What to expect from the Great Monetary Reset

Lenin is said to have declared that the best way to destroy the “capitalist” system was to debauch the currency. By a continuing process of inflation, governments can confiscate, in a covert way, a large share of the wealth of their citizens.

But it’s not just radical socialists who could use inflation as a weapon of social engineering. There are elements within the “capitalist” global elite who want to replace national currencies with a centrally controlled global currency.

The euro could be seen as a trial run for this plan. It has been used as a Trojan horse to undermine the independence of its member states.

Imbalances generated by the single currency brought economic crisis to much of southern Europe. In return for bailouts, countries like Greece and Italy were effectively directly controlled from Brussels and forced to follow EU orders.

Monetary policy has also been used to threaten countries into obeying the EU elite, with handouts restricted if the “wrong” leaders were elected, or EU orders disobeyed. Now there are plans to create a central Treasury with tax-raising and spending powers. This is justified as a way of correcting the eurozone’s imbalances by transferring resources to struggling member states. When this stage is reached, the plan to create a European superstate or EU empire will be close to completion.    

In 1988, the elite-controlled Economist magazine published a cover story with the title “Get Ready for a World Currency.” It called for the creation of a world central bank and a new global currency. This was predicted to happen around 2018, so the plan seems to be running behind schedule.

The transformation could be brought about by an economic crisis – which would push national governments into surrendering their sovereignty. 

The suggested name of the world currency is telling. The Phoenix is a mythological bird associated with worship of the sun. It obtains new life by rising from the ashes of its predecessor.

So, it is quite possible that high or even hyperinflation could be deliberately engineered to bring about economic collapse, creating a pretext for a new monetary regime.

Moreover, some commentators think the elite is planning a Great Monetary Reset – which may also involve the imposition of Central Bank Digital Currencies (CBDCs).

Worryingly, these currencies can be programmable, meaning they could only be spent on goods and services that have been approved by the authorities. This level of social control could be sold to the public as a means of cracking down on criminals and the shadow economy. But it would also enable governments to “switch off” the finances of dissidents and non-compliers.

For example, people who refused an experimental “treatment” could be denied access to their own money as punishment; or perhaps severely restricted in what goods and services they were allowed to buy; or their purchases could be restricted to a particular geographical area in order to re-enforce some kind of lockdown. For tyrannical authorities, this is a far lower cost method of encouraging and enforcing compliance than, say, rounding up dissidents and detaining them in quarantine camps.

These totalitarian agendas appear to be related to the ongoing “War on Cash” and the shift to digital identity systems connected to biometric payment cards. Once again, it seems to be about surveillance and control. An engineered period of hyperinflation would raise the costs of holding physical cash and therefore accelerate the planned “reset” of the monetary system.

Another threat is the imposition of negative interest rates – in other words, overtly stealing people’s savings directly from their bank accounts. This policy is closely related to the War on Cash, and its leading proponents are also active promoters of a cashless society. 

At the moment, central banks are constrained if they want to push interest rates below zero. Savers can easily thwart their plans by removing their money from bank accounts and storing it as physical cash instead. They won’t earn any interest, but it may be better than losing out by keeping it in the bank. By abolishing cash, the central bankers want to force savers into negative-rate assets.

Negative interest rates are of course another warning sign of future high inflation. The argument is they’re needed because the economy is in the doldrums. But central bankers almost always get it wrong. They simply cannot obtain enough knowledge to successfully plan the economy. Thus, their economic forecasts are consistently inaccurate.

Loose monetary policies – for example, forcing interest rates too low – typically sow the seeds of inflationary bubbles and future financial crises, as we saw with the results of the Federal Reserve’s actions during and after the 2001 U.S. recession. (This is one reason that a temporary period of “deflation” can soon be followed by a period of high inflation).

Finally, it is worth emphasizing that if hyperinflation does not occur, a persistent inflation rate averaging 10% still has the potential to destroy a big chunk of people’s savings, particularly if interest rates stay close to zero.    

Richard Wellings

This article is a revised extract from my recent report, Hyperinflation Survival Strategies: Preparing for Soaring Prices and the Great Monetary Reset.

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