The New Great Depression: IMF To Protect the 1% From the Upcomming Financial Collapse
The International Monetary Fund (IMF) is predicting the new Great Depression for the world. There is such an assumption in the report of the organization for the MF World Economic Outlook. Digital assets are controlled by no one and nothing and anonymous will be to blame for this. “Cryptocurrencies today are not regulated at all, and this fact attracts many people,” said the head of the IMF Christine LAGARDE. “They do not have unified emission centers, and there is no unity in the approach to protecting or selling digital money.”
The obviousness of the arguments given by one of the main international officials is suggesting sad thoughts. Either the nature of virtual coins remains a mystery to the global economic elite, or, more likely, the interests of that very 1% of the population that owns 80% of the wealth on the planet are at stake.
“They are speculative in many ways,” LAGARDE continues. “A striking illustration of this are the jumps in the bitcoin rate.”
We would find it difficult to deny this statement. But let us remember whether the digital asset market is the only speculative and volatile area of the global financial and economic sphere. For example, let us have a look at the oil market: 2011 - $111 per barrel and 2016 - $44 per barrel. The drop is more than 50%. Then 2016 and 2018 - $82 per barrel. The rise almost doubled. What do you think about this volatility? At the same time, no one says that black gold threatens world financial stability, although the graph of oil fluctuations mirrors the graph of bitcoin fluctuations.
There is another interesting point in the IMF report: “An additional source of risk is cyber attacks and the security violation of the critical points in the financial infrastructure, as they can disrupt the operation of the cross-border payment system. The serious growth of cryptocurrencies can create vulnerabilities in the global financial system.”
At the same time, in 2012, hackers hacked into the Global Payments server - one of the largest companies involved in money remittances in fiat currency for small businesses. The data of 110 million credit cards were stolen. Two years later, 90 computers of the JPMorgan Chase Bank were hacked. The keys to 76 million bank accounts were at the criminals’ disposal. And in the same year of 2014, with the use of the password from one of the cashiers of the Home Depot retail chain, cyber-thieves got access to 56 million credit cards, many of which were used for illegal transactions.
Note the fact that we are talking about tens and hundreds of millions of credit cards and accounts, each of which can contain any number of dollars.
The volume of hackings and thefts in the fiat financial system is not comparable in a scale with the thefts of funds from crypto wallets and crypto exchanges. But at the same time, Christine LAGARDE repeats uninterruptedly: "The increased risks associated with the cyber-security, create serious problems for the functioning of financial institutions, financial infrastructure, and supervisory authorities."
But no one blames banks and other financial corporations for the vulnerability to cyber attacks and the threat to "critical points of the global financial infrastructure." On the contrary, they are held up as examples, as safe, properly regulated depositories of investors' funds.
The IMF report also mentions the macroeconomic threat of the digital currencies` widespread occurrence. In particular, it says that a sudden change in the world economic situation, associated with the growing popularity of virtual assets, can lead to significant changes in the financial system, which, in turn, will provoke conflicts between governments of countries and investors. Here is the key message of the report. And further ... Along with digital coins, the high inflation in the United States and the perturbations in the economy in Turkey are mentioned as the main threats to the world economic stability.
The existing world order is falling down around our ears. Last we checked, the Triffin Dilemma still exists and it seems that the deficit of the payments balance in the United States is approaching its critical threshold, after which the dollar cannot be used as a world reserve currency either without fatal damage to the US economy or the same damage to the global financial system. As well as the demarche of Turkey against the policies of the United States and NATO putting under question the inviolability of political and economic relations within the Western community of countries.
The global economic crisis is just around the corner. And for some reason, the IMF says that the collapse can be stopped by removing the main irritant of financial elites, the first real alternative to the dollar as a global savings asset from the arena. More specifically - a decentralized, supranational, and independent currency, supported by social capital.
The efforts of the IMF to intimidate the world community, in general, and investors, in particular, can be understood. But if the new Great Depression occurs, it will happen not because of the growing popularity of digital assets, but rather because of the unfair distribution of funds.
It is to be recalled that the Great American Depression occurred because of the crisis of goods overproduction, for which there were no buyers.
The current depression can be caused by a crisis of money overproduction, in one single economic formation. In other words, the United States, Western Europe, Australia, Japan, and China may simply collapse under the load of a regulated, but overblown financial system.
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