Storyteller on Nostr: Great question!! I think with the CBDC (globally) they will be able to increase ...
Great question!!
I think with the CBDC (globally) they will be able to increase control. In the example above, they will be able to control the v. The velocity of money.
One problem the Central Banks (including the FED) have is that they can print currency like crazy. But if people hoard the currency, nothing happens. If the V stays low (like one) it doesn't have so much effect.
But with CBDC they can influence the velocity. They can say Peter has 1 dollar and Micheal have 1 dollar. But now, Peter: your dollar will become void in 30 days. And Micheal: you are allowed only to buy apples in stores X, Y, Z. Not in the whole country.
When Peter hears he got 1$ in stimulus but the dollar will be void in 30 days, he will be running like crazy and spending it. The Central Banks believe they can stimulate demand through the CBDC more effectively.
By targeting certain sectors of the economy - Michael can only spend at stores X, Y, Z, they can also stimulate certain demand. Specific demand.
Of course they will tell John - the banker and their Wall Street friends - upfront which sectors he will have to invest in. John now knows which stocks to buy.
On your theory that it is attractive, Yeah I feel you.
They will say everybody will get a stimulus check of say $1000,- (new dollars). Or they might even say - you get a Universal Basic Income of $3000 per month (new dollars = CBDC).
Everybody will run to get these dollars. And they will forget their privacy. Free money, we become more wealthier right? So ordinary people will run to get their CBDC wallets and free money.
Then they will figure something out about the exchange rate. In the world there have been many resets, Brazilian, Argentinian, Zimbabwe, Nigeria, Venezuelan resets.
They will simply say 1 new CBDC dollar is 100 old real dollar. So the exchange rate is 1 to 100. They will take two zeros off.
Then they can also say- we do not accept the old dollars anymore. They are void. You only have to use new CBDC dollars. If there are no old dollars printed or they are void, people have to eat apples. So they will go with the new CBDC dollars.
This will be a global reset. Every Central Bank will do it.
One of the problems is that somebody's debt is another body's asset. So if they take two zeros from somebody owning you 100.000 and you now only have 1000 new dollars, somebody will see his asset also go down 100X.
Ultimately they will just start printing currency again. They cannot stop this. They will print currency now digitally. Instantly, globally and they will be able to finetune their monetary policy.
Micheal and Peter are not allowed to travel to Europe, during the next 6 months, their CBDC dollars cannot be used then.
It is gonna be like 1948.
I think with the CBDC (globally) they will be able to increase control. In the example above, they will be able to control the v. The velocity of money.
One problem the Central Banks (including the FED) have is that they can print currency like crazy. But if people hoard the currency, nothing happens. If the V stays low (like one) it doesn't have so much effect.
But with CBDC they can influence the velocity. They can say Peter has 1 dollar and Micheal have 1 dollar. But now, Peter: your dollar will become void in 30 days. And Micheal: you are allowed only to buy apples in stores X, Y, Z. Not in the whole country.
When Peter hears he got 1$ in stimulus but the dollar will be void in 30 days, he will be running like crazy and spending it. The Central Banks believe they can stimulate demand through the CBDC more effectively.
By targeting certain sectors of the economy - Michael can only spend at stores X, Y, Z, they can also stimulate certain demand. Specific demand.
Of course they will tell John - the banker and their Wall Street friends - upfront which sectors he will have to invest in. John now knows which stocks to buy.
On your theory that it is attractive, Yeah I feel you.
They will say everybody will get a stimulus check of say $1000,- (new dollars). Or they might even say - you get a Universal Basic Income of $3000 per month (new dollars = CBDC).
Everybody will run to get these dollars. And they will forget their privacy. Free money, we become more wealthier right? So ordinary people will run to get their CBDC wallets and free money.
Then they will figure something out about the exchange rate. In the world there have been many resets, Brazilian, Argentinian, Zimbabwe, Nigeria, Venezuelan resets.
They will simply say 1 new CBDC dollar is 100 old real dollar. So the exchange rate is 1 to 100. They will take two zeros off.
Then they can also say- we do not accept the old dollars anymore. They are void. You only have to use new CBDC dollars. If there are no old dollars printed or they are void, people have to eat apples. So they will go with the new CBDC dollars.
This will be a global reset. Every Central Bank will do it.
One of the problems is that somebody's debt is another body's asset. So if they take two zeros from somebody owning you 100.000 and you now only have 1000 new dollars, somebody will see his asset also go down 100X.
Ultimately they will just start printing currency again. They cannot stop this. They will print currency now digitally. Instantly, globally and they will be able to finetune their monetary policy.
Micheal and Peter are not allowed to travel to Europe, during the next 6 months, their CBDC dollars cannot be used then.
It is gonna be like 1948.