So, finally we get to start talking about the future of money. You know, I’ve been looking into this for a while and you can see some of the past videos that I’ve made on it, lots of connections going on there.
This one is going to feel a little bit like it’s all over the place, but it’s really not. And once you get done watching all these clips that I put out, which I think are very important for everybody to understand… I mean, if you’re not learning anything form this information, please, please, you know, leave it in a comment below, because I can’t even imagine everybody knows everything I’m presenting here.
So, watch until the end and just give it a listen, and if you learn something, subscribe. I’m gonna continue down this path. We are going to dive deeply into finding out what is the future of our currency? Or what are the several different entities vying for that future currency.
So, will it be the Federal Reserve that controls everything? Are we getting rid of the fed? Are we going back to a gold standard? Are we going to a gold standard that has a cryptocurrency base? There’s so many great questions out there and we’re going to start answering them.
We’re gonna get into, first of all, there’s so many new laws coming out and being proposed right now that are cryptocurrency based, and that kind of gives us some insight into what the thinking is here. I’ve always believed blockchain was created for this very reason and they’ve just been slowly getting us ready for it. Then we’re gonna talk a little bit about Judy Shelton and why she is so important, and why we need to keep an eye on what’s going on there.
Check this all out, give me some feedback, and we’ll keep on this track. Alright, love you all.
And the big story of the day is that Congress has now introduced 32 crypto and blockchain bills. And I want you to think about, if you’ve been around for a while like I have, 2017 or so, can you imagine a time when the US Congress, the President, senators, are all talking about blockchain technology and bringing it to the forefront? Would you have even imagined that? Well, here we are. So let’s dive right in.
This is the bill, 116th Congress 2D Session. So, it comes down to this: digital dollars. What is that? The term ‘digital dollars’ means dollar balances consisting of digital leger entries recorded as liabilities in the accounts of any Federal Reserve Bank; Federal Reserve Bank. And digital coins are currency instruments issued by the United States Treasury as legal tender. So, essentially, the Federal Reserve Bank has the ledger, the Treasury actually submits or sends it out. Great.
Digital dollar account wallets: what’s that? The term ‘digital dollar account wallet’ means a digital dollar account maintained by a Federal Reserve Bank on behalf of any person for the purpose of holding digital dollar balances.
So, here’s my question, everybody: if we have the Treasury and the Federal Reserve, and they’re gonna give us some type of account wallet, what do we need commercial banks for? What do I need Chase, Wells Fargo…
How this would work…
And I want to be clear, these are not electronic dollars like we see today. A lot of people are confused, they say, “Oh, a digital currency is no big deal because that’s basically what we have right now with an ATM card and my bank.”
Wrong! Let’s dive into the details.
It starts with the Federal Reserve and they create Fed Coins. So, the Fed Coins, how do those get to the people? Well, of course, through MMT. ‘All you have to do is download the app on your phone and we will deposit the Fed Coins onto your phone automatically.’ So oblivious Oliver and your friend and family member, Fred, of course love the idea. They download the Fed app on their phone immediately. They get some MMT or helicopter money, UBI, whatever you want to call it.
So, in this example, there are six Fed Coins that are created. Oblivious Oliver gets Fed Coin 1, 2, and 3. Your friend and family member, Fred, gets Fed Coin X, Y, and Z. Oblivious Oliver goes over to your friend and family member Fred’s house and sees that he has the most amazing book in the world — that is right. And on the cover of this book, none other than Paul Krugman, your friend and family member Fred’s favorite economist.
So, Oblivious Oliver says, “Fred, listen, I have to have that Paul Krugman book. It is amazing. I will give you one of my Fed Coins.”
Fred says, “Okay, fine, I’ve read the book 46 times, I believe in it wholeheartedly, I already have Krugman’s poster up on my bedroom wall, you can have the book.”
So, they trade. The book goes over to Oblivious Oliver and Oliver gives Fed Coin #1 to friend and family member, Fred.
Well, what happens on the ledger of the Federal Reserve, or the government? Well, this transaction is noted. So first, they know that Oblivious Oliver got Fed Coin 1, 2, and 3, and they know Fred got Fed Coin X, Y, and Z. So the third transaction is for the book. So the transaction is between Oblivious Oliver and Fred. Fed Coin 1 is transferred over to Fred for the book. Everything is on the ledger because each Fed Coin has its own serial number. It can be tracked. It is code just like Bitcoin.
Exclusive: Senate Banking Committee to take action on embattled Fed nominee Judy Shelton next week.
And if you’re familiar with Judy Shelton, you know this is a massive ordeal that’s about to take place because of her most popular line, is: ‘I would like a gold-back digital currency in a crypto kind of way.’
Judy Shelton: “Well, the Chairman of the Fed has become an extremely important position. Probably too important. We have kind of a wag the dog situation where our central bank plays too strong a role in economic decision-making, as far as I’m concerned. I wish this decision wasn’t so important.”
Interviewer: “Okay. So you mentioned the gold standard. I think you’re quite well-known for your stance on the gold standard. Would returning to gold standard help the US economy? Can you talk a little about your thoughts on that?”
Judy Shelton: “Well, I would say, I don’t see it so much as returning but more about back to the future.”
Judy Shelton: “I think that what a gold standard stands for is monetary discipline for its own sake. That is, if money is supposed to be a unit of account and a reliable measure and a dependable store of value, it really shouldn’t be subject to who’s the Chairman of the Federal Reserve. And I think that money needs to be stable and provide the foundation for productive economic growth, and when money is just a variable that financial markets toss around or it’s part of a derivatives formula, or it’s part of someone speculating on currencies, it’s not serving the private sector in the sense of providing that reliable unit of account so you can make plans. And under gold standard, you did have that stability, and I think that’s what’s missing. And so, I like the idea of a gold standard. I mean, it could be used in a very cryptocurrency way.
The point is, do you have a unified money system so that when you talk about the international marketplace, everyone is playing on a level monetary playing field. And it’s very important to have a rules-based approach, and that’s why I’m advocating that we need to look at the virtues of a gold standard and try to come up with something much closer to matching those, and then I think we would have more solid economic growth.”
I do think we’re already seeing language coming out of the Treasury that highlights the importance of a stable international monetary system. And I think that’s new language and I think that’s reflecting the priorities of this administration.
Our Treasury secretary talks about a dependable dollar and I like that the President is even willing to say that a strong dollar sounds good, but otherwise they are problems. That’s actually rather cosmopolitan, normally presidents are afraid of talking about it. But the fact is, you don’t really want a weak dollar or a strong dollar, you want a dependable dollar. And I think he understands it at that level, and I’m hoping to see policy initiatives in conformance with that.
It’s a difficult argument to make in a world that has become used to having currencies not having any rules, but I think we have to acknowledge that that’s kind of an illogical basis for having a truly competitive international economy. It’s just not fair to people if the efforts that they put forward to have a quality product can be undermined through no fault of their own but simply because the exchange rate went against them.”
Interviewer: “Okay. Yeah, and this could have definitely a global impact?”
Judy Shelton: “Well, the only country who can really bring this issue to the attention of the global community is the United States. Because we have the dominant reserve currency. It was our dollar convertible into gold that upheld the entire international monetary system following World War II up through the early 70’s. So, I think the United States will remain the global leader, and if we show that we want to go that route, then the other countries will follow suite.”
Investing News with Judy Shelton 2017 – https://youtu.be/1OlXpFOK40Y
George Gammon on Government Digital Currency – https://youtu.be/lkgV7LJv5Os
Digital Asset News on Digital Bills in Congress – https://youtu.be/bfCEv8KjWHA