I feel it is important to discuss what is happening at the moment.
We're gonna break this down into 4 parts.
Let's start with the virus.
Part 1 – The Virus
Now, this virus.
First of all, I just want as a disclaimer to say that it's important to rely on official sources of information regarding the virus since they would never lie to you…
OK, so what's up? Well, here's what's up:
This virus is the trigger for the biggest power play we've seen since 2001.
This is a perfect excuse for an economic crash.
This defers responsibility from those who are actually responsible and blames it all on this virus.
It also accelerates the inevitable trend towards a cashless society, and the much desired Central Bank Digital Currency (CBDC).
We've had Christine Lagarde (former head of the IMF and current President of the ECB) and Mark Carney (former Governor for the Bank of England and current UN special envoy on climate action and climate finance) speak on digital currencies.
We've had reports from the Bank for International Settlements (BIS). The BIS is essentially the Central Bank for Central Banks.
Coincidence is a funny thing (just ask Larry Silverstein…):
In 2019, 1200 CEOs left their positions. That was a record year.
In the first month of 2020, 219 CEOs left. A new record.
On the topic of CEOs…
Part 2 – CEOs and Stock Buybacks
The financial metrics which incentivise executives have become far removed from operating performance.
As an example, here is a story from the end of 2014…
This summarises perfectly what has happened!
The main source of demand for equities has been corporations (i.e.stock buybacks).
And this makes sense, incentives drive human behaviour. Pretty simple.
Now, this is the really infuriating part.
These corporations now want bailouts.
By the way, this will happen.
And just like '08, profits are privatised and losses are socialised.
The Airlines, which feel they are entitled to bailouts, spent 96% of their free cash flow on stock buybacks over the past decade.
Now they want a bailout. Ridiculous!
Part 3 – Encryption and Privacy
While all of this is going on, the US Government has been sneakily trying to remove end-to-end encryption and it's been working it's way through Congress.
This concerns the EARN IT Act.
The premise of the bill is that technology companies have to earn Section 230 protections rather than being granted immunity by default, as the Communications Decency Act has provided for over two decades.
If the EARN IT Act were passed, tech companies could be held liable if their users posted illegal content. When internet companies become liable for what their users post, those companies aggressively moderate speech.
Part 4 – Practicality
Central Bank Digital Currencies are inevitable.
The NSA created the SHA-256 algorithm in 2001.
The NSA could of stopped Bitcoin early on if it truly wanted to (51% attack for example).
Why NOW allow a decentralised network of value transfer to develop, whereas previous attempts were snuffed out?
Well, going back to central banking: how about a centralised Central Bank Digital Currency (CBDC) that will allow a greater level of control, can facilitate negative interest rates, easier collection of taxes, etc.
For this to work, you need to usher it in gradually such that people have a decentralised alternative (i.e. BTC) and the mass public is more receptive to digital currencies more broadly. So BTC is the gold and CBDC is the ‘new fiat’.
The current situation is pretty chaotic.
But… ORDO AB CHAO