Bitcoin Currency To Replace the Dollar as World's Reserve Currency
The Governor of the Bank of England, Mark Carney, Urges Replacing Dollar With Bitcoin-Like Reserve Currency
Bitcoin Bonanza News, August 27, 2018
Mark Carney, Head (Governor)of the Bank of England, the world's oldest central bank
This could send Bitcoin to a $1,000,000 overnight if implemented. Bitcoin is the only real alternative to the dollar and it cannot be inflated as there are just 25 million that can be mined.
After Jerome Powell's neutral-to-slightly-dovish-but-mostly-boring address on Friday afternoon, investors might be forgiven for imagining this year's Fed-sponsored gathering in Jackson Hole could be disappointingly dull (especially with all that is happening in Trump's Twitter feed, the escalating trade war, and escalating geopolitical unrest).
Then along came former Goldman banker and current (outgoing) BOE governor, Mark Carney, who at his lunchtime address laid a shocking, revolutionary proposal - perhaps the most stunning thing to ever be unveiled at Jackson Hole - advocating to replace the US Dollar with a"Libra-like" reserve money in a dramatic revamp of the worldwide monetary, fiscal and economic order. While it was unclear whether Carney was focusing on Libra as the new reserve money, or simply was expecting to locate something against which the dollar might be devalued, the proposal was clearly shocking as it indicates the central bank quiet acceptance of cryptocurrencies (particularly in Japan) was what many have speculated all together: a"currency" against which fiat currency could be devalued in hopes of sparking fiat hyperinflation that inflates off record amounts of fiat debt.
Of course, such a new system would bring about the end of US hegemony, and effectively finish the dollar-based global financial system, radically scaling back the US's influence in the international economy, and making rising powers like China and Russia crucial gamers an increasingly multipolar world.... Especially if they propose a gold-backed dollar alternative on the planet. That this could quickly emerge as the new reserve money - jointly with whatever stablecoin/crypto central bankers deign to be the dollar's substitute - goes without saying.
Carney's suggestion comes just a few months before he is due to resign from his place leading the Bank of England. We notice that since it's a famous actuality that central bankers tend to talk the truth as soon as they've quit their position of influence and power. Nevertheless, it's quite shocking for Carney to do this while still in office; the most important thing, Carney sounded like nothing less than an Austrian-school economist, who admits that the existing neo-liberal/Keynesian system has collapsed. Speaking to fellow policymakers and professors in Jackson Hole, Wyoming, he said that in the brief term central bankers must deal with the situation as it is. It's what he said that was magnificent: "When change comes, it shouldn't be to swap one money hegemon for one more." This is where in case Carney indeed discusses his fundamental banking peers, one can say"game over" for the fiat system, which even establishment members admit will have to devalue against something outside of the fiat system, for example, Gold (as Pimco's Harley Bassman proposed back in 2016), or even cryptocurrency/stable coins, like Libra.
There's barely been a more appropriate time for this type of proposal. Trade wars and now the threat of money wars are upending multilateral cooperation. Central bankers are trapped in a very low interest-rate world, and the threat of Modern Monetary Theory has reared its ugly head. Still, the establishment has been not able to come up with its own choice to fight MMT."The combination of heightened economic policy doubt, outright protectionism, and worries that further, negative consequences could not be adequately offset because of restricted policy space are exacerbating the disinflationary bias in the worldwide market," Carney said. "What then must be done?"
Well, the creation of a virtual non-fiat currency, where all other central-bank backed fiat monies can be devalued, is surely 1 alternative.
Posted from my blog with SteemPress : https://bitcoinbonanza.co/bitcoin-currency-to-replace-the-dollar-as-worlds-reserve-currency/