(LifeSiteNews) — With the announcement that Texas is looking into launching a gold-backed cryptocurrency comes the promise of freedom from the Federal Reserve – and a future where Big Government controls your money.
What are CBDCs – and why should I care?
Described as a “war on cash” in the above ZeroHedge article from last Friday, central bank digital currencies (CBDCs) are being touted as the future of money.
These instruments are essentially government Bitcoin – a digital currency which currently operates beyond any visible state control. CBDCs however will be issued by central banks – like the Federal Reserve – giving governments the power to freeze or even seize your money, whilst tracking every single purchase you make anywhere in the world.
As the ZeroHedge report shows, the worldwide momentum to implement digital government money – and abolish the anonymity and freedom which comes with cash – is increasing.
Nigeria is already trying to get people to accept its CBDC (with a great deal of resistance), and China, India, and the US have all launched pilot programs to test CBDCs.
A step towards communism
Dr. Thorstein Polleit of the University of Bayreuth wrote in 2019 for the Mises Institute about how such a measure would dramatically – and permanently – increase state power and surveillance over every individual.
In discussing the plans by the European Central Bank for a “digital Euro,” he argues this measure reflects a significant step in the process of establishing a communist society. Quoting the ten steps of the Communist Manifesto of Marx and Engels, he remarks:
The fifth measure reads as follows: ‘Centralization of credit in the hands of the state by a national bank with state capital and exclusive monopoly.’
The issuance of a digital euro and the resulting consequences are undoubtedly another crucial step in bringing the Marxists’ vision of their desired revolution to fruition.
Polleit notes that the abolition of cash does not merely mean the permanent removal of financial privacy – it means that no one can store money in case of a bank run, or for use in emergencies when there are widespread power failures.
This leads to complete dependency on the authorities for access to money, which will no longer be your own. Further, it adds a dimension of power to those in control of the money supply and its value that is currently impossible. Central banks can degrade the value of your savings in real time to help defray the costs of their ruinous borrowing.
As soon as cash has been pushed back or stripped away entirely, monetary policymakers can implement an uninhibited negative interest rate policy to devalue debt. Customers can no longer get out of the ‘bank balance sheet’; the final escape door is then locked.
CBDCs are on the way
The attraction of CBDCs is obvious to those with an agenda of total control. The value of your money can be altered at will, and of course the potential exists for your money to be linked to your social media activity. In this near future, your ability to buy anything – and therefore go anywhere – could be instantly revoked.
The U.S., the EU, China and India are all taking steps to implement CBDCs, with Russia set to launch its own in 2024.
Ukraine already has a form of digital social credit linked to payments. Called Diia – it was developed with U.S. government backing and is described by funding body USAID (U.S. Agency for International Development) as “an award-winning Ukrainian e-government app and digital platform.”
Heavily promoted by regime change specialist Samantha Power, it is a tool which is intended to be exported to other nations. Power travelled to the World Economic Forum in January 2023 to showcase the technology.
As part of USAID’s commitment to collaborating with Ukraine to bring its digital successes to other partner countries who seek to accelerate their own digital transformation, Administrator Power announced that USAID, working with Congress, plans to provide at least $650,000 to help jumpstart the adoption of Diia-like systems and the digital technology services that underpin them.
A digital escape route
This is the reason Texas has launched an escape route from federal control. Whilst still in the hearing stage, the proposed alternative promises a means of choosing another home for your money – and retaining your freedom and independence.
The creation of a state-issued gold-backed digital currency would create currency competition with Federal Reserve notes and undermine the Fed’s monopoly on money. It would also provide an alternative if the Federal Reserve implements a central bank digital currency.
Whilst it is unclear as to whether only Texans will be eligible to buy into this currency – which will offer the option of cashing out investments into solid gold held in the Texas Bullion Depository, this action by state Sen. Bryan Hughes (R) and state Rep. Mark Dorazio (R) offers a promising blueprint to future proof your financial freedom.
As one senior London economist told this writer, CBDCs are coming, and we are going to need something to use instead of this grievous threat to liberty. It was cigarettes in World War One – but the Texas initiative seems a far superior form of collateral in World War Cash.