The Tipping Point

7 Is the Dollar Facing a Tipping Point? CBDCs are still in development, and there is currently no standardized approach to their design or implementation. However, several central banks around the world are actively exploring the possibility of issuing their own CBDCs. CBDCs and Fed Control CBDCs could potentially be used by central banks to manage and control spending in an economy in a few different ways. Here are a few examples: 1. Direct distribution : Central banks could use CBDCs to directly distribute money to households or businesses, as a way of stimulating spending and boosting the economy. 2. Interest rates : CBDCs could be designed with interest rates that vary based on economic conditions. 3. Transaction limits : CBDCs could be designed with transaction limits that restrict how much money people can spend or transfer in a given time period. 4. Negative interest rates : CBDCs could also potentially be designed with negative interest rates, which would effectively charge people for holding onto their money rather than spending it. 5. Expiration dates Another way to “juice” the economy could be to make money “expire” within a certain time period so people are forced to “use it or lose it.” These are hypothetical examples that are actively being discussed and are considered "features, not bugs" for those in power. The implications of these kinds of controls are staggering. Entire sectors of the economy could be shut off or hobbled with the flip of a switch. Certain people could have their money disabled, while others get their money doubled. The Fed could have us all by the nose. Remember: The gold in your pocket or in your safe at home cannot be "turned off" remotely. With Central Bank Digital Currencies, this process of exposing and debanking political dissidents becomes streamlined. CBDCs are programmable, centrally controlled digital currencies. 11 Like cryptocurrencies, every transaction could utilize a blockchain ledger. For central banks, that could be a huge advantage for tracking and tracing every dollar spent in the economy. And it could be very very simple for a faceless bureaucrat somewhere deep in the swamp to simply shut off your money if you misbehave. If CBDCs are not already on your radar, they should be. And what if a huge swath of the economy rebels and refuses to adopt CBDCs? We could see a renewed interest in cash transactions, barter and trading in precious metals again. Gold and silver are one way to regain your financial privacy and that will have more and more appeal if and when people experience the weaponization of CBDCs. www.LearCapital.com