The Trigger
Stocks collapse - a CONTROLLED demolition by the Fed - they are 100% in control - plunge protection team, rate raises, YC control, buys of index funds, margin requirement changes, short selling restrictions (or not), jawboning, changing of accounting rules (mk to mkt a la 2009), all sorts of levers.
The Fear
Over the span of the controlled demolition, billions upon billions, likely trillions GLOBALLY move out of stocks and into MMKT's or other 'stable' value securities - note - the (connected) INSTITUTIONAL and HEDGIE paper has ALREADY LEFT (see The Trap below). The primary participants in the 'demolition' will be JQ public, day trader, retail investor, robinhooder, 401k holder.
The Trap Set
Keep in mind the Fed's Reverse Repo facility now has a standard operating procedure and recently at over 1Trillion - All this liquidity leaving stock markets will eventually find their way to The Fed - Note how uncommon it is to find a non-Gov't securitized MMKT fund (by design since coralling of commercial paper after 2009). Remember, the RRP facility is said to 'stabilize' MMKT's in the event of a crisis. Remember too that mutual fund families can use assets in some funds to plug crisis holes in other funds at will - and even funds outside of those families. These policies are sold to the public as 'protective' measures.
The Announcement
At a particular moment at the depths of the stock market bear and civil unrest (pehaps resulting from the jab), TPTB determine that there is sufficient LIQUIDITY (fiat) corralled at the Fed (via the Rev Repo facility) to roll out a policy which states - YOUR FUNDS WILL BE ACCESSIBLE TO YOU IN THE FORM of (wait for it) a CBDC (perhaps a FedCoin debit card, SwissCoin, EUCoin, YenCoin, RooCoin etc. or perhaps a credit of such in your trading/bank account etc.) If you want to utilize your 'money', you must adopt the new system - oh and it's still worth a "dollar" or whatever local currency - or maybe just a bit more relative to physical paper (GREAT!), but it's 100% digital and issued by a single collective entity - possibly globally backed by an SDR, which might in turn be backed by ?gold?, but issued locally in the 'coins' above (no more 'little' bank middle man - all designated major world banks will adopt the SDR again possibly partially backed by gold - or at least stated that way), as their primary exchange medium - The 'coins' are traceable and 100% programmable. A great day to roll out this new policy might be .... say..... the evening of December 23, 2021.
The Elimination of Competition
As a limited time offer - citizens will be offered $105 units of FedCoin when they turn in their paper $100 bills. This policy persists until 100 bills are gone, then 50 and eventually all private 'paper' has disappeared. Similarly, Bitcoin (or you-name-it crypto), can be exchanged for a premium of X.XXX over current mkt value. Again, for a limited time, then at a critical moment, when mass adoption hits a pre-determined point, they will dispense with the carrot and whip out the stick - make illegal or criminalize use of non-Fed coin transactions. Minority holdouts will be SOL!
The Brave New World
And voila, there you have it a new crisp digital 'coin' you can earn with the sweat of your brow and spend at your heart's content (a lie). No one (had to) die and everyone thanked our dear leaders for saving them from utter ruin.
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Any other thoughts on how CBDC's might be rolled out and accepted by the public are very welcome.
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