In the physical world the flow of air, water, and electricity all follow the path of least resistance.
Could the dynamics of monetary policy making also be on the path of least resistance, where policymakers avoid making difficult decisions and instead choose the easiest solution to a problem?
The head of the hierarchy, those at the top of the human food chain, a rule by fiat system, needs continuity of the existing power structure to remain on the throne. The king remains on the throne if he can continue to rule over a nation’s money supply. Control the money supply, and you control everything from a barnyard full of politicians, to an army taking out rivals. Even the incarceration of an entire population in a democracy, through lockdowns, is possible. So, resistance was neutralized using a carrot and stick approach in the form of stimulus cheques and ramping up policing? The revolution will not be televised in this Great Reset because there will be no revolution.
“Could the dynamics of monetary policy making also be on the path of least resistance”
In a few words, those at the very top of the human food chain can turn their vision, or fantasy of the world, into a reality if they continue to dominate the one factor that facilitates this immense power, the control of the money supply.
“Give me control of a nation’s money supply, and I care not who makes its laws” said Mayer Amschel Rothschild.
So, in this great reset, we believe monetary policy will follow the path of least resistance.
Advanced democracies are being transformed into technocracies defined as the government or control of society or industry by elite technical experts.
Moreover, the price mechanism is also remodeling from price discovery to a central planning type of system.
“give me control of a nation’s money supply, and I care not who makes its laws”
MAYER AMSCHEL ROTHSCHILD
The central bank’s money supply M2 has become the sole factor in determining the future trajectory of asset prices
In the Great Reset, the Fed and its western aligned central banks have, in cahoots, followed a monetary policy path of least resistance. We believe behind closed doors policymakers have decided to support asset prices.
Despite the global economy being in lockdown and some sectors experiencing worse than Great Depression, there has been no stock market crash.
Wiping out the savings of millions of people’s pension investments in a stock market meltdown would be politically unacceptable
“In 2016, half of pension fund assets were invested in equities, a quarter in alternative investments, and another quarter in bonds and cash” according to PEW
But with negative-yielding bonds reaching $13 trillion in 2021, which means investors are guaranteed to lose money buying these fixed incomes, then we would estimate that about 90% of pension funds are now probably invested in stocks. Indeed, the 60/40 rule of investing is dead.
“Structural unemployment could be what the economy is experiencing in this Fourth Revolution” – Win Investing
With so much pension money tied up in stocks, the central banks have opted for the path of least resistance, which could be why we have seen quantitative easing QE to infinity
We also believe that emergency monetary policy where central banks’ base rates are kept at record lows together with endless QE will become the new normal as central banks follow the path of least resistance.
As advanced democracies morph into technocracies worker participation rates will continue to decline
Structural unemployment could be what the economy is experiencing in this Fourth Revolution, the sixth long waves of innovation driven by automation, artificial intelligence, blockchain DeFi, Web 3.0. So, tens of millions of jobs displaced by autonomous vehicles, automated checkout stores could be permanently gone.
As AI advances and displaces humans from the productive economy it is going to become increasingly difficult for humans to compete and participate in advanced economies.
Central banks will continue to pursue a path of least resistance as discussion of modern monetary policy MMP will be touted as a way of funding Universal Basic Income
In so doing, the ruling financial elite will strengthen the rule by the fiat system.
The masses will want and support the central bank’s “public money.” A dog never bites his master’s hand. People are loyal to whatever system feeds them. So, rule by fiat continues with the ruling financial elite remaining at the top of the hierarchy without resistance.
“central banks could be in cahoots to meltdown their currencies as they plan the relaunch of their new brand of fiat, a central bank digital currency” – Win Investing
The path of least resistance entails the restructuring of the economy, a type of collectivization 2.0 of small businesses into corporate oligarchies
The decimation of small businesses that we are witnessing on the high street could be by design. Many small businesses barely break even, they pay a small amount of taxes. So technocratic systems, a soft form of totalitarianism, prefer the collectivization of resources into corporate oligarchies, which can then be easily taxed. The G20s greenlighting a global corporate tax rate of a least 15% is also by design, which will part-finance UBI and placate a popular uprising.
What then is the implication of monetary policy following the path of least resistance?
Savers, cash deposit accounts are being thrown under the bus because they are the path of least resistance. In other words, this group of people in the eyes of monetary policymakers could be deemed the least to cause trouble when their savings have been melted away due to monetary inflation, currency debasement.
The Great Reset could cause a melt, but it is not a meltdown. Instead, we see a melt-up in asset prices
Central banks could be in cahoots to meltdown their currencies as they plan the relaunch of their new brand of fiat, a central bank digital currency.
Originally, we thought small countries with low populations and a high surplus would be safe haven fiat currencies. But even the Swiss National Bank is trying to debase CHF by printing cash and buying assets.
Central bank policy of following the path of least resistance is likely to lead to a new central bank digital currency
Put another way, a new brand of fiat owned by the same ruling elite with the power hierarchy structure remaining the same.