Quantitative Squeezing

Imagine if you rolled your 401k into an IRA, and the advisor you hired to manage your money, invested it into the exact opposite investments that he said he would when he was lobbying for the job. And his bad decisions caused you to lose all of your money and drove you into insurmountable debt. And then that same advisor argues that because your finances are in such bad condition, that he should be the one to take complete control over every financial decision in your life. Well, that is what the Federal government has done and now wants to do as they continue to push for ‘Central Bank Digital Currency’ or CBDC. Last year, Joe Biden signed an executive order to develop CBDC, which is designed not so much to make your financial transactions easier (they are already very easy), but for the government to control how you spend your money. Senator Ted Cruz introduced a bill this week to stop the creation of a CBDC, calling it “simply a bad idea”.

 The entity that caused the hyper-inflation that we have lived through for the last2 years and created the banking crisis that we are facing right now, wants even more control over our monetary and financial systems. On Tuesday, Moody’s Analytics Chief Economist Mark Zandi stated that the problems in the banking industry are the inevitable result of rate hikes by the Federal Reserve where “things are going to start to wobble and break and it’s going to feel uncomfortable.” In response to that, Federal Reserve Chair Jerome Powell said on Wednesday that the Fed would use “all of our tools” to keep the banking system safe, and subsequently, he increased interest rates by quarter of percent. So, he did what politicians do all the time, double down on the policies that caused the problems in the first place.