Enter your keyword

post

Coinsequences of the Digital Dollar Part II

First, let me emphasize that this topic is just an informed opinion of what may be coming down in the short term future that you should be aware of.  The three steps to creating effective change in your life are:

  1. Awareness- you have to be aware of something that may be affecting you before your can do any action in favor or in opposition of it.
  2. Question- you have to ask the questions, “How is this affecting me?” and “Do I need to do something to change the situation?”  If you don’t ask these questions, you may be acting in the blind and in the wrong direction of where you need to be going.
  3. Action-  Only after working the first two steps are you ready to take the proper action.  We are trying to help you with Step #1.

My main question is what are the consequences of the initiation of the digital dollar into our current financial system? Why are the advantages and the disadvantages to the average American citizen? Well, let’s look at more insight from Bill Gates championing the Digital Dollar.  A derivative of that is Gates’ advocating a mandatory digital ID as proof of COVID-19 vaccination as soon as a vaccine is available. The proof will be required, if Gates has his way, before anyone is allowed in large public gatherings in this new normal. Gates has also funded research to create digital personal ID vaccination tattoos to make proof of vaccination visually and electronically apparent. So not only is he promoting a Federal Reserve Digital Dollar that will allow the government financial access to every American citizen, but also a Digital ID that every American will have to possess as they parade around to social gatherings.  Isn’t that what was being portrayed in George Orwell’s book, 1984 and Aldous Huxley’s book, Brave New World? Concern…

If Bill Gates’ vision is realized, what will be the consequences?  It is very difficult to predict exactly what that would look like, but here are a few things that will be apparent upfront.

  1. The value of the cash dollar will decline if not become non-existent.  Mastercard, Visa, and Bill Gates are all pushing for polices to make it harder to use cash, hoping to keep closer tabs on the population through the trail of electronic transactions. What does that mean to the family that has their cash stashed in a mattress for a rainy day.  The digital dollar will create the next major financial shift if the government adopts it.  The cash dollar has been steadily losing its value since its disassociation from gold in 1971.  Baby Boomers love to talk about remembering when gasoline used to be $0.30 per gallon.  Suddenly inflation took off to where gas was being priced as high as $4.84 per gallon in parts of California. That is a perfect example of how much the value of the dollar has fallen.  Even though today, gasoline is averaging $1.96 per gallon due to the pandemic, it still reflects the devaluation of the dollar. So if the digital dollar is implemented, it will be only a matter of months before we enter a cashless society.  If you go to stores like Walmart or some of the major grocery chains, they are already installed automatic cashiers where they accept “credit or debit cards only; no cash accepted.”
  2. People with retirement plans such as 401ks, annuities, or IRAs may have their retirement plans jeopardized because of the Digital Dollar transition based on their holdings at the point.  Experts are saying that if/when the digital dollar comes into effect, it would be hazardous if you are holding more than $4000 in cash or money market accounts.  Now this could be a ploy to invest in the stock market or in cryptocurrency which we will have to discuss in the next segment.  In other words, have an idea as to what your 401k and other retirement venues are invested in and see how they will fair in a Digital Dollar transition.
  3. With the Federal Reserve Digital Dollar, the government would have degrees of access to your personal financial portfolio to include your financial blueprint and spending habits.  Although the promotion is that the government would be able to easily get money to your account in terms of the previous stimulus situation, they would also have the ability to instantly pull money from your  account in terms of taxes owed without you having the opportunity to institute a payment plan that you can afford.  They could also prevent you from using the Digital Dollar in areas they may determine hazardous to your health.  Think of it in terms of addictions: alcohol purchases, gambling situations, drug purchases, adult sites, etc.  They could determine that enough is enough and put restrictions on your ability to make such purchases.

This is not to say that the government will or should do these things.  That may well depend on the administration that’s in office.  But, we must be aware that they could.  So if this does happen, what are the options that we have to counter this fiscal invasion of privacy?  This discussion will take place in Part III or Coinsequences of the Digital Dollar…