CBDCs | “At Some Point the World Is Going to Go Into a Financial Crisis. You’ll Get the Announcement That We’re Having the New Currency Which Will Be the CBDC.” – Clive Thompson
The author believes that at some point, the world will experience a crisis where banks will close and a new currency, the CBDC, will be introduced. The Federal Reserve’s balance sheet is leveraged over 200 times, with assets of $8.5 trillion and capital reserves of $35 billion, making it insolvent. The assets on the balance sheet are mortgage-backed securities, treasury bills, and bonds purchased over the last decade at low interest rates, while the liabilities are deposits from banks and depository institutions. The Fed is making losses for the first time in its history, and if they keep making losses, they will run out of capital and reserves. This means that even a 10% fall in assets would wipe out their share capital, which is $800 billion. The author suggests that the Federal Reserve should talk to the Treasury about recapitalizing the central bank to avoid this situation. Bond prices have fallen by at least 15%, and the Fed’s portfolio of bonds has also been depleted, making the bond market vulnerable to a sell-off. The Dutch central bank, the International Monetary Fund, has issued a warning about the need to raise capital to address the global financial crisis. The central bank’s bond markets are currently in a state of fog, with many countries, including the UK, Italy, and the US, being at risk of financial instability. It is important to be aware of these risks and take necessary precautions to avoid running out of money.
