Digital Currency:  Threat to Freedom?

Author:  R. Alan Harrop, Ph.D 

 Like all things, the high-technology revolution we are experiencing has both positive and negative possible outcomes. Those who advocate the new high-tech systems only tell us the positive side since they are the ones most likely to benefit financially. I strongly recommend that you read or re-read George Orwell’s novel, 1984. In that story, the author shows some of the ways that modern technological advances can negatively impact our most basic freedoms.

The January 6th investigation showcased how easy it is for the federal government to monitor our whereabouts using our cell phone locations. Our movements can be traced not only in the present, but also in the past. Many people were subjected to criminal charges because their cell phone location data indicated they were on the Capitol grounds on January 6th. In his prophetic book, Orwell relates how two of the characters had to arrange meeting in a forest in order to avoid being filmed and monitored together in public. The extensive use of digital surveillance cameras throughout our country has established exactly that scenario in today’s society. While one could argue that surveillance cameras are useful to identify law breakers, which is true, the cameras provide the capability for the government to use this information for nefarious purposes if it so chooses. Ask the innocent people caught up in the January 6th dragnet.

A couple of more mundane examples are the attempted use of GPS tracking data on automobiles by a city in the United Kingdom to put limits on how many miles a resident could drive from that city. How about the proposal by some of the environmental extremists to limit how many miles a person is allowed to drive per year to reduce fossil fuel consumption and emissions? Farfetched? Look at the mandatory system currently in place that slows down a diesel-powered truck to 5 MPH if there is a defect in the emissions control system that has not been corrected within a certain predetermined mileage limit? The point is that high tech is providing mechanisms for the government to control our lives in ways that were never anticipated years ago.

Artificial Intelligence (AI) is another rapidly advancing technology that has the potential for very positive changes that may enhance human existence, but at the same time could be used to interfere with our freedoms in significant ways.

Now we come to the issue of digital currency, which is in the process of being implemented in several other countries. The Biden administration sanctioned the development of a proposal or plan for digital currency here in the United States. While not yet implemented, we could see it in the near future. Digital currency is a government-controlled system that does away with cash transactions and replaces them with a system of electronic data for all monetary transactions. Your wealth exists only as an electronic record somewhere in the digital world. The software even has what is called a digital wallet which is where your assets are stored for use in purchasing and selling. Why would anyone want this phantom money system? The main advantage according to advocates is that the government would have increased ability to manage the economy by monitoring and controlling the use of money. Of course, this would also allow the government to monitor and record all your purchases and expenditures.

Unlike credit cards and bank accounts today that use electronic accounting for deposits and withdrawals, the digital currency system bypasses the local banks and is managed directly by the federal government. Now, what could possibly go wrong with that? Well, actually several things. We continually hear about foreign entities successfully hacking into supposedly secure private business and government computer systems. What if these hackers destroyed the entire digital system? How about an attack on our electrical system? The old saying, “Don’t put all your eggs in one basket” applies here. Another issue is that the government could monitor and actually control how you spend your money. They could easily see what you are spending your money on and redirect it to items they deem more appropriate. For example–buying too many juicy steaks instead of beans. Of course, no government would ever do such a thing; or would a government that mandates unproven vaccines do so?

The bottom line is that a digital currency system, while it may have some advantages, would give the government almost unlimited capability to monitor and control our economic freedom to spend our own money as we see fit. By the way, which country is strongly moving towards a complete digital currency system? You guessed it; communist China. We must monitor where our legislators are on this issue if we are to preserve our freedom.

Something To Watch

On September 23rd, The Geller Report reported the following headline:

World’s second-largest economy offloaded US$13.6 billion worth of US debt in July

But China still remains the second-largest foreign holder of US Treasury bills, having been surpassed by Japan in mid-2019

The article reports:

Amid persistent concerns over the safety of its overseas assets – most of which are US dollar-denominated – China has slashed its holdings of United States Treasury bills for the fourth straight month.

The world’s second-largest economy offloaded US$13.6 billion worth of US debt in July, bringing China’s holdings to US$821.8 billion, according to the latest data from the US Department of the Treasury.
China’s overall holding of US debt remains at a 14-year low, after reaching that level in June.

Beijing has been continuously cutting China’s US debt holdings since early 2022, with two exceptions – in March of this year and July 2022, when it increased holdings by US$20.3 billion and US$320 million, respectively.

Beijing remains the second-largest foreign holder of US Treasury bills after being surpassed by Japan in June 2019.

Keep in mind that we are seeing a global move away from the U.S. Dollar as a global currency. That has a lot to do with the reckless spending by our government. As oil is traded in currency other than PetroDollars, we can also expect a move toward digital currency. There is nothing wrong with digital currency as long as it is not Central Bank Digital Currency, which gives the government control over how much money you earn and how you spend that money. If you are going to invest in digital currency, treat it like buying a stock–do your research first! Meanwhile, keep an eye on China as it unloads American debt.

Dangers of Digital Currency

Author: R. Alan Harrop, Ph.D

Given the harsh reality that today’s Democrat Party follows Marxist principles which will destroy this country as we have known it, the best starting point is to oppose any new initiative coming from the Biden regime. Their newest, and arguably, the most destructive of their many destructive policies is that of a digital currency. They are currently “testing the waters” so to speak and we must not allow them to implement this
idea. There are many reasons to oppose a digital dollar; here are a few of them.

According to the Biden regime, a digital form of currency (Central Bank Digital Currency, CBDC) would be issued and controlled by the Federal Reserve and replace paper money in most if not all transactions. To a great number of people, myself included, who rely very heavily on their credit cards for most financial transactions this may seem to be a logical step. But it is much more. First, a digital currency would be totally
controlled by the Federal Reserve which is an agency frought with many problems since its inception in 1913, but most importantly the people do not control or select its members. We cannot vote them out of office if we so desired, consequently we lose control over our money system. Very bad idea. Second, digital currency
is not backed by any tangible asset that has inherent value such as gold, silver, oil, etc. Third, and this is critical, the government would not only be able to track all your expenditures but would be able to stop or limit you from purchasing items they do not think you should have. Like gasoline powered cars, meat, gas stoves, guns, ammunition to name just a few.. Why in the name of all that is holy, would any sane person want to give the government total control over your finances? Without the ability to spend what you want on whatever you want, you have lost your freedom. Period. No wonder Marxist governments like China are moving towards digital currency. Fourth, the money you have accumulated can be lost if the system is either hacked or is compromised by an attack on the electrical grid. We all know how totally preventing this type of hacking is already not possible. Fifth, say you wanted to go to a local bank (most of which will be eliminated) and withdraw some cash. Sorry, you will no longer be able to do so.

You must stay abreast of what is going on with digital currency and let your elected officials know that you are opposed and want it stopped. Like all destructive Marxist social programs (e.g. Medicaid) the Democrats will try to sell this idea with phony advantages. Do not be fooled. This is one of the most, if not the most destructive Marxist ideas and the Republican controlled U.S. House of Representatives must block
digital currency, if our country is to survive