Carl R. Franklin

The Democratic Party is starting to build their case for a financial reset of our currency. They are making the argument that the investment gains of the savers of society were the artifact of Fed policy which drove asset bubbles. Therefore the gains were not earned. Therefore the Fed can change the rules again erasing our unearned gains. Basically the DEMs are arguing savers were fools to sacrifice and save, forgoing pleasures and believe in a system that the Fed can change, and take it all away at any time.

The Fed created their own CBDC and will go live assuming a successful 12 week beta test with all the commercial banks. Initially it will only be used for large commercial transactions like mortgages. But with more servers it is assumed they will expand usage and eventually replace the $US at which point an exchange rate will be set. This is where serious concerns arise. Never in history has this process been good for the savers of the society. Especially when governments have massive debt with crippling interest costs.

So the political battle will be between the savers of society (who will see their savings plummet in purchasing power) and the non-savers. Who has the greater numbers? The DEMs/ Progressives are betting the non-savers have the numbers.

Posted by: Timothy Birdnow at 11:09 AM | Comments (1) | Add Comment
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