The Bottleneck Theory for a Monetary Reset

Jan Krikke
Dec 10, 2022

Macoreconomists have developed a “bottleneck theory” for a monetary reset through the launch of Central Bank Digital Currencies. We could see a gradual (soft) reset, with analog and digital money temporarily coexisting. If the debt crisis gets out of control, we may see a “hard” (overnight) reset.

A hard reset would be no fun. Paper assets could get a massive haircut as they pass through the bottleneck. The repricing of paper assets would impact everyone, especially the middle class. In the video, asset manager Matthew Pieperburg breaks down the probability of a hard reset.

https://youtu.be/fdT0BvPafws?t=1232

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Jan Krikke

Author of Creating a Planetary Culture: European Science, Chinese art, and Indian Transcendence