The EU is heading to war. We are seeing the entire region taken over by the warmongers. This coincides with the expected introduction of the digital euro, a central bank digital currency (CBDC) issued by the ECB.

We are being sold a bunch of nonsense in this instant. It is such a mess that we have to ask who the boogeyman is in this case. Is it Trump and the Americans or Putin? Perhaps it is both.

The reality is that the European system is collapsing. Those who are at the head of the EU are well aware of this. Their utopian ideas are coming to an end. Just like China and the Soviet Union before them, the implosion is on its way.

Putin doesn't have to do a single thing. The end is only a few years away. War is a distraction, a move to focus European citizens on something other than the self-imposed economic catastrophe that is arising.

Of course, the same leaders who are responsible for this mess have the solution: a CBDC.

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The CBDC Euro Will Lead To Confiscation

All of my European brethren are in for a tough time. The sad reality is we are seeing the distribution of a book of lies.

To start, the idea that Putin could take Europe is laughable. That said, even if it was possible, we have to drill to the core.

Why would Putin want Europe? War tends to be an economic activity. So what does Europe have to offer? There is no energy, rare earths or gold. In fact, it is Russia that has all that. Hence, it is easy to see why the takeover of Russia is on the minds of these people.

Without economic incentive, what is to be gained. Will Putin takeover Europe to pay the debts because that is what the EU is immersed in. The obligates the governments made to the citizens is absurd. There is no way to meet those promises.

The European leadership knows this.

War has always served as a distraction. It is a way governments traditionally stepped on the rights of its citizens in the name of "patriotism". When people are under threat, they look to Big Brother.

This is what is behind the CBDC.

The Threat Of The US Dollar

There is a lot of discussion about the ascent of the US dollar's position due to the passage of the stablecoin act. The Trump Administration, along with Congress, did a fine job establishing the USD denominated stablecoins as the main payment instrument going forward. This irks the Europeans as they are facing a loss of control.

We cannot say the US has a complete market based system here since all stablecoin issuers are under the watchful eye of the government. At the same time, one could assert that a pseudo-CBDC is formed since the USG regulates it all.

While this might be the case, it is a far cry from a CBDC. The reach of government is still limited.

The Europeans, on the other hand, are ushering the dystopia many have feared. When we look at what the finance ministers can do, we see how this will be a nightmare for the citizens.

Sadly, we saw this story before. Throughout history, in times of war, money is sought. Since debt financing is going to get harder, the leaders turn to confiscation. What easier way then to have people holding digital euros.

Capital controls will be implemented. This means money will not be able to leave. Smart players are already moving their assets to the US. It is one of the reasons for record highs in the US equities markets, especially the Dow which tends to be international.

There will be the justification of security. Of course, when a system is collapsing, what are you defending against? Who would want to take it over?

Then we have the claim that it is a defense against American corporations that control the financial system. Visa and Mastercard process most of the global retail payments. This has to irk the leaders to no end. A CBDC is a counter to this.

Of course, what is not said is that Visa and Mastercard process the payments. They do not block transactions unless there is some specific order. A CBDC provides the government with the power simply to halt the movement of funds.

The Destruction of European Banks

Ultimately, we will see the destruction of the European banks. This is the major problem with a CBDC.

Many will assert that is a good thing but it is a situation that is still unresolved. Banks are not exactly choirboys. However, do they beat the alternative?

In the US, there is the risk of banks losing to Big Tech. There was a clause in the GENIUS Act to help prevent this. In my view, this is unlikely to stop anything. At best, it might slow things down.

The question is whether people are better off with the banks or Big Tech. To me, that is not an obvious answer.

What the Europeans are facing is worse. The banks might be bad but governments tend to be worse. By having a government issued digital wallet, the funds will move from the banks. This will affect bank lending.

It is a claim the banks in the US are making. While it is true, there is a difference. Stablecoins issued under US law can be tied to other lending platforms. This means that while bank lending might be constricted, customers will have other choices.

With the CBDC, is the ECB going to build out a lending platform? Is this even being discussed? Of course, it is not. They do not think that far ahead. If bank lending dries up, where will people turn? Those with USD stablecoins or other crypto-assets might be able to take advantage of other platforms built (if they arent outlawed). Sadly, these are not the masses across Europe (or any region).

This is a situation that could turn dire rather quickly. We are likely to see things escalate in 2026. My long term prediction is the euro will be basically dead by 2030 and the EU will be a skeleton of itself by the middle of the next decade.

Posted Using INLEO