There’s a multitude of scare stories circulating related to digital currencies probably emanating from MI-6, CIA, and other places involved in the effort to defend Dollar Hegemony.
Thanks Karl. I did look at the article you suggested I read. It was pretty much over my head. Fortunately CBDCs are not a thing I would be interested in as they are not relevant to my circumstances. In fact, until I read your article I hadn't shown any interest at all. In the long run CBDCs operate along the same lines as any form of centralised monetary system so that 'security' remains the salient issue.
Thanks for this Karl. I've copy & pasted it to show a mate I'm going to visit who is very anti-CBDCs and suspicious of China and Russia (Xi Jinping & VV Putin specifically), with a print out - properly attributed of course. Hope you don't mind.
please, karl, i know this is the stupidest stupidest question but i really don't understand (& i've tried to unravel this thanks to you & NC & colin maxwell) but i really do not get why the inevitable power & supremacy of the yuan what holds the global majority from simply adopting the yuan, mother is comfortable to hold & trade in yuan, yes, india may balk, but africa, latin america, mena won't---so please (i know it's a stupid beyond the pale question) but why do the global majority need to construct a construct that empire cannot attack? thank you for taking the time & energy. blessings. emersonreturn
Radhika Desai has explained why the international system gets out-of-whack when a single nations national currency is used--basically it makes it impossible to balance the system as there're always contradictions. Better to be neutral with an arrangement all nations can agree on. The current arrangement as we know was quite arbitrary and has been grossly misused.
thank you, karl, for gently explaining the obvious to me...unfortunately i am unable to fully grasp why china shouldn't be the dominant currency when it shall be unquestionably the dominant power? agreed, the reserve currency we have known has been lethal but does it follow that it must be? couldn't the reserve simply be intrinsically elegant in its simplicity? the dominant in our experience has been treacherous but it needn't be, if the dominant nation wasn't, isn't, can see the pitfalls of domination, couldn't trade therein simply be a happy meeting between i have stuff you need & you have stuff i need & we can trade stuff & for any leftover owing i give you yuan & if need be more stuff to make up the difference? & the debt if there be one can be resolved with stuff.
China has explicitly stated it doesn't want to become a "dominant power". Its Global Security Initiative calls for no hegemony whatsoever. Perhaps I ought to break that document down next. The point now well recognized is competition generates disharmony which is costly as energy is devoted to it instead of the primary goal which is cooperation and balance. The ancients knew this basic yet fundamental principle that when balance was disturbed it needed to be repaired and a new balance established. Look at the planet. There's no balance although strides are being made here and there. Thanks Lousie! Communication is very helpful.
thank you, karl, communication is indeed very helpful. i understand china has explicitly stated many times its reluctance to be a dominant power & her reasons have been exquisitely stated. certainly we cannot fail to escape the devastation competition can excite within those suffering severe pleonexia. empire will never allow a currency challenge. just as the bri, sco & brics are being continually attacked & assiduously undermined the currency will suffer more so. it is city's crown jewel.
as well, the yuan is already established, & like it or not, it is the currency of the world's number one economy. as my deceased (he was never late) husband used to tell me, 'never forget, louise, america is china's rounding off number.' it seems china already is the dominant currency. as a result i've begun to wonder if the creation of another trading currency is somewhat of a ruse in which to divert empire & create a feint in the economic war. a diversion or red flag/false flag that empire will eventually defeat after expending its quickly diminishing resources, while the yuan conveniently quietly has been sheltered & therefore in fact has continued to spread & grow.
russia trades & holds yuan, on the ground in africa currently both the rouble & yuan will buy & sell. within the Rest of Humanity there won't be competition for currency supremacy simply ultimately the dollar will die, & the yuan because of its economic magnitude will become in most trading circles the simplest most expedient 'currency' in the true original definition of the word.
thank you, karl, for putting up with my persistent & elementary question. you are exceedingly patient. blessings.
thanks karl! very informative.. i am still only 1/2 way thru the hudson article from a few days ago, but this seems to encapsulate a certain important angle of it.. thanks..
Well, I tried but this currency and banking stuff always goes over my head. The scare stories which concern me involve lack of privacy and control by others of one's funds. These issues you did not address, mainly focusing on how the digital ruble will function alongside existing currency.
For example, I have read that the blockchain technology - which I do not pretend to understand - keeps track of every transaction attached to it (whatever 'it' is) which also means that checks can be placed upon it such as: User X (aka 'me' or 'you') is not authorized to buy Product Y. And here is where social credit systems come in such as in China today already where if your score slips 100 points, say, you can no longer buy plane tickets and have to take trains, or you cannot buy first class train tickets and have to buy second class.
Now: maybe those programs have been tried and eased out. But the concern is that such things can be attached functionally to government-issued digital currencies. The bank director there said the transactions were free. But they can change that at any time. She said there were monthly deposit limits; these also can be changed at any time. If you get arrested or flagged on social media for badmouthing a President, your funds can be frozen. Maybe it won't happen in Russia ever, but what about in the US or other countries? And who can say that it will never happen in Russia? What about in five years, ten?
When a country is doing well and being honestly and efficiently run, all oars pull in the same direction and the result generally is peace and prosperity. However, such conditions rarely last forever; that which was honest and well-run before becomes corrupted and badly or criminally run. What then? What protections are there against corruption? That this issue was not addressed at all - at least in your excerpts - to me is another warning sign.
Generally, I believe it is not a good idea to give governments too much power over individuals. A state-issued digital currency seems to do just that. Maybe it will be well administered, in Russia, but maybe it won't (and of course each jurisdiction will have its own journey with this over time). Either way, to me at least this piece did not address that concern.
That said, it was good to have a review of what happened today with the launching of Russia's digital ruble. Gracias!
That several trial periods are being used point to the issues you raised. Both Russian sources mentioned them in passing. I agree the security aspect is paramount, which is why I closed as I did. I do like the idea of keeping CBDCs as pure transactional currencies to circumvent dollar hegemony choke points. We'll watch and see what happens.
Thanks Karl. I did look at the article you suggested I read. It was pretty much over my head. Fortunately CBDCs are not a thing I would be interested in as they are not relevant to my circumstances. In fact, until I read your article I hadn't shown any interest at all. In the long run CBDCs operate along the same lines as any form of centralised monetary system so that 'security' remains the salient issue.
Thanks for this Karl. I've copy & pasted it to show a mate I'm going to visit who is very anti-CBDCs and suspicious of China and Russia (Xi Jinping & VV Putin specifically), with a print out - properly attributed of course. Hope you don't mind.
Don't mind at all. The negatives I see are based on those I expressed that are related to the integrity of the digital system and that of the government involved. I suggest reading this article composed by IBM related to quantum computing and security, https://www.ibm.com/thought-leadership/institute-business-value/en-us/report/quantum-safe-encryption
please, karl, i know this is the stupidest stupidest question but i really don't understand (& i've tried to unravel this thanks to you & NC & colin maxwell) but i really do not get why the inevitable power & supremacy of the yuan what holds the global majority from simply adopting the yuan, mother is comfortable to hold & trade in yuan, yes, india may balk, but africa, latin america, mena won't---so please (i know it's a stupid beyond the pale question) but why do the global majority need to construct a construct that empire cannot attack? thank you for taking the time & energy. blessings. emersonreturn
Radhika Desai has explained why the international system gets out-of-whack when a single nations national currency is used--basically it makes it impossible to balance the system as there're always contradictions. Better to be neutral with an arrangement all nations can agree on. The current arrangement as we know was quite arbitrary and has been grossly misused.
thank you, karl, for gently explaining the obvious to me...unfortunately i am unable to fully grasp why china shouldn't be the dominant currency when it shall be unquestionably the dominant power? agreed, the reserve currency we have known has been lethal but does it follow that it must be? couldn't the reserve simply be intrinsically elegant in its simplicity? the dominant in our experience has been treacherous but it needn't be, if the dominant nation wasn't, isn't, can see the pitfalls of domination, couldn't trade therein simply be a happy meeting between i have stuff you need & you have stuff i need & we can trade stuff & for any leftover owing i give you yuan & if need be more stuff to make up the difference? & the debt if there be one can be resolved with stuff.
China has explicitly stated it doesn't want to become a "dominant power". Its Global Security Initiative calls for no hegemony whatsoever. Perhaps I ought to break that document down next. The point now well recognized is competition generates disharmony which is costly as energy is devoted to it instead of the primary goal which is cooperation and balance. The ancients knew this basic yet fundamental principle that when balance was disturbed it needed to be repaired and a new balance established. Look at the planet. There's no balance although strides are being made here and there. Thanks Lousie! Communication is very helpful.
thank you, karl, communication is indeed very helpful. i understand china has explicitly stated many times its reluctance to be a dominant power & her reasons have been exquisitely stated. certainly we cannot fail to escape the devastation competition can excite within those suffering severe pleonexia. empire will never allow a currency challenge. just as the bri, sco & brics are being continually attacked & assiduously undermined the currency will suffer more so. it is city's crown jewel.
as well, the yuan is already established, & like it or not, it is the currency of the world's number one economy. as my deceased (he was never late) husband used to tell me, 'never forget, louise, america is china's rounding off number.' it seems china already is the dominant currency. as a result i've begun to wonder if the creation of another trading currency is somewhat of a ruse in which to divert empire & create a feint in the economic war. a diversion or red flag/false flag that empire will eventually defeat after expending its quickly diminishing resources, while the yuan conveniently quietly has been sheltered & therefore in fact has continued to spread & grow.
russia trades & holds yuan, on the ground in africa currently both the rouble & yuan will buy & sell. within the Rest of Humanity there won't be competition for currency supremacy simply ultimately the dollar will die, & the yuan because of its economic magnitude will become in most trading circles the simplest most expedient 'currency' in the true original definition of the word.
thank you, karl, for putting up with my persistent & elementary question. you are exceedingly patient. blessings.
thanks karl! very informative.. i am still only 1/2 way thru the hudson article from a few days ago, but this seems to encapsulate a certain important angle of it.. thanks..
Well, I tried but this currency and banking stuff always goes over my head. The scare stories which concern me involve lack of privacy and control by others of one's funds. These issues you did not address, mainly focusing on how the digital ruble will function alongside existing currency.
For example, I have read that the blockchain technology - which I do not pretend to understand - keeps track of every transaction attached to it (whatever 'it' is) which also means that checks can be placed upon it such as: User X (aka 'me' or 'you') is not authorized to buy Product Y. And here is where social credit systems come in such as in China today already where if your score slips 100 points, say, you can no longer buy plane tickets and have to take trains, or you cannot buy first class train tickets and have to buy second class.
Now: maybe those programs have been tried and eased out. But the concern is that such things can be attached functionally to government-issued digital currencies. The bank director there said the transactions were free. But they can change that at any time. She said there were monthly deposit limits; these also can be changed at any time. If you get arrested or flagged on social media for badmouthing a President, your funds can be frozen. Maybe it won't happen in Russia ever, but what about in the US or other countries? And who can say that it will never happen in Russia? What about in five years, ten?
When a country is doing well and being honestly and efficiently run, all oars pull in the same direction and the result generally is peace and prosperity. However, such conditions rarely last forever; that which was honest and well-run before becomes corrupted and badly or criminally run. What then? What protections are there against corruption? That this issue was not addressed at all - at least in your excerpts - to me is another warning sign.
Generally, I believe it is not a good idea to give governments too much power over individuals. A state-issued digital currency seems to do just that. Maybe it will be well administered, in Russia, but maybe it won't (and of course each jurisdiction will have its own journey with this over time). Either way, to me at least this piece did not address that concern.
That said, it was good to have a review of what happened today with the launching of Russia's digital ruble. Gracias!
That several trial periods are being used point to the issues you raised. Both Russian sources mentioned them in passing. I agree the security aspect is paramount, which is why I closed as I did. I do like the idea of keeping CBDCs as pure transactional currencies to circumvent dollar hegemony choke points. We'll watch and see what happens.