All I heard was Central Banks, Federal Reserve, etc. bad. Make mess, try fix mess they made with more balloon squeezing which only pops up a problem elsewhere causing more mess. Rinse and repeat.
Small banks and medium banks get closed down but big banks and central banks immune. Immunity and untouchability plus bailouts make the mess makers continue to poke and squeeze at problems while never acknowledging that the solution is to look in the mirror.
Untouched Markets baby, it can be sad and ugly, but the answers are there.
I am a bit surprised that Werner answered your question of, “Can this carry on?” and it seems to have landed with a quiet flutter and nobody noticed.
Yes, the debts will carry on.
It is our (normal, private, citizens) access to our own currency and markets that will be curtailed.
Nobody else caught that?
He also architected a lot of the financial system’s biggest moves - the QE bailouts and the asset consolidation by the Federal Reserve via BlackRock, Vanguard, and State Street.
I have only listened once, and I wasn’t taking notes - but the above is what really stood out to me. Abiotic oil is what we are jumping on when he just walked us through the stablecoin blackhole being set up for treasuries (i.e. there is part of the answer as to what happens to all that U.S. treasury debt)?
Howard Lutnick has spoken about this in interviews leading up to the 2024 election. Debt, what debt? I have here a stablecoin that says I can take U.S. debt and exchange it for goods, if I behave and check all the boxes the stablecoiners require.
I think it is this interview on the All In! Podcast that he talks about stablecoin and the US national debt being stuffed in the stablecoin rabbithole:
We really ought to start smashing digital payment tablets and kiosks with hammers. The day is already here when you can be debanked and denied a cup of coffee because of a bad word spoken about some bigwig or another.
Can you contrast for me the birth rates of poor countries in Africa to places like South Korea, Japan, and Germany? If they are different rates, why do you think that is?
And if free energy was available, would the world become more like Africa? Or Japan/Korea/Germany?
I don’t really get the stablecoin argument. Trillions of dollars are going to pour into stablecoin companies, and they are going to use that money to buy Treasuries. Huge new demand.
Except…where is that money now? People don’t have trillions under their bed. I suspect that money is now in…Treasuries. So rich investors are going to sell their Treasuries to get cash, use that cash to buy stablecoins, then the stablecoin company uses that cash to buy…Treasuries.
Now if you tell me people are going to sell their real estate, or AI stocks, to get cash to buy stablecoins, I would get it. But even if you have a trillion in the bank, the bank probably has it invested in Treasuries. So if you want to withdraw the cash, the bank needs to sell Treasuries.
Stable coins are popular in economies with unstable currency. Also, it is unlikely it will carry the entire problem. Even if it did, they’d just see it as a surplus and spend more.
Hard to talk about programmable money without mentioning Catherine Austin Fitts. She’s the staunchest opponent of programmable money I know of (and fellow Richard Werner fan to boot). For me, avoiding programmable money is a hill to die on, and I’ve switched to using cash absolutely every opportunity I get.
The exchange will be “You put your treasuries here and we will give you stablecoins at face value plus X.”
The treasuries disappear. Debt, what debt? Most stablecoins are managed to maintain U.S. dollar system control on the above-board exchanges, i.e. Bytedance (one of the big Trump Ballroom donors), know your customer, anti-money laundering rules, etc. Some stablecoins are taken off-grid and exchanged in the black market for smuggled goods, etc. The U.S. dollar system captures the flow of black market exchanges. The net effect: the U.S. dollar system controls the medium of exchange for international resource flows without the Triffins Dilemma that ruins the domestic economy of all global reserve currencies. The U.S. dollar system also retains its ability to export inflation to everyone stuck in its system.
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