Suppose you bought a car from a dealer cash over the barrel, thinking you were avoiding not only any personal debt, but also any encumbrance that could cloud the title or impair your ownership of the vehicle. But unbeknownst to you, the dealer had, without your knowledge or consent, pledged your vehicle as collateral so that when the dealer later became insolvent, all the cars he had sold were seized by creditors in payment of his debts. That would jar every bone in your body as grossly and patently unjust. It would violate every principle of property rights.
Yet according to David Webb, this is exactly analogous to the situation that now exists globally with all digital securities. There are no countries anywhere in the world where the purchasers of digital securities have any property rights that attach to them.
In his compelling documentary, the Great Taking, he explains in ample detail, citing the actual documents, exactly how this Great Taking was “legally” effected. The key metric that has guided him throughout his former career as a money manager is the velocity of money. Today this is the lowest it has been since 1900. That means the abilility of the Fed to drive the economy by injecting more of their self created notes is failing and failing fast.
You can watch his compelling presentation here. He also provides a link to get a free pdf copy of the book.
Credit: Annual velocity of money, from 1900 to the first quarter of 2021. Digitized from a plot published by Hoisington Management. Data sources stated in the original: Federal Reserve Board; Bureau of Economic Analysis; Bureau of the Census; The American Business Cycle, Gordon, Balke, and Romer. from The Great Taking by David Webb