Agustin Carstens (pictured above), head of the Bank for International Settlements (BIS) which is owned by central banks and acts as the bank of central banks, has stated bitcoin took them by surprise.
“We are trying to avoid being surprised by innovation, as we were with bitcoin and Libra,” Carstens said in laying out a strategy that metaphorically tries to combine hoodies with suits.
“Events with Libra have been a wake-up call for central banks. We central bankers were in a comfort zone, but Libra showed we needed to change. So, there has been a lot of consulting and debate with Facebook, and ourselves,” Carstens said.
The above comments come ahead of Davos where the likes of Rothschilds hope to rub shoulders with their new tech challengers.
Plenty from this space are likely to attend. Trustnodes has been invited, but unfortunately couldn’t make it this year either.
The gathering at the mountain comes at an incredibly challenging time for both the political system and the financial system amid protests in countries as diverse as Lebanon and France where the young took their anger at bank branches.
To keep abreast these challenges Carstens says he wants to change the culture at the secretive institution from 80% finance expertise and only 20% tech, to a more tech focused environment.
That’s after the former central banker of Mexico claimed Newton couldn’t create money out of nothing, referring in this case to gold which has not been the basis of money since the 70s.
For the past half a century money has instead been created from nothing in a very complex and inherently dilutionary manner.
“My message to young people would be: Stop trying to create money!” – a clearly frustrated Carstens said in an interview.
“Young people should use their many talents and skills for innovation, not reinventing money. It’s a fallacy to think money can be created from nothing,” this very old man told the world presumably with a very straight face.
This contradicts an official report by the Bank of England which has made it clear money does in fact come from nothing. When banks make a loan, they do not shuffle around savings, but instead at that point they create money which is then “burned” when the loan is paid back.
Loans of course have to be paid back with interest. How that works exactly no central bank has stated, but FED has said if the people knew there may be upheavals.
If thus as Carstens says you can not create money out of nothing, then Davos may well be a good opportunity to tell the world where exactly the dollars or pounds come from and what role does interest have exactly.
The chances of this very old man honestly touching either subject are probably zero because the institution he leads is founded on secrecy with central bankers meeting there from China to Russia, America, Europe, Arabia, Latin America as well as Africa in what has been called the “secret bank that rules the world.”
“There are some activities, also discussions, which by their nature are subject to confidentiality, but I can assure you that such business is less exciting than some people imagine,” Carstens said.
Such assurance coming from a man who just misled the public in stating money does not come from nothing, is not very assuring at all.
Confidential discussion in potentially colluding meetings in the matter of money needs considerable justification especially as it has become clear both central banks and their coordination is outside of political oversight, and thus outside of the jurisdiction of taxpayers.
So if he wants young people to stop disrupting finance and if he wants innovation to not taken him by surprise, then perhaps he can start with seeing just what role this debt system is having under his direction and that of other central bankers which in half a century have given us biblical inequality.