrictions governing how and when they are spent….The EO even states the CBDC and other policies governing digital assets must mitigate “climate change and pollution” and promote ‘financial inclusion and equity.’” (Economic Prism)

All the things I warned about in these Patron Posts, while saying they would be awhile, yet, in coming, are now slated by the president of the United States to be established in law this year.

Epocalypse Revisited Part Four: The Cashless Society and the New Digital Dollar Divide. It’s here!

I was on this well before word of it came out in other mainstream publications like The Hill which didn’t come out with it until late this summer, and then even The Hill noted it was a nearly lone voice when there should be many. As of yesterday, we now have the Federal Reserve testing the operability of a digital currency to proceed the actual roll-out through its most globally influential New York branch.

In Fedspeak, that sounds like this in yesterday’s announcement:

“The NYIC looks forward to collaborating with members of the banking community to advance research on asset tokenization and the future of financial market infrastructures in the U.S. as money and banking evolve,” said Per von Zelowitz, Director of the New York Innovation Center.

The Federal Reserver Bank of New York

To be clear, that means money evolves toward a digital and soon cashless system. They speak, of course, in somewhat generic jargon:

As part of this 12-week project, the NYIC will collaborate with a group of private sector organizations to provide a public contribution to the body of knowledge on the application of new technology to the regulated financial system.

The “regulated financial system” means “the Federal Reserve System.” The New York Innovation Center (NYIC) was launched at the New York Federal Reserve Bank in 2021 to “bridge the worlds of finance, technology, and [Bill Gates’s favorite word] innovation.” In other words it was specifically started in time for the introduction of a Federal Reserve digital currency. It was also established in partnership with the global Bank for International Settlements. (BIS)

The NYIC generates insights into high-value central bank-related opportunities through technical research, experimentation, and prototyping, to drive advancements in central banking and enhance the functioning of the global financial system.

By integrating with the BIS, the new system hopes to solve problems including the movement of cash across borders. For now, this first banking test run is within the US and is only a simulation, but it is part of the process I have been covering for a few years in my Patron Posts. Recently, in August, I wrote that …

I expect a US central bank digital currency (CBDC) to be phased into actual use in 2023.

Economic Predictions for H2 2022, Part 3: Battle of the New Currency Competitors

Well, the testing at bank levels for that rollout just began yesterday, so that train appears to be approaching the station right on time. Some of the major financial institutions participating with this test run are Citigroup, HSBC Holdings, Mastercard and Wells Fargo. Also participating are Bank of New York Mellon, PNC Financial Services, Toronto-Dominion Bank (TD), Truist Financial and U.S. Bancorp.

I also quoted the liberal Hill in that article, which warned about some of the risks and laid out how the Biden administration is charging ahead with implementing a digital currency throughout the US:

Whenever the White House says it is working on a plan that would transform a vital part of the U.S. economy, and that the administration is doing so with the “highest urgency,” it should go without saying that the press should pay close attention to what’s going on…. Even more importantly, the press should eagerly and comprehensively inform the public of the potential risks.

Biden is planning a new digital currency. Here’s why you should be very worried

Indeed, it should. But, of course, it did not. That is why you have me. Outside of The Hill, it was mostly crickets all year. Even The Hill noted,

Unfortunately, that’s not happening today, and the effects of the media’s negligence could reverberate for decades to come.

Yes, that claim is from The Hill, a liberal publication. Of course, the March timing of “the highest urgency” that it mentions coincided perfectly with a real-world emergency in March of the Ukraine invasion and all of the globally stressing sanctions that were being developed then in association with the war.

My Patron Post also noted some of the following facts from The Hill, which reiterate what I had reported months before to my Patrons:

  • On March 9, the Biden administration released an executive order (EO) instructing a long list of federal agencies to study digital assets and to propose numerous reports about their use and proposals to regulate them….
  • But there is an even more important part of the EO: President Biden has instructed the federal government and Federal Reserve to lay the groundwork for a potential new U.S. currency, a digital dollar.
  • It would be one of the most dramatic expansions of federal power ever made, one that could put individuals and businesses in grave danger of losing their social and economic freedoms
  • The [March 9] White House executive order directs several federal agencies, including the Treasury Department, to study the development of a new central bank digital currency (CBDC) and to produce a report within 180 days of the EO discussing the potential risks and benefits of a digital dollar..

And all of those warnings are from a pretty liberal publication. As noted, the timing for putting forward a legislative proposal for implementing a CBDC would be around November/December with other aspects to be worked out by November.

So here we are. Right on schedule. As The Hill reported in August …

A digital dollar would not merely be a digital version of the existing U.S. dollar, but rather an entirely new currency that would, at least at first, exist alongside today’s currency. Similar to cash, the CBDC would be used to pay for goods and services and would likely be managed by the Federal Reserve, the central bank of the United States….

Yeah, “alongside” for now until the other US currency (real cash) that still gives you anonymity is phased out as a historic relic.

And, just in time, the perfect financial train wreck for implementation

Through all the years I’ve been writing about the oncoming central-bank digital dollar, I have been saying it would be implemented in a time of financial crisis that would prepare us for it acceptance. And now that perfect coincidence has come. The test project is referred to as the “regulated liability network.” Why? Because it will seek to overcome the liabilities seen in those wild-west digital cryptocurrencies as its selling point. For example,

The new network is meant to follow existing laws and regulations for deposit-based payments processing, including anti-money-laundering requirements.

Bloomberg

Conveniently, the announced testing is happening during a time of major crypto-currency scandals and carnage. I’ve been on the CBDC beat for about as long as its been whispered between central banksters. Clear back in 2019, I wrote that the Fed would try to convince the US populace that …

It is in the “best security interest of the American people” to let the Fed issue the ONLY legal digital currency in order to avoid some of the scandals we’ve already seen (more of which are certain) There are bound to be some digital currencies that aren’t anything other than a digital Ponzi scheme.

Teasing out the Fed’s Big Plan for our Future

By “legal” I mean “legal tender.” And a “Ponzi scheme,” of course, is exactly what the latest cryptocrisis has turned out to be. From today’s Daily Doom: “Say “Ponzi”: FTX crash is eerily similar to the Bernie Madoff scandal.” There present Cryptocrisis, which has all players begging for some regulation, should all time out well for the planned roll-out of the new CBDC.

 This week’s move [on testing implementation of a CBDC] comes amid a rout in cryptocurrency markets following the collapse of Sam Bankman-Fried’s digital-asset empire last week. [FTX]
Bloomberg

The rest is here: The Great Recession

Start the Conversation

Your email address will not be published.


*