(The Epoch Times)—An anti-central bank digital currency (CBDC) sentiment filled the halls of Congress this week as House Republican lawmakers filed new legislation and held a hearing grappling with the issue of digitizing the U.S. dollar.
House Majority Whip Tom Emmer (R-Minn.) reintroduced the Central Bank Digital Currency Anti-Surveillance State Act on Sept. 12, a bill that restricts the Federal Reserve (Fed) and member banks from issuing a digital dollar and using it to construct monetary policy.
Rep. Emmer and the 49 cosponsors fear that the federal government and “unelected bureaucrats” could exploit a CBDC to monitor Americans’ transactions and stifle political activity, effectively eliminating privacy, individual sovereignty, and free-enterprise competition.
“If not designed to be open, permissionless, and private—emulating cash—a government-issued CBDC is nothing more than a CCP-style surveillance tool that would be used to undermine the American way of life,” Mr. Emmer said in a statement, referring to China’s ruling Chinese Communist Party.
He originally introduced the bill in February, warning that the Biden administration would “create a digital authoritarian-style, surveillance-style digital dollar through an executive order.”
The upper chamber has also seen anti-CBDC legislation introduced by Sen. Mike Lee (R-Utah) and Sen. Ted Cruz (R-Texas). However, because Democrats control the Senate and the White House, political observers believe it is unlikely that these bills will pass. At the same time, proponents contend that these legislative pursuits will create more awareness about the drawbacks surrounding a CBDC.
‘Government-Sanctioned Surveillance’
The CBDC issue has also made its way to the 2024 election trail, as several candidates have expressed concern over the creation of a digital dollar.
Vivek Ramaswamy, an entrepreneur and GOP White House hopeful, described himself as a “big opponent” of CBDCs and purported that they are “a grave threat to liberty in this country.”
Florida Gov. Ron DeSantis told the Family Leadership Summit in Iowa in July that he would prohibit CBDCs if he were elected in 2024.
“Done, dead, not happening in this country,” Mr. DeSantis said. “If I am the president, on day one, we will nix central bank digital currency.”
Mr. DeSantis, who is trailing behind former President Donald Trump by wide margins in the Republican primary polls, has previously called CBDCs “government-sanctioned surveillance.” In March, he signed a bill that would ban the use of a national CBDC as money within Florida.
“The Biden administration’s efforts to inject a Centralized Bank Digital Currency is about surveillance and control,” he said in a statement. “Today’s announcement will protect Florida consumers and businesses from the reckless adoption of a ‘centralized digital dollar’ which will stifle innovation and promote government-sanctioned surveillance. Florida will not side with economic central planners; we will not adopt policies that threaten personal economic freedom and security.”
In a June interview with the New York Post, Democratic presidential candidate Robert F. Kennedy Jr. argued that CBDCs are “instruments of control and oppression, and are certain to be abused.”
Speaking at a fintech conference hosted by the Philadelphia Fed Bank on Sept. 8, Fed Vice Chair for Supervision Michael Barr noted that the central bank “has made no decision on issuing a CBDC.”
“Investigation and research are very different from decision-making about next steps in terms of payments system development, and we are a long way from that,” Mr. Barr said in a speech. “The Federal Reserve has made no decision on issuing a CBDC and would only proceed with the issuance of a CBDC with clear support from the executive branch and authorizing legislation from Congress.”
Digital Dollar Dilemma
Five witnesses appeared before the House Financial Services Subcommittee on Digital Assets, Financial Technology and Inclusion on Sept. 14. The hearing consisted of a chorus of anti-CBDC voices, with Chairman French Hill (R-Ark.) asserting that CBDCs do not have much support “except from those on the fringes who think somehow a CBDC might be an amazing solution to many unstated global problems.”
A CBDC could extend the government with more tools to infringe on individual liberty, said Christina Parajon Skinner, an assistant professor at the Wharton School of the University of Pennsylvania.
“Introducing CBDC is likely to have certain costs to individual economic liberty by providing the state with more tools—and hence greater temptation—to establish command-and-control style public policy,” Ms. Skinner told lawmakers, adding that it could diminish private innovation, impact financial market structures, and fail to advance specific goals, like preserving the global dollar hegemony.
“Technology and economic geopolitics can change rapidly, to be sure, but at least right now, the costs of introducing CBDC appear to outweigh the benefits,” she said.
Norbert Michel, the vice president and director at the Cato Institute’s Center for Monetary and Financial Alternatives, cited a litany of risks, including threats to core freedoms.
If a CBDC were installed during the coronavirus pandemic, the government could have programmed a CBDC only to allow transactions with businesses deemed essential or alert authorities if citizens violated COVID lockdowns, Mr. Michel noted.
“The possibilities for the programmability of a CBDC are nearly endless,” he stated. “And in all of them, even the best of intentions are just a few steps away from leading to serious abuses of power.”
Coffee the Christian way: Promised Grounds
This concern might emanate from a recent discussion at the World Economic Forum during a so-called Summer Davos event in China. Cornell University professor Eswar Prasad discussed the possibility of using CBDCs to socially engineer society.
“You could have … a potentially better—or some people might say a darker world—where the government decides that units of central bank money can be used to purchase some things, but not other things that it deems less desirable like, say, ammunition, or drugs, or pornography, or something of the sort,” Mr. Prasad told the audience in June. “And that is very powerful in terms of the use of a CBDC, and I think also extremely dangerous to central banks.”
According to the Atlantic Council, 11 countries have launched a digital currency, including the Bahamas, Jamaica, Nigeria, and Anguilla. Twenty-one nations have launched pilot projects, and 33 are still in the development phase. Dozens of others are researching the subject.
Results from the Cato Institute 2023 CBDC National Survey found that only 16 percent of Americans support the federal government issuing a central bank digital currency, as many are skeptical. Despite the lack of support, even inside countries that have adopted and employed some incarnation of a digital currency, a 2022 Bank of International Settlements (BIS) study found that 60 percent of central banks have bolstered their CBDC work.
What do you think? Sound off on our Economic Collapse Substack.
Five Things New “Preppers” Forget When Getting Ready for Bad Times Ahead
The preparedness community is growing faster than it has in decades. Even during peak times such as Y2K, the economic downturn of 2008, and Covid, the vast majority of Americans made sure they had plenty of toilet paper but didn’t really stockpile anything else.
Things have changed. There’s a growing anxiety in this presidential election year that has prompted more Americans to get prepared for crazy events in the future. Some of it is being driven by fearmongers, but there are valid concerns with the economy, food supply, pharmaceuticals, the energy grid, and mass rioting that have pushed average Americans into “prepper” mode.
There are degrees of preparedness. One does not have to be a full-blown “doomsday prepper” living off-grid in a secure Montana bunker in order to be ahead of the curve. In many ways, preparedness isn’t about being able to perfectly handle every conceivable situation. It’s about being less dependent on government for as long as possible. Those who have proper “preps” will not be waiting for FEMA to distribute emergency supplies to the desperate masses.
Below are five things people new to preparedness (and sometimes even those with experience) often forget as they get ready. All five are common sense notions that do not rely on doomsday in order to be useful. It may be nice to own a tank during the apocalypse but there’s not much you can do with it until things get really crazy. The recommendations below can have places in the lives of average Americans whether doomsday comes or not.
Note: The information provided by this publication or any related communications is for informational purposes only and should not be considered as financial advice. We do not provide personalized investment, financial, or legal advice.
Secured Wealth
Whether in the bank or held in a retirement account, most Americans feel that their life’s savings is relatively secure. At least they did until the last couple of years when de-banking, geopolitical turmoil, and the threat of Central Bank Digital Currencies reared their ugly heads.
It behooves Americans to diversify their holdings. If there’s a triggering event or series of events that cripple the financial systems or devalue the U.S. Dollar, wealth can evaporate quickly. To hedge against potential turmoil, many Americans are looking in two directions: Crypto and physical precious metals.
There are huge advantages to cryptocurrencies, but there are also inherent risks because “virtual” money can become challenging to spend. Add in the push by central banks and governments to regulate or even replace cryptocurrencies with their own versions they control and the risks amplify. There’s nothing wrong with cryptocurrencies today but things can change rapidly.
As for physical precious metals, many Americans pay cash to keep plenty on hand in their safe. Rolling over or transferring retirement accounts into self-directed IRAs is also a popular option, but there are caveats. It can often take weeks or even months to get the gold and silver shipped if the owner chooses to close their account. This is why Genesis Gold Group stands out. Their relationship with the depositories allows for rapid closure and shipping, often in less than 10 days from the time the account holder makes their move. This can come in handy if things appear to be heading south.
Lots of Potable Water
One of the biggest shocks that hit new preppers is understanding how much potable water they need in order to survive. Experts claim one gallon of water per person per day is necessary. Even the most conservative estimates put it at over half-a-gallon. That means that for a family of four, they’ll need around 120 gallons of water to survive for a month if the taps turn off and the stores empty out.
Being near a fresh water source, whether it’s a river, lake, or well, is a best practice among experienced preppers. It’s necessary to have a water filter as well, even if the taps are still working. Many refuse to drink tap water even when there is no emergency. Berkey was our previous favorite but they’re under attack from regulators so the Alexapure systems are solid replacements.
For those in the city or away from fresh water sources, storage is the best option. This can be challenging because proper water storage containers take up a lot of room and are difficult to move if the need arises. For “bug in” situations, having a larger container that stores hundreds or even thousands of gallons is better than stacking 1-5 gallon containers. Unfortunately, they won’t be easily transportable and they can cost a lot to install.
Water is critical. If chaos erupts and water infrastructure is compromised, having a large backup supply can be lifesaving.
Pharmaceuticals and Medical Supplies
There are multiple threats specific to the medical supply chain. With Chinese and Indian imports accounting for over 90% of pharmaceutical ingredients in the United States, deteriorating relations could make it impossible to get the medicines and antibiotics many of us need.
Stocking up many prescription medications can be hard. Doctors generally do not like to prescribe large batches of drugs even if they are shelf-stable for extended periods of time. It is a best practice to ask your doctor if they can prescribe a larger amount. Today, some are sympathetic to concerns about pharmacies running out or becoming inaccessible. Tell them your concerns. It’s worth a shot. The worst they can do is say no.
If your doctor is unwilling to help you stock up on medicines, then Jase Medical is a good alternative. Through telehealth, they can prescribe daily meds or antibiotics that are shipped to your door. As proponents of medical freedom, they empathize with those who want to have enough medical supplies on hand in case things go wrong.
Energy Sources
The vast majority of Americans are locked into the grid. This has proven to be a massive liability when the grid goes down. Unfortunately, there are no inexpensive remedies.
Those living off-grid had to either spend a lot of money or effort (or both) to get their alternative energy sources like solar set up. For those who do not want to go so far, it’s still a best practice to have backup power sources. Diesel generators and portable solar panels are the two most popular, and while they’re not inexpensive they are not out of reach of most Americans who are concerned about being without power for extended periods of time.
Natural gas is another necessity for many, but that’s far more challenging to replace. Having alternatives for heating and cooking that can be powered if gas and electric grids go down is important. Have a backup for items that require power such as manual can openers. If you’re stuck eating canned foods for a while and all you have is an electric opener, you’ll have problems.
Don’t Forget the Protein
When most think about “prepping,” they think about their food supply. More Americans are turning to gardening and homesteading as ways to produce their own food. Others are working with local farmers and ranchers to purchase directly from the sources. This is a good idea whether doomsday comes or not, but it’s particularly important if the food supply chain is broken.
Most grocery stores have about one to two weeks worth of food, as do most American households. Grocers rely heavily on truckers to receive their ongoing shipments. In a crisis, the current process can fail. It behooves Americans for multiple reasons to localize their food purchases as much as possible.
Long-term storage is another popular option. Canned foods, MREs, and freeze dried meals are selling out quickly even as prices rise. But one component that is conspicuously absent in shelf-stable food is high-quality protein. Most survival food companies offer low quality “protein buckets” or cans of meat, but they are often barely edible.
Prepper All-Naturals offers premium cuts of steak that have been cooked sous vide and freeze dried to give them a 25-year shelf life. They offer Ribeye, NY Strip, and Tenderloin among others.
Having buckets of beans and rice is a good start, but keeping a solid supply of high-quality protein isn’t just healthier. It can help a family maintain normalcy through crises.
Prepare Without Fear
With all the challenges we face as Americans today, it can be emotionally draining. Citizens are scared and there’s nothing irrational about their concerns. Being prepared and making lifestyle changes to secure necessities can go a long way toward overcoming the fears that plague us. We should hope and pray for the best but prepare for the worst. And if the worst does come, then knowing we did what we could to be ready for it will help us face those challenges with confidence.
