I am almost 100% sure that a CBDC is coming. CBDC means a Central Bank Digital Currency. Yes, a kind of crypto. Like it or not this is the future of money. Paper money is soon on its way out. There is technology that will allow for a Currency that is decentralized. Smart Contracts have opened up all kinds of possibilities. The US government is not to keen on the idea of not having control of the money. After all if there is a need for a large amount of money the government does not need to raise taxes. They can just print money. History has shown this has always happened with money and it ultimately fails. I would like to ask the forum a couple of serious questions. 1) Should the US government or any entity control this CBDC? If so, how much control should they have? Think of a government that could instantly shut down your access to money for simply posting the wrong opinion on social media. That is an extreme but it could be possible. 2) On the other hand should the money not be controlled in any way allowing the free market to do whatever it will do? How will this affect the economy? At least with the Fed being able to manipulate the money supply the boom and bust cycles of the economy can somewhat be affected. Is decentralized money the way to go or should some entity control it? I honestly am questioning this. Any serious opinions would be greatly appreciated.
The level of control that is inherent to only digital money is obvious and will be abused by whatever entity holds this power. We must always preserve access to money outside of that system, for example, every state has the power to issue gold and silver coins. It would take a constitutional amendment to change that, which is easily blocked by 13 states, so, I don't worry about this. Yes, it's problematic, but, it's not our biggest threat to our nation at the moment, the rogue FBI fixing elections is far more immediate and existential danger to our Free Republic.
You will find out shortly how few people have any clue as to what money is, yet how it works. It is THE most important mechanism to understand when it comes to government and economics. And no monetary discussion is better initiated than with the famous quote credited to Mayer Amschel Rothschild in 1838... ″Permit me to issue and control the money of a nation, and I care not who establishes its laws.″ When it comes to banking and a Rothschilds speaks, you just might want to listen. Let's put it this way...no more is the problem with mass murders a gun problem, are the difficulties with government caused by money. It is the corruption of people that is the problem on both counts. A responsible and functional government SHOULD have control of the money supply for many reasons IF AND ONLY IF there are sufficient checks and balances in place. On another front, central banking is a bad idea that gave the most avaricious among us the keys to the vault. The deal has always been that they would have to pay off the politicians [through increasing the national debt] as the law makers became more corrupt [and as a method to create enough money to maintain reserve currency status, as well] and eventually pay off the administrative and professional classes [which is when our fate was really sealed] by propping up the stock markets [where their retirement and personal saving are stashed]. I agree, let's have a thorough discussion of money [something that will actually be worthwhile], how it works, why it doesn't, and where we should go from here.
Right now, currency in circulation in the U.S. aka "paper money" (according to this) is about $2 billion. That's "narrow money", and other types are listed as... Narrow Money e.g. M0 = This is the level of notes and coins in circulation + banks operational balances at the Bank of England. Broad money e.g. M4 money supply is defined as a measure of notes and coins in circulation (M0) + bank accounts. It is a broader definition because it includes bank accounts and not just notes and coins in circulation. Right now the U.S. M2 is about $21Billion, and most of that is just ones and zeros in computers --"digital money". Please understand that most dollars are created by banks on foreign countries, outside of U.S. jurisdiction and outside of U.S. control.
This is something the Leftists have been dreaming about for years. Just another way to control the citizens.
Digital currency will replace paper money. That is not the question. The question is whether or not money should be controlled by a central bank or should it be decentralized? I like the idea of removing people from controlling something so important but how well will decentralization work in the world economy? If a digital currency is not controlled how will that effect the economy? Will we still have these boom/bust cycles? Could it be worse? If a digital currency is controlled will greed and power corrupt those who control it like money always has done?
I can see the merits of having a decentralized money system. Remove people and remove greed and all the negatives that go with it. I just wonder if we can have an economy that would be better without anyone to control the money supply?
I have never bought any digital currency, and have only a superficial understanding of how it works. The FTX scandal shows how easily the system was gamed. It seems to me that if the electricity were to be turned off, the digital currency would not even exist anymore. I'm against Biden Bucks. Give me gold or silver.
In real life there'd be backups on the shelf. More serious would be an EMP that could clobber an nation, or perhaps a solar flare for an entire hemisphere. Still, we'd still have the other half of the earth, along w/ all those hardened backups in the shielded rooms. Real life's just not nearly as interesting as fantasy.
As a former president once said.... ""We're five days away from the fundamental transformation of the United States"" it took them years.... but "never underestimate Joe ability to ef things up"
