If you have any kind of mobile phone device, we are sure you were notified last Wednesday at 2:20 PM EST of a test initiated by our government to check out a warning system. For many, it may have come as quite a surprise, and for a moment, may have caused a slight skip in your normal heartbeat. After the event, you probably put your device down having recognized what was happening. What you may not have noticed is that the government knows who you are, and where you are, at any given time of their choosing. Does that concern you even in the slightest? Maybe it should if it doesn’t concern you right now. Our blog today will gaze into a potential future that should make the hair stand up on the back of your neck, and bring an awareness to how vulnerable you may become to any government incursion into your private life. We already are aware that some cell phones are trackable by their inventors, even when your phone is off (howtogeek.com; June 26, 2023; John Bogna).
Crypto currency has been around for a number of years, and most of us know little about it, and probably have not invested in it as it is highly speculative in nature. Its value can fluctuate wildly from day to day and week to week, and like any investment, “buyer beware” is always the appropriate warning. We will not be discussing crypto today, but we will be talking about digital currency. On March 9, 2022, the current government administration threw its support by executive order behind further study and development of what could become known as U.S. Central Bank Digital Currency (CBDC), (nbcnews.com; Jason Abbruzzese and Kevin Collier). Potential uses, deployment options, and regulations were to be evaluated by a wide variety of agencies.
So, what does the emergency phone test and the development of digital currency have in common? Let us now take a quick look at a potential future that could become reality sooner than one might think. Consider possible implications involving banking, taxes, government sanctions, security risks, and cross coordination between multiple agencies, corporations and institutions. In the article referenced above, “. . . David Yermack, a professor and the chair of the finance department at New York University” said “. . . the functionality could be reasonably simple, with transactions flowing directly to and from the Fed, sidestepping banks and payment systems . . .” Does the Fed involvement give you pause? Yermack also said, “If the cash is electronic, the government can just erase 2 percent of your money every year.” SAY WHAT?
If you have gone to any bank recently and asked for a cash withdrawal of, say, $15,000, the chances are pretty good that you will walk home without the cash in hand. Even though you might have $100,000 in your account, they will not have your money in that bank. You must pre-coordinate with the bank any large withdrawal of cash so they can have time to go get it from somewhere else. “In the U.S. the Federal Reserve dictates the amount of cash, called the reserve ratio, that each bank must maintain. Historically, the reserve ratio has ranged from zero to 10% of bank deposits.” “Bank reserves may be kept in a vault on-site or sent to a bigger bank or a regional Federal Reserve bank facility.” (investopedia.com; March 14, 2023; Adam Barone.) If you ever want to shut a bank down, just have quite a few of its clients at that bank go in on the same day and withdraw all their funds. At any given time, the money you may have in any bank may not be available in cash. Some of your cash has been “. . . lent out by the bank in the form of a variety of loans and securities. (bankrate.com; March 16, 2023; Rene Bennett.) Do you remember the 1946 Christmas classic movie, “It’s a Wonderful Life”? That is why that bank almost went under.
Do you remember the hype created over “Vaccine Passports”? We blogged about the dangers of being so carded back on April 14, 2021. Imagine now that a digital currency has been established in our Nation. What would happen? All of your money currently in any bank will be converted to a digital card you would have in your possession, like a credit card. In fact, it would most likely replace all of your credit cards. Statements for use of your card would be found only online. For those of you who do not do on-line banking, or do not know much about computers or even have a cell phone, you will have a problem trying to figure out how to access your account. If you have cash stored under your mattress or maybe in a home safe, you will have to bring it in to convert it to a digital value, and it will not be at a rate of one-for-one. You may only get credit for 70% on the dollar, so your $1,000 may only convert to $700. Why? Because the government doesn’t trust you enough with cash that you may have gotten illicitly, like any cash transaction in which you may have been a part. What happens to the other $300 you had in cash? The government takes it of course. If you try to keep your cash, you will not be able to use it for any legitimate transaction at any store or business, because they will only be allowed to use the digital credit card. The Black Market in cash transactions will flourish beneath the digital currency. If you are caught in a cash transaction, by any of the additional 87,000-armed IRS agents, hired with the reported 80 billion dollars (forbes.com; May 28, 2023; Robert W. Wood), you will be arrested, prosecuted, and imprisoned.
Okay. Let’s say you go along with converting your cash into digital currency. Are there any risks to allowing the Fed to ride watch over your expenses? You bet! Suppose you mis-gender someone online, even out of simple ignorance; you might find your ability to use your digital card to pay for attendance at certain venues or events of your choice restricted or prevented. Suppose you speak in opposition to the current government’s ideology; you might not be able to even buy groceries or gas with your digital card. Suppose someone who knows you is arrested for peacefully protesting, because of your association with that individual, you too may find your ability to use your digital card throttled down and limited. It would be like when you exceed your monthly hour limits on your cell phone; your service slows down or is restricted, and you might be charged higher rates. If the Feds do not like what you have done, maybe they will charge you a fine and reduce the value of your digital credit card, or further restrict its use, with limited and complicated recourse.
Not only are the above scenarios potentially possible, but the simple fact that the government will know EVERYTHING about you because of having issued you your digital currency card. Everything you are, or have, or do, will be an open book to the government, and also to anyone who has nefarious intent to hack the information and take away your credits, your identity, your life. If you value your FREEDOM and LIBERTY, you need to do everything within your power to do your part to resist the government intervention into your personal affairs. The government has no need and no right to dictate what we can buy, when we can buy, where we can go, and what we can do. If we live within the established laws of our Constitution and Bill of Rights, and if they are respected, we should be able to inoculate ourselves from tyrannical government and corporation interference. Let’s hope so. But as we have said before, hope without action is inadequate.