Federal Reserve working on a new monetary system, digital currency
Right now, Federal Reserve bankers are preparing a new monetary system that is a sophisticated form of socialism. This system would be set up to deliver a new digital currency directly to Americans. The system would redistribute the new currency based on economic metrics and criteria established by the central economic planners themselves.
Simon Potter, leader of the Federal Reserve Bank of New York markets group, and Julia Coronado, a former economist for the Fed’s Board of Governors, are two of the insiders trying to innovate the redistribution of money through a new digital currency. The two insiders have proposed a monetary tool called recession insurance bonds. When the economy falls into a recession, the insurance bonds would kick in and money would be wired instantly to Americans based on a pre-determined calculation.
This system would put a new technocratic government in charge, not beholden to the people or their representatives. This new government of economic planners would rule over Congress, bypassing spending bills, disregarding inflation, while doing away with any semblance of balanced budgets. Congress would no longer have the power of the purse. The technocratic government would analyze the GDP and set aside a set percentage of GDP that would then be divided equally to households in a time of recession or market instability. These recession insurance bonds would essentially be zero-coupon securities -- a contingent asset for all households that could be activated in a time of crisis.
The central economic planners would determine what constitutes a crisis. For example, a .5 percentage point increase in the unemployment rate could be the trigger that allows the Fed to deposit funds directly into American’s digital wallets. The new currency could then be monitored and tracked. The economy would be dictated, with no anonymous physical currency in the hands of the people. The funds could potentially be shut off completely if Americans do not do what is required to participate in the greater economic and social system put in place.
Fed’s new digital monetary system could finish off the dollar, so all financial transactions can be monitored and tracked
The Fed is clamoring to get rid of the Congressional spending structure because it takes Congress too long to get money to people in a time of crisis (as if pumping out helicopter money is the only way to solve problems caused by governments.) The Feds want the flexibility to buy these bonds without going to the private market. By controlling the interest rate, the Fed can then activate a set amount of bonds and deliver helicopter money digitally. In economic terms, the bonds will be considered an asset on the Fed’s balance sheet and the digital dollars would be considered a liability.
Cleveland Fed President Loretta Mester spoke about the implementation of a hybrid digital currency in her speech to the Chicago Payment Symposium called “Payments and the Pandemic.” She writes that pandemic emergency payments “brought forward an idea that was already gaining increased attention at central banks around the world, that is, central bank digital currency (CBDC)."
She revealed that legislation has been proposed that would create a digital dollar account for every American. This account is tied directly to the Federal Reserve. If the economy falters by specific metrics, the Fed can then release more digital dollars into American’s digital dollar accounts. By moving to a system of digital currency and Fed dependence, the Fed could scrap the dollar entirely and render physical currency obsolete. While it would take time to eliminate physical currency completely from the banking system, the Fed would be in the perfect position to speed the process up, making the traditional banking system obsolete and controlling the value of the digital currency as the physical dollar is allowed to collapse.
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