Saturday, August 17, 2024
Results of the War on "Hard Currency" Smuggling in 2024, 17 AUGUST
Results of the War on "Hard Currency" Smuggling in 2024
As of August 17, 2024, the global war on hard currency smuggling has seen significant advancements and challenges. The decline of physical cash usage worldwide has accelerated, primarily due to the increasing preference for digital transactions. This shift has been driven by the convenience and security of digital payment methods, which have become the norm in many countries, making traditional cash less relevant.
Digital Currency Experiments
To keep their monetary systems relevant, central banks around the world have been experimenting with digital versions of their currencies. Unlike private cryptocurrencies like Bitcoin, central bank digital currencies (CBDCs) are issued by the state and function similarly to traditional money. The goal is to introduce these digital currencies in limited circulation, alongside physical cash, and gradually expand their use as cash usage diminishes.
China, Japan, and Sweden have been at the forefront of CBDC trials, while the Bank of England and the European Central Bank have been preparing their own digital currency experiments. The Bahamas has even launched the world's first official digital currency. These developments signal the impending end of cash as a primary medium of exchange, with far-reaching implications for economies, finance, and society.
Security and Digital Payments
One major benefit of digital currencies is enhanced security. Cash can be lost or stolen, posing risks for individuals and businesses. Digital currencies, while not immune to hacking, can be made more secure with advanced technologies.
United States and the Digital Dollar
In contrast to the actions of other countries, the U.S. Federal Reserve has been more cautious in its approach to digital currencies. However, there is a growing argument that the United States should develop its own digital dollar. The benefits of a digital currency, including improved security and reduced transaction costs, outweigh the potential costs. The move toward a digital dollar is not driven by international competition but by the intrinsic advantages of digital currencies.
Global Conflicts and Economic Shifts
The global landscape in 2024 is marked by ongoing conflicts and significant geopolitical shifts. These conflicts have affected core European interests and the global economy, particularly maritime routes. The changing dynamics have forced European countries to reassess their foreign policies and economic strategies.
The Syrian Regime and Captagon Trafficking
In the Middle East, the Syrian regime under President Bashar al-Assad has been using the trafficking of Captagon, a synthetic stimulant, to exert pressure on Gulf states, particularly Saudi Arabia. This illicit trade has become intertwined with the interests of powerful groups within Syria, complicating efforts to curb drug supplies. The Syrian regime's cooperation would require significant concessions from Saudi Arabia, addressing the regime's need for financial resources and political support against Western demands for change.
Conclusion
The war on hard currency smuggling, driven by the global shift toward digital payments, has had a multifaceted impact on economies and international relations. While digital currencies promise enhanced security and efficiency, the transition is not without challenges. In regions like the Middle East, illicit activities such as drug trafficking have emerged as new forms of leverage, complicating diplomatic and economic strategies.
SOURCES:Evening News with MarkZ. 08/16/2024
Warnings of National Currency Collapse and Position Rotation in 2024 , 17 AUGUST
Warnings of National Currency Collapse and Position Rotation in 2024
As of August 17, 2024, warnings of a potential collapse of the national currency and discussions surrounding the rotation of positions have been prominent in economic circles. These warnings are rooted in the financial instability that has characterized the global economy, particularly in the United States, where banking crises have been a recurrent concern.
Understanding the BTFP and Its Impact
The Bank Term Funding Program (BTFP) was a critical response by the Federal Reserve to the failures of regional banks in 2023. These banks, including Signature, Silvergate, and Silicon Valley, were brought down by mass withdrawals due to customer concerns and the need to cover losses. The BTFP helped stabilize the situation by allowing banks to borrow funds using their bonds as collateral, thus preventing further bank runs and providing a temporary solution to the liquidity crisis.
Weaknesses of the U.S. Dollar
The U.S. dollar, while a global reserve currency, is not immune to weaknesses that could trigger a collapse. The fundamental weakness lies in its value being based solely on government fiat, a situation shared by other major national currencies. This lack of intrinsic value and the reliance on the government's promise of its worth can lead to instability if confidence in the government's fiscal policies erodes.
Rising Debt and Economic Concerns
The debt levels of the United States in 2024 have also been a cause for alarm, with analysts warning of a brewing crisis. The accumulation of debt has the potential to undermine the economy's stability, especially if interest rates rise, increasing the cost of servicing the debt.
Market Predictions and Rate Cuts
Predictions for the stock market in 2024 indicate a cautious optimism, with expectations of rate cuts and a potentially mild economic downturn. However, these predictions are contingent on several factors, including the effectiveness of monetary policy and the resilience of the global economy.
Financial Stability and Geopolitical Risks
The International Monetary Fund (IMF) has highlighted risks to global financial stability, emphasizing that vulnerabilities in the banking system could turn into serious issues if the hoped-for soft landing of the global economy does not occur. Geopolitical tensions also pose significant challenges, with the potential for financial fragmentation and implications for the stability of financial markets.
The Rise of Nontraditional Reserve Currencies
In a striking development, the IMF has noted a decline in the U.S. dollar's share of allocated foreign reserves, which has not been offset by increases in the shares of other major currencies. Instead, nontraditional reserve currencies such as the Australian dollar, Canadian dollar, Chinese renminbi, South Korean won, Singaporean dollar, and Nordic currencies have seen a rise in their shares. This shift can be attributed in part to new digital financial technologies and the increasing popularity of cryptocurrencies.
Conclusion
The warnings of a national currency collapse and the rotation of positions in 2024 reflect the complex interplay of economic factors, including debt levels, banking stability, and geopolitical risks. The potential for a U.S. dollar collapse, while not imminent, is a concern that has gained traction due to the weakening of traditional reserve currency roles and the rise of alternatives. These developments underscore the need for careful economic planning and policy adjustments to navigate the challenges ahead.
SOURCE:
https://theconversation.com/why-economists-are-warning-of-another-us-banking-crisis-224092
Weekend News with MarkZ. 08/17/2024
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