How to build a resilient economy

Keep using cash and resist digital currencies

- JONATHAN TILT

THE debt-based monetary system is dying before our eyes.

The fall in bond prices, currency volatility and the coming collapse in financial assets are merely symptoms of the underlying problem.

With money anchored in nothing of value, the financialisaton of the economy has resulted in every asset being levered up multiple times. This works while assets are increasing in price but those price increases depend on an increasing money supply.

At some point the expanding money supply results in savage inflation. The central banks are then faced with two equally unpalatable options. They can allow credit to contract and implode all assets resulting in the insolvency and bankruptcy of most banks.

Alternatively, they can continue to expand the money supply, perhaps using it to bail out the insolvent banks, and risk an almost certain hyperinflationary collapse. The house of cards has been built to a height at which it is now hopelessly unstable.

I believe central banks will pick the hyperinflationary route. The £65 billion bond purchase scheme announced recently, together with the unlimited and unfunded energy market subsidies, strongly suggest that the UK is already heading down this route.

The global banking cartels have clearly signalled their desire to move towards Central Bank Digital Currencies (CBDCs) as the new monetary order.