The monetary reset, CBDCs and the Great Italian Robbery. Gold $ 18k, bitcoin $ 650k | by Andrea Bianconi | The Capital | Feb, 2022

Part II of a series of articles to explain how a purely fiat-based currency system distorts incentives and damages us all in the long run and how Bitcoin fixes that. What a new Bretton Woods monetary reset would look like. The 1.500 billion and 2.450 Tonnes Gold Italian Great Robbery and how the elites plan to introduce the €uro CBDC to save their privileges at the expense of your liberties. Stay tuned for all the articles.

In Part I, “The too many fallacies of the fiat currency system,” I have highlighted some of the many fallacies of the post-1971 US$ centered fiat system, which has caused huge wealth inequality — via the Cantillon effect and inflation — cronyism, systemic corruption, the death of a pure capitalist system and it has enabled consumerism, environmental disasters, and endless wars and color revolutions. In substance, the fake fiat money system is the “mother of all evils,” for it distorts all the incentives. This fundamental issue is promptly avoided by every mainstream economist or politician, simply because it is the foundational ground for their power and privileges. Until this system is kept alive, their privileges are safe. Of course, one cannot expect them to provide a solution to the 99,9% of the population, which is the victim of that system. In this Part II, we will look at what could be the outcome of a new Bretton Woods and the roles that both gold and bitcoin could play in that “monetary reset.” And why a solution must come from 99,9% of the base.

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James Rickards, the author of “The death of Money” and “The road to ruin,” has been advocating for a while that a monetary system reset is unavoidable. And the “ shock doctrine “ is an essential part of it:

“The shock doctrine is an essential concept for understanding how power elites work behind the scenes to advance their agendas.

It’s also how today’s world could quickly turn into the dystopian 2024 scenario I’ve penned. This is not conspiracy-mongering or science fiction; this is a fact. Shock doctrine is simple. Political leaders use crises to ramrod policies into place no one would accept in normal times.

When the shock occurs… People begin to value order above liberty.

Power elites have agendas that take decades or even centuries to implement. These agendas include things like world money, global taxation, control of physical gold, population control, and other plans intended to increase the power and wealth of the few at your expense.

They know that their agenda is highly unpopular. They also understand that democracy empowers everyday citizens and makes their unpopular plans hard to implement. This is where the shock doctrine comes in useful.”

Sounds familiar?

The agenda included the following objectives:

– Capture the banking system (2009–2010)

– Redistribute gold reserves to China (2009–2016)

– Redenominate, print, and distribute SDRs (2015–2018–2021)

– Destroy accumulated debt by inflation (2018–2025)

Those who are ready to sacrifice freedom for security will ultimately lose both ~ Abraham Lincoln

To further the agenda, the shock doctrine needs to be applied. Events such as the 2008 financial crisis, Brexit, and ultimately the Covid pandemic offered exceptional opportunities to do so. And according to the old saying, “Never let a good crisis go to waste,” the globo-parasitic class did it brilliantly, unbeknown to the masses.

But in order to arrive well prepared at the new Bretton Woods event, they still need to do some work, put the finishing touches. Without this, the entire agenda risks falling apart.

The final but essential fixes needed are:

1. Implement CBDCs. I have described in Part I why CBDCs will soon arrive, particularly the digital €uro. Essentially, it is all about the automatic enforcement of capital controls and therefore preventing the exit from that specific currency or exchanging that currency for real assets, which grant protection against monetary debasement and inflation (such as gold and bitcoin). Substantially this will prevent the risk of currency hyperinflation. Once CBDCs are implemented, it is redundant to impose capital controls or ban certain assets like China, Turkey, and Russia are still trying to do today with bitcoin (with little success btw.).

From Part I “ Since “Your” wallet is not really yours, it might be easily and discretionally frozen by the issuer. Similarly, since cash will also be banned, negative interest rates can be easily applied to your positive wallet balances. Therefore you will be taxed multiple times. First with negative rates and then via monetary inflation. Since you will not have a way out of this system and the doors will be automatically shut by programming capital controls into the digital protocol, you will not be able to allocate your funds to blacklisted assets such as gold or bitcoin. They will dictate what you can or cannot buy and how you would spend.”

2. tighten the surveillance and control over the population to prevent and reduce the possibility of money riots. The Covid Pass — to be incorporated with a digital ID together with all your personal data and your CBDC wallet — is part of that strategy. As it will be the adoption of an individual social credit score system communist china style.

3. slow down or stop altogether bitcoin adoption. Again, bitcoin is the wrench thrown in the monetary system wheel, so any propaganda or tool will be used to penalize, criminalize or make it socially unacceptable.

However, in order to fulfill point 1 above, they will need to make sure that the population will gladly accept the introduction of CBDCs, just like they gladly accepted the ban on cash, the lockdowns, the vaccines, and the Covid Pass surveillance tool because they were scared because it was for the people´s “greater good.” Thanks to an abundance of fake free fiat money thrown at the corrupted MSM ( see Part I), fear could be cleverly instilled, and the population manipulated to the point that fearful people just disconnect the brain and act irrationally. Another objective of the Covid pandemic has been to induce — via restrictions to the activities and business lockdowns — a widespread impoverishment of the population, mainly targeting the middle-small-entrepreneurial class. Once poverty increases to a level that starts generating social conflicts, then the governments will “rescue” the needing population with massive fiscal stimulus injections via free money loaded into their CBDC new wallets. Then, even those who are in principle contrary to CBDCs today will gladly accept them since — once forced into poverty — the government´s fake money will make the difference between eating or starving.

Bread lines in Milan today

The above photo was not taken in the DDR or in the 80s communist Russia but today in neo-communist Italy, where newly poor people queue up for kilometres for some free food.

In no other country in the world, the parasitic globalist elites have been able to carry out the agenda with more criminal determination and efficiency than in Italy, thanks to the total control of the local puppet governments. The Italian experiment will go down in history for its success as the textbook application and enforcement of shock doctrine, behaviour control techniques, mass formation psychosis, and the Goebbels Nazi Propaganda playbook against its oblivious and terrorized population.

The worship of the state is the worship of force. There is no more dangerous menace to civilization than a government of incompetent, corrupt, or vile men. The worst evils which mankind ever had to endure were inflicted by governments. ~ Ludwig von Mises

The shock-doctrine event — which will set the final but essential piece of the puzzle in place — is still in full swing as I write. Italy has been cherry-picked as an experimental ground for a number of compelling reasons.

First, Italy is one of the richest — in terms of accumulated savings — of all EU countries. Over € 1.500 billion sit in Italian banks at zero or negative interest. Just to put this in perspective, this unproductive liquidity, together with annual GDP at € 2.000 billion pre-covid, far exceeds public debt (€ 2.800 billion). Therefore Italy — which is always depicted as being on the verge of insolvency — is rather solvent. So solvent that Italians could leave the €uro tomorrow and be much better off using this money to self-finance their public debt without being blackmailed by the ECB and their globo-parasitic cronies. This is clearly something Italians should never understand, and it represents the proverbial Damocles sword for the EU bureaucrats. Therefore this wealth must be expropriated at all costs.

Second, the Bank of Italy (privately owned by the globo-parasites) holds the third worlds’ largest gold reserves with over 2.450 Tonnes, at today’s gold price worth approx. US$ 155 billion. This too must be expropriated at all costs.

Third, Italy is like someone showing off expensive jewels strolling down a shady part of town, an unprotected prey easy to rob. This is essential for the plan to succeed. To their advantage, they can count on the statistically proven ignorance of the population, and a generally strong selfish attitude. Unfortunately, Italians also lack patriotism and a feeling for the common good. This character was forged by a history of foreign domination since the fall of the Roman empire and internal fratricidal struggles. Moreover, all the governmental administrative machine and their organs (such as the Judiciary) is run by a class of highly ideologised post-communists and mediocre bureaucrats. Finally, Italian politicians have been historically disloyal, corrupted, and accustomed to serving the interest of a foreign dominus. They have always betrayed their own people since time immemorial. The unelected Conte and Draghi puppet governments were splendidly qualified to serve the globo-parasites´ agenda. And they did an egregious job for which they will be handsomely repaid.

Draghi: The Davos Economic Hitman

Mario Draghi was essential to that end, and he was cherry-picked by the EU and by Davos to continue the Conte job at a critical moment to push the plan through the final phases. He was indeed the best qualified for the task. Since the ’90s, he´s been a well-respected civil “servant” — literally — in the sense that he has egregiously served his foreign and domestic masters and completed the largest privatizations and the sale of the country´s crown jewels. To borrow John Perkins´ words, he has been a true “Economic Hitman.”

So much that Francesco Cossiga — a former Italian President who was known for his patriotic and anti-communist stance — defined him well as a “vile bargainer,” a puppet without morals nor loyalties if not to his money masters.

You must remember that some things legally right are not morally right ~ Abraham Lincoln

Today, Draghi was sent back to finish the job with a vengeance and a three-fold purpose:

1. sell the few remaining valuable pieces to his cronies for peanuts.

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2. artificially raise the level of the debt to GDP ratio by lowering the GDP with lockdowns in order to (a) expropriate the €ur 1.500 billion in savings sitting in Italian banks via interest repayments and increased taxation, (b) guarantee additional fake fiat credit from the ECB (PNRR) by pledging real assets such as the Italian gold reserves.

Nothing new, this is the well-proven script implemented in the last 60 years by the IMF and the World Bank in developing countries and by the EU and the troika in Greece: corrupt local politicians to accept credit and exchange worthless counterfeit paper currency with valuable real assets/resources.

3. the additional benefit of the arbitrary Covid lockdowns and restrictions was to decimate the middle class and thereby make a large portion of the impoverished population willing to accept subsidies and grants (always financed by the ECB). Once a large part of the population will become dependent from governmental subsidies and grants, then they will easily submit and accept a digital currency CBDC with all its downsides. When that is accomplished, they will say forever goodbye to their freedom.

As I write, the Italian experiment is proceeding very well and with very little resistance from the populace.

The globo-parasites now wish to pull this same trick (3 above) in other countries, which are essential for the transition to the digital €uro CBDC.

Indeed, also Austria, Germany, and Holland are not far down the same path (there is a very disturbing similitude here with the Triple Alliance, which does not bring back good memories).

But thanks god, the French and the Spanish are putting up a far stronger resistance than expected, and the Portuguese are also in a better position, probably because there is not much wealth to steal there, and they are also marginally relevant for holding together the EU. The Swedish are also out of the €uro and have already adopted the digital Krona, therefore they have been spared the Covid terror propaganda and the lockdowns. As for the Brits — lucky them to have exited in time the perils of the EU/Davos regime — they seem to be returning to normal life, while the eastern Europeans — headed by Czech Rep, Hungary, and Bulgaria — are also putting up a fierce fight which should give us some hope.

When a new Bretton Woods will take place, the globo-parasitic elites will most likely try to camouflage the transition to a new monetary system by selling the same old same old thing: for instance, using the SDRs as an anchor for central banks debt worldwide. This time the objective will be a “global fiat currency.”

However, this is just a variation of the same old Ponzi scheme we have today. This time will be the IMF to digitally print SDRs and credit them to the beneficiary country.

The 19th March 2021 the G7 group of industrial nations decided to help low and middle-income countries hit by the pandemic. …the new capital injection ensured that ‘no country is left behind’. Kristalina Georgieva, IMF managing director, said the planned SDR allocation — to be finalised next month — would accompany measures on ‘debt vulnerabilities’ and concessional finance

To make it simple and cut through the bureaucratese bla-bla BS, this plan substantially means that the SDRs will be funneled through developing countries so that they can finally buy those vaccines which they did not need in the first instance and today remain unsold. Just another way to throw some more fake money in the pockets of their Big Pharma cronies.

Once the receiving country needs to spend the SDRs, they will be exchanged with newly digitally printed US$, €uro, and the other currencies which form the SDR basket of currencies. Therefore, in the end, it will be more monetary inflation for the basket currencies, more inflation for the populations of the basket countries, and wealth redistribution from basket countries too — depending on how the SDRs are ultimately spent — developing countries for their needs or, more likely, in the pockets of their Big Pharma cronies for their unsold vaccines. From there, they will buy real assets thereby, raising prices for their benefit and creating inflation for the rest of us thanks to the “Cantillon“ effect, in the same old unsustainable deadly spiral.

I am sure you get the picture by now.

There is a chance though, as James Rickards has pointed out, that gold might be included in the basket. In his book “Death of Money,” Rickards pragmatically considers the role of gold in an SDR-based world currency system. Rickards´forecast for gold was US$ 9.000 x ounce in order to back up the monetary system with a 50% gold reserve. But that was back in 2014. Since then, the gold price is up 40%, and the monetary supply has gone “to the moon” in the last 2 years. So I will try to run the numbers again. First, I will take the M2 money supply for the five countries which form the SDR basket of currencies, the USA, Japan, the UK, the EU, and the UK. The narrow M2 indicator includes M1 (coins and notes in circulation and other money equivalents that are easily convertible into cash) plus short-term time deposits in banks and 24-hour money market funds. Therefore M2 for the five SDR countries is approximately US$ 90 Trillion. Then let´s look at gold´s current market cap. Gold´s estimated out of ground supply is about 197.000 Tonnes. Of that, approximately 75.000 Tonnes is monetary metal which is held in bars and stored as a reserve asset. At the current market price of approx. US$ 1.800 per ounce, we have a monetary metal market cap of US$ 4,7 Trillion. If we have to back up at a 50% the current US$ 90 Trillion SDR basket M2, this means that gold price should be revalued at least 10x to cover 50% of the value of M2 (US$ 45 Trillion). Of course, if instead of narrow M2, we take broad money supply M3 or M4 or add up off-balance sheet liabilities and derivatives the numbers go up to Quadrillions, and gold should then also rise exponentially. Since currently, there are only two monetary assets on the planet that can play a role as a reserve for monetary purposes and which are no one´s liability — physical gold and bitcoin — the other possibility is to use both rather than only gold.

Therefore let´s postulate to use bitcoin to back up 10% of M2 in addition to gold at 50%, as we have seen. The total backup with reserve assets for this system will be at 60% with only 40% fractional. Bitcoin´s fixed supply at the protocol level is 21 million. However, many private keys have been lost, and a better calculation of the current free-floating supply available to the market is approx 14,3 million BTC units. Assuming that bitcoin is used to back up US$ 9 Trillion of M2 (10% of 90T), the price of bitcoin will have to go up 16x to US$ 650.000 to reach a market cap of US$ 9,3 Trillion. This is in theory. For Bitcoin, unlike gold, does not have a stock of potential supply which might become available on the market at the right price to increase the offer and cap the price. The price of bitcoin is totally inelastic and might have to go up many times more than that for hodlers to sell their bitcoins on the market. Hodling, coupled with strong demand, can squeeze the price up to the moon. Also, consider that this simplistic calculation assumes that all of the floating supply (14,3 million) can be accumulated by the IMF and the five SDR basket central banks to back up 10% of the M2. Quite unlikely.

Rather though, it is far more likely that governments will not use bitcoin but only gold in a monetary reset, after all, this is the real asset the biggest central banks own. Bitcoin then will become the preferred reserve asset for all non-sovereign institutions and also small developing nations that have little or no gold reserves. In this scenario, the bitcoin standard will be likely adopted by the legacy financial sector, commercial banks (which can use bitcoin as a reserve asset to offer a new wave of commercial-free banking services), corporations, and individuals. Basically, the world might be using 2 monetary systems mutually integrated: an upper-tier for governments and central banks functioning with SDRs as world currency fractionally backed up by gold reserves and a lower tier for small sovereigns, banks, and individuals using national fiat currencies and bitcoin as a reserve asset, frictionless moving between fiat currencies for expenditures and bitcoin for savings. This would be the ideal solution.

However, the transition to a more equitable monetary system based on hard money is unlikely to happen until the adoption of truly paradigmatic changes such as Bitcoin is forced from the base up. This is why its adoption from the base is essential. Microstrategy, Amazon, or Wall Street are not key to this process. Yes, they are beneficial to some extent, but they bring also downsides such as too large centralized custody and bitcoin financialization. Rather though, developing nations like El Salvador are by far more important. Each developing economy can bring millions of citizens who learn to self custody their life savings and escape the perils of dollarization or eurization. Every new municipality which joins the bitcoin ranks, such as Miami or Rio, adds to the base. The “plebs” become the “elite” of a future monetary system. Their savings will not be confiscated by rapacious governments, nor they will be stolen with a click of a keyboard through monetary inflation. They will be free.

© — 2022


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© — 2022

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