Dear Friends,
It seems to me, Central Bank Digital Currencies (CBDCs) will not result in the smooth operation of the socialist economy, as the experts think, instead they will trigger ever greater oscillations, until the economy comes apart like a suspension bridge in a tornado. Let’s look at previous examples of when the experts have usurped an economic function. Interest rates is one example. The federal reserve in the US and Central Banks across the planet “control” interest rates. Their track record has been abysmal. Lurching from bubble to recession, the experts have a century of abject failure as the basis for their authority. Then there is fiat money. The experts have used fiat money as a means of obliterating a nation’s wealth multiple times over. So… why would CBDCs be any different?
CBDCs are a form of centralized digital currency, that will be controlled by the experts to insure the economy flows freely, and there are no surpluses, shortages or inflation. The problem this whole time has been the people. Spending their money on things the experts didn’t predict, want and creates problems. Bank runs, deflation and any other possible economic problems can be effectively addressed, with CBDCs. If there is a shortage of food, the price will increase creating inflation, but with CBDCs the experts can decide, who doesn’t need food and can limit their purchases, thus eliminating the shortage/inflation with the flick of a switch. A glut can be solved the same way, force everyone to buy the product and voila, no glut. CBDCs give the experts all the power they need.
There are two things all experts have in common. One is they know they are right, and second, they are always wrong. They have zealous faith in their expertise, and they probably do know almost everything there is to know, about nothing at all, but that is not the same as omniscience. They set monetary policy, interest rates and regulate from their penthouse meeting rooms, as far removed from the consequences of their actions as a whale’s tail to water. No one is more certain of their correctness than an expert. They are the experts after all. They represent The Science. To question them is to question science itself and that is blasphemy of the highest order. Neglecting the fact science is always, by definition, wrong. Else it is done and the scientists can retire. That they don’t proves they know science is not right.
Experts have been seeking to tame the economy for two centuries at least. Every socialist innovation is another attempt to marshal the economic might of a nation to the benefit of a politically favored class. The French tried atheism, socialism and autocracy, which failed. The Bolsheviks added terror and despotism, it failed as well. Many other incarnations added genocide of the unwanted elements, and even with that level of commitment, they failed as well. The experts have tried fiat money, a failure, controlling interest rates, fail, and now they think if they can control when we spend our money, what we spend it on, and what we are not allowed to spend it on, that will be the key to unlocking the Ark of the Covenant of autocrats the world over… efficient totalitarianism.
Therefore, if we except the past as a moderately reliable predictor of the future, then from our experience with fiat currency and Federal Reserve driven interest rates, we can expect the experts to fail again. With that much more power their failure will be that much more spectacular. Instead of being a countering force to inflation and unemployment, the Fed has always been a reinforcing mechanism. Because it is always behind the curve. Fiat money is abused by politicians the moment it is politically expedient. CBDCs will be worse. The experts and politicians will exploit it to the point CBDCs become an economic nuclear bomb. A civilization ending nuke in the hands of arrogant semiwits, with an ego measured in parsecs and who utterly lack common sense. What could go wrong?
Sincerely,
John Pepin
