UPDATE 5.16.22: In a recent letter to Ann Misback, Secretary of the Federal Reserve’s Board of Governors, Cato Institute analyst, Nicholas Anthony, outlined the threat to American privacy posed by “central bank digital currencies” (CBDCs), aka “digital dollars.” Anthony was responding to a request for comment from the Federal Reserve. He writes (abridged):
In fact, the threat to financial privacy may be the single greatest risk of a CBDC. And it’s due to the significance of this risk that it is particularly disappointing that the discussion paper devoted so little time to the issue. The “intermediated CBDC model”––something which largely appears to be a retail CBDC with extra steps––described in the discussion paper may be able to be designed sufficiently to prevent a direct line between the government and the public by using third parties (i.e., banks and other financial institutions) to interrupt the flow of information. But even here, financial privacy is still at risk. One of the few constraints on the third-party doctrine is whether the information revealed was in the ordinary course of business. While financial institutions do not track down the journey of each dollar bill in the ordinary course of business, a CBDC would likely have a record of its transactions and make that data available to financial institutions. Therefore, that newly available data would likely be added to the existing reporting requirements and thus create a much larger data pool for law enforcement to pull from during investigations. Worse yet, even if that newly available data is not added to reporting requirements initially, it still creates a much larger data pool.
So whether it is done directly or in an “intermediated” fashion, a CBDC poses a significant risk to Americans’ financial privacy. And it’s not just a risk of quiet observance. The use of the Emergencies Act in Canada to freeze the bank accounts of protestors earlier this year showed that Americans should be aware of the extent the government can go to exert control. 6 A CBDC would dramatically increase that risk.
Originally posted on October 6, 2021.
Is the American government aware of a coming economic collapse it will use to usher in a new system of digital currency in order to phase out hard currency? That’s the thesis from Bill Sardi, writing at LewRockwell.com. He explains (abridged):
Imagine you are on a cruise ship and you secured your valuables with the ship’s purser. And later you see the purser hurriedly getting on a lifeboat with canvas bags used for holding valuables. What kind of a signal would that send to you?
It would appear to me the ship is about to sink and the purser is trying to take everybody’s money with him as he rescues himself. Now recognize, the purser could say he was just making sure everyone’s valuables were saved should they survive the sinking or at least preserve passenger valuables for their heirs, in what would be plausible denial. Or who knows, maybe he will say it was just a drill.
Now to assess a real occurrence.
Two top officials at the Federal Reserve bank resigned a few days ago over revelations they were extensively trading stocks in 2020 when the FED was spending trillions of dollars to stabilize financial markets. The investments were permissible under the FED’s rules, but there certainly appears to be a conflict of interest. One of the perpetrators made trades worth over $1 million in 22 stocks and index funds. These are insiders with advance info about market conditions.
You might come to the same conclusion that “the boat is sinking,” as I did in my imaginary story about the purser on a cruise ship. Who is going to penalize these bankers if the ship sinks? They know there isn’t time for them to be penalized. What do they know that we don’t know?
The US economy is primed to fall. The Wall Street Journal is not going to tell you this. A humongous depression far greater than the depression of the 1930s, is planned. And in so doing, the masses will beg for the digital currency as the only way out. A date will be established to turn in paper money, maybe even at less than face value. Notice coins were tagged as carriers of the virus, to be turned back in to banks. Paper money banished as a medium of viral transmission.
Those in power make it appear they are sending Americans free money, they are rescuing you, from the COVID, from joblessness, from the sinking ship. In fact, the citizenry is being set up for a big fall. And most Americans are none the wiser.
By Bill Sardi
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