/ world at this time information/ There was a purposeful battle towards cash for a very long time. It’s led by the most important bankers who’re nicely conscious of the traits in world improvement. A century and a half in the past, Karl Marx outlined these traits in Capital, calling them a bent towards a reducing price of revenue as a legislation. Time has proven that the legislation found by Marx is legitimate.
The printing presses of the world’s main central banks are ramping up their output amid the coronavirus financial disaster. The Federal Reserve, the ECB, the Financial institution of England, the Financial institution of Japan and a number of other different main central banks have thrown $5 trillion into circulation within the 5 months because the starting of the 12 months. The important thing charges of the primary central banks of the West since 2008 have been near zero, whereas the central banks of Sweden, Denmark, Japan are beneath zero.
Low prime charges have affected business banks’ working charges. Rates of interest on financial institution deposits are already beneath zero in some locations. Till not too long ago, Russia didn’t really feel this. We had been a sort of reserve with a really excessive prime price of the Financial institution of Russia. Solely not too long ago, the rate of interest started to lower quickly, which instantly affected the rates of interest on the operations of Russian business banks. Specialists say that taking inflation into consideration, actual earnings from financial institution deposits this 12 months might flip detrimental.
Within the West, because the international monetary disaster of 2008-2009, there was a bent for funds to circulate out of financial institution deposits resulting from zero and even detrimental rates of interest. In the present day we’ve got the identical development, together with due to the worry of huge business financial institution failures that would start within the fall when the credit score holidays, the tax holidays, the moratorium on bankruptcies expire.
World-class bankers (house owners of cash), that’s, to begin with, the primary shareholders of the US Federal Reserve, have lengthy campaigned for the exodus of cash from circulation. The goal of the marketing campaign is to lock everybody into the realm of cashless cash. If this isn’t performed promptly, there’s a danger that the financial system created by Western capitalism over the previous three centuries will collapse.
What we observe at this time on the earth of cash and banks is a manifestation of the worldwide course of. Particularly: capitalism ceases to exist. Not at this time or tomorrow will society discover itself in a “courageous new world”, generally known as post-capitalism. Most probably, it won’t be socialism or communism (as Karl Marx promised within the Manifesto of the Communist Occasion of 1848), however a brand new feudalism or a brand new slave system.
The period of fast improvement of commodity-money relations is coming to an finish. There can be no explicit want for cash in post-capitalism. Many sensible and horrible dystopias have been written about this post-capitalism: “We” by Yevgeny Zamyatin (1920), “Courageous New World” by Aldous Huxley (1932), “1984” by George Orwell (1948), “Fahrenheit 451” by Ray Bradbury (1953) and so forth.
The “Courageous New World” of the longer term is a totalitarian society with a world authorities, that’s, a slender group of people that rule the “herd.” The principle precept is the reporting and management of participation within the labor course of and consumption. The necessity for cash right here could be very conditional. Participation within the labor course of may be measured by working days, and consumption by kilograms of meals eaten. Nevertheless, that is the prospect of the following day. And the pressing duties of the builders of the “courageous new world” at this time and tomorrow are to stop the escape of individuals from the banking sector, which is deliberate to be become an digital focus camp.
As a part of the propaganda work to discredit cash, they tried to current it as an instrument of evil, by means of which terrorism is financed, drug enterprise is carried out, authorities bribes are paid, the “grey” economic system is supported, tax evasion happens and so forth. There’s a marketing campaign in favor of cashless cash: the operations are quite simple, they are often carried out at a distance, the potential of robberies, and so forth.
The subject surfaced in 2020 together with the coronavirus-economic disaster. Daily, supplies seem within the media that one of many necessary channels for spreading the an infection is cash. That it’s a must to refuse money and change to distant fee strategies utilizing cashless cash in financial institution accounts. On the similar time, proponents of personal digital cash (cryptocurrencies) have revived.
Nevertheless, the phobias that the media fanned about cash started to fade shortly. Individuals started to do the precise reverse – to transform cash from deposits into money. In Russia, in 4 months (spring and June 2020), the amount of cash within the fingers of residents elevated by 1.9 trillion. rubles, and the whole mass of cash in circulation in the beginning of July reached a file excessive – 11.2 trillion. rubles. Curiosity in money flows has grown in different international locations. In keeping with the Bloomberg company, the amount of cash provide elevated through the pandemic within the USA, Canada, Italy, Spain, Germany, France, Australia, Brazil.
The cash lords have to get prime charges right down to wherever beneath zero, they usually cannot try this as a result of they are going to provoke a mass exodus of shoppers from the money banks, which can carry down the banking system. Probably the most radical and intensely harmful instrument stays – the abolition of money by choice of the financial authorities. Learn how to exchange them? Central Financial institution Digital Cash.
As famous in a research by the Financial institution for Worldwide Settlements, final 12 months 70% of all central banks on the earth had been coping with digital cash. A few of the central banks had been within the query of find out how to stop non-public digital currencies (cryptocurrencies) from coming into the world of cash, believing that cryptocurrencies undermine the monopoly of central banks and business banks to situation cash. Different central banks took a wait-and-see perspective. Others determined that digital cash ought to exist, however be issued solely by the central banks themselves (official digital cash). Some central banks consider that their digital currencies must be issued along with money, whereas others consider that digital currencies ought to utterly exchange money. Of the central banks which are closest to beginning to situation official digital cash with a full cash substitute, they’re the Central Financial institution of Sweden and the Individuals’s Financial institution of China.
As for the US Federal Reserve, final 12 months the US central financial institution was towards any digital currencies. The Chairman of the Federal Reserve of the USA, Jerome Powell, and the Secretary of the Treasury, Steven Mnuchin, spoke fairly categorically on this subject. This 12 months, the tone of their statements unexpectedly modified. On Could 17, Jerome Powell introduced that the US might begin issuing digital foreign money. Some consultants affiliate such statements with the potential of decreasing the important thing price of the Federal Reserve to a detrimental worth. If you don’t lock all “physicians” within the banking system, they are going to escape from there (change to money). The ban will solely be potential when changing the cache with a “digital greenback”.
In current months, many Wall Road banks have printed analysis on digital {dollars}. The gist of most of them boils right down to the truth that delaying loss of life is akin to the Federal Reserve having to introduce a digital greenback as shortly as potential. In any other case, the American economic system will collapse, and the greenback will lose its standing as a world foreign money. They are saying that the as soon as unshakable place of the US foreign money is being undermined by the cryptocurrency Bitcoin (which now has a market capitalization of about $170 billion).
Cash house owners had been additionally pressured to pressure the cryptocurrency Libra, developed by Fb and launched in November 2019. Libra isn’t just a personal digital foreign money, it’s a very highly effective fee system that may work on a worldwide scale and with out the intermediary of SWIFT, Fedwire, CHIPS and different fee methods managed by the US authorities and the Federal Reserve. Nevertheless, China might additionally bypass America by introducing a digital yuan that may knock the greenback off the world foreign money pedestal and take its place.
Matthew Graham, CEO of China’s Sino International Capital, stated: SWIFT, Feedwire, CHIPS are out of date. They’re costly, they’re sluggish. It is now 2020 and it nonetheless takes three days to finish transactions. Additionally, transactions are dearer than they need to be. All of those applied sciences, which underpin a lot of the international dollar-centric economic system, are displaying their age. So it is a nice alternative for China. ” Matthew Graham is delicately silent about the truth that non-public digital foreign money tasks deprive the US of the flexibility to manage and block undesirable transactions from the viewpoint of Washington.
In selling the digital greenback, US senators have stepped up sharply. In late June, the Senate Banking Committee held a listening to to debate the necessity for a digital greenback. Democratic senators have already ready a invoice to introduce an official digital foreign money and are calling for a invoice to introduce a digital greenback on January 1, 2021.
And in June of this 12 months, a report by the Federal Reserve Financial institution of Philadelphia got here out, “Digital Forex: Central Banking for All?” The reply to the query within the title of the report: sure! Central financial institution – for everybody!
Till now, there have been intermediaries between central banks and people, represented by business banks. The official mannequin for digital foreign money envisages that the connection between the Central Financial institution and the “physicians” can be direct, with the latter having demand deposit accounts with the Central Financial institution. Business banks would be the fifth wheel within the cart. They are going to disappear.
The banking world is confronted with a alternative between dangerous and really dangerous: both the banking system will collapse on account of individuals fleeing business banks, or business banks will die on account of financial reform – the transition from money to digital. If America chooses the trail of financial reform, it will likely be confiscatory. The principle victims of the transition from money to digital can be those that have probably the most amassed paper merchandise from the US Federal Reserve printing press.
Postscript: In keeping with numerous estimates, there are between 40 and 80 billion {dollars} price of American banknotes in Russia at this time.
Translation: V. Sergeev
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