I M Edwardsson
12 min readSep 12, 2019

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The Carney Factor comes July 1st, 2021. The Big Change in Crypto?

Mark Carney Governor, Bank of England

(And no, he doesn't have tiny carney hands.. ;) )

Now here is a big question for you: “Do we really need Central Banks in a world moving back to Metals and into CryptoCurrencies?”

Mark #Carney, the outgoing Bank of England Governor and the first foreigner to have the job (He is Canadian and had the job there too, under Stephen Harper) hints as much with his stilted embrace of concepts found in the FB Libra offer under development.

Is Carney just another Opportunist shopping for a new gig?

Maybe…

All public signs would indicate Carney is likely looking to change the playing field by shifting focus away from the woes of the current central bank controlled fiat system, while in parallel he shops his ample financial grey matter to the highest bidder and officially lobbies for Central Bank issued Crypto via the B of E. hmmm.

So What?

Where ever Carney moves to, and what type of gig he gets, we in the crypto space need to pay attention. Carney’s next move will impact the current crypto market and the value assigned to your favorite crypto store of value.

Carney is that well connected in the world of Finance and Central Banks. He is that well respected (mainly for saving Canada’s ass in 2008, when all other Countries tumbled).

But first, we need to understand a few more facts to really understand what that new “Carney Factor” impact might look like.

Central Banks: Any Governments’ printing press friend
Well today, money is authorized for printing by most Central Banks either exclusively generated by commercial banks, who create money when debt is issued, and in certain cases, (very few, in fact, the Bank of Canada is one of them as its owned by all Canadians) the Central Bank can also issue its own money directly to finance government projects.

Most of what Countries print via the private banking system is really governed by the laws in place (laws created by the legislative branch of government, the house of parliament and in some cases senate vote on tabled legislation and yes, the people you elect to decide how wealthy the banks get ;/ ), laws which control debt issuance in private banks, with most banks having little if any real government or central bank oversight. Private banks since 1971 have been lending large amounts of money to inflate asset prices of homes and buildings to the point where the prices in those markets are so high, no one can really pay-off their mortgage these days.

Keep in mind the price of bread has doubled in most cases in the last 10 years, and real wage growth has been flat for 30 years. Your buying power has been eroded badly and you have no say in it. Go figure. It’s the biggest transfer of wealth in history to bank shareholders and corporations with access to low-interest-rate debt (debt rates you will never see). What amazes me even today is how many regular citizens of this earth never seem to notice. As long as they get a bigger line of credit and higher credit card limits to keep paying their mortgage and those nasty ever-growing bills they keep waking up every day with less buying power. Sigh. (maybe a “baa” is in order too..)

n.b -A Central Bank issuing all the money the country needed to represent the growth in the economy based on GDP “Gross Domestic Product” was the “norm” in Canada from 1937 to 1968 before Pierre Elliot Trudeau was installed by vested interests looking to see Canada lean left towards Keynesian overspending, higher taxes in the name of securing immigrant and female voters entering the Canadian workplace for the first time, IMO, which is my own. Then all fiat hell broke loose in 1971 when the world went off the gold standard. Interestingly gold was recently and quietly added back into the basket of currencies/funds by the IMF International Monetary Fund, March 29th, 2019, go figure.)

The Canadian “Central Bank” Exception?

Today the Bank of Canada, which is publically owned by Canadians, only issues about 5%–10% of the money supply annually, usually issued and provided to finance Federally approved and authorized projects at zero interest. When the government project is complete the loan is extinguished and the new project asset goes on the government books. The other 90% remaining is issued by private banks as 100% debt issuance with interest attached primarily for buying hard assets like housing, building, and privately-owned equipment (try to get a bank to loan you working capital for a software startup, lol). Even in the case of loaning that money back to the governments, federal, provincial and municipal, the private bank is always charging interest. This is why the public federal, provincial and municipal deficits in Canada are out of control, and more out of control in pretty well every country in the world.

Fact: Most Canadian households in 1968 had no choice but to move to dual income, creating a generation of latch key kids, given the higher taxes Trudeau’s Liberals needed to pay for private bank debt issued back to the government with interest charges to pay for their new social program largesse, which up until that time had never been the case that the government took on debt to finance projects. Combined with no real wage raises for the next 15 years for the primary income earner in the household, the result has been the complete erosion of the middle class in Canada to working-class wage-earning levels, where education debt is now it the highest levels ever.

The Gig is up. No Need for Central Banks in the medium term.

Most of us have figured this out in the crypto space. We store value and perform transactions over pseudo-nonymous and anonymous distributed public ledgers or “Blockchains”. Cryptos work and they are getting better every day. Take your pick. #Bitcoin, #Ethereum, #Litecoin, #Monero, #Cardano, #Tron, #IOTA, #Dash, #Zcash, #Dogecoin, all the big ones work as advertised, and lots of the little ‘Market Cap” coins and tokens under US $100M in value also work well, today. The only big hurdle is converting your crypto store of value into a rapidly depreciating fiat store of value so you can buy items and services in the fiat dominated product and service world of “Main Street”. (Retailers and Service Providers please wake up, your store of value and buying power are also getting eroded by fiat daily.)

Crypto Rules, while Central Banks drool:

Carney knows one thing well, the central banks around the world have no ability to shut down Bitcoin and other crypto_currencies now being used as stores of value and increasingly being used as international settlement mechanisms between local and international parties, essentially replacing the use of legal tender in each country and bypassing SWIFT and IBAN completely.

The Central Bank Fiat Ponzi Scheme Party is over and Carney knows it.

In most cases, these cryptocurrencies have a stated and fixed Money Supply amount of coins or tokens, all of which are divisible and fungible. This means you are inflation-protected from money printing (unless they are #Ripple where not all the coins are in circulation but they are issued, where Ripple could dump a huge supply of coins at any time and crush your store of value there with one keystroke. Not Nice. )

Because Cryptos work today as multiple stores of value and have multiple settlement/payment systems, the money printing presses driven by the Central Banks to prop up their installed governments are now obsolete, and most of the big Central Banks know it, and they are worried, really worried, of losing complete control. The Market Cap Valuation of the entire crypto market is less than 1% of the total fiat world money supply, standing at US $ 265B today, so it’s very early days. A lot can happen when these two camps start converting some of their Fiat currency holdings to crypto, one can’t predict the outcome with any certainty, other than the crypto market we know today will definitely look very different in the next year or two.

Libra will Morph under US Regulations currently being written

Libra will arrive and create a new money supply the FB Faithful will use because they can and, Libra will be perceived by most as convenient and trusted (Baa, sheep to slaughter in terms of buying power erosion?), and Libra scares the shite out of the Central Bank Cartel.

FB #Libra and their 22 credit card and financial cohorts creating their own money supply?

What position does Libra put the Central Banks in?

One they don’t like or want.

Well, the smart “roaches” running these Central Banks are already scurrying for a new gig, and Carney is the first (and likely one of the biggest) to make a break for it, looking for a new gig with a big paycheque come July 1st, 2021.

IMO Carney will go to the highest bidder, likely a Rothschild influenced crypto venture (government or private) to stay under the same management he enjoyed in Canada and the UK, which means it won’t be Facebook hiring Carney, a known Rockefeller inner circle play. That said, the two camps will share information via Carney to try and engineer the new status quo by co-opting the major cryptocurrencies with “something new”. That IMO is a certainty.

It’s a tall order: Unseating Bitcoin Market Dominance with Central Bank Cryptos:

Bitcoin unseated as the dominant cryptocurrency in terms of Market Cap and transaction volume daily could very well happen and, is likely to happen, sooner rather than later, when Rothschild and Rockefeller's financial circles and trillionaire wealth rapidly get behind the cryptocurrencies of their choice with their Trillions of fiat converted into crypto-currencies which serve their best interests.

Libra on its way, sooner rather than later, partly supplanting Wall Street

IMO FB Libra will happen, Libra represents the old status quo in North America and parts of the western world (with powder and lipstick, plus faux private blockchain, with Rockefeller circles behind the curtain operating the controls. The form Libra takes will be different from what we see today, likely to be blanketed and blessed with new regulations issued by the USA government to create a replacement “gambling hall” which ends up partly co-opting on “WS” Wall Street , with a new online gambling hall, which makes it easy for those WS incumbents to migrate to the new store of value and settlement system selected, using, for the most part, their existing fiat money management tools and systems.

There will be not a lot the current crypto community can do to stop Libra. Libra will happen, the important take away here is to educate the masses as to the differences as quickly as possible, and as well, create the mass audience awareness of the consumer and business options available to dull Libra’s impact and market share percentage.

The Carney Factor: The New Court Jester of “Crypto Redefined”?

Carney’s new, continued and growing impact on the crypto market is another story. He has already had an effect in partly legitimizing Libra functions and features while also pointing out Libra’s “dangers” (to the Central bank status quo) Let’s examine the possible routes Carney might take:

1- Back to the Great White North: Carney could land back in the Bank of Canada, likely hired by Andrew Scheer, a study of Stephen Harper(if Scheer wins) a 30% likelihood or less, provided Carney gets a new government contract and mandate to help create a similar store of value and payment system to Libra for Canada, possibly a job to convert Ethereum into a real working payment and settlement system backed and accepted by the Canadian Government could arise. Heck New Zealand today allows employees to be paid in BTC, think of the Eth “gas” fees the Canadian government could rake in on every transaction, the government might even become self-funding and set up their own mining rigs. :) (lol)

2- OZ or Kiwiland? Another likely possibility is Carney heads east to a Non-China Aligned Country, maybe Australia but more likely New Zealand, which they say is more British than the UK these days. We will give that one possibility a 30% likelihood with the same mandate suggested in the Canadian example. NZ is reforming around crypto pretty quickly, especially after wrongly arresting Kim.com on behalf of the US Govt, so the world is indeed changing and starting to embrace crypto.

n.b.- Carney is unlikely to end up in a SWIFT or Iban non-aligned settlement environment so that rules out China, Russia or any of the BRICS countries, even though his current Rothschild Management umbrella (they manage the Queens Account and the Vatican bank directly) would like to fantasize that sort of infiltration, I can’t see it happening.

3- The Private Sector Options: So where will Carney go if he ends up in the private crypto sector if he ends up there at all (a 30% likelihood). Look to Europe, Carney knows the bigger crypto players there and is familiar with the crypto market there as well. After all, he is one of the Central Bank’s brightest, or at least they publically say so.

Here are a few European “ Carney landing place” thoughts for the reader to consider:

a- The biggest crypto project by far in Europe is #IOTA. That said their founders are fiercely independent and are on a mission, backed partly by Bosch, together with the German automobile giants and others, all of which are tapped into Rothschild controlled banks to get the debt they need to run their operations. They aim to create the Machine to Machine Economy based on feeless microtransactions and they are getting close. Carney could really add value at IOTA, and IOTA is hiring more experienced people to roll out their presence in Europe and the United States with a goal of generally being regulatory compliant in both.

b- As a long shot “maturing startup” play, Carney might consider tiny MaidSafe in Scotland (close to Carney’s current home) and the SafeNetwork and Safe Coin they are about to release in 2020, after 14 years of solid research and development, it’s a worthy project with lots of upsides as Maidsafe re-engineer the Internet into a safer place in the SafeNetwork. Maidsafe is really a pre-Bitcoin design and has benefited by closely observing the recent advances in crypto, carefully crafting their SafeNetwork offer with the market’s best improvements in order to scale TPS “TRansactions per second and ensure anonymity and wide distribution of the network while letting you selling storage or “Vault” space to other users for the upcoming release of their Safe Coin. However, given the Safe Network settlement layer is completely private and anonymous, it’s like to be less a fit, for Carney if he stays under Rothschild Management purview and money model. Maidsafe is UK based, so it could be an easy “small play” as Carney is getting older (however his ego isn’t getting any smaller..) and could play a huge role there. So who knows.

c- Then there are other fast settlement cryptos like Dash and Zcash which have coerced Blockchain tech into settling quickly with side chains, shards, and other tricks, they both work today and well, with minimal fees and could challenge BTC dominance. Carney could be enlisted by such a project and help it to quickly become more widespread in use as an international payment and settlement layer, given Carney’s connections, not to mention the great store of value each has using proven blockchain tech smartly.

d- The Smart Contract market in play today, which is largely centered around the Ethereum community, is a Candian invention and could be a Carney destination. #ETH is poised to solve the TPS “Transaction Per Second” performance problem with ETH 2.0 expected to be released in 2020. ETH might be a very real possibility for Carney, however, it would require Carney to break from the Rothschild invisible grip on his “Keynesian soul”, and possibly adopt the Austrian Economics. Heck anything is possible.

In Trump we Trust? Is Carney a USA July 4th, 2021 Wild Card play?

One thing for sure, money is Carney’s god, and he is an opportunist reading his latest posturing in his Jackson Lodge, USA speech and the annual meeting of the FED. (Where for sure he was getting the FEDs collective view and Powell’s view on what he should or should not do from the Bipartisan Rockefeller-Rothschild directed FED camp, which has been busy fending off the 100% Rothschild (Wilbur Ross) managed Trump White House ask for lower interest rates.

Could Carney end up working for # Trump? (that is If Trump survives alt-right abandonment “we hate you” voting in 2020). Trump might survive (50/50 chance) largely because the current slate of Dems make must right-wingers in the USA gag.

A USA Government enlistment of Carney is yet another crazy but viable possibility, as who can predict what the “Orange Man” will do (or his incoming puppet replacement if the Dems win, it could even be Sleepy Joe Biden)

Heck, anything is possible when it comes to Carney heading to the highest bidder in Crypto land with his management’s best interest in mind.

Remember the date of July 1st, 2021- The Carney Factor will kick in

One thing for sure, where ever Carney lands, it will signal a groundswell change in direction of Rothschild and Co, his real management umbrella.

So keep your eyes and mind wide open, and be prepared to respond and protect your existing stores of value in crypto-based on where Carney ends up and what he decides to do. His words move markets, even more so than the tarnished FED or many countries, so pay attention.

Carney will probably announce his departure and destination before his B of E exit date, likely a year or nine months before, so that means July 1st, 2020 to October 1st, 2020 are a good time to check in on where Carney is going.

In the means time make sure your 50% invested in metals, gold and/or silver, take your pick, it will be a wild ride up as things get steamier and steamier out there.

r2

*****

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I M Edwardsson

DLT Architect, CEO WRRSystems, IEN Member, SCADA2IOTA, EnerSettle, Publish0x Blogger as Thunderboltkid, Contracted Consultant for CloudProx