It has been a few years since J.P. Morgan’s commodity head Blythe Masters was ‘let go’ from the bank in 2014, only to resurface as the head of a new digital finance company focused on Blockchain technology. And while there have been many startups around the world creating their own blockchain innovations, many of which are centered around Bitcoin and other crypto-currencies, one has to wonder what agenda Blythe Masters intends for the technology in her new company.
The reason this question is important is because a new report came out on May 2 of a secret meeting between 100 financial executives where blockchain technology was used to create a Larry Summers frankenstein…
Ending physical cash and moving money into a purely digital construct is the maniacal dream of dozens of central banks who have now found themselves forced into policies of negative interest rates. And as basic human nature is proving out in places like Austria and Japan, anytime depositors have the power to remove their money from a banking system, the power of negative interest rates becomes moot without the use of capital controls, and a banning of physical cash.
There are many signs that Western banks are desperate to control all outflows of cash, especially when just this weekend Charles Schwab informed customers they were cutting off money market accounts in favor of storing customer cash in U.S. Treasuries. And in addition, Interactive Brokers on Sunday announced they were imposing negative interest rates on all Yen based accounts they manage.
Lack of liquidity was the real underlying factor in the 2008 financial collapse, and as the world divests themselves from dollar denominated assets in increasing numbers, this same fear is causing governments and central banks to reach for new draconian ways to keep their corrupt systems afloat.
And it appears that banks are now racing against the clock to try to bring online a blockchain based system that will accommodate the end of cash, and force the world into a completely digital currency of their making.