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siciliavin

Now the much bigger global picture is the digitization of currencies by Central Banks. Just a pipe dream 5 years ago, but those pesky Chinese already have theirs in play.

So that becomes the first driving force putting wind in the sails of change. The second is the need to be able to influence economic outcomes more directly by providing capital flows to different social economic demographics, rather than the current scatter gun method using the current banking system.

We know what happens at that end of the town in this country, well, every country. They are along with their hedge fund buddies were responsible for the subprime meltdown - pure greed! This time around, the capital flows have moved into financial assets in the stock market and being bid up because of the monumental M2 print and low borrowing costs. Of course some simply sits as a book entry as reserves, but enough flows into these other assets as part of the 'scratch my back I'll scratch yours" deal between the banks and Central Banks, i.e., inflate assets, drive tax revenue, reduce debt, finance the government.

The third motivator is linked to the social movement and specifically the need to rebalance wealth amongst the population, where the current system simply creates massive wealth divides and eventually social and political unrest. Note Biden's agenda significantly targets the lower end and social systems, where Trump's 1T tax relief bill provided more support to Corporates and their shareholders through buy backs and subsequently higher share prices.

The wash up is, commercial banks will become less important in the effective management of the economy. It will allow the government, through the CBs to directly target segments of the population who need support or can make a difference to the economic objectives. Faster, more targeted, effective capital flows! Commercial banks long term will wither unless they buy Fintech and successfully integrate. Their systems (like ASX) are old, not integrated and cost 100's of millions to remedy.

So what? Well Fintech's like ISX will be the go between. They get digital, significantly more agile, far less greedy and provide transparency. A bit of a tricky one for the US given their lack of appetite for the government knowing how they spend, but the game is in play. The momentum in this space, will creates additional opportunities for alternative ASX clearance houses.

So, that's the very basic fundamental background driving the desperation we have seen for the past two + years and the motivation behind the arduous out of the ordinary and bizarre behaviour.

All part of the strategic big picture sitting much further up the pecking order. But you probably already know that!

Play the long game. "For the times they are a-changin'"