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The Modern Central Bank Playbook for Expanding Power (it’s worse than you think)

Taylor Kenney - ITM Trading Oct 1, 2024

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Central banks have wielded unchecked power for far too long, operating with little oversight and leaving a trail of economic crises in their wake. From the Federal Reserve to global financial institutions like the Bank for International Settlements (BIS), their policies have far-reaching impacts that most people fail to fully grasp. If you’re concerned about the erosion of the U.S. dollar, inflation, and threats to your financial privacy, understanding the growing power of central banks is crucial for protecting your wealth.

The Rise of Central Banks and the Dollar’s Decline

The Federal Reserve, established in 1913, was created to stabilize the U.S. banking system. Its initial role was tied to gold reserves, which curbed inflation and kept monetary policy in check. However, over time, the temptation to increase the money supply proved irresistible. Central banks slowly detached currency from gold, resulting in cycles of inflation and economic instability. Each crisis brought an increase in the Federal Reserve’s power, allowing it to take greater control over monetary policy without direct government oversight.

This pattern has continued through history. For example, during the 1970s, policies aimed at keeping yields low led to runaway inflation. Yet, when the Federal Reserve “fixed” the problem, they expanded their powers further, introducing the now well-known dual mandate of maximizing employment and stabilizing prices.

Today, central banks have the power to create money out of thin air through processes like quantitative easing, injecting billions of dollars into the economy with little to no real growth attached. This artificial money creation has eroded the value of the dollar, leaving everyday citizens to bear the consequences of inflation while central banks strengthen their influence.

Inflation: A Central Bank’s Best Friend?

Inflation erodes the real value of debt, which is particularly important when a country is carrying enormous levels of national debt—currently, the U.S. faces a $35 trillion debt burden. Many speculate that central banks see inflation as their way out. As inflation increases, the real value of debt diminishes, effectively making it easier for the government to manage its debt obligations. Unfortunately, this also comes at a cost to ordinary citizens, whose savings and purchasing power are gradually wiped out.

History has shown us this playbook before. After World War II, France experienced rampant inflation, which helped erase its national debt but decimated the savings of its citizens. The same scenario is playing out today, and unless people take proactive steps to protect their wealth, they could find themselves in the same position as the French citizens of the 1940s—struggling to make ends meet as the value of their money disappears.

Central Bank Digital Currencies (CBDCs): A Threat to Financial Privacy

The latest tool in the central bank’s arsenal is the Central Bank Digital Currency (CBDC), which is currently being discussed and developed worldwide. Proponents claim CBDCs will streamline trade, reduce costs, and increase efficiency. However, critics warn that CBDCs could be the ultimate threat to our financial privacy and freedom.

CBDCs are fully programmable, meaning that central banks could control how and when you spend your money. Imagine attending a protest, only to have your funds frozen because a government or central bank disapproves of your actions. We saw a similar scenario during the 2022 Canadian trucker convoy, where the government froze the bank accounts of protesters. Now, imagine that power in the hands of central banks with no oversight and no recourse.

The BIS, often called the “central bank for central banks,” has already shared its vision of a unified global ledger, where every transaction is monitored, logged, and recorded. While some might dismiss this as alarmist, the threat to financial privacy is real. Once CBDCs are fully implemented, the freedom to use cash or other forms of independent payment will be severely limited.

For those concerned about privacy, independence, and the increasing control that central banks have over financial systems, the time to act is now.

How You Can Protect Your Wealth

While central banks continue to push the boundaries of their power, there are steps you can take to safeguard your wealth from their overreach. The best defense against inflation and the erosion of the dollar is to diversify your assets into something that central banks cannot manipulate—tangible assets like physical gold and silver.

Gold and silver have been stores of value for thousands of years, immune to the inflationary practices of central banks. They provide an excellent hedge against the kind of monetary policies that are destroying the value of the U.S. dollar and other fiat currencies around the world.

In uncertain times, it is more important than ever to have a strategy that protects your wealth outside of the traditional banking system. Holding assets like physical gold and silver can help ensure that your savings remain intact, even if inflation skyrockets or CBDCs become the new norm.

Take Action Today

If you share the concern that central banks are consolidating too much power and you’re worried about the long-term impact of inflation and CBDCs on your financial future, now is the time to act. At ITM Trading, we specialize in helping individuals like you safeguard their wealth with tailored strategies in physical gold and silver. Our analysts have been studying these trends for years and can provide insights that mainstream financial planners simply can’t match.

If you’re ready to protect your financial future from the looming threats of inflation and CBDCs, talk to one of our experts today. Click the link below or give us a call to set up a personalized consultation with one of our analysts. We’ll help you create a plan that works for you and keeps your wealth secure in an uncertain economic landscape.

SCHEDULE A CALL OR CALL: 866-351-4219

Sources & References In This Article

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