Economic Freedom in A World of Digital Currency

Economic Freedom in A World of Digital Currency by Rory – The Daily Coin

Dr. Ron Paul, possibly the only Congressman in modern history to stand up to the Federal Reserve and continually argue for sound money, stated in the 2006

A hundred years ago it was called “dollar diplomacy.” After World War II, and especially after the fall of the Soviet Union in 1989, that policy evolved into “dollar hegemony.” But after all these many years of great success, our dollar dominance is coming to an end.

It has been said, rightly, that he who holds the gold makes the rules. In earlier times it was readily accepted that fair and honest trade required an exchange for something of real value.

First it was simply barter of goods. Then it was discovered that gold held a universal attraction, and was a convenient substitute for more cumbersome barter transactions. Not only did gold facilitate exchange of goods and services, it served as a store of value for those who wanted to save for a rainy day. Source

This was a full 40 years after Alan Greenspan had explained gold and economic freedom in 1968. Even then it was understood that tangible assets were a key factor in freedom, liberty and the preservation of individual wealth. Greenspan attempted to explain this to the world stating:

In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. There is no safe store of value. If there were, the government would have to make its holding illegal, as was done in the case of gold. If everyone decided, for example, to convert all his bank deposits to silver or copper or any other good, and thereafter declined to accept checks as payment for goods, bank deposits would lose their purchasing power and government-created bank credit would be worthless as a claim on goods. The financial policy of the welfare state requires that there be no way for the owners of wealth to protect themselves. Source

The United States, under President Nixon, closed the gold window in August 1971 and placed the world on a fiat currency standard where “faith and credit” became the backing of currency instead of gold, a tangible asset that has been money for 4,000+ years. Fiat currency has no value and if you read on each Federal Reserve Note you will find it is “legal tender for all debts public and private” which is not currency and certainly not money. It is debt itself. By simply using this note one is admitting they are owned by their self created debt.

In 2008 our economy entered into what can only be described as an engineered collapse. The financial system was on the edge of implosion, or so we were told, and if the American people didn’t pay a hefty ransom the banks would finish the job they had started several years before and the economy would roll over. There was a closed door meeting between the 9 largest banks in America and the Chairman of the Federal Reserve to decide how the remaining too big to jail banks would survive this “crisis” and how the assets of the failed banks would be divided.

In 2009, the very next year, Willem Buiter, Chief Economist, CITI, one of the too big to jail banks that survived, penned an article that was published in the Financial Times Alphaville where we were introduced to the idea of a cashless society in order for the financial system to achieve a true negative interest rate environment. With cash still in hand, negative interest rates are impossible to enforce. Digital currency allows banks, and their government enablers, 100% control over peoples currency and how they conduct business.

Buiter painted a very clear picture in 2009;

There is no theoretical or practical reason for not having the Federal Funds target rate and market rates at, say, minus five percent, if that is what your Taylor rule, or whatever heuristic guides your official policy rate, suggests.

The Taylor rule, by the way, is a formula for rate-setting based on the outlook for inflation and growth. It too has become somewhat of a talking point ever since John Taylor, the former Treasury official who devised it, stated “we may not have as much time before the Fed has to remove excess reserves and raise the rate.” Source

Even as the greater depression is getting started these “economist” understand the Federal Reserve must remove all the funds that were stolen from the American people and placed on the ledger sheets at the Federal Reserve that provided their member banks a way to avoid collapse.

Buiter explains in painful detail how to steal even more of peoples wealth and force digital enslavement upon the people. We are just one year removed from the commencement of the greater depression

Currency is the only problem. Paying positive interest on currency is difficult because you don’t know the identity of the owner. The same note could be presented repeatedly to earn the interest due for a single period. To get around this problem, the instrument itself must be clearly identified as current or non-current on interest. Once interest has been paid, it is marked, traditionally by stamping it or by clipping a coupon off it.

With negative interest, the problem is not the owner turning up too often to claim his interest. It is getting him to turn up at all. Since the authorities don’t know I am the owner of the currency I own, why should I volunteer to pay the government money for the privilege?

Accordingly there are three direct ways to go about achieving a negative interest rate, says Buiter:

1) Abolish currency.

2) Tax currency and ‘stamp’ it to show it is ‘current on interest due’.

3) Unbundle currency from the unit of account. Source

While Buiter explains why the banks must take cash away from people and provides them with sound reasoning to do so, a ghost is born and delivers a mechanism that will not only remove cash from the world, but it will allow for every aspect of our lives to be digitized. Our medical records, our homes, food, literally everything that is real, tangible and necessary for life, liberty and the pursuit of happiness can be digitized, cataloged and tracked right down the very lowest common denominator.

Satoshi Nakamoto released the formula for bitcoin and blockchain on Halloween 2008, a little over twelve years after the NSA and MIT had developed the basis for cryptocurrency and blockchain technology. This technology is now running wild throughout the financial markets and is beginning to knock on the door of the physical economy. In less than a decade this new technology, cryptocurrency and blockchain, introduced to the world by a ghost, is now the basis for people to believe they have found a way to remove themselves from the banking cabal, government control and possess the keys to the monetary kingdom. A way to never pay taxes, never have to answer to government or any banking system. We fear this is not the case. Remember, Willem Buiter, economist from one of the banking cabal was developing the reasons for digital currency at the same time cryptocurrency and blockchain are coming online. I gave up on coincidence decades ago.

The economic law that honest exchange demands only things of real value as currency cannot be repealed. The chaos that one day will ensue from our 35-year experiment with worldwide fiat money will require a return to money of real value. We will know that day is approaching when oil-producing countries demand gold, or its equivalent, for their oil rather than dollars or Euros. The sooner the better. Source

What we are witnessing today is something very difficult to explain. On the one hand we have, at the national level, several countries discussing gold trade and utilizing gold as trade settlement and on the other hand we have people rising up demanding their cash be evaporated and turned into digits on a screen. What is not difficult to understand is the Federal Reserve Note, US dollar, world reserve currency is now the most hated currency on the planet and most countries are working 24/7 to eliminate the need for this menace to their balance sheet.

We see great economic alliances coming to life around the world that do not include the U.S., U.K and most of the European nations. These countries have been invited to join the appropriate alliances but they have decided it is not in their best interest to follow nations like China, Russia and India. Never mind these three nations in particular represent some of the largest economies that have solid economic growth and these three nations are part of the BRICS alliance that is calling for gold as trade settlement.

Digital enslavement of the people is the goal of the Western banking cabal as it is the only way to impose negative interest (theft) on the people. Without digital currency negative interest (theft) is not possible and the Western banks will simply perish under the weight of their own debt. Willem Buiter laid out the plan to make this happen. Currently, they are being assisted by the citizens that are acquiring and cheering these digital illusions called cryptocurrencies. This is now well documented to be a government operation that was introduced to the world by a ghost. It seems that a digital cashless society is now in the cards as Christine Lagarde, Managing Director of the IMF has stated that she sees central banks using a functioning digital currency by 2021, but I’m not suppose to be concerned with any issues regarding digital currencies as we are continually reminded by the cryptocurrency cheerleaders. Cryptocurrencies are awesome, outside the banking cabal and 100% private free from government. I’m do not, for a second, believe this nonsense. If it is on a computer, it can be found, hacked, tracked and confiscated with ease.

As more countries grow weary of the Federal Reserve Note and move away from it’s use the Western economies that have been dependent upon this debt instrument are going to find themselves with no one accepting “faith and credit”. The new economic alliances will begin to demand gold, or some other form of tangible asset, to support trade and this is when it will get interesting. We feel confident a cashless society will have been fully realized by this time as we do not see this happening until the mid-late 2020’s. The good news is we still have time to remove ourselves from the debt based system as best we can – being 100% debt free would be ideal, but unfortunately most people will never achieve this in their lifetime much less within the next few years. These people will be swept up in the digital slave system that is being created as this is being read. Gold will go a long way in keeping a person out of the system – even if gold is outlawed. If gold is outlawed in the Western world, gold would find a new home in the East, along with a new crop of immigrants going where real money and wealth would be welcomed.

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The Daily Coin

Rory Hall, The Daily Coin. Beginning in 1987 Rory has written over 1,000 articles and produced more than 300 videos on topics ranging from the precious metals market, economic and monetary policies, preparedness as well as geopolitical events. His articles have been published by Zerohedge, SHTFPlan, Sprott Money, GoldSilver, Silver Doctors, SGTReport, and a great many more. Rory was a producer and daily contributor at SGTReport between 2012 and 2014. He has interviewed experts such as Dr. Paul Craig Roberts, Dr. Marc Faber, Eric Sprott, Gerald Celente and Peter Schiff, to name but a few. Don't forget to visit The Daily Coin and Shadow of Truth YouTube channels to enjoy original videos and some of the best economic, precious metals, geopolitical and preparedness news from around the world.