Martin Armstrong: CBDCs are being introduced because the financial system is collapsing

In a new interview, Martin Armstrong, a former financial advisor with a trillion-dollar portfolio, explains why the U.S. government wants to introduce a central bank digital currency (CBDC) as soon as possible. Essentially, Martin notes that the U.S. is broke, can’t pay back its debt, and believes it can tax cash transactions by introducing a CBDC. In the interview, Martin points out that a CBDC will also be used as a strict tool of financial control.

Excerpts from the interview:

“CBDCs are being used today mainly because the financial system is collapsing. Since World War II, people [ruling the USA] have been borrowing money without intending to pay it back. The problem is that, for example, here in 2024, only the interest expenses will be a trillion dollars a year. When Ronald Reagan came to power in 1980, the entire national debt was a trillion dollars. At this point, the game gets completely out of control.”

“The way countries default when they’re in these Ponzi schemes is they take on new debt just to pay off the old. If nobody buys the new debt, you can’t pay off the old one, and then you default. The state of fiscal policy in all Western governments is that they follow this model of constantly taking on new debt.”

“And if you go back and look at Keynes, he says during a recession you can cut taxes, which they’ll never do, or deficit spend because people aren’t spending their money, they’re saving it. That’s their justification. You see, we can deficit spend. But then they said that for a recession. And they have deficit spending during a boom.”

“Banks are in a real dilemma because Keynesian economics no longer works. Raising interest rates to stop inflation dates back to the 1930s when the government had a balanced budget. Raising or lowering interest rates affected us directly. Today the government is the biggest debtor. So it raises interest rates to stop inflation. Fine, we spend less. But does someone in the government say, ‘Oh, the central bank wants us to spend less, so we’ll cut spending’? Of course not. And interest spending goes up anyway.”

yogaesoteric
July 21, 2024