ORWELLIAN: PROGRESSIVE COMMUNIST DEMOCRATS CONFLATE VICTIMHOOD
ARE THERE NO PATRIOTS LEFT IN THE UNITED STATES GOVERNMENT?

DIGITAL CURRENCY: TYRANNY BY ANOTHER NAME

It appears that the Federal Reserve, the private, non-governmental organization that manages monetary policy for the United States Treasury, is exploring the creation of a “digital dollar” in response to the Communist Chinese “digital yuan.”

Some of the chief complaints about the Federal Reserve are that it is the source of fiat currency unmoored from any real value and that it is responsible for the boom/bust cycles that plague our economy, which conveys great advantages to those who have the ability to purchase assets in down cycles cheaply-- and it is opaquely inflating our currency with its very existence.

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What is a Central Bank Digital Currency?
Is the Federal Reserve moving toward adopting a digital dollar?

Central bank money traditionally takes two forms: cash and reserves held by eligible financial institutions at the central bank. Central bank digital currency (CBDC) is a generic term for a third version of currency that could use an electronic record or digital token to represent the digital form of a nation's currency. CBDC is issued and managed directly by the central bank and could be used for a variety of purposes by individuals, businesses, and financial institutions.

To date, no decision has been made on whether to issue a CBDC in the U.S. payment system.

However, given the dollar's important role globally, it is essential that the Federal Reserve remains fully engaged in CBDC research and policy development. The Federal Reserve System is focused on better understanding the underlying technologies and their potentials, as well as policy issues associated with a CBDC.

In addition to projects underway at the Board and the Federal Reserve Bank of Boston, the Federal Reserve is collaborating internationally in groups such as the Bank for International Settlements' CBDC coalition.

The Federal Reserve has a mandate to promote monetary and financial stability and the safety and efficiency of the nation's payment system.

Included in that mandate is a commitment to ensure the public has access to a range of payments options and that financial institutions can effectively provide payment services.

[OCS: At this point, it appears that the Federal Reserve’s CBDC policy is the same as that being promoted to central banks by the Communist Chinese Party.

With China, Russia, and other countries adopting the Communist Digital Yuan, it is likely that the Federal Reserve will eventually issue some form of Digital Dollar to enable international competition.

Many governments are looking forward to curbing criminal enterprises and invalidating the billions of dollars they might hold, as well as drying up black markets. It should be noted that nothing can be done about the barter economy because that business model existed before centralized cash management, and like cockroaches, it is like to  survive a financial catastrophe.]

<Source>

The push is on at the Federal Reserve…

Transcript of Chair Powell’s Message on Developments in the U.S. Payments System (May 20, 2021)

CHAIR POWELL: Today we are in the midst of a technological revolution that is fundamentally changing our world: reshaping how we communicate, access information, and purchase goods and services. As the central bank of the United States, the Federal Reserve is charged with promoting monetary and financial stability and the safety and efficiency of the payment system. In pursuit of these core functions, we have been carefully monitoring and adapting to the technological innovations now transforming the world of payments, finance, and banking.

The effective functioning of our economy requires that people have faith and confidence not only in the dollar, but also in the payment networks, banks, and other payment service providers that allow money to flow on a daily basis. Our focus is on ensuring a safe and efficient payment system that provides broad benefits to American households and businesses while also embracing innovation.

We think it is important that any potential CBDC could serve as a complement to, and not a replacement of, cash and current private-sector digital forms of the dollar, such as deposits at commercial banks. The design of a CBDC would raise important monetary policy, financial stability, consumer protection, legal, and privacy considerations and will require careful thought and analysis—including input from the public and elected officials. <Source>

Yes, the implementation may be incremental until the day the switch is flipped – possibly by an Executive Order from an addled President and a malignant cadre of anti-American ideologues and zealots in Congress.

The truth is that the Federal Reserve is not accountable to “We the People” and represents a clear and present danger to all Americans. As for financial stability, the Federal Reserve was complicit in significantly destroying savings accounts and the value of retirement funds with their ZIRP (Zero Rate Interest Policy), a method of recapitalizing technically insolvent financial institutions by keeping interest rates close to zero. With nearly free money floating in the realm, depository institutions saw no need to pay more than token interest rates that were quickly overwhelmed by inflation. Individuals were forced into risky equities (stocks) that were being bid up by speculators enthralled with a false narrative. Hence another bubble is forming; this time, it is much worse because the bubble encompasses all asset classes.

The dangers of a digital currency…

The main differences between a digital dollar and today’s cryptocurrency are that digital dollar transactions will not be anonymous. They will be tied to your individual identity, and the government can artificially manipulate the value of the digital dollar at whim. 

Unlike the government's limited control over the use of paper currency and coinage in circulation, a digital currency managed by the federal government is a clear and present danger to all Americans. Imagine if the government could directly tax your liquid holdings or deny permission to make certain purchases, firearms come immediately to mind? Imagine the level of computer algorithmic control the government could exert over your life, much like the rather benign control now exerted by credit card issuers?

Everything you do could be electronically tracked, evaluated, and acted upon by those in power. Over time, the federal government would come closer to George Orwell’s imagined surveillance state than ever before in the modern history of nations. Only this time, it would be real -- and taking back power from the federal government would, indeed, require a revolution.

The dangers of tech moguls and their proprietary platforms…

Unlike credit card processors who assess a processing charge of approximately two to five percent, some price gougers like The Apple Store demand a 30% fee for in-app purchases. What tech companies would charge for the processing fee between your digital wallet and merchants or between your digital wallet and a central repository is unknown – but represents another uncontrolled shrinkage of your dollar.

How safe is your bank?

Truth be told, banks are little more than private extensions of the United States government because they are controlled by federal law and supervised by federal regulatory agencies and the privately-owned Federal Reserve. Unless you are in the financial industry, you may have missed Interpretive Letter #1170 issued by the Office of the Comptroller of Currency in June 2020.

The letter's subject was, “Authority of a National Bank to Provide Cryptocurrency Custody Services for Customers.” The opinion of the OCC counsel was that federally chartered banks under the regulation of the OCC were allowed to “provide these cryptocurrency custody services on behalf of customers, including by holding the unique cryptographic keys associated with cryptocurrency.”

“The U.S. dollar was a type of asset-backed money prior to abandonment of the gold standard. Some types of cryptocurrencies may have similar characteristics to this type of money. For example, stablecoin is a type of cryptocurrency that is backed by an asset, such as a fiat currency or a commodity.”

[OCS: Again for those not in the financial loop, “stablecoin” is a big lie – “A stablecoin is a new class of cryptocurrencies that attempts to offer price stability and are backed by a reserve asset. Stablecoins have gained traction as they attempt to offer the best of both worlds—the instant processing and security or privacy of payments of cryptocurrencies, and the volatility-free stable valuations of fiat currencies.” 

Whereas cryptocurrencies such as bitcoin are limited by a fixed number of bitcoins that will be issued and thus have an intrinsic value based on controlled scarcity, stablecoins are backed by the same old Federal Reserve fiat currency that can be easily manipulated as is currently done.]

The bank has proposed to offer cryptocurrency custody services to its customers as part of its existing custody business. We understand that there is a growing demand for safe places, such as banks, to hold unique cryptographic keys associated with cryptocurrencies on behalf of customers and to provide related custody services. These services are in demand for several reasons. First, because the underlying keys to a unit of cryptocurrency are essentially irreplaceable if lost, owners may lose access to their cryptocurrencies as a result of misplacing their keys, resulting in significant losses of value. Second, banks may offer more secure storage services compared to existing options. Third, some investment advisers may wish to manage cryptocurrencies on behalf of customers and may wish to utilize national banks as custodians for the managed assets.

A national bank should consult with OCC supervisors as appropriate prior to engaging in cryptocurrency custody activities. The OCC will review these activities as part of its ordinary supervisory processes.

[OCS: Note the scare tactics about losing your cryptographic keys? There are already cheap secure methods of storing encrypted keys on a portable device and backing the data up in a recoverable secure fashion. How soon will it be before the FDIC start charging an insurance fee to these banks to cover any losses to provide another false assurance of safety while making your liquid assets vulnerable to the government?]

Is the government preparing to force users to store their cryptocurrency assets in government-controlled, government-accessible depositories?

Bottom line…

If you want to see an example of this type of financial control in real-time, consider those who have had their PayPal accounts unilaterally and summarily canceled because PayPal decided not to allow their services to be used for gun sales. Likewise, PayPal canceled accounts that sold MAGA (Making America Great Again) merchandise which they claimed supported violence. No redress is possible.

It should be noted that, like the Chinese Communist model of State Capitalism, our federal government is exerting policies and power through private companies to sidestep constitutional prohibitions. These companies are afraid of the government’s regulatory agencies (stick) and welcome government contracts, loans, subsidies, favorable tax treatment, and, in some cases, keeping their monopolies (carrot). Consider the current censorship of information on behalf of the progressive communist democrats. Enough said!

All I can say is to echo the sage words of Benjamin Franklin, "Those who would give up essential Liberty, to purchase a little temporary Safety, deserve neither Liberty nor Safety."

Do not assume that the America you know and love will be the same as yesterday and that tomorrow will be the same as today. We are heading full-speed toward the abyss where Constitutional protections are relatively meaningless, and your only rights are those conferred by the government elites in positions of unassailable political power.

We are so screwed.

-- steve


“Nullius in verba.”-- take nobody's word for it!

“Beware of false knowledge; it is more dangerous than ignorance.”-- George Bernard Shaw

“Progressive, liberal, Socialist, Marxist, Democratic Socialist -- they are all COMMUNISTS.”

“The key to fighting the craziness of the progressives is to hold them responsible for their actions, not their intentions.” – OCS

"The object in life is not to be on the side of the majority, but to escape finding oneself in the ranks of the insane." -- Marcus Aurelius

“A people that elect corrupt politicians, imposters, thieves, and traitors are not victims... but accomplices” -- George Orwell

“Fere libenter homines id quod volunt credunt." (The people gladly believe what they wish to.) ~Julius Caesar

“Describing the problem is quite different from knowing the solution. Except in politics." ~ OCS

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