Geopolitical interview: The Big Reset – how crypto investors are helping central banks
FS Insider interviews macro economist Christian Takushi to discuss the so-called Great Reset. Christian explains how “crypto” is a central part of central banks’ exit strategy. Thanks to the boom in crypto currencies and the Covid crisis policy makers have been able to dramatically accelerate their preparations for the transition into a new monetary system. The great reset is a great convergence of major trends encompassing important realms of human activity.
This convergence is probably not so much the design of an evil-intended elite, but rather a multi-decade process that we are all part of. Even the money printing that so many scholars criticise has been enabled by the refusal of investors, corporations and consumers to accept corrections and pain (recessions). When I set up this hypothesis and test it. things fall into place without having to force arguments.
– Biggest beneficiaries of the crypto boom: central banks
– How to mass-test digital currencies and keep gold price in check?
By convincing crypto investors* that crypto currencies will defy central bank money and replace gold as safe haven (a genius idea)
– Western economies are morally and fiscally “bankrupt” and in need of more taxes, financial repression, inflation and a new currency
– Policy makers will reset the system sooner than expected, thanks to Covid and crypto boom – they have enough data now. Truth be said ,the FED and ECB need high inflation and zero interest rates until 2025 at least. Treasury yields of 5% would leave the USA bankrupted and insolvent quickly . Talk about fighting inflation or tapering is to win time
– Printing money ushers hyperinflation, but zero interest rates ushers deflation (it debilitates the real economy, ushers balance sheet shrinking)
– After inflating financial assets and real estate for more than 20 yrs, some central banks are contemplating normalising (deflating) them
Crypto investors*: amongst them are conservative voters, former gold investors, anti-government groups, investors weary of money printing, vola-seeking traders, diversification-seeking investors etc.
One thought-provoking question:
What are central banks accumulating off balance sheet, gold or bitcoin?
If one is really aware of all the trends in the realms of human and natural activity that are currently converging, it is very difficult to see this gigantic phenomenon as being organised by an elite or caused exclusively by intentional human action. Takushi gets invited by policy makers that want to hear his analysis. One of the officials that listened to this interview actually said “Well, it seems to me this great convergence upon us can only be the work of a higher power, maybe the hand of God and the fulfillment of bible prophecy? Takushi said, “Very likely so, God is making His Word come to pass then”.
Still, Takushi believes that the great reset is the policy makers’ response to a broad systemic failure .. amid the convergence of geopolitical, economic and monetary trends. Given the massive challenges ahead, the political predicament and the desire of voters to postpone painful adjustments indefinitely, the so-called great reset looks more like a crisis-induced response – shaped by both fear and concern, rather than a 50 year old master plan.
The interview in full length is a courtesy of FinancialSense.com
Independent Macro Economist Christian Takushi is interviewed by FinancialSense.com’s senior editor Cris Sheridan. Takushi gives a balanced non-ideological analysis on world affairs. He sheds light on aspects that consensus is underestimating. Objective analysis cannot be mingled with political activism. These are two different callings.
About this independent research
geopolitical research.com is non-partisan and avoids the use of conspiracy theories. Apart from treating all leaders and nations with respect, Takushi tries to understand & forecast their next steps rather than passing judgement on them. His analysis is truly independent and entirely based on his academic research, proprietary methods and databases.
By Christian Takushi MA UZH, Independent Macro Economist & Geopolitical Strategist. 7 August 2021
Independent Global Geopolitical Macroeconomic Research
Global Geopolitical Research GmbH © 2021
Disclaimer: None of our comments should be interpreted or construed as an investment recommendation
A distinct broad approach to geopolitical research
(a) All nations & groups advance their geostrategic interests with all the means at their disposal
(b) A balance between Western linear-logical and Oriental circular-historical-religious thinking is crucial given the rise of Oriental powers
(c) As a geopolitical analyst with an economic mindset Takushi does research with little regard for political ideology and conspiracy theories
(d) Independent time series data aggregation & propriety risk models
(e) Takushi only writes/comments when his analysis deviates from Consensus