Back in 2020, we sketched out the monetary endgame as follows: the Fed – along with all other central banks – was rushing to roll out a CBDC (digital dollar) so that when the next crisis hit, it could then directly deposit said “Digital Dollars” directly into the accounts of each American – or at least those Americans the Fed found worth of such stimmies – to offset a deflationary bust.
*** begin quote ***
The beauty of the e-CNY is that the PBOC can set an expiration date, and determine which goods and services the money can be spent on, so that the cash won’t be saved or spent on financial speculation.
*** end quote ***
Of course, Gresham’s Law would seem to indicate that the e-CNY being spent would free up money could be “saved” in other ways. For example, buy food with your e-CNY and gold with what you would have spent on food. Would seem to be counter productive; not creating a boom?
“Well, I’m not a <insert profession that requires a lot of study> an economist, I have never played one on TV, and I didn’t stay at a Holiday Inn Express last night, but here are some simple thoughts.”