Cash has Covid & The Digital Dollar is Upon Us

“The technology underlying bitcoin could fundamentally change the way we think of money. It’s only a matter of time before paper money is phased out.” — Campbell R. Harvey, finance professor at Duke University’s Fuqua School of Business

Remember my blog on Quantitative Easing? If not, no biggie— allow me to recap. So long as the Keynesians at the Federal Reserve continue to fall back on their printing press by dishing out stimulus, creating bank reserves out of thin air, and expanding their balance sheet, the more prevalent inflation becomes in our daily lives. All of the sudden, prices at the grocery store creep up and phone bills start looking like car payments.

Just as 2020 couldn’t get any more ass-backwards, a Republican president took to Andrew Yang’s playbook and forked over a preview of what universal basic income [UBI] will look like. Methinks it won’t be the only stimulus we’ll get, and truth be told— it’s really the only weapon the Fed has at its disposal. Their go-to move is to continue to inflate the economy until we’re out from under the virus’ shadow, which will push the U.S. dollar mercilessly into the ground.

Purchasing Power Of The U.S Dollar (1913-2019). The dollar has lost more than 95% of its value since 1913.

By scratching our backs, we’ll have to scratch theirs too, right? Gone are the days of a stimulus deposit arbitrarily hitting your bank account, especially after aggressively botching the first go-round. Deceased Americans getting checks before vulnerable, air-breathing families amidst record-high unemployment is beyond the pale, and just another example of how baseless big government is.

At this rate, I don’t think it’s beyond the Overton window to surmise the next step will be to centralize the feeding tube by replacing cash with a digital U.S. dollar. Oh yeah, do you want access to your monthly $1,200? Just download this little Fed App, plug in all of your information, and voila— your Fed coin’s have successfully been deposited into your account.

It won’t be long before they tack on China-like purchase restrictions. By foregoing your identity, they’ll have specific data on how much you’re earning, where you spend the money, and what you’re spending money on. This centralization of monetary policy is already happening outside of the U.S., and it looks like we’re next in line to adopt this mass chicanery.

“Whoever controls the volume of money in any country is absolute master of all industry and commerce.” ― James A. Garfield, President of the United States

I don’t know if you’ve noticed, but interest rates really haven’t budged in a decade. Pretty much since the the mortgage crisis swept the country in 2008, we’ve continued the charade throughout the virus until now [November 2020].

Which begs the question; if they’re not willing to raise rates, what if they go negative? The central banks in Japan and Europe are saying “hold my beer.” They’ve already taken their rates negative, which enables the central banks to tax your savings without congressional approval. Jerome Powell claims negative rates aren’t on the table right now, but I wouldn’t put it past them.

The lingering issue is that the Fed can’t charge a negative interest rate on physical cash in your possession— but they can tax the digital dollars, which is why I’m super skeptical about the sudden coin shortage and ‘dirty money’ excuses at stores. Look, I’m neither a conspiracy theorist, nor a financial advisor, but I suggest doing some due diligence on how to maintain purchasing power with assets that have held value for thousands of years, á la precious metals, namely gold.

“80% of central banks around the world are exploring the idea of issuing central bank digital currency (CBDC), although the U.S. Fed has not made a decision to follow suit at this time.” — Jerome Powell, October 2020

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