The desperate attempt by the Fed Reserve to save the hegemonic, declining USA Empire

Below  is my response (edited) to an email I received.

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Thanks for the piece on FedNow (which does NOT use blockchain technology).  The Fed is trying to save the world reserve currency status of the Dollar (USD), something which is being threatened on multiple fronts.  My take on FedNow is as follows.

1. Sounds too good to be true (for central bank interactions).    Actually, it's a horrible concept when it gets down to the Main Street consumer level.  If I understand it correctly, you may as well add the Fed to your bank account as a co-account-holder.  [Why would anyone do anything similar to that!?  Mind boggling:]

2.  Even with FedNow, the USD is still FIAT currency, backed by a Gov't which essentially is bankrupt.  [Never imagined I'd see the day when our national debt was more than $31.5 trillion.  Our GDP is about $21 trillion, which means the Debt never will be repaid in full.  We can't afford it, especially because it gets larger every minute.  Plus, the interest payment alone is $1.3 billion per day.  That's where most of your personal income taxes go.]  Including the national Gov't debt, the corporate debt, and household debt, our total debt is about $70 trillion.  Tragic, and dangerous.

3. FedNow still allows the USA Gov't to lay siege via sanctions to any country it disagrees with , something with which much of the world is fed up.  Arguably, sanctions are an act of war.

4.  For most countries (other than the G-7), it's doubtful that the USD with FedNow would be preferable to a commodity-backed digital currency.  BRICS will have that (or something similar) sooner than later.

5. This whole thing appears mostly to be an attack on cryptos (including upcoming central bank cryptos in other countries), so if it wants to remain competitive, the crypto industry needs to clean up all its stupid problems involving exchanges, access, and fees.    When it comes to currency, people want something which is easy and accessible.  Crypto never should have called itself a "currency", because it's not.  It's a commodity (and so-defined by the U.S. Gov't), and that's why it's so convoluted and SLOW, and not easy to use.  It's somewhat like trying to buy your groceries with a bar of gold (or a bushel of grain), or even a gram of gold.  That isn't easy unless the normal legal currency has collapsed.

Such has been my main problem with crypto.  Too many people think it's a currency rather than what it is:  a commodity for investment (or barter).  At this time, the only Legal Tender (currency) in the USA is the US Dollar*****.  Everything else pretending to be currency is a commodity used in bartering, or strictly as an investment which later will be exchanged for Legal Tender.  To me, the crypto industry is bordering on (or committing) fraud when it claims to be a "currency".  Definitions matter.  

*****Such was proven years ago when our Gov't cracked down hard on the "Ron Paul Silver Dollar", which was being offered by a group of private individuals as an alternative currency.  https://www.thestreet.com/opinion/raid-on-ron-paul-dollar-maker-10390631
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Not only my opinion.  Be Well

A Warning About So-Called Crypto-CURRENCY

First, let me state clearly that I'm in favor of alternative currency.  It should be obvious that the U.S. fiat Dollar is crashing...and it's not the only one doing so.  Nevertheless, it's important to note the misrepresentations and falsehoods regarding all crypto-currencies...as follows.

1.  The implication coming from crypto people is that Bitcoin, Ethereum, etc. can be used legally in "money" transactions, and that the crypto-"coins" are not regulated (or barely so) by the Feds.  False.  The first law that applies to them is the Legal Tender Law, Section 5103 of Title 31 (U.S. Code/USC), which delineates exactly what is acceptable as currency.  Guess what?  All the listed items are issued by some portion of the Gov't or the Fed Reserve.  Crypto-"currency" is not Legal Tender.  The Cryptos also fall under several regulations having to do with commodities...because that's what the Feds have designated them as---commodities, not currencies.

2.  Another implication is that because of "blockchain" technology, crypto people will be able to be anonymous, have their own "banks", and avoid the IRS.  All I can say to that is don't be naive.  DARPA, the Defense Advanced Research Projects Agency (founded in 1958), created the High Tech world.  If they can't master "blockchain", all they have to do is offer $500,000 (or a million) to some independent contractor or two to do it.  The line of applicants will be a mile long.

3.  Finally, there's a strong implication (sometimes an outright claim) from crypto promoters that not only is the Crypto-World anonymous, but it's also safe.  False.  There is a War on Crypto-Currencies being waged by the Feds and others.  Currently, it's a quiet war.  If need be, though, it will get loud and nasty.  Don't think for one minute that the Powers-That-Be simply will roll over and watch their fiat Dollar be replaced by some private alternative.  [Japan appears to be an exception to that.]  If push comes to shove, they will designate all crypto people "financial terrorists" and a threat to national security.  With current laws already in place, you then will be subject to arrest without a proper warrant, being held incommunicado, and being held indefinitely without a trial.

The Elites already are emphasizing the "criminal money-laundering" aspect of Cryptos.  In addition, it's becoming more & more difficult even to access crypto websites.  None of this is a coincidence.  The war is on, and if you're attempting to use Cryptos as CURRENCY, you are a target.  Lastly, anyone who believes that he/she can do any type of electronic transaction deemed by the Feds to be undesirable, and do it anonymously, is behind on the learning curve relative to what the NSA & other Fed agencies are doing.

The only way Cryptos ever will be Legal Tender in the USA is if only the Fed Reserve produces and distributes them.  The Elites won't allow anything else...and they will fight tooth & nail to make certain the Dollar (or its official replacement) remains King.

Not only my opinion.  Be Well