The Fed Heads to a Crypto Dollar

26 Feb

The Fed Heads to a Crypto Dollar

Do you have assets that are off the grid?

Developing a digital currency is a “high priority project for us,” Federal Reserve Chairman Jerome Powell told congress last week.

“We are committed to solving the technology problems, and consulting very broadly with the public and very transparently with all interested constituencies as to whether we should do this,” Powell said.

Sure.  As we reported to you on this development last year, a Fed crypto-currency dollar “is as good a reason as any to protect your wealth with gold.”

“The Fed’s new digital currency is a variation – although a much more threatening one – on old-fashioned money printing: the issuance of currency unbacked by anything real.  Money-printing governments at least have the logistics of paper and ink to slow their emission of evermore fresh fiat currency.  State digital crypto-currency issuers will have no such complications to slow their currency creation.”

China is way down the road on a crypto-digital currency.  That is what you would expect for a totalist surveillance state.  It fits right in with China’s “social credit” goals:  as it watches what its people do, it awards them merits or demerits.  Voice opinions or engage in behavior the state does not like and the poor citizen finds he cannot fly, travel, buy property, have credit, or get a job.  

Such a social credit system is a much more efficient means of exercising total control than trying to put a bullet in the heads of each of millions of people.  China has already tested its digital crypto currency in three cities.  

The American version of a social credit system is not quite as far along.  But statist opportunists are taking steps down that road, proposing forbidding air travel or restaurant dining by people who can’t produce their vaccine records.  

It’s a start.

There are plenty of good reasons for people to use cash.  They may be concerned about banks closing or the power grid failing.  They may want to protect their privacy in an age of identity theft and widespread digital account hacking.

A war on cash rhymes with a war on gold.  As the old Swiss saying had it, “good money is coined freedom.”  And there is no better coinage than gold.

Isn’t it time to make sure you have money out of the government’s destructive control and off the government’s grid, since you know where that is headed?

We recommend that you use this correction in precious metals prices to provide yourself and your family a safety net of assets that are off the grid.