What is a CBDC? Part 3 - What to do

Things to Put in Your Non-Bank “Savings Account”

1921 Morgan silver dollar

Practical Ways to Fight Inflation and Protect From a Dollar Collapse

Why did savings accounts used to be a good idea, but not today? Money is only useful as a means of exchange for something that really is useful, like food! “Fiat”, or paper money backed by nothing, loses value during inflation. Recession is a deflationary force, but the inflationary trend is stronger

the bad news:

In parts 1 and 2, I’ve written about how a central bank digital currency (CBDC) would actually be a software program, written by the government, that would have the potential (and probability) of total control of our money, even to the extent of blacklisting people who are not “woke”, and taking away their right to buy and sell. 1984 on steroids.

resistance from the states

Since last week’s article, Gov.DeSantis came out against CBDCs (good for him!) and said Florida will not participate. If other states follow, and if they are successful, then you can ignore most of this post! However, on the suspicion that the federal gov. has become too powerful for states to resist, I’ll proceed with my thoughts …

leading up to a collapse

With CBDC controls in place, we could expect a gradual tightening, because if the boom was lowered all at once, there would surely be mass resistance. Like if you want to boil a frog, you turn the heat up slowly so he won’t notice it; otherwise he’ll realize what’s happening and jump out of the pot.

However, even the start of a gradual transition to totalitarianism could be enough to cause a very fast flight from the dollar and into gold and bitcoin, like a run on a bank, but it would be a run on the dollar itself, causing it to collapse. I don’t hear anyone talking about this, but it’s a real possibility.

exceptions

So as far as not being able to buy or sell, I suspect there will be some exceptions to the restrictions enforced on blacklisted people, because people would die if they couldn’t buy food and had no place to grow their own. So it’s reasonable to expect that the blacklisted people would be given just enough of the new digital money in their accounts to live on so they could pay for a few basic necessities like shelter, clothes, food, electricity, and busfare to get to work. The digital subsistence money could be added to their account with a click instead of sending a welfare check.

too extreme? prepare but don’t despair

As I said last week, I know this all sounds crazy and extreme, but it’s coming, and very soon. Again, I hope I’m wrong. But if you get blacklisted and find your ability to buy or sell is restricted, don’t despair. Do your best to prepare, not only for your own good, but so that you’ll be in a position to help others who might be blacklisted or who might just be having a hard time because of wild inflation and/or a depressed economy. 

I remember silver dollars

We used to be able to take a dollar, or ‘silver certificate’, to the bank and ask for an actual silver dollar coin in exchange. I did this one day when I was in high school, just to see what a real silver dollar looked like. In 1963, the Treasury Dept. discontinued silver certificates.

1957 silver ceretificate - they could be exchanged for an actual silver dollar

an IOU nothing

Before 1963, a dollar/silver certificate was a federal IOU for a specific amount of silver. After 1963, federal reserve notes were issued. Essentially, they were IOUs for nothing; they were just a promise, no longer exchangeable for silver. The promise was said to be backed by gold. But you or I couldn’t take a federal reserve note to the bank and trade it in for gold or silver; only international banks could demand gold for their paper dollars. By 1971, because of inflation concerns, so many foreign banks had redeemed their dollars for gold that President Nixon took the US off the gold standard. From then on, paper dollars were literally nothing but a promise, even for foreign bankers. Since 1971, the dollar has lost 87% of its value.

the savings game is up

It used to be considered wise to have a savings account. But 50 years of inflation and 40 years of ridiculously low interest rates have taught us that the only ones who gain from a savings account are the bankers. Can you believe the average interest rate on past due credit card debt is 24%? So except for a cash emergency and immediate expense fund, think of a stock of necessities as your savings account. As long as we have inflation, money in a bank is losing value, so items that you need and use are better than money in the bank. Most people are already catching on. That’s why we’re hearing quite a bit about “preppers” who are preparing for the worst.

secular business

For the last 2 weeks, I’ve written about how CBDCs will lead to totalitarianism and the slavery of the population. The only exceptions to slavery will be the elites who will be in complete control. As people see where this is going many will panic. Don’t do that. In Paul’s first letter to the Christians in Thessalonica, when he reminded them of the coming day of the Lord, (“For you yourselves know full well that the day of the Lord will come just like a thief in the night.” 1Thes.5:2), some of the people apparently came close to panic, so in his 2^nd letter, Paul told them it’s not here yet, and to “keep on keeping on”. (my paraphrase)

“Now we request you, brethren, with regard to the coming of our Lord Jesus Christ and our gathering together to Him, that you not be quickly shaken from your composure or be disturbed either by a spirit or a message or a letter as if from us, to the effect that the day of the Lord has come.” 2Thes.2:1-2

continue “doing business”

In the parable of the talents, (Mt.25:14-30) the servants who were commended were the ones who “traded” (vs.16). In other words, they weren’t expected to just sit and wait for their master’s return; they were to actively go on about their business. That seems sensible. We have to go on living, no matter what the government and the economy is doing. Last week I mentioned that we were to be prepared spiritually, and the main point is to put your trust in the Lord and His Word; not the state. But today I’ll talk more about what to do while we’re waiting for His return, besides living for Him and sharing the Good News of the Gospel. Let’s take a look at the practical side of daily living in the face of an impending totalitarian digital, programmable dollar, and the inevitable collapse due to runaway inflation. 

food

If you can prepay for some stock of things you know you’ll need anyway, that’s always a good way to be prepared and less vulnerable to hard times. I’m thinking of food that won’t spoil, like canned, dried, or freeze-dried. In our case, ‘food’ includes dog food, chicken feed, and seeds. 

garden

First, growing your own garden if you have a little space and sun has already become more popular because of inflation. It doesn’t have to be a gigantic garden – every little bit helps, and besides, any gardening is good for your soul.

Food is getting expensive, and I can’t see how it’s going to get any cheaper. But growing and canning or drying or freeze-drying your own food is fun, productive, educational, and healthful. And it sure would come in handy if you found your checking account or credit card had been frozen by some new woke banking regulation or dollar software.

non-hybrid seeds to save

Most store-bought seeds are hybrid so they won’t breed true in the 2^nd generation – they’ll revert back to their original different lines. You can buy open pollinated seeds, plant more than you need for food, and save the extra seeds for the next season. That’s the way farmers always used to do it before the big corporations monopolized the seed business.

drying food

I often take advantage of sunny days in harvest season to dry apples and tomatoes, etc, simply by slicing them thinly and laying them out on screens.  If they don’t dry completely in one day, I bring them inside at night to keep the dew off them, and then set them out again for another day. If the weather turns bad before they’re dried properly, I have a Nesco dehydrator to finish up.

Freeze-dried food is said to last for 25 years, and you don’t need to worry about it spoiling if the power goes off. It’s also incredibly easy to prepare a meal from food that’s been freeze-dried. Just boil some water! You can buy freeze-dried food, or if you like to cook, get a freeze-dryer, starting at about $2400, and make your own favorite dishes.

sources

Buyers guide 10 best food storage sources.

Quote from HarvestRight: 

“With inflation, extreme weather and other supply chain disruptions, there's never been a better time to build up your food storage. It's an investment you know you can use.”

water

We can’t live without water. City water is pretty reliable, because it runs without electricity, unless the city system has pumping stations. However, it is somewhat vulnerable – to chemical spills that get into the water supply, or possible terrorist attacks. So saving rainwater from your downspouts is a great idea. We also have a gravity-feed Berkey water filter and an underground 1200 gallon cistern.

fuel

Having a gasoline powered truck or car and some extra cans of gasoline is only prudent. Electric vehicles leave you at the mercy of the power grid. At least have a bicycle!

Heating fuel, which might be oil but in my case means firewood, is not as essential as food and water, because you can just pile on extra clothes and blankets, but it’s nice to have some heat – and what about cooking? We’re fortunate to have a wood stove and plenty of wood. A portable propane stove and a case of propane cylinders is a good emergency backup. Extra propane cylinders might also come in handy for barter if your digital dollars become restricted. 

Electricity is a great invention and a great convenience. We have a grid-tied solar pv system, but I’m considering going off grid, even though off-grid systems are very expensive. It might pay for itself in the long run, and it provides some extra independence.

what will happen to your investments?

That’s a good question.

With complete government control of all money, of course they would have the power to confiscate any investments if they really wanted to. History is full of examples of what happens to the wealth of individuals who were on the wrong side of the power of a dictatorial government.

inflation hedges

Bitcoin (BTC) may be the ultimate protection, because it’s global and it’s “decentralized”, meaning it’s not under the control of any one entity. BTC is secured by the blockchain, which is a permanent record of all transactions. The blockchain is copied and verified on thousands of computers.

Short of confiscation, the more traditional inflation hedges will always hold value. Gold, silver, land, tools, equipment, materials, etc - real stuff that has usefulness. Then there’s art. Art has been an inflation hedge for the rich, but now is available to the little guy. Masterworks buys million-dollar works of art and then sells shares to small investors. It’s not very liquid, but a great new idea for the longer term depending on your risk tolerance. I’ve checked it out and it looks good, so I put some money into art. I’m comfortable recommending Masterworks, although of course it’s not right for everyone. With the riskier types of investments, don’t invest more than you can afford to lose.

private property ownership

“The Constitution protects property rights through the Fifth and Fourteenth Amendments’ Due Process Clauses and, more directly, through the Fifth Amendment’s Takings Clause: “nor shall private property be taken for public use without just compensation.” There are two basic ways government can take property: (1) outright, by condemning the property and taking title; and (2) through regulations that take uses, leaving the title with the owner — so‐​called regulatory takings.” Cato Institute

The problem is that when governments go rogue, they make their own rules. The US constitution could be trampled into the dust. If the right to own private property is taken away, say hello to slavery.

In that event, your investments won’t matter much, will they? Put your hope and trust in the Lord.

gun ownership

Before those in power could start seizing assets on a large scale, they would have to confiscate guns. Otherwise, they would surely fear a terrible resistance. It would be like the French revolution. So if you see guns banned, and a move to seize them, that will be the sign that totalitarianism is almost complete. The constitution and the Bill of Rights have been under attack for some time; especially the first and second amendments.

I’m not gloomy

By now you must think I’m a terrible gloom and doom pessimist. Not really. Those who know me know that I’m an upbeat, cheerful, optimistic guy who loves the Lord. But that doesn’t mean I’m stupid- LOL. I’m just being realistic, and that means being prepared for what could happen and not get caught with my head in the sand.

My secret to not losing my sanity is in Isaiah 26:3 “The steadfast of mind You will keep in perfect peace, Because he trusts in You.,” and Nehemiah 8:10b “…Do not be grieved, for the joy of the Lord is your strength.”

the need to prepare spiritually

We’re in a spiritual battle. The insanity we’re seeing with the denial of common sense, whether it be the loss of law and order by defunding police, or refusal to prosecute criminals, or the value of the traditional family, or the denial of biological gender of male and female, or the irresponsible spending of taxpayer dollars, or dozens of other issues, what we’re seeing is demonic activity. There’s no other way to explain it. This abandonment of thousands of years of traditional values is a historical turning point, and it’s not just local; it’s global.

the Gospel

In a spiritual battle, faith in Jesus Christ is our only hope. We need to live day-to-day and do what we can to survive and to be able to rescue others, but we also need to be proclaiming the truth – that Jesus died for our sins, was crucified, buried, rose from the dead, and is coming back to be with those who love him, in paradise forever, and to judge those who deny him.

“For our struggle is not against flesh and blood, but against the rulers, against the powers, against the world forces of this darkness, against the spiritual forces of wickedness in the heavenly places. Therefore, take up the full armor of God, so that you will be able to resist in the evil day, and having done everything, to stand firm. Stand firm therefore, having girded your loins with truth, and having put on the breastplate of righteousness, and having shod your feet with the preparation of the gospel of peace; in addition to all, taking up the shield of faith with which you will be able to extinguish all the flaming arrows of the evil one.” Ephesians 6:12-16

next week - lessons from the book of Nehemiah