/biz/ - Business & Finance

>>23345952
I have thought about this too. One theory is that they are just bluffing in order to get private commercial banks to loosen lending standards so we can get inflation that way. US CBDC would make modern banking obsolete basically.

H6321 bill says its just for getting gibs to nigs quicker than a paper check. An account could be opened with an SSN, just like a bank account or crypto wallet. The funds inside would be on par with cash, which is just another Fed liability.

Consider how these pieces fit into the puzzle:

>Dems from Cali tried to include US CBDC (FedCoin) in the proposal for the March stimulus. Dems from Ohio included it in another bill.
>US CBDC becomes a polarized issue. Dems like it for more centralized control and insta gibs-to-nigs, GOP fights it for muh freedum market and banker jew lobbyists.
>US CBDC would make modern banking obsolete. Banker jews will not go down without a fight.

To me it seems like the ultimate showdown is between the banker jews and the Fed jews. The "let banks collapse" doesn't seem likely too me. Rather look at places like Argentina where the banks still operate with regular "bail-ins" (solvency by confiscating depositors' money) for decades already. The alternative in our case would probably involve banks helping the Fed implement and distribute FedCoin, with a small fee of course...

>>22814066
I can't tell if FedCoin is a real possibility OR if the Fed is just bluffing as another psyOp. US CBDC would make modern banks obsolete, so the recent press coverage of it could be an attempt to scare banks into loosen lending standards.

On the other hand, its obvious that they are serious about a FedCoin, but government is usually wildly incompetent at implementing anything as designed.

In either case, this is bullish for PMs, so NOW IS THE TIME TO STACK.

>>22758111
We discuss US Central Bank Digital Currency (US CBDC) in a lot of PMG threads.
There is also this one right now >>22752483

In short
>March 2020, Dems try to sneak in a US CBDC into the first stimulus bill, insta-printed cash stimulus sent directly to consoomers' FedAccounts.
https://www.congress.gov/bill/116th-congress/house-bill/6321
>June 2020, Congress hears a special FinTech Team presentation about features of US CBDC, such as programmable negative interest rate, transaction tracking, etc.
https://www.congress.gov/116/meeting/house/110778/witnesses/HHRG-116-BA00-Wstate-GiancarloJ-20200611.pdf
>September 2020, TODAY: Fed themselves talking about getting more serious about US CBDC. Basically its coming. With it Fed can bypass commercial banks. Anonymity of cash can be removed. And much much more.
https://www.clevelandfed.org/en/newsroom-and-events/speeches/sp-20200923-payments-and-the-pandemic.aspx

>>22754721
Does the cash balance in your bank carry a negative interest? Just imagine if your savings lost 1% every day, by design, forcing you to spend. Where would you keep your wealth?

>>22754777
It is by definition a cryptocurrency designed and distributed by the Federal Reserve. So, tracking where each FedCoin is spent, coding purpose into each FedCoin (can only spend it on food, gas, can only shop at Walmart, etc.).

>>22667185
I guess I'll share some of that rabbit hole journey. Some major waypoints have been:
>Credit Theory of Money
>Modern Banking Profit Model
>Eurodollar System
>Effects and Limits of QE in the US
>actual Mechanics of QE (this is where I'm stuck)
>US Central Bank Digital Currency (US CBDC) and congress proposal H6321

I guess the endgame for banks is that they still need profits. They have to have more assets than liabilities to provide shareholder equity. So they can make as many loans (assets) as they want, BUT when those loans start to go bad, they take the hit on the asset side of the balance sheet. Right now banks see that the economy is in stagnation, so loans are too risky to keep as assets. Bonds on the other hand, are guaranteed to hold value so long as the Fed continues QE. As such, banks have been lending less and buying and holding more bonds. This will tank the economy further and cause more QE from the fed which will make bonds go up in price, strengthening banks' balance sheets.
>Why explain all of this
The expansion of money supply in the US is throttled by the commercial banking system. The Fed has no actual power over monetary inflation. This led to the idea of a US CBDC which could shove money right to consoomers' Digital FedAccount wallets.
>>22667299
>sliding between the cracks
They almost snuck in FedCoins into the March stimulus bill (pic related). Check out Maxine Waters' proposal H6321 on congress.gov

I think this is the endgame. Fed gets direct control over the money supply so they can bypass commercial banks and cause the inflation the US government needs to be able to service its debts.

>>22517282
>>22517358
>That won't happen before the election
They almost snuck in the FedCoin into the March stimulus bill. Look up H6321 proposal by Maxine Waters D-CA. They are bringing it on stealthily.

>>22517352
A US Central Bank Digital Currency, with negative interest rate capabilities, held in FedAccount wallets given to every citizen, will surely allow them to control inflation more directly. In that case we will be at their mercy, if they want to inflate away oligarch's debts at the expense of poorfags, like in Argentina, or if they want to keep it balanced. Former case, I would say is bullish for PMs and crypto as well. In the case of Argentina in 2001, the economy reverted to barter system. Bitcoin right now is trading at a yuge premium and people swim across the rio to Uruguay to buy it.

>>22494909
I'm expecting a whole lot of fucking nothing, but still, even the slightest mention of FedCoin, as we've discussed in these threads, would be enough to trigger smart money moves into PMs.

>>22487717
Speaking of monetary regime change, they tried to include this in the first March stimulus bill. Check out H6321 on congress.gov
>US Central Bank Digital Currency (US CBDC)
>Held direct at the Fed in FedAccount wallets
>Funding is literally printing $ (not bank reserves)

This would be a game changer

>>22418553
>>22418598
We talked about it yesterday, but back in March, a Democrat (Maxine Waters - California) tried to include a Fed Digital Dollar in the first stimulus bill. Pic related.

Since Dems usually favor greater central control, this will probably be implemented under Biden, thus removing the commercial banks as the intermediary and cock-blocker of the current monetary inflation goals.

Here is the full text:
https://www.congress.gov/bill/116th-congress/house-bill/6321/text
Note the part 5) about FUNDING, where it says gibs money will be literally printed by the Fed (as opposed to bank reserves + lending). This will give Fed much greater control over inflation, which is a guaranteed policy target given our national debt and like >>22418553 says, even MORE gibs under Biden. So basically, very bullish for PMs, not considering the manipulation that will surely be forced on prices.

>>22394348
Manipulation is most certainly desired by those in power. PMs will be direct competition for their implementation of US CBDC inflationary FedAccounts.

I know there are some macro lurkers on pmg so I wonder has this ever been discussed before:

>US Central Bank Digital Currency (US CBDC)
As I keep diving deeper, I'm really surprised how stealth this is. It was even included at first in the March stimulus proposal, then they took it out for some reason.

HR6321 introduced by Rep. Waters, Maxine D-CA-43. Check this out:
>TITLE 1 SEC. 101. DIRECT STIMULUS PAYMENTS FOR FAMILIES
So pic is related and direct source is below. Basically, a Fed crypto was proposed to send gibs to plebs. It gets intersting under (5) FUNDING:
>The Secretary of the Treasury shall, before each monthly payment required under subsection (a), notify the Board of Governors of the Federal Reserve System of the aggregate amount of such payment, and the Board of Governors shall issue notes in such amount and transfer such notes to the Secretary of the Treasury for use in making such payments.

This is now literally the definition of printing money. I have been skeptical on the PM case because QE prints bank reserves which actually relate to lower inflation levels. This is a game changer and something we really need to watch

The bill:
https://www.congress.gov/bill/116th-congress/house-bill/6321/text