What do the years 1907, 1933, and 1971 have in common?
These three years are very important in U.S. history. The average person does not understand how these years were pivotal in creating a shock that caused the substantial monetary change. These changes were detrimental to the average citizen in the U.S. What happened in these years? Let’s unpack that.
1907-1913
We saw a nationwide collapse of the banking system. It was known as the 1907 Bankers Panic. This moment in history led to substantial change. It led to the creation of the third Central Bank in U.S. history. It ushered in the creation of the Federal Reserve.
1929-1933
The second shock was the Great Depression, which started in 1929, and by April 5, 1933, President Franklin D. Roosevelt signed Executive Order 6102. This Executive Order made it illegal for Americans to own gold. The result of this action led to a 40% devaluation of the U.S. dollar.
1960’s-1971
In the 1960’s we saw the rise of President Lyndon B. Johnson’s initiative was called the Great Society. This led to massive spending. Americans could still not own gold; the U.S. still honored the Bretton Woods Agreement, which established a universal system where the currency exchange rate was fixed using gold as the universal standard. We saw on August 15, 1971, another substantial change by President Richard Nixon severing all ties between the U.S. dollar and gold. This ushered in fiat currency, which is the system we still have today and has created massive problems. We have seen growing inflation ever since the shock of 1971.
The Next Shock
It is quite possible that we will see a fourth and upcoming shock. We might already be in the process. The coming shock could lead to further substantial changes that could be detrimental to the average U.S. citizen. It is my belief that the next big change could be the end of physical cash as we know it. The Federal Reserve might usher in a digital currency. This next currency could be devalued even more resulting in American’s losing even more of their life savings.
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Why Cash is Dangerous
Both Governments and Banks hate cash and it explains why cash might be pushed out. Governments hate cash because they can’t track every transaction. If you deal in physical cash they have no idea what you are doing. Banks hate cash because they can’t make profits off of every transaction. Both Governments and Banks want you to depend on them and with physical cash, you're not dependent, but independent, which is dangerous to both entities. The Curse of Cash, written by Ken Rogoff, former chief economist for the International Monetary Fund paints a pretty accurate picture of how Governments view physical cash. In the book, Rogoff asserts that cash is used to help criminals and people who want to evade taxes. He truly believes physical cash is evil and works to help evil people.
The War on Cash has been Lost
Have we already lost the war on cash? The answer is yes! The U.S. Government already regulates cash very strictly. If you deposit, transfer, or withdraw $10,000 or more, your bank will automatically alert the Government. This is already showing the movement towards losing the war on cash.
Our View on the War on Cash
The war on cash is evil in my opinion. It is a brutal assault against people’s privacy. I have zero respect for people advocating for this war on cash. The sad reality is that it is easily going to be won from the looks of it. We are seeing a world where privacy is gone and everything is known about you. This is what a cashless society looks like. The War on Cash is all about control and the Government seizing it from you.
What’s Next?
What does a world without cash look like? I have heard people argue that it doesn’t look very different. People are used to using debit cards and credit cards frequently and in some cases almost always. With that being said it would look slightly different. It is possible that you will see Governments begin to adopt cryptocurrencies or their own digital currency.
Understanding Cryptocurrency
We have to differentiate between cryptocurrencies. The fiat monetary system is completely centralized through central authorities, such as Central Banks all over the world. We have seen the Cryptocurrency world boom with countless coins and these coins are almost all centralized in one form or another. They claim to be decentralized, but it isn’t true with a single authority or central group monitoring it. This is the difference between Bitcoin and the other Alt Coins. Bitcoin is truly decentralized.
Understanding Bitcoin
Bitcoin is different because it is truly decentralized. It doesn’t have a single administrator or central authority overseeing it. It doesn’t follow the traditional financial system. It runs on a decentralized network scattered all across the world. It is quite possible to make anonymous transactions. It is difficult for Governments to crack down on Bitcoin because unless they shut down the entire internet it won’t stop Bitcoin.
Bitcoin is Disruptive
Bitcoin is truly disruptive because it uses technology to decentralize money. What is money? It is a store of value and an exchange of value. Bitcoin could very well be the greatest store of value in the coming centuries. It is the premier digital property of the future. It is disrupting the financial system.
Bitcoin is a Threat
Governments and Central Banks are pushing the narrative that Bitcoin is a threat to the nation-state and or demonizing it for being used by terrorists and criminals. This is ludicrous. Bitcoin is an asset class that could be revolutionary for generating wealth for countless people all over the world. Bitcoin isn’t a threat but a possible victory for people who want to find a place to store money outside of the fiat monetary system.
Central Banks and Beyond
The truth is that when you deposit money into the bank, it’s no longer your property. It belongs to the bank. This has been going on for years and it gives the banks all the control. Why is the War on Cash so important? It is important because it is really a war of independence from Central Banks. We may have lost the war on physical cash, but the real war isn’t over. It is time to secure your freedom by becoming financially free. I urge you to find a store of value outside of the fiat system. There are many places to go and Bitcoin is just one of them.
Feel free to reach out to us to learn more about how to achieve financial freedom.
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