Then along came former Goldman banker and current BOE governor, Mark Carney, who in his lunchtime address laid out a shocking, radical proposal - perhaps the most stunning thing to ever be unveiled at Jackson Hole - urging to replace the US Dollar with a "Libra-like" reserve currency in a dramatic revamp of the global monetary, financial and economic order.
While it was unclear if Carney was focusing on Libra as the new reserve currency, or simply was hoping to find something against which the dollar could be devalued, the proposal was clearly shocking as it suggests that the central bank quiet acceptance of cryptocurrencies has been what many have speculated all along: a "Currency" against which fiat money can be devalued in hopes of sparking fiat hyperinflation that inflates away record amounts of fiat debt.
Carney's proposal comes just a few months before he's due to step down from his position leading the Bank of England.
Speaking to fellow policy makers and academics at Jackson Hole, Wyoming, he said that in the short term central bankers must deal with the situation as it is.
This is where, if Carney indeed speaks for his central banking peers, one can say "Game over" for the fiat system, which now even establishment members admit will need to devalue against something outside of the fiat system, such as Gold, or cryptocurrency/stable coins, like Libra.
Central bankers are trapped in a low interest-rate world, and the threat of Modern Monetary Theory has reared its ugly head. Yet, the establishment has so far been unable to come up with its own alternative to combat MMT. "The combination of heightened economic policy uncertainty, outright protectionism and concerns that further, negative shocks could not be adequately offset because of limited policy space is exacerbating the disinflationary bias in the global economy," Carney said.
In light of this shocking capitulation by a member of the central bank establishment, we leave you with some levity, as the alternative is simply dire, and what happens next as the fiat world unwinds - or devalues against some non-fiat construct - will be very unpleasant for all those who are unprepared and had believed that central bankers actually know what they are doing.
https://www.zerohedge.com/news/2019-08-23/unprecedented-shocking-proposal-boes-mark-carney-urges-replacing-dollar-libra
While it was unclear if Carney was focusing on Libra as the new reserve currency, or simply was hoping to find something against which the dollar could be devalued, the proposal was clearly shocking as it suggests that the central bank quiet acceptance of cryptocurrencies has been what many have speculated all along: a "Currency" against which fiat money can be devalued in hopes of sparking fiat hyperinflation that inflates away record amounts of fiat debt.
Carney's proposal comes just a few months before he's due to step down from his position leading the Bank of England.
Speaking to fellow policy makers and academics at Jackson Hole, Wyoming, he said that in the short term central bankers must deal with the situation as it is.
This is where, if Carney indeed speaks for his central banking peers, one can say "Game over" for the fiat system, which now even establishment members admit will need to devalue against something outside of the fiat system, such as Gold, or cryptocurrency/stable coins, like Libra.
Central bankers are trapped in a low interest-rate world, and the threat of Modern Monetary Theory has reared its ugly head. Yet, the establishment has so far been unable to come up with its own alternative to combat MMT. "The combination of heightened economic policy uncertainty, outright protectionism and concerns that further, negative shocks could not be adequately offset because of limited policy space is exacerbating the disinflationary bias in the global economy," Carney said.
In light of this shocking capitulation by a member of the central bank establishment, we leave you with some levity, as the alternative is simply dire, and what happens next as the fiat world unwinds - or devalues against some non-fiat construct - will be very unpleasant for all those who are unprepared and had believed that central bankers actually know what they are doing.
https://www.zerohedge.com/news/2019-08-23/unprecedented-shocking-proposal-boes-mark-carney-urges-replacing-dollar-libra
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