Won't pass this time, but this is where things might be headed depending on who controls Congress in 20 months.
Here are the details of the tax proposals in the budget request that the White House released today:
Capital Gains
The budget proposal would increase the capital-gains rate to 39.6% from 20% for people earning at least $1 million to equalize the taxation of investment and wage income. Biden is also proposing to increase the 3.8% Obamacare tax to 5% for those earning at least $400,000, in an effort to shore up the Medicare Trust Fund. That would mean the richest taxpayers would pay a 44.6% federal rate on investment income and other earnings.
Billionaires Tax
Biden is proposing a 25% minimum tax rate on the wealthiest 0.01% of taxpayers. This would mean that many of the richest Americans — who currently pay an 8% rate on their incomes because of tax preferences that allow them to cut their IRS bills — would face significant tax increases.
Income Taxes
Biden is proposing to raise the top personal-income tax rate to 39.6%, from 37%, for those making more than $400,000. That higher rate would reverse a cut signed into law by former President Donald Trump.
In addition, Biden proposes expanding the Obamacare net investment-income tax — which is currently 3.8%, but he is calling to increase it to 5% — so that it applies to all incomes “without loopholes,” not just investment proceeds, over $400,000, according to the White House.
Corporate Taxes
Trump’s 2017 corporate-tax cut would get significantly rolled back, bringing the top rate to 28% from 21%. The proposal also calls to increase the taxes US companies owe on their foreign earnings to 21%, doubling the 10.5% included in Trump’s tax law.
Carried Interest
The carried-interest tax break used by private equity fund managers to lower their tax bills would be eliminated under the Biden plan. Under current law, investment fund managers can pay the 20% capital-gains rate on a portion of their incomes that would otherwise be subjected to the 37% top individual-income rate.
Stock Buyback Tax
The plan would quadruple a tax on stock buybacks that was added to the tax code last year as part of the Inflation Reduction Act. The proposal, to increase the rate to 4% from 1%, would reduce the differential tax treatment between share repurchases and dividends and urge companies to spend that money to grow their businesses, according to the White House.
The thing about inflation is that it automatically moves people into higher and higher tax brackets as their earnings struggle to keep up with the rate of inflation.
Q: Are You Printing Money? Bernanke: Not Literally
@jmski52 said:
The thing about inflation is that it automatically moves people into higher and higher tax brackets as their earnings struggle to keep up with the rate of inflation.
Not necessarily. IRS does bump up income levels annually for each tax bracket based on inflation. Conversely, they also bump up max income level for paying payroll taxes. But no doubt, inflation is still the most insidious tax of all. And, state governments are huge benefactors. This is most evident in property taxes, something that all 50 states and DC collect. They jawbone need for affordable housing while simultaneously cheering rising property prices and the revenue that goes into their coffers.
@GoldFinger1969 said:
I'm not sure where the U.S. and/or Fed are going with any CBDC, but the "threat" from crypto and BitCoin seems alot less today than 2 years ago.
If a large portion of the country will NOT go along with it, I'm not sure it's going to fly.
I've been doing reading lately on the FDR gold seizures/confiscation/surrender. I'm not unsympathetic to the fears of a CBDC given what happened 90 years ago, but I think the financial knowledge of the American people and the political opposition to anything like happened then is infinitely stronger.
The CBDC's are coming. It's just a matter of how onerous they will be. Certainly within the next 3-10 yrs when this next financial reset and fourth turning is complete. And a CBDC will be ushered in under a huge crypto collapse or some type of national "crisis" where there is "no other alternative" with the people accepting it with minimal fuss. Maybe a banking or financial crisis? You must have missed Executive Order #14067 signed on 3/9/22 that gave the Govt "permission" to start looking into digital assets in a "responsible manner." Expect other bills to include references and requirements concerning CBDC's buried in large legislative bills. The 14067 executive order also authorized the development of a USA CBDC.....after all we don't want to get left behind. It's off to the races.
As far as most Americans being financially literate and not standing for a CBDC? Those are the same people who happily accepted 2 years of lock downs, EUA shots and "treatments," mandates, and numerous other encroachments on constitutional personal freedoms for the past 3 years. So I don't think it will be too hard to get the 18 to 50 yr olds to go along with CBDC roll out. Most don't "read" the Wall Street Journal or any other financial blogs with a questioning mind. At best they read a headline and accept whatever the main stream media tells them at night. They've been brought up in a digital world much more so that the 60-90 yr olds. Apps, crypto's, and digital currencies make 'sense' to them. Paper money and savings accounts do not. Having a CBDC will be like consolidating all your bills, loans, and credit cards into a single monthly payment which is so popular these days. And so much easier too.....lol. The CBDC's will fall right into that same model. It's so easy....just do it. And "what" political opposition? The political class is in favor of this....they'll have their golden parachutes as will the Billionaires who are now buying up land, selected real estate for their future safe spaces. Everyone else is the target. The carnage of the lock-downs eviscerated a good swath of the middle class, particularly small businesses, the very people who would have been against the CBDC's. And another feature of the CBDC's will be a govt "guaranteed income." That will be a big selling point to the 18 to 50 yr olds who don't want to work. CBDC's will be their new best friend....for a little while at least.
Crypto's, BitCoin and other systems will be removed or taken over shortly after a CBDC is up and running. No competition allowed. I wonder how they will treat precious metals at that time? Windfall taxed to death? Have the media vilify anyone "profiteering" by selling precious metals? No need to confiscate gold like in 1933 when you can just use the IRS and MSM to do the work for you. You can bet there will be dedicated govt tracking of all PM assets sold to brokers, metal and coin dealers, pawns, jewelers, etc. to ensure those sellers don't "profit" at "other's expense." If the Govt can track gun and ammo sales, surely PMs and other hard assets will follow. Maybe even refresh Patriot Act 2 again which had specific regulations and tracking about the purchasing of gems and precious metals. The threshold back then was >$50K in annual purchases for any assets that received 50% of their value from the intrinsic metal or gem (ie most any "common" date USA $5,$10,$20, $50 gold coin). Anyone meeting that annual level is required to document the transactions as well as having a formal written money-laundering plan including annual training. Considering how many previous "interpretations" of laws are changing today......wonder how this PA2 statute will fare?
Fwiw the 1933 Gold Confiscation had an exemption for gold coins of special value (section 2). It was later interpreted that this meant ANY pre-1933 US gold coins were in fact "collectible" and of special value or interest. Most holders of US gold coins in excess of $100 face back in 1933 could have chosen to be "collectors" right then and there. Well known coin collectors at that time like William Woodin, Bass, Eliasberg, and others didn't turn in their gold coins, not even the common ones which were still "collectible." The Govt only specifically went after the 1933 $20 Saints and a few people who had significant hoards of US gold coins (one such person had $5000 face value and lost the case in court). Woodin turned his 1933 Saint(s) in. Not sure if he had more than 1. Attorney and former ANA Governor David Ganz wrote several good articles about the 1933-1934 gold period over the years whose results were posted on the CU Forum.
look for recent banking system problems to expedite/"justify" the switch to Central Bank Digital Currencies (CDBCs).
Jim Rickards warns:
"CBDCs are programmable and controlled by the government. This means when a (bank) run develops, the government can stop the run just by freezing CBDC account transfers. They can even claw back earlier transfers."
Once CBDCs are implemented, "you're locked into a system controlled by the government. You're in a money jail."
We're approaching the point where there will be only two forms of "money" - precious metals and CBDCs. There's never been a stronger case for owning/procurring precious metals.
@derryb said “We're approaching the point where there will be only two forms of "money" - precious metals and CBDCs.”
It is hard to imagine much support for this among either of the mainstream parties for the foreseeable future. It definitely can’t be done by executive fiat.
@Higashiyama said: @derryb said “We're approaching the point where there will be only two forms of "money" - precious metals and CBDCs.”
It is hard to imagine much support for this among either of the mainstream parties for the foreseeable future. It definitely can’t be done by executive fiat.
It's not getting support. But merely getting no push back or resistance. Like we saw all during the pandemic.
I don't see much if any resistance for a change to CBDC. We've already seen incredible social, economic, law enforcement, and political changes in just the past 3 yrs. No one stopped anything of that and it wasn't "voted" upon......basically by fiat and new "interpretations" of statues. If the govt had let the 2008 financial crisis run that would have been a perfect time to institute CBDC. It's even a better time now on the backs of the current or next financial or social crisis. It can be done by fiat. The pandemic mandates weren't "voted" on, that was all done under Emergency Powers and EUA's. Only a small percentage resisted. None of our Congressman or Senators "voted" for it. Yet we got it....and those Emergency Powers and Authorizations have in most cases NOT been returned to the people. All it takes is a majority of the country not willing to say "No.". We're "deeply" involved in a protracted "excursion" in Europe/Ukraine....after being in Afghanistan (our longest war)....none of it declared or authorized by Congress. Apparently, the next thing on the docket is giving the WHO and NATO powers over sovereign nations, including the USA whenever declared by fiat. I don't see a majority of leaders or citizens standing up to say No. So that "cannot" happen with CBDC's?
RR: I agree that there can be extraordinary lethargy; but, people get (reasonably) upset when inflation ticks up; surely they will react if there were outright (and explicit) confiscation?
At the moment, it is probably just a matter of speculation and watching things unfold; if it goes in the direction you forecast, I suspect you'll see more cohesion on this board than we're used to.
@Higashiyama said:
RR: I agree that there can be extraordinary lethargy; but, people get (reasonably) upset when inflation ticks up; surely they will react if there were outright (and explicit) confiscation?
At the moment, it is probably just a matter of speculation and watching things unfold; if it goes in the direction you forecast, I suspect you'll see more cohesion on this board than we're used to.
CBDCs are not a confiscation and will not cause alarm to the uniformed masses. It will simply be a "your money is now safe and sound in a Federal Reserve Bank digital account."
It will go in the direction RR, I and others are saying that it will - we are keeping ourselves informed on the topic. Maybe you should also.
@Higashiyama said:
RR: I agree that there can be extraordinary lethargy; but, people get (reasonably) upset when inflation ticks up; surely they will react if there were outright (and explicit) confiscation?
At the moment, it is probably just a matter of speculation and watching things unfold; if it goes in the direction you forecast, I suspect you'll see more cohesion on this board than we're used to.
Sure, the masses will get mad, or at least a lot of them. But, the media will inundate everyone 24 hrs/day on how this is a win-win for everyone. The left will be it all. Half the right will buy it. And that's enough lethargy to let it happen. It's not so much about confiscation as about total control. The monetary control will be applied to all aspects of our lives.....what we can spend our digi-bucks....what cars, what foods, what meats (or insects), what coins (if any), etc. To go along with the monitoring will be social media monitoring to come up with social, carbon, credit scores. Credit scores won't be based on your financial strength....but a mix of that and your social, economic, and political agenda. ESG. DEI. Etc.
Included will be where you're allowed to set your thermostat, how many KW-oil-nat gas you can buy, when you can charge your car. Get a bad week or month of "scores" and you might not be able to charge your car for more than a 10 mile trip, every 5 days. Also throw in taxation of your money flows as well....to include annual taxes on your total wealth (hello coins and PMs!). I'm not so much worried about the money being taken though with the reset expect pennies on the dollar....60c to 80c? Worse is that we'll be told when we can spend those digi bucks. I can envision a "guns and ammo" monitoring across the digi bucks buying spectrum....soon to be followed by curtailing wealth activities outside the "expected" and preferred Main Stream economic community. I doubt coins and PMs are going to be freely allowed without onerous additional taxes or regulations....or public floggings. At a minimum expect to be audited or outed to the public if you don't play the digi-bucks game by "the rules" as the Govt/Media expects you to. Visits from your neighbors and former friends could follow. Maybe they'll convince you to follow "the rules."
This is not speculation. This is what the elites want for us. The billionaires control just about everything now in the Western World. They have the power and money....what can stop them? Certainly not our "elected" officials. Without a huge grass roots push back from both the left and right, CBDC is coming. And it might come anyways via an emergency decree when the next financial balloon burst occurs.
The elites ALWAYS get what they want here in 'Merica. They can have it. No elites/brainwashers anywhere near me. You can be a sheepz or you can be the Shepherd. RGDS!
@derryb posted “FED leak - The Fed Proposes a 4th Function of Money: Means of Social Control”
Derryb - did you actually read this and look back at the source? It is a wildly deceptive article. No one at the Fed is suggesting money as a means of social control. As a routine process, the Fed asked for comment on various issues. Anyone, including you and me, are free to comment. The assertion about money as a means of social control came was part of a comment from a (seemingly) far left academic.
@Higashiyama said: @derryb posted “FED leak - The Fed Proposes a 4th Function of Money: Means of Social Control”
Derryb - did you actually read this and look back at the source? It is a wildly deceptive article. No one at the Fed is suggesting money as a means of social control. As a routine process, the Fed asked for comment on various issues. Anyone, including you and me, are free to comment. The assertion about money as a means of social control came was part of a comment from a (seemingly) far left academic.
The assertion that the FED (or its handlers) WILL NOT use CBDCs as a means of social control all the way to the right on the "
Naive" scale.
You seem to forget: "Never let an opportunity go to waste." My contention is that social control is one of the reasons CBDCs will be implemented. There are a dozen good reasons to implement CBDCs when looking though the eyes of the CBDC creators. CBDC lovers need look at affect of CBDCs on the individuals forced to live with them.
@derryb; “My contention is that social control is one of the reasons CBDCs will be implemented”
I don’t disagree with your concern. What I object to is Mish’s headline assertion “The Fed Proposes a 4th Function of Money: Means of Social Control”. The Fed simply doesn’t say this. A left leaning academic who commented on the Fed paper seems to be proposing this. Either Mish is incompetent or he is dishonest.
@Higashiyama said: @derryb; “My contention is that social control is one of the reasons CBDCs will be implemented”
I don’t disagree with your concern. What I object to is Mish’s headline assertion “The Fed Proposes a 4th Function of Money: Means of Social Control”. The Fed simply doesn’t say this. A left leaning academic who commented on the Fed paper seems to be proposing this. Either Mish is incompetent or he is dishonest.
Mishes headline is in reference to his link which is a "Response to Notice and Request for Comment Response" to the FED on it's white paper (Docket OP-1670). The highly qualified author (check his credentials at the bottom of the link) is simply reminding the FED that there is a fourth function of money - a means of social control. To support this claim he simply reminds the FED that "The centralized monopoly over the functions of money held by sovereign governments and central
banks has generated great income and wealth imbalances." This is true, his claim of "a means of social control" is therefore true. Yes, the FED said nothing of using money for social control (intentionally?), they were simply called out on their failure to do so.
And this highlights the good possibility that CBDCs will be further used to control social behavior at the individual level. There have been numerous post here including member fishteeth's photo above on the threats CBDCs (and the corresponding abolishment of cash) pose to personal freedom.
FWIW, I don't have a problem with someone choosing to use a CBDC just as I have no problem with someone choosing Chase over Wells Fargo. With the implementation of mandatory CBDCs Its the lack of choice and even worse sacrificing the choice of holding and using cash.
What I object to is Mish’s headline assertion “The Fed Proposes a 4th Function of Money: Means of Social Control”. The Fed simply doesn’t say this.
I can't think of a government program that has never been vastly expanded once it's been put in place. Can you? Don't you even wonder why we suddenly need 87,000 new IRS "agents", complete with guns, ammo & training?
Q: Are You Printing Money? Bernanke: Not Literally
Brazil and China have apparently struck a deal to ditch the U.S. dollar in favor of their own currencies.
The deal, announced yesterday, will enable China and Brazil to carry out trade and financial transactions directly, exchanging yuan for reais – or vice versa – rather than first converting their currencies to the U.S. dollar.
The Brazilian Trade and Investment Promotion Agency (ApexBrasil) said the new arrangement is expected to "reduce costs" and "promote even greater bilateral trade and facilitate investment."
China is Brazil’s largest trading partner, accounting for more than a fifth of all imports, followed by the United States. China is also Brazil’s largest export market, accounting for more than a third of all exports.
Brazilian President Luiz da Silva has moved to strengthen ties with Beijing after a period of rocky relations under his predecessor, Jair Bolsonaro, who used anti-China rhetoric on the campaign trail and in office.
The BRICS++ Brazil, Russia, India, (Iran), China, South Africa, (Saudi Arabia) are all working together towards a global change (the 100-year change Xi was referring to when he left Putin in Russia) in reducing the USD influence in world trade. At some point a lot of dollars they have been holding will come back to haunt us with more inflation.
Japan with its zero-interest rate for too long policy has helped financial gurus develop $1,000 trillion in dollar derivatives that are getting riskier by the day as a result of fast interest rate hikes and greedy monetary leveraged manipulation. When we get into the debt limit political debacle in a few months more bad things are going to start to happen, and more banking problems will surface.
Of course, bankers, and most of our leaders, and some on this forum will tell us everything is fine. No worries.
Gradual dedollarization would be a great thing for the US. Rapid dedollarization is unlikely to happen and won’t benefit anyone. (But it would hurt China more than it would hurt the US)
Funny how those who earlier warned here of the dollar's coming demise were labeled as Anti-American and Pro-Russian. Just goes to show you that reality is non-political. I suspect there will be more "told you so" messages in the future. LOL
The dollars not going anywhere. Those that continue to root for the destruction of the all mighty greenback are anti-American. Root all you want son but it ain't happening. Semper!
@blitzdude said:
The dollars not going anywhere. Those that continue to root for the destruction of the all mighty greenback are anti-American. Root all you want son but it ain't happening. Semper!
Warning about something that could happen is not the same as "rooting" for it.
And if the act of criticizing government policies you disagree with becomes "anti-American", then welcome to the fascism.
@Higashiyama said:
Gradual dedollarization would be a great thing for the US. Rapid dedollarization is unlikely to happen and won’t benefit anyone. (But it would hurt China more than it would hurt the US)
This is not gradual. According to Bloomberg, foreign central banks hold large numbers of treasury bonds (similar to SVB) that are now underwater. Japan including private holders has over 1 trillion in treasury bonds and China .87 trillion the last data I saw.
Foreign central banks liquidated Treasury holdings at the fastest clip in nine years last week and tapped a key Federal Reserve facility to raise cash as banking stress roils markets.
Fed data show foreign official holdings of Treasury securities fell by $76 billion in the week through March 22 to $2.86 trillion. That’s the largest weekly decline since March 2014.
At the same time, the US central banks recently established Foreign and International Monetary Authorities, or FIMA, repurchase agreement facility was tapped for a record $60 billion, data show, dwarfing the $1.4 billion peak reached during the height of the pandemic.
SVB collapse and impact is small compared to risks inherent with Japan's central bank holdings, if interest rates stay high for longer. These Fed repo agreements are temporarily hiding some very big problems.
bottom line is uncertainty. Very few predicted SVB situation until after the fact. What is fact is that central banks and other banks are using the repo facility to improve their chances at a record pace. This to me is a risk that is in addition to the political BRICS dedollarization impacts and selling treasury bonds back to the Fed. US banks have $620 billion in unrealized losses on their books. These lag effects from interest rate increases are significant. Gold is being purchased by many foreign central banks at faster rates as a perceived store of value.
@blitzdude said:
The dollars not going anywhere. Those that continue to root for the destruction of the all mighty greenback are anti-American. Root all you want son but it ain't happening. Semper!
Warning about something that could happen is not the same as "rooting" for it.
And if the act of criticizing government policies you disagree with becomes "anti-American", then welcome to the fascism.
Some "warn" about a fictitious in my bunker the whole world is ending fantasy, and some here clearly continue to root for the demise of our GREAT nation. THKS!
@blitzdude said:
The dollars not going anywhere. Those that continue to root for the destruction of the all mighty greenback are anti-American. Root all you want son but it ain't happening. Semper!
Warning about something that could happen is not the same as "rooting" for it.
And if the act of criticizing government policies you disagree with becomes "anti-American", then welcome to the fascism.
Some "warn" about a fictitious in my bunker the whole world is ending fantasy, and some here clearly continue to root for the demise of our GREAT nation. THKS!
You accuse other posters here of "rooting for the demise of our country".
And you also make accusations that you are a victim of "stalking" here.
I think you are actually the one with the paranoia (that you falsely accuse others of having).
The Fed has recently accumulated about $44B in total losses. This is driven by two factors:
Similar to SVB, it is selling assets (under QT) that are now worth less than when it bought them.
The interest paid out to banks (4%+) is greater than the interest it receives from its balance sheet (2%).
When the Fed makes money, it sends it back to the Treasury. This has netted the Treasury close to $100B a year. Doesn't look like they will be helping fund our government deficit spending for a while.
Gold is looking even better the more this mess continues.
In other news.... I intend to triple my net worth monthly for the next 2 years by which time I will be the first trillionaire. If you want in, send me a check made out to the Common Assset Structured Hostingfund or CASH for short.
@GoldFinger1969 said:
Brazil and China are blowing smoke, folks.
In other words, I intend to triple my net worth monthly for the next 2 years by which time I will be the first trillionaire. If you want in, send me a check made out to the Common Assset Structured Hostingfund or CASH for short.
It's certainly possible that the BRICS could create some sort of trading unit that behaves like a currency, and try to use it for trade among themselves. That would be a pretty non-event.
The chance of the BRICS trying to (and succeeding at) a move to a common currency is virtually nil.
In a few decades, if the Chinese can arrest their slide towards brutal totalitarianism, the yuan could serve as a global currency. It's not something we need to reflect in our mid-term (say, 5 - 10 year horizon) planning.
Comments
Won't pass this time, but this is where things might be headed depending on who controls Congress in 20 months.
Here are the details of the tax proposals in the budget request that the White House released today:
Capital Gains
The budget proposal would increase the capital-gains rate to 39.6% from 20% for people earning at least $1 million to equalize the taxation of investment and wage income. Biden is also proposing to increase the 3.8% Obamacare tax to 5% for those earning at least $400,000, in an effort to shore up the Medicare Trust Fund. That would mean the richest taxpayers would pay a 44.6% federal rate on investment income and other earnings.
Billionaires Tax
Biden is proposing a 25% minimum tax rate on the wealthiest 0.01% of taxpayers. This would mean that many of the richest Americans — who currently pay an 8% rate on their incomes because of tax preferences that allow them to cut their IRS bills — would face significant tax increases.
Income Taxes
Biden is proposing to raise the top personal-income tax rate to 39.6%, from 37%, for those making more than $400,000. That higher rate would reverse a cut signed into law by former President Donald Trump.
In addition, Biden proposes expanding the Obamacare net investment-income tax — which is currently 3.8%, but he is calling to increase it to 5% — so that it applies to all incomes “without loopholes,” not just investment proceeds, over $400,000, according to the White House.
Corporate Taxes
Trump’s 2017 corporate-tax cut would get significantly rolled back, bringing the top rate to 28% from 21%. The proposal also calls to increase the taxes US companies owe on their foreign earnings to 21%, doubling the 10.5% included in Trump’s tax law.
Carried Interest
The carried-interest tax break used by private equity fund managers to lower their tax bills would be eliminated under the Biden plan. Under current law, investment fund managers can pay the 20% capital-gains rate on a portion of their incomes that would otherwise be subjected to the 37% top individual-income rate.
Stock Buyback Tax
The plan would quadruple a tax on stock buybacks that was added to the tax code last year as part of the Inflation Reduction Act. The proposal, to increase the rate to 4% from 1%, would reduce the differential tax treatment between share repurchases and dividends and urge companies to spend that money to grow their businesses, according to the White House.
National Commemorative Medals of the U.S. Mint:
https://www.pcgs.com/setregistry/u-s-coins/medals-tokens/national-commemorative-medals-united-states-mint-1940-present/alltimeset/195526
The thing about inflation is that it automatically moves people into higher and higher tax brackets as their earnings struggle to keep up with the rate of inflation.
I knew it would happen.
Not necessarily. IRS does bump up income levels annually for each tax bracket based on inflation. Conversely, they also bump up max income level for paying payroll taxes. But no doubt, inflation is still the most insidious tax of all. And, state governments are huge benefactors. This is most evident in property taxes, something that all 50 states and DC collect. They jawbone need for affordable housing while simultaneously cheering rising property prices and the revenue that goes into their coffers.
The CBDC's are coming. It's just a matter of how onerous they will be. Certainly within the next 3-10 yrs when this next financial reset and fourth turning is complete. And a CBDC will be ushered in under a huge crypto collapse or some type of national "crisis" where there is "no other alternative" with the people accepting it with minimal fuss. Maybe a banking or financial crisis? You must have missed Executive Order #14067 signed on 3/9/22 that gave the Govt "permission" to start looking into digital assets in a "responsible manner." Expect other bills to include references and requirements concerning CBDC's buried in large legislative bills. The 14067 executive order also authorized the development of a USA CBDC.....after all we don't want to get left behind. It's off to the races.
As far as most Americans being financially literate and not standing for a CBDC? Those are the same people who happily accepted 2 years of lock downs, EUA shots and "treatments," mandates, and numerous other encroachments on constitutional personal freedoms for the past 3 years. So I don't think it will be too hard to get the 18 to 50 yr olds to go along with CBDC roll out. Most don't "read" the Wall Street Journal or any other financial blogs with a questioning mind. At best they read a headline and accept whatever the main stream media tells them at night. They've been brought up in a digital world much more so that the 60-90 yr olds. Apps, crypto's, and digital currencies make 'sense' to them. Paper money and savings accounts do not. Having a CBDC will be like consolidating all your bills, loans, and credit cards into a single monthly payment which is so popular these days. And so much easier too.....lol. The CBDC's will fall right into that same model. It's so easy....just do it. And "what" political opposition? The political class is in favor of this....they'll have their golden parachutes as will the Billionaires who are now buying up land, selected real estate for their future safe spaces. Everyone else is the target. The carnage of the lock-downs eviscerated a good swath of the middle class, particularly small businesses, the very people who would have been against the CBDC's. And another feature of the CBDC's will be a govt "guaranteed income." That will be a big selling point to the 18 to 50 yr olds who don't want to work. CBDC's will be their new best friend....for a little while at least.
Crypto's, BitCoin and other systems will be removed or taken over shortly after a CBDC is up and running. No competition allowed. I wonder how they will treat precious metals at that time? Windfall taxed to death? Have the media vilify anyone "profiteering" by selling precious metals? No need to confiscate gold like in 1933 when you can just use the IRS and MSM to do the work for you. You can bet there will be dedicated govt tracking of all PM assets sold to brokers, metal and coin dealers, pawns, jewelers, etc. to ensure those sellers don't "profit" at "other's expense." If the Govt can track gun and ammo sales, surely PMs and other hard assets will follow. Maybe even refresh Patriot Act 2 again which had specific regulations and tracking about the purchasing of gems and precious metals. The threshold back then was >$50K in annual purchases for any assets that received 50% of their value from the intrinsic metal or gem (ie most any "common" date USA $5,$10,$20, $50 gold coin). Anyone meeting that annual level is required to document the transactions as well as having a formal written money-laundering plan including annual training. Considering how many previous "interpretations" of laws are changing today......wonder how this PA2 statute will fare?
Fwiw the 1933 Gold Confiscation had an exemption for gold coins of special value (section 2). It was later interpreted that this meant ANY pre-1933 US gold coins were in fact "collectible" and of special value or interest. Most holders of US gold coins in excess of $100 face back in 1933 could have chosen to be "collectors" right then and there. Well known coin collectors at that time like William Woodin, Bass, Eliasberg, and others didn't turn in their gold coins, not even the common ones which were still "collectible." The Govt only specifically went after the 1933 $20 Saints and a few people who had significant hoards of US gold coins (one such person had $5000 face value and lost the case in court). Woodin turned his 1933 Saint(s) in. Not sure if he had more than 1. Attorney and former ANA Governor David Ganz wrote several good articles about the 1933-1934 gold period over the years whose results were posted on the CU Forum.
look for recent banking system problems to expedite/"justify" the switch to Central Bank Digital Currencies (CDBCs).
Jim Rickards warns:
"CBDCs are programmable and controlled by the government. This means when a (bank) run develops, the government can stop the run just by freezing CBDC account transfers. They can even claw back earlier transfers."
Once CBDCs are implemented, "you're locked into a system controlled by the government. You're in a money jail."
We're approaching the point where there will be only two forms of "money" - precious metals and CBDCs. There's never been a stronger case for owning/procurring precious metals.
Give Me Liberty or Give Me Debt
@derryb said “We're approaching the point where there will be only two forms of "money" - precious metals and CBDCs.”
It is hard to imagine much support for this among either of the mainstream parties for the foreseeable future. It definitely can’t be done by executive fiat.
It's not getting support. But merely getting no push back or resistance. Like we saw all during the pandemic.
I don't see much if any resistance for a change to CBDC. We've already seen incredible social, economic, law enforcement, and political changes in just the past 3 yrs. No one stopped anything of that and it wasn't "voted" upon......basically by fiat and new "interpretations" of statues. If the govt had let the 2008 financial crisis run that would have been a perfect time to institute CBDC. It's even a better time now on the backs of the current or next financial or social crisis. It can be done by fiat. The pandemic mandates weren't "voted" on, that was all done under Emergency Powers and EUA's. Only a small percentage resisted. None of our Congressman or Senators "voted" for it. Yet we got it....and those Emergency Powers and Authorizations have in most cases NOT been returned to the people. All it takes is a majority of the country not willing to say "No.". We're "deeply" involved in a protracted "excursion" in Europe/Ukraine....after being in Afghanistan (our longest war)....none of it declared or authorized by Congress. Apparently, the next thing on the docket is giving the WHO and NATO powers over sovereign nations, including the USA whenever declared by fiat. I don't see a majority of leaders or citizens standing up to say No. So that "cannot" happen with CBDC's?
RR: I agree that there can be extraordinary lethargy; but, people get (reasonably) upset when inflation ticks up; surely they will react if there were outright (and explicit) confiscation?
At the moment, it is probably just a matter of speculation and watching things unfold; if it goes in the direction you forecast, I suspect you'll see more cohesion on this board than we're used to.
COWRIE SHELLS !!
CBDCs are not a confiscation and will not cause alarm to the uniformed masses. It will simply be a "your money is now safe and sound in a Federal Reserve Bank digital account."
It will go in the direction RR, I and others are saying that it will - we are keeping ourselves informed on the topic. Maybe you should also.
Give Me Liberty or Give Me Debt
Sure, the masses will get mad, or at least a lot of them. But, the media will inundate everyone 24 hrs/day on how this is a win-win for everyone. The left will be it all. Half the right will buy it. And that's enough lethargy to let it happen. It's not so much about confiscation as about total control. The monetary control will be applied to all aspects of our lives.....what we can spend our digi-bucks....what cars, what foods, what meats (or insects), what coins (if any), etc. To go along with the monitoring will be social media monitoring to come up with social, carbon, credit scores. Credit scores won't be based on your financial strength....but a mix of that and your social, economic, and political agenda. ESG. DEI. Etc.
Included will be where you're allowed to set your thermostat, how many KW-oil-nat gas you can buy, when you can charge your car. Get a bad week or month of "scores" and you might not be able to charge your car for more than a 10 mile trip, every 5 days. Also throw in taxation of your money flows as well....to include annual taxes on your total wealth (hello coins and PMs!). I'm not so much worried about the money being taken though with the reset expect pennies on the dollar....60c to 80c? Worse is that we'll be told when we can spend those digi bucks. I can envision a "guns and ammo" monitoring across the digi bucks buying spectrum....soon to be followed by curtailing wealth activities outside the "expected" and preferred Main Stream economic community. I doubt coins and PMs are going to be freely allowed without onerous additional taxes or regulations....or public floggings. At a minimum expect to be audited or outed to the public if you don't play the digi-bucks game by "the rules" as the Govt/Media expects you to. Visits from your neighbors and former friends could follow. Maybe they'll convince you to follow "the rules."
This is not speculation. This is what the elites want for us. The billionaires control just about everything now in the Western World. They have the power and money....what can stop them? Certainly not our "elected" officials. Without a huge grass roots push back from both the left and right, CBDC is coming. And it might come anyways via an emergency decree when the next financial balloon burst occurs.
RR, there is a big difference between wishing and getting. The elites will not get what they want.
Knowledge is the enemy of fear
The elites ALWAYS get what they want here in 'Merica. They can have it. No elites/brainwashers anywhere near me. You can be a sheepz or you can be the Shepherd. RGDS!
The whole worlds off its rocker, buy Gold™.
Yeah, this time it's different. LOL
Give Me Liberty or Give Me Debt
Maybe. A lot of folk have big hands.
Knowledge is the enemy of fear
FED leak - The Fed Proposes a 4th Function of Money: Means of Social Control
Easily done with CBDCs.
Give Me Liberty or Give Me Debt
Let's see from Dec 1913.....that's nearly 100 yrs now of the elites getting exactly what "they want."
I was wandering around London and came across a protest near parliament. I instantly thought of this post when they handed me this flyer
@derryb posted “FED leak - The Fed Proposes a 4th Function of Money: Means of Social Control”
Derryb - did you actually read this and look back at the source? It is a wildly deceptive article. No one at the Fed is suggesting money as a means of social control. As a routine process, the Fed asked for comment on various issues. Anyone, including you and me, are free to comment. The assertion about money as a means of social control came was part of a comment from a (seemingly) far left academic.
double post
Give Me Liberty or Give Me Debt
The assertion that the FED (or its handlers) WILL NOT use CBDCs as a means of social control all the way to the right on the "
Naive" scale.
You seem to forget: "Never let an opportunity go to waste." My contention is that social control is one of the reasons CBDCs will be implemented. There are a dozen good reasons to implement CBDCs when looking though the eyes of the CBDC creators. CBDC lovers need look at affect of CBDCs on the individuals forced to live with them.
Give Me Liberty or Give Me Debt
@derryb; “My contention is that social control is one of the reasons CBDCs will be implemented”
I don’t disagree with your concern. What I object to is Mish’s headline assertion “The Fed Proposes a 4th Function of Money: Means of Social Control”. The Fed simply doesn’t say this. A left leaning academic who commented on the Fed paper seems to be proposing this. Either Mish is incompetent or he is dishonest.
China said it and does it right? isn't that the model in play?
Mishes headline is in reference to his link which is a "Response to Notice and Request for Comment Response" to the FED on it's white paper (Docket OP-1670). The highly qualified author (check his credentials at the bottom of the link) is simply reminding the FED that there is a fourth function of money - a means of social control. To support this claim he simply reminds the FED that "The centralized monopoly over the functions of money held by sovereign governments and central
banks has generated great income and wealth imbalances." This is true, his claim of "a means of social control" is therefore true. Yes, the FED said nothing of using money for social control (intentionally?), they were simply called out on their failure to do so.
And this highlights the good possibility that CBDCs will be further used to control social behavior at the individual level. There have been numerous post here including member fishteeth's photo above on the threats CBDCs (and the corresponding abolishment of cash) pose to personal freedom.
FWIW, I don't have a problem with someone choosing to use a CBDC just as I have no problem with someone choosing Chase over Wells Fargo. With the implementation of mandatory CBDCs Its the lack of choice and even worse sacrificing the choice of holding and using cash.
Give Me Liberty or Give Me Debt
Canada did it also.
What I object to is Mish’s headline assertion “The Fed Proposes a 4th Function of Money: Means of Social Control”. The Fed simply doesn’t say this.
I can't think of a government program that has never been vastly expanded once it's been put in place. Can you? Don't you even wonder why we suddenly need 87,000 new IRS "agents", complete with guns, ammo & training?
I knew it would happen.
Today in Beijing,
Brazil and China have apparently struck a deal to ditch the U.S. dollar in favor of their own currencies.
The deal, announced yesterday, will enable China and Brazil to carry out trade and financial transactions directly, exchanging yuan for reais – or vice versa – rather than first converting their currencies to the U.S. dollar.
The Brazilian Trade and Investment Promotion Agency (ApexBrasil) said the new arrangement is expected to "reduce costs" and "promote even greater bilateral trade and facilitate investment."
China is Brazil’s largest trading partner, accounting for more than a fifth of all imports, followed by the United States. China is also Brazil’s largest export market, accounting for more than a third of all exports.
Brazilian President Luiz da Silva has moved to strengthen ties with Beijing after a period of rocky relations under his predecessor, Jair Bolsonaro, who used anti-China rhetoric on the campaign trail and in office.
The BRICS++ Brazil, Russia, India, (Iran), China, South Africa, (Saudi Arabia) are all working together towards a global change (the 100-year change Xi was referring to when he left Putin in Russia) in reducing the USD influence in world trade. At some point a lot of dollars they have been holding will come back to haunt us with more inflation.
Japan with its zero-interest rate for too long policy has helped financial gurus develop $1,000 trillion in dollar derivatives that are getting riskier by the day as a result of fast interest rate hikes and greedy monetary leveraged manipulation. When we get into the debt limit political debacle in a few months more bad things are going to start to happen, and more banking problems will surface.
Of course, bankers, and most of our leaders, and some on this forum will tell us everything is fine. No worries.
National Commemorative Medals of the U.S. Mint:
https://www.pcgs.com/setregistry/u-s-coins/medals-tokens/national-commemorative-medals-united-states-mint-1940-present/alltimeset/195526
Gradual dedollarization would be a great thing for the US. Rapid dedollarization is unlikely to happen and won’t benefit anyone. (But it would hurt China more than it would hurt the US)
Funny how those who earlier warned here of the dollar's coming demise were labeled as Anti-American and Pro-Russian. Just goes to show you that reality is non-political. I suspect there will be more "told you so" messages in the future. LOL
Give Me Liberty or Give Me Debt
The dollars not going anywhere. Those that continue to root for the destruction of the all mighty greenback are anti-American. Root all you want son but it ain't happening. Semper!
The whole worlds off its rocker, buy Gold™.
You mean this dollar?
Give Me Liberty or Give Me Debt
@derryb said “Funny how those who earlier warned here of the dollar's coming demise were labeled as Anti-American and Pro-Russian”
Not quite sure which posts you’re referring to? Please clarify!
(or is derryb’s post, preceding blitz’s post clairvoyant! 😮)
Some call it bunker paranoia. THKS!
The whole worlds off its rocker, buy Gold™.
Warning about something that could happen is not the same as "rooting" for it.
And if the act of criticizing government policies you disagree with becomes "anti-American", then welcome to the fascism.
It's still in the midst of the "re-set". Like that frog in the vat of water. Now turn up the heat ( banks call it a stress test ).
This is not gradual. According to Bloomberg, foreign central banks hold large numbers of treasury bonds (similar to SVB) that are now underwater. Japan including private holders has over 1 trillion in treasury bonds and China .87 trillion the last data I saw.
Foreign central banks liquidated Treasury holdings at the fastest clip in nine years last week and tapped a key Federal Reserve facility to raise cash as banking stress roils markets.
Fed data show foreign official holdings of Treasury securities fell by $76 billion in the week through March 22 to $2.86 trillion. That’s the largest weekly decline since March 2014.
At the same time, the US central banks recently established Foreign and International Monetary Authorities, or FIMA, repurchase agreement facility was tapped for a record $60 billion, data show, dwarfing the $1.4 billion peak reached during the height of the pandemic.
SVB collapse and impact is small compared to risks inherent with Japan's central bank holdings, if interest rates stay high for longer. These Fed repo agreements are temporarily hiding some very big problems.
National Commemorative Medals of the U.S. Mint:
https://www.pcgs.com/setregistry/u-s-coins/medals-tokens/national-commemorative-medals-united-states-mint-1940-present/alltimeset/195526
@Goldminers said “SVB collapse and impact is small compared to risks inherent with Japan's central bank holdings”
Can clarify what risks you see in connection with BOJ US treasury holdings?
Note. these are currently risks and opinions of some, not yet facts. Derivatives are a big unknown.
https://finance.yahoo.com/news/3-trillion-threat-global-financial-000037434.html
https://markets.businessinsider.com/news/stocks/robert-kiyosaki-rich-dad-poor-dad-bank-crisis-interest-rates-2023-3
https://mainichi.jp/english/articles/20230331/p2g/00m/0bu/035000c
Also there are other opinions.
https://finance.yahoo.com/news/japan-banks-little-risk-at1-050650167.html
bottom line is uncertainty. Very few predicted SVB situation until after the fact. What is fact is that central banks and other banks are using the repo facility to improve their chances at a record pace. This to me is a risk that is in addition to the political BRICS dedollarization impacts and selling treasury bonds back to the Fed. US banks have $620 billion in unrealized losses on their books. These lag effects from interest rate increases are significant. Gold is being purchased by many foreign central banks at faster rates as a perceived store of value.
National Commemorative Medals of the U.S. Mint:
https://www.pcgs.com/setregistry/u-s-coins/medals-tokens/national-commemorative-medals-united-states-mint-1940-present/alltimeset/195526
Some "warn" about a fictitious in my bunker the whole world is ending fantasy, and some here clearly continue to root for the demise of our GREAT nation. THKS!
The whole worlds off its rocker, buy Gold™.
Quite an accusation. Care to back it up?
Give Me Liberty or Give Me Debt
Love reading the fear of things we know nothing about or have very little understanding of. Thanks for tha vacation reading.
Presently in Cohodkville.
Bunkerlife. Haha. Haha
Knowledge is the enemy of fear
Looks like gutter finally went positive (In relation to your "doomed" USD's). Too bad it couldn't even keep pace with current "inflation" LOL
The whole worlds off its rocker, buy Gold™.
@cohodk - not a bunker, but perhaps a South Pacific refuge!
You accuse other posters here of "rooting for the demise of our country".
And you also make accusations that you are a victim of "stalking" here.
I think you are actually the one with the paranoia (that you falsely accuse others of having).
So much for QT and reducing the balance sheet.
The Fed has recently accumulated about $44B in total losses. This is driven by two factors:
Similar to SVB, it is selling assets (under QT) that are now worth less than when it bought them.
The interest paid out to banks (4%+) is greater than the interest it receives from its balance sheet (2%).
When the Fed makes money, it sends it back to the Treasury. This has netted the Treasury close to $100B a year. Doesn't look like they will be helping fund our government deficit spending for a while.
Gold is looking even better the more this mess continues.
National Commemorative Medals of the U.S. Mint:
https://www.pcgs.com/setregistry/u-s-coins/medals-tokens/national-commemorative-medals-united-states-mint-1940-present/alltimeset/195526
Rhodium not looking so precious anymore. Down to $6,000 bid. Down 50% in 4 months.
National Commemorative Medals of the U.S. Mint:
https://www.pcgs.com/setregistry/u-s-coins/medals-tokens/national-commemorative-medals-united-states-mint-1940-present/alltimeset/195526
Brazil and China are blowing smoke, folks.
In other news.... I intend to triple my net worth monthly for the next 2 years by which time I will be the first trillionaire. If you want in, send me a check made out to the Common Assset Structured Hostingfund or CASH for short.
https://cointelegraph.com/news/russia-talks-up-prospects-of-brics-countries-developing-new-currency
Smoke signals.
National Commemorative Medals of the U.S. Mint:
https://www.pcgs.com/setregistry/u-s-coins/medals-tokens/national-commemorative-medals-united-states-mint-1940-present/alltimeset/195526
It's certainly possible that the BRICS could create some sort of trading unit that behaves like a currency, and try to use it for trade among themselves. That would be a pretty non-event.
The chance of the BRICS trying to (and succeeding at) a move to a common currency is virtually nil.
In a few decades, if the Chinese can arrest their slide towards brutal totalitarianism, the yuan could serve as a global currency. It's not something we need to reflect in our mid-term (say, 5 - 10 year horizon) planning.
Very nice,
Just up the street, circa 2021.
fka renman95, Sep 2005, 7,000 posts