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From Teeka Tiwari, editor, The Palm Beach Letter: After 172 years, the world’s most profitable cartel is coming to an end.
It’s not OPEC… It’s not the drug kingpins… It’s not Big Tobacco.
It’s the central bank mafia.
For more than a century, it’s been illegal to create your own currency. Only central banks have had that right… But their monopoly is under threat… and the central bankers are scared…
What threatens their chokehold on the money supply?
Cryptocurrencies.
Cryptocurrencies don’t need banks or intermediaries. They lie outside the control of any government authority—including central bankers. Digital money is created using immutable rules that determine the amount and pace of new currency units.
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This threatens the very foundation of the central bankers’ power: their ability to create money. The European Central Bank (ECB) recently expressed its fear of cryptocurrencies when it said…
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The increase in the use of virtual money might lead to a decrease in the use of “real” money. |
According to a recent Reuters report, the ECB wants EU lawmakers to tighten proposed new rules on digital currencies such as Bitcoin, fearing they might one day weaken its own control over money supply in the eurozone.
The ECB said…
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A widespread substitution of central bank money by privately issued virtual currency could significantly reduce the size of central banks’ balance sheets, and thus also their ability to influence the short-term interest rates. |
Central banks have used their ability to create money to manipulate interest rates (what I’ve called the War on Cash). They print up stacks of cash, then buy enormous amounts of government bonds. That buying causes yields to go down. And voila… instant interest rate manipulation.
But what happens when assets move from central bank-issued cash to decentralized digital currencies? That’s when the monopoly starts to crumble… and that’s what has the bankers shaking in their boots.
The entire cryptocurrency space is only $14 billion. It’s tiny compared to the trillions in paper money out there… But the bankers see the writing on the wall. They want to kill this little rebellion before it rises up and swallows them whole.
So the bankers are fighting back. They are desperate to save their lucrative monopoly. The ECB is now lobbying the European Union to create new rules to control digital currencies like Bitcoin.
The ECB even went as far as saying EU institutions should not promote the use of cryptocurrencies and should make clear they lack the legal status of currency or money.
Friends, it’s too late. The genie’s out of the bottle. You can’t put it back in. The only way to cripple a digital currency system is to shut down the entire internet… and that isn’t happening.
If the ECB is terrified of an asset, then you need to take notice—right away. I understand many people think cryptocurrencies like Bitcoin are a fad. But this “fad” has survived.
And it’s here to stay…
Don’t worry if the powers that be try to ban Bitcoin. It will be completely unenforceable. In addition, it will most likely cause the demand (and price) for Bitcoin to soar.
I’ve written a special report on Bitcoin that explains how it will eventually replace physical cash. I urge you to get educated on this subject and to add a little bitcoin to your chaos hedge portfolio while it’s still easy to buy. Palm Beach Letter subscribers can access the report right here.
Reeves’ Note: There’s another cryptocurrency Teeka loves even more than Bitcoin… and it could be far more disruptive to central bankers’ plans. It’s a secret “currency alternative” that could let early investors turn every $200 placement into a rare, once-in-a-lifetime return of $6,850.
Some people are calling it “Bitcoin 2.0”… and Microsoft, IBM, Samsung, and all the big banks are all quietly getting involved. You can claim your free copy of Teeka’s “next Bitcoin” report right here.
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