By Angry Old American
Copyright Angry Old American, May 10th, 2023. All Rights Reserved.
In the two previous segments, we explored the emerging Central Bank Digital Currency (CBDB), the origin of money, inflation, and a brief review of US financial history of investments that led to past recessions and depressions. We left off with a US Economy in serious trouble.
A systemic collapse of the banking sector is inevitable, and the FDIC only has funds to reimburse approximately 7 cents of every $10 in deposits. So far, they are bailing out everybody; but Treasury Secretary Janet Yellen clearly stated that not all banks would be covered. Just like the “Bank Runs” during the Wall Street Crash, the people at the front of the line get their money before it all runs out.
Since the collapse of Silicon Valley Bank in May, over $1 Trillion of deposits have gushed out of the banks. Large “Too Big To Fail” Institutional Banks like Morgan-Chase, Citibank, Wells Fargo, and Bank of America might survive, but smaller banks and credit unions might not. Ironically, the smaller home-town institutions are in better shape financially than mid-size and larger banks; but may be driven under during the panic of bank runs.
The United States faces a serious debt crises. Our National Debt is 129% of our annual Gross Domestic Product.
Now, Republicans in Congress have refused to raise the National Debt Ceiling any farther. Here lies the conundrum. If the Debt Ceiling is raised, the government will continue to borrow and spend like a drunken sailor, and the US Dollar loses all credibility of having any value. If the Debt Ceiling is not raised, and the National Debt payments go into default for the first time ever, then the US Dollar loses all credibility. Damned if we do, and damned if we don’t.
On May 8th 2023, Treasury Secretary Janet Yellen warned that Social Security checks might be disrupted if Congress did not increase the National Debt Ceiling. Social Security paid to Granny Smith and other elderly retirees has always been a sympathetic target of Debt Ceiling rhetoric, and this is not the first time that our Government faced this impasse. The US Government has shut down 21 times since the Congressional Budget and Impoundment and Control Act appeared in 1976. A shut-down results in Civil Servants being out of work without pay, along with half of military civilian workers and technicians. Critical government departments like the uniformed Armed Forces remain funded, but programs like Social Security are disrupted and payments deferred to a later date.
Inflation has led to “Stagflation,” both a stagnant economy and inflation. Are we facing Recession, Depression, or total Economic Collapse? Is the new CBDB a solution to our National Debt problems? Will a Digital Currency be the Magic Bunny pulled from the hat to offer salvation?
The CBDB will eliminate most cash transactions and give the government more control of your personal finances. Along with terrorism and drugs, expect bartering and an emerging Black Market to be banned. Our new army of 79,000 armed IRS agents may soon appear at bankruptcy auctions, estate sales, flea markets, garage sales, and farmer’s markets in order to extract the government’s fair share. The IRS may also follow the example of FBI entrapment “Sting” operations related to bartering of goods or real estate.
More insidious opportunities await our new cashless digital financial system through Environmental, Social and Governance (ESG) policies being enforced by banks. Will your Environmental “Carbon Footprint” limit your ability to spend your deposits on items you want or need? Goods will have a carbon price tag depending on the amount of energy needed to produce them, or the ongoing use of carbon to maintain them. Those who are filthy rich will simply buy carbon credits from dirt-poor riff-raff.
Will your credit score, credit limit and interest rate be altered by your “Social” race or gender profile? Will access to private education and housing be determined by ESG financial restrictions?
Could provisions be put in place to support “Reparations” to “enslaved and historically exploited minorities?” Reparations to Black Americans may soon become a reality in California. Just as the law protects the rights of men to identify as women, and women to identify as men; could Whites, Hispanics, Asians and Native Americans identify as Black and receive the same Reparations?
Through “Governance,” will your political and religious profile limit your access to credit? Morgan-Chase Bank and others already discriminate according to political and religious convictions targeted by the US Justice Department. These “Terrorists” include those who contribute to groups advocating gun rights, free speech, parental rights, voter ID, fossil fuel use, and Constitutionalist causes. Those who contribute to organizations opposed to abortion, gender modification of children, teaching of critical race theory are also considered potential terrorists. Will our CBDB administrator scan Social Media for hints of thought crimes? Will financial accounts be totally frozen because of contributions deemed “Terrorist” by the government? This happened to Canadians who sent contributions to the Trucker’s Freedom Rally, and could happen here.
As Artificial Intelligence (AI) displaces hundreds of thousands of workers, Universal Basic Income will probably roll-out Nationally. UBI already exists in several US Cities. Millions of unemployed may soon be dependent on government handouts, and those handouts will have strings attached. To discourage savings, which promotes personal independence, UBI recipients might be required to spend their entire balance each month or lose it.
Who or what will actually be in control of this new CBDB system? Will human beings make any contribution to the actual implementation of Digital Currency? Will the newly emerging AI control our lives and finances based on government “Programs” based on Social Credit “Profiles?” Could our financial existence be erased by a few strokes on a computer keypad or an automated algorithm?
Will we be tried and convicted in a Court of AI? If a mistake is made, will we be forced to negotiate, explain or plead with an AI voice simulated Customer Service Representative, Social Worker, Cyber-Security Officer or Judge? Will AI become the 2001 a Space Odyssey “HAL” computer that acts as gatekeeper for our very financial existence? “Open the door HAL!”
Internet transactions in conjunction with credit and debit cards will most likely be used for CBDBs in the United States. In China, smart-phone cameras scan QR codes during financial transactions. With computers open to hacking, and both cards and phones being vulnerable to data and identity theft; could new financial security features eventually be put in place?
“And that no man might buy or sell, save he that he had the mark, or the name of the beast, or the number of his name.”
Book of Revelation 13:17, KJV of the Bible
The potential limits of future fun-and-games with CBDBs is endless!
All of these questions need, must have, deserve to be answered. At times while I find comfort
in my impoverished status, knowing I don’t have far to fall should the SHTF there are now times I feel like a skydiver with the rip cord in my hand, looking up to find no parachute. There is no one to ask the questions to or get answers from. It happens in this community and even with BARD (AI). We are most certainly in uncharted waters. However, historically when we have been in this position before – the answer has been a world war. …..but this time it’s very different. The solution WILL be far worse than the solution to the problem. AS with AI – and the title of a book by the same name it will be “Mankinds Last Invention” – – -seriously required reading for the terminally igorant.