Edward Dowd, Founder of Phinance Technologies and former BlackRock fund manager, and Michelle Makori, Editor-in-Chief and Lead Anchor at Kitco News, discuss the Federal Reserve’s latest rate hikes, and why Dowd thinks Fed Chair Powell will be “forced” to cut rates by June of 2023, leading to a “controlled implosion” of the banking sector. Dowd forecasts that as banks consolidate, only 6 major banks will be left standing by 2025, paving the way for Central Bank Digital Currencies (CBDCs), digital fiat tokens issued and controlled by central banks. This, Dowd claims, could lead to “total government control” and a potentially dystopian future .
Dowd also sees the dollar losing its dominance on the world stage with a “kinetic war” breaking out as the BRICS countries launch their own reserve currency.

0:00 – Fed outlook
9:56 – Inflection point
12:00 – Banking crisis
16:02 – Six banks left standing
18:17 – Central bank digital currencies
23:14 – Resisting CBDCs
26:39 – Hidden agendas
28:12 – New monetary system
31:11 – U.S. Dollar dominance
33:30 – De-dollarization and war
37:10 – Investment implications
39:00 – Civil unrest
40:48 – New book and report

#banking #federalreserve #money
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In a startling prediction, renowned economist and author Dowd has foreseen an ’emergency’ interest rate cut by the US Federal Reserve (Fed) as early as June. Dowd, who accurately predicted the 2008 global financial crisis, believes that this measure will be implemented due to the mounting economic pressures caused by the ongoing pandemic.

The Covid-19 outbreak has already taken its toll on the global economy, with stock markets plunging, businesses shutting down, and unemployment rates skyrocketing. To combat this unprecedented crisis, central banks have resorted to unconventional measures such as quantitative easing and interest rate cuts.

Dowd argues that an emergency interest rate cut would be an attempt to provide some immediate relief to businesses and individuals struggling to cope with the economic fallout of the pandemic. Lowering interest rates would make borrowing cheaper and stimulate spending, offering a lifeline to struggling sectors such as tourism, retail, and hospitality.

However, Dowd’s predictions do not stop here. He also believes that, as a result of the financial turmoil caused by the pandemic, only six major banks will remain in the United States by 2025. The wave of bankruptcies and ongoing economic instability could force many smaller banks to shut their doors for good. This consolidation would mark a significant shift in the country’s banking landscape.

Furthermore, Dowd argues that this consolidation will pave the way for the implementation of Central Bank Digital Currencies (CBDCs). A CBDC is a digital form of a nation’s currency issued and regulated by its central bank. With fewer banks to manage and control, the central bank would have an easier time transitioning to a digital currency system.

As cash transactions decline and digital payments become increasingly popular, central banks are exploring CBDCs as a potential future currency. The ongoing pandemic has accelerated this trend, as people avoid using physical cash due to hygiene concerns. By 2025, Dowd predicts that the US will be ready to introduce a CBDC, replacing physical cash for most transactions.

While Dowd’s predictions may seem alarming, they highlight the severity of the current economic crisis and the potential long-term consequences. The emergency interest rate cut and bank consolidation would represent drastic steps taken by the US government to stabilize the economy and mitigate the impact of the pandemic.

The introduction of a CBDC also raises important questions about financial privacy and the role of central banks in individuals’ financial lives. Privacy advocates argue that digital currencies controlled by central banks could infringe on citizens’ right to financial autonomy and allow for unprecedented levels of surveillance.

Only time will tell whether Dowd’s predictions come to fruition. However, it is undeniable that the future of the US economy and its banking system hangs in the balance as we navigate these uncertain times. As governments and central banks grapple with these challenges, the decisions they make in the coming months and years will undoubtedly shape the financial landscape for generations to come.