Crypto Crosscut? Federal Reserve Points Itself Towards Digital 'Money'

P. Gardner Goldsmith | May 25, 2021
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Many of us recall the clause in Article One of the US Constitution stating that the US government could “…coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures…” But we cannot count as part of our number the many politicians in DC or on the state or local levels.

Neither can we count in our number many people working for, or associated with, the US Federal Reserve, a corporate banking cartel started by the US government with the Federal Reserve Act in 1913 and granted the power to issue the currency we are forced to use. The term for the cash they create is “fiat currency” – imposed by government fiat, because, if people were free to choose, they would stay away from Federal Reserve Notes as much as Bernie Sanders stays away from sound economics.

But that soon might change.

No, Bernie and the politicians in DC aren’t going to follow Ron Paul’s advice, and allow us to be free to choose the currency we want to use. They're NOT going to do something that not only would conform with the Constitution (it says “coin Money”).

No, they're not going to admit that the Fed doesn’t back it’s output of digits with a valuable commodity, and when it and the US government claimed that it did, that was a lie, revealed by Nixon going off the fake “gold standard” because the Fed was creating many more notes than it had gold to back up those notes.

None of that... No, the Fed’s won't change its policies that lead to inflation of the money supply, the resultant “boom-bust” cycle of fake “economic growth,” of higher and higher prices, of contraction as consumers see that prices far outstrip real normative value, and of the liquidation bust that must result.

What might change is the WAY the Fed inflates the supply of currency – via a digital form of “money” that many central planners hope will replace the paper Federal Reserve Note erroneously called “Dollar.”

As Jeff Cox writes for CNBC:

The Federal Reserve is moving forward in its efforts to develop its own digital currency, announcing Thursday it will release a research paper this summer that explores the move further.

Cox also notes:

Though the central bank did not set any specific plans on the currency, Chairman Jerome Powell cited the progress of payments technology and said the Fed has been ‘carefully monitoring and adapting’ to those innovations.

Which, for anyone who is aware of decentralized blockchain cryptocurrency, is incredibly laughable.

And Cox observes:

The moves of multiple countries, most prominently China, in the central bank digital currency (CBDC) space has intensified talk about how aggressively the Fed should move. China’s progress has stirred worries that it could undermine the dollar’s position as the global reserve currency.

Which indicates the sheer ignorance of economics filling the minds of those people who are worried that the communist central planners mandating that people use an electronic currency controlled by the government will undermine the “dollar’s position as the global reserve currency.”

The thing that will undermine the Federal Reserve Note is the combination of US spending, Federal Reserve money-pumping to facilitate the out-of-control US spending, and US attacks on private business via taxes and regulations.


Related: Federal Reserve Ready To Buy Corporate Bonds, Thanks To New 'Super-Power' From CARES Act

The attempt by the Fed to shift to a “digital currency” has nothing to do with “competing” against a communist central bank issuing its own bogus currency.

It’s about control.

As it was in 2013, when the government-controlled central bank of Cyprus invaded private bank accounts and seized BILLIONS in cash – an attack that in 2018 an EU court ruled was totally fine and dandy – the US government already has instituted a horde of unconstitutional banking “rules” that allow government agents to freeze accounts.

But the fed wants to go further, as do many US politicians. 

The actual alternative to the Federal Reserve’s inflation-based model is private currency in a competitive system, be that based on physical commodities, metals like gold and silver, or decentralized crypto.

Anything connected with the government will be inflated, monitored, and lend itself to controlling people.