Posted on 09/09/2021 7:23:38 AM PDT by karpov
Investors have been ignoring progress toward government-issued electronic money, even as many countries are progressing rapidly toward their own online cash. They should ask two questions: Will the Federal Reserve issue a digital dollar? And will it eventually replace physical bank notes?
I think the answer to both questions is yes, and those who agree should be assessing the impact on future monetary policy already, because dramatic change is likely within the timespan of the 30-year Treasury.
The main monetary power of the digital dollar comes from the abolition of bank notes. If people can’t hoard physical money, it becomes much easier to cut interest rates far below zero; otherwise the zero rate on bank notes stuffed under the mattress looks attractive. And if interest rates can go far below zero, monetary policy is suddenly much more powerful and better suited to tackle deflation.
Before going on, a quick definition: I’m talking here about central bank-issued money usable by you and me, just as bank notes are. It might (or might not) pay interest, but it is different to money in an ordinary bank account, which is created by the commercial bank; the existing central-bank digital money, known as reserves, are used only to settle debts between banks and certain other institutions, not available for ordinary use.
Deeply negative rates won’t come straight away. Initially, central-bank digital currencies will almost certainly be designed to behave as much like ordinary bank notes as possible, to make their adoption easy and minimize disruption, while use of physical cash will be allowed to wither away. But those close to the development agree that monetary caution is unlikely to last.
(Excerpt) Read more at wsj.com ...
If the government tries to impose digital currency that depreciates even in nominal terms, that will make precious metals and cryptocurrencies more attractive.
So now saving for a rainy day is “hoarding”?
The world has gone mad.
The answer to that is silver and gold.
Hide your wealth physical items of value like gold, silver, beans, bullets, guns, and land purchase.
We are getting into “mark of the beast” territory.
He causes all, both small and great, both rich and poor, both free and slave, to receive a mark on their right hand or on their forehead, so that no one may buy or sell, except he who has the mark or the name of the beast or the number of his name
Revelation 13:16-17
Someone figured out that ‘negative interest’ would be a great way to tax bank deposits.
Cash is already subject to a negative interest rate, due to inflation.
Money kept digitally is a problem only when cash has been eliminated. It will take some time to accomplish that.
The holy grail for these people is to eliminate cash, and take control of ALL digital currency. They they will take what they want from the productive ones, and give it to indolent slobs who vote democrat.
What these people really want is to be able to track and extract their share on every transaction made. It’s all about control.
Who is John Galt?
And there you go...
The exclusion from commerce without the ‘mark’ (thumb print or retinal ID) has not been possible (still might not be except in theory), but there has to be a universal non-physical ‘currency’ to settle transactions with physical settlement in currency or precious metals a crime...
And any person that loves Jesus that has not gotten an LLC with an identity and credit rating rating of its own [with its own credit cards and bank accounts ;-) ] is not preparing for that type of economy correctly.
If people can’t hoard physical money, it is much easier to take away all their financial resources with a few keystrokes on a computer keyboard. And to track and record their every purchase.
THAT is the real reason behind the push to ‘digital money’.
“Someone figured out that ‘negative interest’ would be a great way to tax bank deposits.”
How’s that.
To me a negative interest rate would mean that I have to pay a bank to store my money rather then them giving me interest.
I could use an explanation.
“So now saving for a rainy day is “hoarding”?
The world has gone mad.”
In Nazi Germany savings accounts were not allowed. All money had to be “invested” in the equivalent of war bonds. In China there are no investments and the government can simply take your savings if they want. This has fueled the world’s most insane ever real-estate market as houses are the only hard asset where the Chinese can “invest” their money.
Warren Buffet said about crypto currency. It’s like buying gold. As an investment, it’s poor. It earns nothing. It doesn’t generate revenue. You buy it in the hopes that someone will pay you more for it in the future. As for crypto, the value of a currency relies on the country that backs it. Crypto has no inherent backer so as a fiat currency its only value is for illegal purchases.
I think we can all see, how negative interest rates will be, in effect, a tax on all of our money.
And if we are all compelled to have our money in digital form, they will have control over all of us, financially.
https://en.wikipedia.org/wiki/Central_bank_digital_currency
Centralization: Since most central bank digital currencies are centralized, rather than decentralized like most cryptocurrencies, the controllers of the issuance of CBDC can add or remove money from anyone's account with a flip of a switch. In contrast, cryptocurrencies with a distributed ledger such as Bitcoin prevent this unless a group of users controlling more than 50% of mining power is in agreement.
Where is he?
How long before he leads us out of this morass???
“I’ve used crypto to pay for legitimate items. “
I was merely repeating what one of the world’s most respected investors said. Notice, though, that China has made all but their own crypto currencies illegal to use. I think we’ll see more of that as one of the driver’s for governments to do away with paper money is so they can tax every single use of money. There have been, for example, several attempts to add an additional tax to the income taxes to account for the public’s use of the untaxed economy. (The kid who mows your lawn for cash, as an example.)
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