The ECB is following in the FED’s footsteps. Christine Lagarde announced that the ECB would consider changing its sole mandate: to keep inflation below but close to 2%. Bitcoin (BTC) has curiously not reacted to this news confirming that the powerful have the intention to cut our pockets by planing our purchasing power.
Always more inflation
The President of the ECB delivered a speech last Wednesday entitled ” The monetary policy strategy review: some preliminary considerations “. Surprisingly, Christine Lagarde’s words did not cause much noise …
The speech begins with the completely truncated figures of inflation which would only have been 1.2% per year for 2008. Big joke. Check out our latest paper explaining how statistical institutes like INSEE manage to manipulate the inflation figures.
We are probably much closer to 5% inflation per year… But Christine is obviously the ostrich. Besides, how could she really have an idea with his salary of 386,000 euros per year (not taxable). Do we pay attention to the price of pain au chocolat or the metro ticket at this level? …
Complicit in the big masquerade of inflation figures, the “owl” of the ECB laments in her speech that she has failed to generate inflation close to 2%. She even throws a little further than you have to ” ask the question to know whether central banks should not explicitly commit to offsetting periods of low inflation with periods of inflation above 2%. “
Jerome Powell, get out of this body
This statement is not much of a surprise since Jerome Powell announced this new paradigm at the last FED meeting. He even suggested it shortly before during the Jackson Hole Symposium, end of August. Here is what we wrote recently about it:
“The FOMC endorsed Jerome Powell’s statements in Jackson Hole in early September. As suggested on this occasion, the FED confirms that it is aiming for inflation moderately above 2% for a while in order to reach an average of 2% per year over the long term “…
Thecointribune, September 18, 2020, The Fed officially announces its intention to neutralize the Debt through Inflation
This is what Christine Lagarde has just done by declaring her intention to announce “explicitly” that the ECB will tolerate runaway inflation to compensate for years of low inflation. So called low inflation …
This was to be expected, as central bankers from the Bank of Japan and the ECB were present in Jackson Hole. Their presence served as tacit guarantee to the declarations of the FED. It was a sort of the promise to imitate him later. We are almost there…
Will the incantations be enough to create inflation?
Let us put ourselves in Christine Lagarde’s heels for a moment and ask ourselves what is the point of calling for more inflation since her institution seems powerless (officially …) to create as many as it wants since 2008?
Doing the inflationary rain dance is not enough! These promises that neither the Fed nor the ECB are apparently able to keep suggests they probably know something we don’t.… There are many possibilities.
The first is that bankers anticipate that the rarefaction of certain raw materials will automatically drive up prices in the near future. This would be a good pick, since we have most likely crossed the peak oil in 2018. Add to that two countries weighing 2.6 billion people (China and India), thirsty for black gold, and everything becomes clearer …
The second is that bankers expect states to massively widen their budget deficits. This is what is happening now to pay unemployment benefits. 750,000 jobs destroyed in France due to confinement. A million in Spain etc …
The third is that central banks are getting ready to distribute free money to citizens. Put another way, the helicopter currency. Probably in the form of “CBDC”.
CBDC = helicopter currency?
The latest fad of the ECB is called CBDC (Central Bank Digital Money). It is a Central Bank cryptocurrency. A cryptocurrency that will of course pale face against Bitcoin since it is hard to imagine that it is issued in quantity strictly limited, or even that it works as Blockchain.
Benoît Coeuré, the head of the innovation pole of the Bank for International Settlements (BIS), and member of the ECB from 2011 to 2019, said this week that “ central banks have taken cryptocurrency high “. It would almost be funny if it weren’t pathetic.
After having cursed Bitcoin, the central bankers turn their jackets over and don’t hesitate to drink the chalice to the dregs if it can save them. Having understood that we will now have to reckon with Bitcoin – an indestructible cryptocurrency with a colossal hashrate of 140 million TH / s – the bank of central banks decided to create its own.
It is very likely to be given away for free, like a universal income, to make sure everyone embraces it. Which would be very effective in generating this much sought-after inflation. Indeed, rising prices are essential to prevent the public debt ponzi from collapsing. Then it would make a bad time for the loan sharks.
The central banks no longer even hide from wanting to rob us by inflation … It is unheard of! You know what you have left to do. Protect yourself by accumulating Bitcoin.
Child of Satoshi, the alchemist who turned a cryptographic algorithm into gold.
I’m talking about monetary geopolitics, not shitcoins.