CBDC’s will NOT help Government Mismanagement: The Bank of Canada asserted ownership of “digital dollar,” “digital Canadian dollar” and “central bank digital currency” under the Trademarks Act – January 9, 2024
Although I could argue that the Bank of Canada is claiming ownership of CBDC’s terminology in Canada simply to avoid CONFUSION, the reality is that they’re pursuing Central Bank Digital Currencies primarily because we’ve reached an era in which Governments want to create DERIVATIVES of Fiat Money.
I often argue that we’re on a ledger money system, meaning that either you’re in the positive or the negative; the problem with governments if we’re on a ledger system is that Central Bank Digital Currencies in most Western Countries would be their worst nightmare, as most modern Western Democracies have horrible FISCAL policies.
What is FISCAL policy?
In economics and political science, fiscal policy is the use of government revenue collection and expenditure to influence a country’s economy.
Ledger money has characteristics of a Gold Standard, the difference being that Ledger money is backed by confidence, and centralized ledger money would equate to tyranny. Because under a CBDC system, the government could literally shut you down or shut you out of the financial system, which would even bar you from using CASH.
Even under our current system, in which a lot of things are digital, if you don’t have DIGITAL dollars there are certain things you can buy. For example, I don’t even know if there’s an option to buy anything on Amazon without digital cash.
So if the goal is to move everything digital, fiscal policy will become very important. In practice, some openly SOCIALIST countries, offer more PROPERTY RIGHTS than some Western Democracies.
And it’s for this reason that you find rich people who provide jobs taking their capital to countries like China and Vietnam, which literally have Communist Political Parties in power.
The Forex markets CURRENTLY reward Western nations like Canada with undeserved privileges; what I mean by this is that under Justin Trudeau, on paper, Canada looks like a horrible place to dump capital and that even includes corporate entities who are on board with the climate change agenda.
The CST of doing business in Canada is too high. However, use of the Canadian fiat dollar is still relatively strong because the popular perception in the foreign exchange markets is that with all of Canada’s problems, the Canadian dollar is still less POLITICIZED than other currencies.
When money is politicized, it means that the government will screw over foreigners capital before it screws over it’s national GOVERNMENT. What I mean by this is that in countries like Argentina, for example, they had frequent hyperinflation problems because their federal government was so large and intrusive.
So if I left U.S. dollars in an Argentine bank and there was an Argentine banking crisis, the Argentine government would automatically convert my DIGITAL U.S. dollars into Argentine pesos.
So if I’m a FOREIGN investor in Argentina, and this happens, even if I like Argentina as an investment, I’d never leave my CAPITAL there again because, effectively, the Argentinian government would have NATIONALIZED my money to suit their agenda.
Now, under Justin Trudeau, Canadians witnessed a similar event when the Trudeau government went as far as to attempt to nationalize CRYPTOCURRENCIES.
So, there’s a blueprint already in place in Canada in the event the Canadian government finds itself in financial ruin. So, in my opinion, CBDCs could easily create an unsuspected reaction that most people will not be ready for.
You have to remember that the Nationalization of private property doesn’t fix problems; it creates problems because, for example, if it makes more economic sense to be UNPRODUCTIVE, you’ll get a lot of otherwise productive people being unproductive.
So, if governments are imagining CBDCs as the solution to FISCAL problems, I think they’re going to be in for a rude awakening.
How I see things is that the problem with the modern welfare state stems from VOTE BUYING, we’ve entered a reality in Canada in that, in most instances, it makes more financial sense NOT to work than to work a low-wage job, well under a CBDC system that problem would accelerate.
Interesting times ahead