CBDCs Are Not Going To Work | Martin Armstrong | BIG PICTURE

Step-by-Step Tutorial: Understanding the Future of CBDCs and Government Fiscal Policies

1. Introduction to CBDCs and Government Fiscal Policies:

   • The video discusses the current use of Central Bank Digital Currencies (CBDCs) and the challenges faced by the financial system due to excessive borrowing by governments.

2. Impact of Excessive Borrowing on Government Fiscal Policies:

   • Governments have been borrowing extensively, leading to high interest expenditures and a growing national debt.
   • The video highlights the issue of constantly borrowing to pay off old debts, leading to unsustainable fiscal policies.

3. Key Insights on Fiscal Policy and Deficit Spending:

   • During economic recessions, governments can lower taxes or engage in deficit spending to stimulate the economy.
   • The video emphasizes the historical context of deficit spending and its implications on government debt.

4. Role of Central Banks and Interest Rates:

   • Central banks face challenges in managing inflation through interest rate adjustments, especially when governments are the largest borrowers.
   • The video explains the dilemma faced by central banks in controlling inflation and government spending.

5. Discussion on Defaulting and Historical Examples:

   • Governments throughout history have often defaulted on debts, leading to financial crises and conflicts.
   • The video provides examples of past defaults and the consequences of unsustainable borrowing practices.

6. Analysis of CBDCs and Government Control:

   • CBDCs are seen as a tool for governments to increase control over financial transactions and tax collection.
   • The video discusses the potential impact of CBDCs on the underground economy and tax evasion.

7. Insights on Economic Activity and Inflation Trends:

   • Predictions are made regarding future economic trends, including potential recessions and inflationary periods.
   • The video highlights the impact of government policies, such as tax increases, on economic activity.

8. Discussion on Government Stability and Fiscal Responsibility:

   • The video emphasizes the need for governments to adopt responsible fiscal policies and avoid excessive borrowing.
   • Suggestions are made to address government debt issues and prevent financial instability.

9. Role of Individuals in Government Reform:

   • The importance of citizen involvement in government reform, including advocating for term limits and responsible governance, is highlighted.
   • The video encourages individuals to learn from historical mistakes and actively participate in shaping government policies.

10. Conclusion on the Future of CBDCs and Government Policies:

    • The video concludes by discussing the potential consequences of unsustainable fiscal policies and the role of CBDCs in shaping the future of financial systems.
    • It emphasizes the need for government accountability, citizen engagement, and learning from past mistakes to ensure a stable and efficient governance system.

By following these steps and understanding the insights provided in the video, you can gain a comprehensive understanding of the challenges faced by governments in managing fiscal policies and the implications of CBDCs on the future of financial systems.