“The competitive market process promotes the efficient allocation of resources, leading to the highest possible standard of living for consumers.” -Ludwig von Mises
That’s Austrian economist Ludwig von Mises writing about the true benefit of a market-based system – the efficient allocation of resources. Mises went on to suggest that the market process is the only method of economic calculation that can be used in a world of scarcity and uncertainty.
The fact is, we must allow competitive markets to allocate resources if we want to enjoy a high standard of living. Anyone who doubts this can simply look at the difference between life in the United States and life in Sub-Saharan Africa.
In the US we enjoy comforts that the richest person alive 150 years ago could never fathom.
We live in homes that are the perfect temperature year-round. Weather is now just a talking point.
We take running water and indoor plumbing for granted. We have supermarkets overflowing with food just down the street. And we have all kinds of screens that offer us endless entertainment.
In Sub-Saharan Africa, nearly half of the population lives without electricity and running water. The local markets offer only a small amount of goods from the capital city. And many families still live as subsistence farmers.
I know this first-hand. Our foundation just drilled a new solar-powered well in rural Uganda. Previously the villagers were walking up to a mile twice a day to collect clean water from a natural spring.
It’s not about money. It all comes down to the allocation of resources.
According to the Organisation for Economic Co-operation and Development (OECD), western governments have been sending an average of $36 billion a year in foreign aid to Sub-Saharan Africa. That’s since the year 2000.
We don’t have clean records – foreign aid is shady business. But according to this estimate, Sub-Saharan Africa has received nearly $1 trillion in foreign aid over the last two decades.
So why haven’t those countries seen much progress? Why is the infrastructure still lacking?
It’s all because the foreign aid gets sucked up by corrupt governments. They use it for their own gains. The money doesn’t flow into a market-based system where companies can bid for it and build out modern infrastructure.
Competitive markets, when free from distortions, direct resources towards their highest and best use. And that brings us back to the central bank digital currency (CBDC) story from yesterday.
As we discussed, the CBDC push is an attack on the commercial banking system. It would take deposits out of the independent banks and move them to the central bank. Afterwards the banks would no longer be free to finance the companies and projects they saw as most economical.
That’s the true purpose of the CBDC.
It’s a pillar of the World Economic Forum’s (WEF’s) globalist master plan they call the “Great Reset”. And it’s how they intend to co-opt full control over money and finance. Why?
To get rid of competition in banking… so they can finance their uneconomical projects.
Renewable energy (that can’t power our grids)… electric vehicles (that we won’t be able to charge without traditional energy production)… 15-minute cities (with total surveillance)… carbon-free farms (that produce fake food)…
These are among the stated goals of the Great Reset. But none of them will come to fruition in a world of competitive markets and banking. Because they aren’t economical. Any commercial bank financing these endeavors would lose money and risk collapse.
So the true goal behind the CBDC push is to destroy what’s left of capitalism.
That’s why they have been working so hard to convince people that capitalism is evil and corporations are greedy. The globalists want us to see their plan as friendly and selfless. But it’s the exact opposite.
To bring it all home, this is why the Federal Reserve (the Fed) raised rates so aggressively in 2022.
As we laid out yesterday, the Fed is owned by the iconic New York banks on Wall Street. They aren’t going to simply roll over and give up their independence.
By raising rates, the Fed made financing anything much more expensive. As such, it’s now even harder for its proponents to implement the Great Reset.
We can see this very clearly as the Environmental, Social, and Governance (ESG) narrative is being swept away right now.
Globalist cheerleader and CEO of BlackRock Larry Fink recently went on TV and said he didn’t want to use the phrase anymore. And new legislation in France proposes to scrap most of the country’s hard “green energy” commitments in favor of nuclear energy.
It we look at it this way, it’s a fascinating game of chess playing out on the global stage.
But it’s a game with serious consequences. And it sure looks like 2024 will be a pivotal year…
More to come next week.
-Joe Withrow
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Tom’s program provides a world-class education on both subjects. And it does so in a compelling and entertaining way. No kidding – I’ve learned far more from Liberty Classroom than I ever did in seventeen years of public education.
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