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April
01
2023

CBDC is a universal remote control over behavior.
Vincent Lanci

Why MMT and CBDC Are Dangerous

When money ceases to become the means by which men deal with one another, then men become the tools of other men. Blood, whips and guns or dollars. Take your choice – there is no other.”-  Ayn Rand

Given that CBDC is an important topic, this is as good a time as any to describe basic MMT beliefs as applied through CBDC use.

How CBDC Works:

CBDC will enable government to observe and control you from a distance. It is the tool that will enable those who wish to exercise authority over others (for their own good) with no physical interface at all. It is the tool that enables the divisions in the movie Elysium to happen.

CBDC is a technological re-imposition of caste system economics. Ultimately, CBDC is a universal remote control over everyone’s behavior. It enables  control of the demand side of the economy more effectively than rationing, throttling, or sanctions do combined.

Return of Feudalism:

CBDC and MMT in combination will restore the direct domination over men associated with Feudalism, as opposed to indirect domination (which is what portable money created under capitalism) afforded us by physical money.

You eventually will not be able to leave your Lord's village (You will not “go off the reservation”, or  “stay on the plantation” as the less delicate would say) if it is adopted. You “own” your money, but someone else controls your money.

CBDC is the Killer App of MMT:

CBDC is the killer application of Modern Monetary Theory. MMT believes money is *not* a Store of Value (SOV). It views money as a Medium of Exchange (MOE) and Unit of Accountancy only.  CBDC enables this separation of Money from its Store of Value use. 

Medium of Exchange use continues under CBDC, but with government and corporate interests on the control button. Eventually, CBDC's Unit of Accountancy aspect will eventually be compatible with your social credit score.

Backwards from Capitalism:

This is very dangerous stuff and leads to Techno-Feudalism. How bad is Feudalism? So bad even Karl Marx favored Capitalism over it.

Marx admitted that Capitalism was a far better situation than what came before it, Feudalism:

Marx always emphasized that the exchange between worker and capitalist is “just” in the sense that workers actually get paid the full value of their labor-power – there is no *direct* exploitation. The workers are at least paid the full value of their exploitation by capitalists.

After receiving their pay in physical form, workers according to Marx are able to go and do as they want and be “exploited” elsewhere. In this way, physical Money's SOV function creates portable wealth ensuring  mobility and freedom from direct domination by authorities. Capitalism,  even Marx had to admit, was an improvement over its predecessor, Feudalism.

So while, in a market economy, the worker remained de facto dependent, this dependency was at least enacted in the form of a Free market exchange between the worker and other persons, instead of the direct servitude or even physical coercion implemented in Feudal times- Source

The point of bringing this up?  Marx is saying the same exact thing Ayn Rand said up top.

Ayn Rand and Karl Marx Agree:

If "Relations between people assume the guise of relations among things" as Marx actually stated, then without money as intermediator, what is left?

That would be “Blood, Guns and Whips” as Ayn Rand said.

Without money as a tangible, portable intermediary between people, leeway is given for direct domination over another via blood, whips, and guns.Take away the objectivity and universal neutrality that money affords and you guarantee physical coercion at some point.

Ownership of Money is Not Control of Money:

Everyone has what used to be called their “F* You money”— The money that allows them to not take anymore abuse and move somewhere else if pushed too hard. Take that away, or the ability for a man to ply his work elsewhere and take *his* money with him and you have indentured servitude, serfdom.

Money, if this happens, will not be a store of value, it will be a medium of exchange only. And only a few will control distribution of that medium of exchange. That is far too much concentration of power, and much too easily abused.

Take Your Pick:

So, ending where we started: You may take your pick.. Blood, guns, and whips, or physical money. Men will deal with each other using indirect, or direct tools of domination.

It will not be who owns the money that matters. It will be who controls it that matters. And you will *not* control access to or even receipt of “your” CBDC money.

This video below was recorded as the author was completing his initial research on the topic.

Joseph Stalin Knew This Would Happen:

Joseph Stalin when asked if there would or would not be physical money in the coming communist utopia is said to have chuckled and replied:

There will be money, and there also will not be money, he said.

When pressed further for clarification he replied: Some will have money, and some will not have money.

This is what MMT and CBDC techno-feudalism will make happen that much easier. What will Gold and Silver (and Bitcoin if it still functions) be worth in a world like that?

For the last 30 years I have been an active successful professional commodity derivative trader. You may know me as a frequent contributor to Zerohedge since 2010. You also may know of me from regular interviews with Daniella Cambone of Stansberry and other popular podcasts. Most know me from the GoldFix and Bitcoin Brief podcasts. In 2017, Dr. Robert Biolsi and I co-authored a UCONN paper, excerpt, on Volatility. I’ve also taught at University level as an adjunct prof. and guest lecturer. - Linkedin, Palisades Bio

I still trade my personal account and continue to advise multi-billion dollar institutions on trades and risk management in the Energy, Metals, and Crypto spaces. In our first 2 months GoldFix/Bitcoin Brief has signed up over 800 readers. The demand for real analysis and teaching has been inspiring. So my day job will now be writing and educating in this space.

vblgoldfix.substack.com