Possible Scenario On CBDC’s
We know that the central bankers of the world are getting ready to introduce CBDC’s. It is just a matter of when and how. I believe that this Biden proposal about requiring the banks to report on accounts having at least $600 of annual activity is a prelude. First, it serves as a trial baloon to see how much pushback occurs, but more importantly, it gets the process started. Here is what I mean. In anticipation of it being enacted, more people will lower the amounts of money kept in banks and other financial institutions. It may start slowly at first but eventually it will increase dramatically. This is going to both get people to hoard cash but more likely put money into real estate, investments etc. When the declinning balances get large enough the FED will introduce the CBDC under one of two pretexts. Either, a dangerous drawdown in bank deposits which they will say they need to halt(bank run) or that people are showing that they don’t need banks anymore by taking most of their money out of the system, so let’s make it more efficient by going digital. Sometime in the new year this is probably going to begin.
Any real estate people out there? Office space and retail real estate has been (and will remain) devastated. What will happen now with residential real estate? Depopulation from the vaccines causing degradation of immune systems will leave more residential real estate than the reduced population needs. What then?
Don’t disagree. Real estate is just one place. Stocks, private companies, gold, silver etc. Money will come out of banks and go everywhere else including under the matress. Most wealthy real estate investors may play the cycle but they are also long term holders because of the tax favorability and the limit on actual land. It gets repurposed from one type of usage to another. Going to see a lot of commercial office space converted to residential.