Fast Moving Incoming Recession . . . .

[jazz]

Central bank digital currencies, still conceptual in development. Cryptos appear to have pushed central banks into digital era..

CBDC will allow the carrot and stick economy to flourish. Targeted inflation - say the restaurant industry is a little down this quarter, send everybody $100 to eat out. Wont have to raise rates to pull back the money supply when they want. Consumers will do it for them. China already does this.

If current CB policy is equivalent to a fire hose spraying all over the economy, then CBDC would be considered a sniper rifle.

[biglentil]

If CBDC are coming do you think it's wise to hold dollars or hard assets Errol? This is from 1 year ago.

"The Bank of Canada Governor Tiff Macklem reveals that the Canadian digital dollar is well past the trial phases. Macklem further revealed in a press interview with Reuters that the Canadian Government is working with G-7 countries towards the official launch of Canadian central bank digital currency (CBDC).

Revealing the progress, Macklem explained that the Canadian digital dollar is out of the proof of concept phase despite a lack of immediate need. He also constrained from revealing a launch date holding the stance on the CBDC."

[errolanderson]

There is a necessity to maintain stock markets at record levels to keep the scheme going. Valuations and economic logic appear to mean little.

Any crack and humpty-dumpty may be done . . . .

[biglentil]

There is a necessity to maintain stock markets at record levels to keep the scheme going. Valuations and economic logic appear to mean little.

Any crack and humpty-dumpty may be done . . . .

So hold the very dollars CB's have been recklessly printing?

[errolanderson]

If CBDC are coming do you think it's wise to hold dollars or hard assets Errol? This is from 1 year ago.

"The Bank of Canada Governor Tiff Macklem reveals that the Canadian digital dollar is well past the trial phases. Macklem further revealed in a press interview with Reuters that the Canadian Government is working with G-7 countries towards the official launch of Canadian central bank digital currency (CBDC).

Revealing the progress, Macklem explained that the Canadian digital dollar is out of the proof of concept phase despite a lack of immediate need. He also constrained from revealing a launch date holding the stance on the CBDC."

Holding hard assets have been a boon in the current inflationary push and scramble for hard assets. This has certainly been supported by record breaking equity markets. But there is a shelf life to this inflationary surge (IMO). It is important for crude oil prices to hold up. It is very important for equities to hold up.

[rumrocks]

Digital currency may restrict the illegal use of paper money to only transactions in underground purchases or bartering, similar to prisons and cigarettes.
Paper currency will become scarce and may even become an offense to own, while drug lords with huge supplies of paper will do well.
This is why governments prefer digital, as it's easier to track for tax revenue. It's a slippery slope, vote accordingly.

[GDR]

I can see a shift / use to Digital Currency from central banks but doubt that cash and a conversion to cash will disappear. Just like the other cryptos they are supposed to be there own thing yet you can buy and sell them as they convert back to cash so what does it really accomplish? There aren't 2 separate prices to buy something, you have to make the conversion one way or the other.

There was a time I would have thought a digital currency of some nature could take over as a global money supply but the last few years the world seems to be stepping away from globalization.

[GDR]

Digital currency may restrict the illegal use of paper money to only transactions in underground purchases or bartering, similar to prisons and cigarettes.
Paper currency will become scarce and a an offense to own, while drug lords with huge supplies of paper will do well.
This is why governments prefer digital, as it's easier to track for tax revenue. It's a slippery slope, vote accordingly.

I mostly use credit cards for most transactions, but always have cash in the pocket for whatever. Definately 2 camps out there, those who carry zero cash and those who only use cash. We bought some new furniture from lazy boy a couple years ago and used a pile of ash I had from selling something. I suggested to the guy that he likely didn't see too many guys walk in with cash. He said I would be suprised that about a third of their business is still cash.

[AlbertaFarmer5]

There was a time I would have thought a digital currency of some nature could take over as a global money supply but the last few years the world seems to be stepping away from globalization.

And I think, that might be exactly why the digital currency will be pushed. Has globalization comes to an end, and there becomes no viable alternative to the US dollar, will the rest of the world attempt to push their crypto alternative to break the hegemony of the US dollar? And the fact that they will be desperately short of USD to partake in whatever is left of global trade?

[wrongway]

cashless society will all be fun and games with another Carrington event...

[jamesb]

Lots of interesting thoughts here. I admit that with the way inflation has been rampant for the last 6 months a change the other way would be interesting. I guess I don't see it. The drought gave shortages in lots of commodities, fert was on a upward trajectory since the spring, I believe the "green" govt policy created the energy shortage we see now. It going to be a long time IMO before oil supply builds to lower prices. The chip shortage is a weird one, no end it sight? I remember in the old wheat board days when some had lots of wheat couldn't sell it for cash and dealers were taking wheat on farm machinery. Having cash when few others do can make you a king. I believe that having inputs and fuel on hand is a pretty good strategy these days. As a farmer I fell we can be the king of the castle as so many view food security with great importance as they fear the anger of the hungry masses. My greatest fear these days is the socialistic mind set of some governments towards taxation. Land tax and estate tax are seen as a big windfall for many to pay the interest on the staggering debt pilling up. For me this could be the best of times or the worst of times. I will say to I bought a big assed generator to keep the lights on if the SHTF too.

[jazz]

Bond market thinks somethings up. Someone said there is likely 4 rate hikes in 2022.

[parsley]

IMO, a down grade in the spring combined with BoC tightening.

The bigger question is what brings us out now? There is no more treasury money to throw at the economy, the BoC balance sheet must be bursting at the seams, consumer tapped right the f out or struggling to pay bills.

And ZERO policies to expanding our economy to pay for any of it - NONE, just more debt thrown around.

Farmers will be soon be paying exhorbitant carbon taxes. Taxes will slam ag. GST. carbon. PST. Capital gains taxes. Death taxes. Municipal. Fishing. Every kind of license fees you can imagine.

The UN will pay your bills on the condition they take your land, and also on the condition you can never buy it back again. Of course Trudeau will have the system all set up for paying off your debt. Canada will become the first post national state of the UN. And lose its stays as a sovereign nation.Trudeau will have fullfilled that promise to his voters.

Canada will get filled with illegals and well-off refugees who complain incessantly about the hardships of their low monthly Govt payments. Eventually farmers will be moved to city low housing areas

Most middle class working Canadians will lose their jobs to robots and will spend most of their time reading pamphlets with instructions on how to be happy. Small businesses will become a thing of bygone times. Billionaires will own the land whom people will depend upon for food. Plus owning the waterways most farmers had been leasing out to Ducks Unlimited.

Most Canadians will wring their hands and wonder why Canadians sat back and watched it happen.

How’s that for a depressing read written in the middle of the night and read over brekfast? Pars.

[burnt]

The UN will ...

...Pars.

Glasgow, COP26

"...and wonder why Canadians sat back and watched it happen"

[Old Cowzilla]

Middle class is middle aged or older and robots are needed to replace them because nobody will do there jobs when they retire. Farmers will not be moved to the low rental city areas because there will not be any room for them. Governments will let us keep our land ( they loan out the money for most purchases anyway ) and just tax the crap out of it while you look after it. I actually make RM grader payments its shows it on my tax bill this year. She's a beauty I wonder if I can take her for a spin ?