Governments want to kill cash… The next step in the evolution of money… Catch up on last night’s special broadcast… In the mailbag: “We’re 100 years too late to prevent the train wreck that is our culture”…
In particular, why bitcoin – the world’s first cryptocurrency – is now in the firing line…
We’ll return to that in a moment. First… an update on last night’s special broadcast with Bill Bonner, Doug Casey, and Mark Ford.
Over 20,000 subscribers signed up to hear these three legendary newsletter men talk candidly and openly about their personal paths to building wealth… what they’re doing with their money now… and the risks they see on the horizon.
Bill, Doug, and Mark also unveiled what could be their most ambitious venture to date… and how you can “partner” with them on it.
It’s something I (Chris) know you’re going to want to hear about. So if you missed last night’s broadcast, be sure you take some time to catch up in full here.
Cash – whether it’s banknotes or digital cash like bitcoin – offers you a degree of anonymity and freedom the feds aren’t comfortable with.
That’s why killing cash and cryptos is at the top of the feds’ wish list for 2019.
Legacy Research co-founders Bill Bonner and Doug Casey have been warning readers for years about a War on Cash being waged by the world’s governments.
It now appears we’re entering the final battle.
Private, decentralized cryptocurrencies are all about taking power away from governments and middlemen, giving it back to individuals.
But as we’ll explain in today’s essay, the blockchain technology that underpins cryptocurrencies gives the feds a powerful new weapon to use in their War on Cash.
That weapon is Fedcoin.
It’s a government-issued crypto-fiat currency that could replace physical cash AND private cryptocurrencies.
And as we’ve been warning, it would give the feds unprecedented control over your financial affairs.
Blockchains allow you to program money. With a crypto-fiat currency like Fedcoin, the government could program the tax code directly into it.
Imagine a world in which you’re paid in Fedcoin. Obeying its programming, each crypto-dollar would automatically deduct itself from your account when it’s due in taxes.
Paying taxes in a crypto-fiat world would be inescapable. Every Fedcoin you earn or receive as a gift would be preprogrammed to always be in compliance with the tax code.
Forget about deductions and other ways to reduce your tax bill… Or about paying your taxes early or filing for an extension.
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In a Fedcoin world, central bank “stimulus” programs will go from a nudge to a sledgehammer.
Under the current system, the Fed tries to stimulate the economy by lowering interest rates. This makes loans cheaper… which is supposed to encourage you to go out and spend. It also pulls down the interest income we get on our savings and makes spending more attractive that way.
But you can lower interest rates as much as you want. If people don’t want to borrow or spend, lowering interest rates does squat.
And so far, central banks’ attempts to impose negative interest rates on consumers have been a bust. Banks have been reluctant to punish their customers with a negative rate.
But with Fedcoin, each coin could come preprogrammed with an embedded interest rate.
If it goes negative, whatever that negative rate works out to would be automatically deducted at the end of each month.
Instead of trying to nudge people to spend more by making bank loans cheaper and reducing the rate on our savings accounts, the feds would bludgeon us into spending by trimming our savings with automatic negative interest deductions.
Would you be more inclined to spend if your savings are shrinking, instead of growing each month?
Most people would be. And central banks know it.
Contrary to what most people think, with the exception of “privacy coins” such as Monero, cryptocurrency transactions are extremely transparent.
All crypto transactions are recorded on a networked blockchain database. Think of it as a public Excel spreadsheet. It’s open to the world.
With bitcoin, you don’t have to divulge your identity to transact. You just need something called a public address, which you download from the web.
But in a Fedcoin world, there’s nowhere to hide. The feds will compel you to divulge your real identity to send and receive Fedcoin.
That way, everything you buy or sell… every dollar you earn… every political campaign you donate to… every charity you support… will be an open book for all to see.
Giving government and central bankers that level of control over the money system is a blow to financial privacy and personal freedom.
But as world-renowned crypto investor Teeka Tiwari told us, that’s the world we’re moving toward whether we like it or not. Teeka…
Unfortunately, governments have a tendency to think wealth doesn’t really belong to its citizens. They see it as belonging to themselves or the state instead.
With a crypto-fiat, each transaction made in the economy will leave a digital record that the government will be able to see. Which is why fiat money is headed to a blockchain. Governments like to look at where all the money is. A blockchain they control is a way for them to do that.
This has a lot of people asking, “Won’t this kill bitcoin and other cryptos?” But Teeka says the opposite is true…
Private cryptocurrencies, as opposed to the government version, afford users greater anonymity. And you have scarcity with private cryptocurrencies, which you won’t have with crypto-fiat hybrids. This protects you from having your wealth inflated away by governments and central banks.
Bitcoin, for instance, has a hard cap of 21 million coins. There will never be any more than that. You won’t have that guarantee with crypto-fiat currencies. There will still be a central bank that can fiddle with interest rates and balloon the money supply, causing inflation.
Governments and central banks may be thinking they’ll kill the market for private cryptos by creating crypto-fiats to supplant them.
But if Teeka is right, this could be a long-term tailwind for bitcoin (the reserve currency of the crypto world), as well as privacy coins such as Monero.
Your fellow readers are still captivated by the state of “freedom” in today’s America…
First of all, I would like to applaud Legacy Research Group for:
Having founders with the guts to keep their principles ahead of their business interests.
Having the guts to start Legacy Research Group and tell the world about what is wrong, knowing full well that you will be targeted for more attacks.
Unfortunately, we as a society are over 100 years too late to prevent the train wreck that is our current culture. Legacy Research Group, and many others like it, needed to be around and active in the early 1900s before the secret cabal of criminals in control of the banking system back then foisted the Federal Reserve Bank on us. Many of the descendants of those criminals are the criminals we have in charge now.
For starters, just look at the definition of fraud: In law, fraud is deliberate deception to secure unfair or unlawful gain, or to deprive a victim of a legal right. “Unfair” went out the window the moment business had to be conducted with written contracts and a man’s handshake wasn’t good enough. What is “fair” about the taxpayers being forced to bail out criminal banks, letting corporations buy politicians, and letting politicians buy votes with their give-away programs? “Unlawful” is a bad joke on us. The Federal Reserve Bank is blatantly unconstitutional. When criminals can write the laws and the U.S. Supreme Court looks the other way, “fraud” is what we get on a daily basis from our “leaders.”
– Bob S.
Meanwhile, harsh words after reader Michael M. sparked a debate around pot legalization in our mailbags…
To all who ridiculed Michael: You all deserve to lose every bit of freedom you have left. Why don’t you just move to China if you feel government should have a say over any part of our lives. Maybe that’s just the problem. They have had too much to say, and it has made us a nation of non-thinkers, or people who cannot think for themselves.
With all of the money and power the government wields, there is absolutely no reason why there is so much disease, poverty, hunger, and deprivation in the world other than they are callous monsters with no conscience whatsoever and want it that way. In fact, it seems that they thrive on fear, war and deprivation, and you all continue to encourage them with your moralistic, better-than-thou attitude.
– Charlotte E.
Should the government take an active role in regulating the pot industry? Or should we be allowed to put whatever we want into our bodies? Take a stand at feedback@legacyresearch.com.
Regards,
Chris Lowe
November 29, 2018
Dublin, Ireland
P.S. Before you go, one last reminder about last night’s special broadcast with Bill Bonner, Doug Casey, and Mark Ford. If you missed it, we’re making a replay available for a limited time. Don’t forget to look out for your invitation to become a “partner” in Bill, Doug, and Mark’s latest venture. Access the replay here.