the END of CASH in 2021

According to zero hedge, the fed is preparing to quote “radically overhaul its monetary system to reduce inflation and stimulate the economy amid pandemic shutdowns”. The money would come from insurance bonds purchased by the fed on the open market. The digital dollars would be deposited directly into household apps but there’s a catch according to zero hedge the fed giveth and the fed taketh away you drug dealers might want to pay attention to this part once physical currency is replaced by digital dollars the fed would then be able to scrap quote anonymous physical currency entirely and track every single banknote from its quote creation all through the various transactions that take place during its lifetime and eventually the fed could remotely quote destroy said digital currency when it so decides oh and say goodbye to your banks as the fed would both provide loans to consumers and directly deposit funds into their accounts effectively making the entire traditional banking system obsolete the fed’s failure to reach its inflation target which prompted the u.s central bank to radically overhaul its monetary dogma and unveil flexible average inflation targeting or fait whereby the fed will allow inflation to run hot without hiking rates has sparked broad criticism from the economic establishment even though as in june deflation is now a direct function of the fed’s unconventional monetary policies as the lower yields slide the lower the propensity to spend in other words the harder the fed fights to stimulate inflation the more deflation and more saving it spurs as a result it is indeed frustrating in short ever since the fed launched qe and nirp it has been making the situation it has been trying to quote fix even worse while blowing the biggest asset price bubble in history and having recently accepted that its preferred stimulus pathway has failed to boost the broader economy the blame has fallen on how monetary policy is intermediated specifically the way the fed creates excess reserves which end up at commercial banks instead of quote trickling down all the way to the consumer level to be sure in the aftermath of the covid pandemic shutdowns the fed has tried to short-circuit this process and in conjunction with the treasury it has launched quote helicopter money which has resulted in a direct transfer of funds to u.s corporations via ppp loans as well as to end consumers via the emergency 600 weekly unemployment benefits which however are set to expire unless renewed by congress and democrats and republicans feud over which fiscal stimulus will be implemented next absent a massive burst of inflation in the coming years which inflates away the hundreds of trillions in federal debt the unprecedented debt tsunami that is coming would mean the end of the american way of life as we know it that would be very sad 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 quote digital wallets in the process also making congress and the entire legislative branch redundant as a handful of technocrats quietly take over the united states digital dollars huh the 20th anniversary chicago payments symposium was attended by mester noting that the experience with emergency payments led by the coronavirus pandemic has accelerated the work in this area mester detailed legislation has proposed that each american has an account at the fed which digital dollars could be deposited as liabilities of the federal reserve banks which could be used for emergency payments she also added that quote other proposals would create a new payments instrument digital cash which would be just like the physical currency issued by central banks today but in digital form and potentially without the anonymity of physical currency end quote mester explained that some designs of the digital dollar allow the central bank to directly issue the cbdc into end users wallets using central bank facilitated transfer and redemption services without the involvement of commercial banks she further confirmed that the federal reserve has been researching issues raised by central bank digital currency for some time emphasizing that various federal reserve banks are part of initiatives to explore the use of a central bank digital currency the federal reserve board of governors has a technology lab called tech lab that has been building platforms and testing a range of technologies relevant to digital currencies and other payment innovations sta members from several federal reserve banks including software developers are contributing to this effort as for individual federal reserve banks mester highlighted that the federal reserve bank of boston is collaborating with the massachusetts institute of technology mit to experiment with existing and new technologies that could be used for a digital dollar this multi-year initiative was launched in august the federal reserve bank of new york has established an innovation center in partnership with the bank for international settlements bis to identify critical trends in financial technology relevant to central banks mester has also stressed the need to evaluate potential risks costs benefits and policy issues surrounding a digital dollar such as quote financial stability market structure security privacy and monetary policy end quote she emphasized that the demand and uses of a cbdc must be assessed to ascertain quote whether such a central bank digital currency would allow for quicker and more ubiquitous payments in times of emergency and more generally end quote the united states is indeed making ways amidst pandemic meanwhile a number of central banks worldwide have been accelerating their cbdc research in response to the libra cryptocurrency project proposed by social media giant facebook and the soon to launch china’s digital yuan which is already being tested in several major cities including beijing and hong kong one of the other proposals is creating digital cash which is just like the physical currency issued by the banks but in digital form and quote potentially without the anonymity of physical currency digital cash wouldn’t require the involvement of commercial banks as they would be directly issued to the users digital wallets with central bank facilitated transfer and redemption services however the demand for and use of such instruments is to be further considered she said adding the potential risks and policy issues surrounding cbdc also needs to be better understood and costs and benefits evaluated mester also said that the fed has been researching about issuing cbdc for some time and already the technology lab of the board of governors has been testing the benefits and trade-offs of distributed ledger platforms while the federal reserve bank of boston is working with mit on different technologies for the cbdc the new york fed has collaborated with bis to understand the relevance of fine tech for central banks although the authorities have been doing all the research she said it quote does not signal any decision by the fed to adopt such currency as they need to first better understand the issues related to financial stability market structure security privacy and monetary policy messer concluded her speech at the symposium by saying that the payment system which is a critical part of the us infrastructure must remain modern resilient and able to adapt to changing customer needs as they evolve well what do you think about having an account at the fed for digital dollars for we wrestle not against flesh and blood but against principalities against powers against the rulers of the darkness of this world against spiritual wickedness in high places .