Ultimate Insider Larry Summers Joins Bitcoin Firm
Larry Summers is the ultimate insider and one of the most respected personalities in the Keynesian economic world. In 2013 he was the far and away favorite to become the next Federal Reserve president as Ben Bernanke’s successor. For some reason he declined the coveted and most powerful position in economics opening the door for Janet Yellen. This is his statement for declining the nomination: "I have reluctantly concluded that any possible confirmation process for me would be acrimonious and would not serve the interest of the Federal Reserve, the Administration or, ultimately, the interests of the nation's ongoing economic recovery."
It is doubtful that one would turn his back on the pinnacle of ones craft because there may be some opposition. What's more likely is he removed himself from what he saw as a train wreck waiting to happen. He could easily let Yellen deal with the unsustainable bubbles and position himself as a savior after the crash occurs.
His new role as an advisor to this crypto currency outfit dovetails nicely into my theory on a possible US government issued E Dollar. The E Dollar could phase out cash, opening the door to negative rates, and a host of other benefits for the government and banks. A Federal Reserve president who introduced the E Dollar, the savior of the currently doomed monetary system, would be touted as a hero
We have laid out why we think bitcoin could be an E Dollar beta test as well as the interest by central banks in the concept. The fact that we have a likely candidate for the next Fed president, who suspiciously backed out contention in 2013, that is now taking on such a prominent role in a blockchain research and media company only strengthens our conviction that the E Dollar is a real possibility.