Indeed, and since the beginning of my career, I have tried to understand why it has value, when it costs nothing to produce, how and by whom it is created, what happens when the one who has the responsibility for creation creates too much or not enough… and on all these questions, I only have one thing to say, thank you Milton Friedman…
And so, since those in charge of this creation have really created a lot since Draghi destroyed the Bundesbank (2012), I have come to some investment conclusions about what NOT to have in your portfolio.
As a faithful disciple of Jacques Rueff, I noticed that public authorities in Europe or the USA had returned to their unfortunate habit of creating money "ex nihilo" to subsidize expenses that brought in nothing (Inflation consists of subsidize investments that bring no return with money that doesn't exist. Jacques Rueff). As inflation is in no way a rise in prices but simply a drop in the value of the note in your pocket, this amounts to saying that holding a bond from the French State to which you would have lent 100 e of today today to be repaid 100th in 10 years was really a stupid operation since the purchasing power of my capital will have fallen by 50% over the period.
And I came to this conclusion like a grown-up, without the help of any black box, computer or Excel spreadsheet.
Since I arrived at this remarkably original conclusion, a portfolio of 10-year bonds issued by the French Treasury[1] has fallen by 25% while bonds of the same duration issued by the Chinese government have risen by 25%. % in Euro.
I am certainly ashamed of being a bad Frenchman, but this shame is tempered by the certainty that those who should go into hiding are Messrs. Sarkozy, Hollande, Lemaire, Tricher Draghi and other Madame Lagarde, and not me, who has not just trying to protect my dear IDL readers against the abysmal incompetence of the above mentioned.
The goal was of course to euthanize the annuitant.
And if I judge by the recent laws that have passed Parliament, we are going to move from financial euthanasia to real euthanasia
Apparently, first we must ruin the old people (which is on the right track) and then give them a merciful injection so as to prevent them from living an old age in poverty. Hoping of course that they will be the first to demand, with proper dignity, an end to their misery. In any case, this is what Mr. Attali recommends.
In order to ensure the extinction of useless assets, existing pension funds will not be nationalized but regulated.
Thus, any payment will be divided between three investments (this is already almost the case):
Half will go to government bonds, officially a risk-free investment and in reality a certificate of confiscation.
Forty percent will go to investments in companies producing windmills and magic mirrors.
And ten percent for social housing intended for immigrant workers in an irregular situation who are quite incapable of paying anything, but it is a question of doing humanitarian work and not of making money on the back of the misery of the world . Interestingly, those who build these homes are often close to the politicians in power, and they make money.
The value of pensions paid will therefore collapse, which will encourage the disappearance of useless ones.
The first step was therefore to get rid of those who no longer produce anything by preventing them from building up savings that would allow them to live with dignity in their old age, surrounded by the affection of their loved ones.
This goal is in the process of being accomplished.
It is time to move on to the second stage towards a better world.
After preventing the elderly from building up savings, we must then help those who contribute to GDP to spend their money in a socially useful way.
To do this, we must create a digital currency.
Here is the project...
This card is in force in Belgium, Portugal and Sweden.
The fraud is impossible to estimate, the reason is the implementation of social credit that the bankers want to impose. The next merger will be identity, medical and financial.
For the implementation of this future card, it is like the vaccination pass, an activity will be subject to conditions, such as the currency of the future and the electronic purse which could have an expiry date.
If the gender distinction seduces Gabriel Attal, with this new identity card he will invent a new discrimination in hiring and put an end to medical secrecy.
It's nice to have Cash +, it's cash, but in a more… “more better” version, I suppose, as my children say.
But between you and me, what is the use of such a “digital” central bank currency, since our euro is in fact very largely dematerialized. Between our payments by credit card, “contactless” and the transfers we make to each other, cash only represents a very negligible proportion of our exchanges.
So from you to me, for us, the people, SMEs, or even larger companies, this new "cash+" thing has absolutely no interest is it's rather "hide+" because yes, things are hidden from us !
These things that are hidden from us are very easy to understand and are expressed in half-words by the Governor of the Bank of France.
What is hidden from us and what is not discussed obviously revolves around privacy and above all control and surveillance.
In the words of the Governor of the Banque de France, "Cash+" will bring significant advantages over banknotes: it will allow everyone to use central bank money in e-commerce, for remote payments between peers (peer-to-peer), as well as for conditional payments. »
Officially, as you can see, these are e-banknotes that you can therefore use for your online payments. Online payments that we make today without any problem with our current means of payment.
Once again, this e-ticket, this central bank crypto-currency does absolutely nothing. It brings us nothing or so little that our authorities must not bother to such an extent to set it up for us.
So if this is not of much use to us, but they are very keen on it, it is because the advantages are not necessarily for the population, but for the monetary and banking authorities (without forgetting the political authorities), because in the long term, the elimination of physical cash is obviously a reduction in costs. It is also the establishment of monetary control making tax evasion almost impossible. It is also in an extreme view, the monetary component of potential social control as in China. Your digital wallet, like your health pass, can be deactivated, recharged, or limited. We could even delete it for you.
In short, the potential drifts are such that it is a subject which obviously deserves a national democratic and philosophical debate.
Here is the text of the Banque de France source speech here.
Guy de la Fortelle was a guest on the Ligne Droite program on Radio Courtoisie to discuss finance-related topics, including cash and crypto-currencies. During the show, he challenged the listeners: “I invite all your listeners to go and withdraw 5.000 euros in cash from the bank. We will not give them, not easily in any case”. This statement raises important questions regarding the availability of liquidity that is supposed to be available to bank customers.
The first (plausible) assumes that the ECB is waging a blind fight against inflation, at the risk of destabilizing the banking and insurance market. The second (which we expose here) is that this risk-taking is fully assumed by the monetary authorities, for whom a savings crisis would undoubtedly facilitate the transition to digital currency which poses so many problems today. In fact, the planned timetable for the implementation of this digital euro offers an ideal “window of opportunity” for a financial crisis in 2023.
Let's repeat: the decision taken by the ECB on Thursday, in the midst of a financial storm triggered by the bankruptcy of the Silicon Valley Bank, essentially due… to the rise in the Fed's rates, is an intriguing signal. Some have seen it as a mark of irresponsibility or incompetence: increasing key rates by 0,5 points while the banks are in the throes of suffering (we saw this with Credit Suisse, whose stabilization cost 50 billion Swiss francs) due to the very fact of the rise in rates raises questions about the blindness of the monetary authorities. Do they measure the risk they pose to the global economy and, above all, to savers, by modifying market parameters so quickly and so strongly?
The ECB has just revealed the panel of actors it is preparing to entrust with the implementation of the first iteration of the future “digital Euro” or E-Euro. If the presence of a Spanish bank or the Italian Nexi will not surprise observers, it is difficult to say the same when it comes to the surprise presence of the American giant… Amazon.
It is an announcement that has the effect of a small bomb and whose implications will probably go well beyond the simple technological or even economic perimeter.
The Banque de France is planning four or five more experiments this year and next, involving more private companies and other foreign central banks. She has previously worked with the Swiss National Bank, the Monetary Authority of Singapore (MAS) and the Central Bank of Tunisia on separate cross-border payment projects.
“The digital euro can only be a success if it is part of the daily life of Europeans. It must provide added value compared to existing solutions”
Pippa Malmgrem, a leading American economist who served as special adviser to former President George W. Bush, has made a statement that confirms what we and others have been reporting for some time, that a cashless society is about to be born.