Big Brothers Are Fighting For World Domination
The struggle for world domination is never-ending. Governments, with their armies, fight to control not only their population, but also the rest of the world. The tools and battle strategies may change, but the goal never does.
Immediately after finishing our article about digital currency combined with negative interest rates, Chuck Butler wrote “China’s Digital Currency Is Ready For Prime Time”:
“The digital yuan, domestically branded as the Digital Currency/Electronic Payment (DCEP) project, is not only set to disrupt the country’s well-developed mobile payment industry and create new efficiencies in the Chinese economy, but could also challenge the supremacy of the dollar.
I think China has switched horses in the middle of the stream, and decided that their digital currency has a better chance of disrupting the dollar as the reserve currency….”
Business Insider quoted Fed Chairman Jerome Powell discussing digital currency:
“A digital currency developed by the fed is a high priority project for us. We are committed to solving the technology problems….
…. As the world’s reserve currency, Powell stressed that the US doesn’t have to be first in issuing a digital dollar, but it needs ‘to get it right.'”
Is China winning the digital currency race?
The New York Times (NYT) reports, “China Charges Ahead With a National Digital Currency”:
“The right to issue and control digital currencies will become a ‘new battlefield’ of competition between sovereign states,” read an article in China Finance…. “China has many advantages and opportunities in issuing fiat digital currencies, so it should accelerate to seize the first track.”
…. It will give the central bank new powers….
|In one possibility that economists have discussed, a central bank could program its digital currency to slowly lose value so that consumers are encouraged to spend it immediately.”|
Chuck Butler warns that digital currency will lead to negative interest rates and total government control. I told Chuck, “This is downright scary!” – hoping he would calm me down. He didn’t….
It’s time to get his input.
DENNIS: Chuck, once again thanks for your time educating our readers. Before we talk about China, let’s discuss digital currency in general. You have warned us that one day we will wake up and dollars will be replaced with digits; with outlawing cash soon to follow.
Doesn’t “slowly lose value” mean negative interest rates – confiscation?
CHUCK: Thanks again Dennis to allow me to opine here…
|“Democracy says it is acceptable to take money or property from a nonconsenting individual because he is outnumbered.”
To answer your question, yes it does mean negative interest rates. The thing that I keep talking about is the fact that the banks will then be able to charge you for logging into your account, and everything else, and there’s nothing you can do about it, because…. Well, the “money” is digits.
And, if you want to move your digits down the street to a different bank – that’s not going to help you, because banks will all be under the same fee schedules. Of course, price-fixing is illegal, wink, wink!
DENNIS: The NYT article added:
“‘This is about more than just money,’ said Yaya Fanusie, a fellow at the Center for a New American Security…. ‘It’s about developing new tools to collect data and leverage that data….’
…. (This) could immediately give the Chinese government more power to monitor finance flows because a digital currency system can record every transaction. That poses privacy concerns, with China having used many tools in the past to crack down on dissidents.”
Other articles discuss how digital currency would allow government to catch “illegal activities” and cash used for “illicit purposes”.
Chuck, this scares me. Who, and how, would the government define “dissidents, illegal activities and illicit purposes?”
At one time, the City of Chicago was going to provide financial aid to help rebuild Wrigley Field, a designated historical monument. Chicago Mayor Emmanuel pulled the funding because the father of the Cubs owner was “thinking about” donating to a political action committee he frowned upon.
Looks like Big Brother to me!
|“The monopolization of money and banking is the ultimate pillar on which the modern state rests.”
— Hans-Hermann Hoppe
CHUCK: This is where we drop into a deep rabbit hole. Basically, your financial freedoms will be gone. The banks, under the eye of the Gov’t, will know if, and where, you have been spending your digits.
They could decide to take them away from you should you decide to let the digits sit – and/or – the banks could be the arbiters of what is a good buy and what isn’t.
They will have immediate knowledge about every digit you spend, and the power to stop it. Major banks, under government pressure, have put the screws to “undesirable” companies. Digital currencies are a way to gain total control of the citizenry.
I feel there will be black markets that deal in folding cash. Will we become another Argentina, with several rates on what kind of cash? Yes, the U.S. could easily become a banana republic…
DENNIS: The NYT reported that China gave selected citizens digital currency to spend as a trial. Some of their comments are eye-opening.
“If I cannot buy you a coffee without the government knowing about it, I do worry about what this could mean.”
“I choose to sacrifice a little bit of privacy for convenience.”
If having the government monitor where you spend every dime is “a little bit of privacy”, what is a lot?
Chuck, if this happens, many people will not like it. Do you see any way to prevent this?
CHUCK: Dennis, the way to stop it came and went several years ago. When the first digital currency appeared the Gov’t should have stepped in and regulated it, taxed it, and made it appear to be not worthy. They didn’t because they knew that digital currencies would lay the groundwork for them in the future – which the future is now…. And one more thing to think about here – I don’t believe governments issuing digital currencies are going to allow private digital currencies (competition) to exist. One government will outlaw them and the rest will soon follow.
DENNIS: Let’s talk about China being first, working with other countries and disrupting the US dollar as the reserve currency. How might that play out?
CHUCK: In 2009, I made a BIG DEAL about China signing currency swap agreements for trade with most countries in the world. That removed the dollar from the terms of trade between the two countries; reducing the need for countries to hold US dollars. I thought that this would lead to the renminbi becoming the next reserve currency. But…China pulled back the reins so it has not happened – yet!
Now it’s picking up, and China is signing up countries to use the digital currency for trade. This time there will be no pulling back of the reins on the digital renminbi/yuan. As more countries reduce their dollar reserves, more dollars will be on the street and thus, inflation accelerates, lowering the value of the existing stock of dollars.
DENNIS: In China, Russia, Europe and the US their respective Big Brothers are trying to dominate their local domain, and probably the world. The US government is likely to push back. How do you see this happening?
CHUCK: Digging deeper into the rabbit hole…. Let’s start with the discussion about China reducing the value of the dollar. As the dollar weakens, even the multi-Billion exchange stabilization fund (PPT) won’t be able to save the dollar from significant decline.
That’s when the U.S. will introduce the US digital dollar. Expect the bad things that I discussed falling into place. The first bad thing – negative interest rates, and the ride on the slippery slope of dastardly things banks/government can do, will begin. It won’t be a fun ride!
I doubt a one-world currency will happen in our lifetime. Big Brother does not trust other Big Brothers…which is probably a good thing.
We may have a new world reserve digital currency basket. Citizens worldwide will have zero financial privacy with a Big Brother overseeing where they spend their money.
DENNIS: This is crazy. As kids, we were taught to put money in the bank, save and build wealth. You want your money “working for you.” Digital currency with negative rates “works against you”. If people can’t accumulate wealth in the bank or with dollars, how will they do it?
CHUCK: I saw a cartoon of a man at the teller window, and the bank teller was pointing a gun at the customer. That’s what it’s going to feel like when you go to visit the bank.
Building wealth? It will be whittled down to owning Gold, Silver, Platinum, Palladium and Copper, and real estate.
I feel precious metals will be stronger than ever, owning them will give you stored wealth, along with real estate. Land will become valuable because people are not going to stay in crime-ridden, high tax locations. Your recent article shows they are already doing that.
Bill Gates has been buying up farmland all over the country. My dad always said follow the money…. And Bill Gates is money to me. So, take a car trip to the countryside, and see where you might like to live…. I’m just saying….
DENNIS: Chuck, thanks again for your time.
CHUCK: My pleasure.
Dennis here. People in Argentina developed ways to transact business, avoid taxes and store wealth. Americans are free thinkers, industrious people and will do the same. Be prepared!
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On The Lighter Side
I hope everyone had a wonderful Easter. On Good Friday I went in for my regular infusion and got the results of my recent Pet scan. Dr. Patel, grinning from ear to ear, said “all remains clear, keep on keeping on!” The test showed no cancer, which certainly contributed to a wonderful Easter Weekend.
Dr. Patel is also a die-hard Cub fan. With the baseball season underway, we always find a little time to discuss our baseball passion.
I want to thank all the wonderful readers who passed along kind words and prayers for a good report. It’s much appreciated. Three months from now, we repeat the process.
When we left Phoenix on March 9th, the temperatures were in the high 60’s. The current forecast calls for the high 80’s to the low 90’s. I told Jo we missed spring this year as it was just beginning in Indiana when we left. The warm weather feels good and we have fired up the griddle which is always fun.
Quote of the Week
“The chief task in life is simply this: to identify and separate matters so that I can say clearly to myself which are externals not under my control, and which have to do with the choices I actually control.
Where then do I look for good and evil? Not to uncontrollable externals, but within myself to the choices that are my own….”
Friend Tom G. sent along “Puns for those with a higher IQ”….
- Does the name Pavlov ring a bell?
- Reading while sunbathing makes you well red.
- When two egotists meet, it’s an I for an I.
- What’s the definition of a will? (It’s a dead giveaway.)
- Time flies like an arrow. Fruit flies like a banana.
- A chicken crossing the road is poultry in motion.
- If you don’t pay your exorcist, you get repossessed.
And my favorite:
- Practice safe eating – always use condiments.
Until next time…
“Economic independence is the foundation of the only sort of freedom worth a damn.” – H. L. Mencken
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