Gold, digital currencies, central banks and the new year…here we go.

Buy Gold Buy SilverI am pretty sure this will be the last post of the year, unless something huge breaks between now and January 3rd, 2018.  The way things are going, it very well could.

There is always a plethora of financial/economic/gold/etc…news to talk about at any given time, 2017 has been one for the history books!

Depending on your affiliations your “biggest news” story of the year may vary from the next person’s.  I thought it appropriate to end this years talking briefly on the big financial news stories, most notably, the crypto currencies…, I guess take over is the appropriate phrase to use here? I’m not sure how to accurately word it, either way,  it has been a major focus this year for a good reason. Of course we have to touch on the stock markets record breaking year and a few other news worthy items.

I had a client come in yesterday and ask if I read the Washington Post’s opinion article that discussed how bitcoin is huge, but the “fedcoin” is going to be even bigger. Yeap, I said “Fedcoin”.

Funny thing about that is that there is no such thing as a “fedcoin”…yet.  I can all but guarantee it’s coming and when it does, other crypto currencies will fall and fall in a big way OR (I guess I should say and/or) other digital currencies will be outlawed making their value on the black market even more astronomical than they are now.

To keep it consistent I am going to use the term “bitcoin” throughout this post to mean all crypto currencies, I know that’s not a fair assessment as they are all different in certain aspects, however, I don’t care, I don’t want to type crypto currencies all the time, it doesn’t typeflow smoothly (I think I just made up the word typeflow – I’ m sure you get my drift).

I posted about this a while back, talking about how I felt that bitcoin technology would be taken over (borrowed/acquired) by the central banks, specifically the Federal Reserve.  What better way to get the absolutely best technology than have a open source structure, as bitcoin and the blockchain technology, on the open market, working out the kinks for you. Once it’s at a place where it is doing what you want, you take that technology and make so that no one else can continue to modify it (by “legal means”), and you use as your own. You following me here?

One direction we could take this theory is that the central banks, the Bank of International Settlements, the IMF, et.al, have waited patiently, watching and yes, monitoring Bitcoin, keeping tabs on the advancements in the code that governs it. All the while the world’s best and brightest dive in to the code to make it the best possible version of itself…then the regulators take the source code and make it their own…for free.

God knows the government could never do 0.0001% as well as the free market when motivated by anti-government sentiments.  The motivation for having Bitcoin is in the “freedom” from regulation and, blah blah, you know the spiel. Is any of that “freedom” true, who knows. Does it matter? Nope.

What better way to stymie true and natural growth of anything than government (and/or government sponsored global central banks regulatory agencies) involvement.  We are about to see it happen again with digital currencies, just wait.

I think 2018 will be the year of Federal Reserve announcing a move to digital. Will it happen next year? That wouldn’t surprise me, but I highly doubt it. The announcement, yes, the implementation, probably not.

It will take a couple years to phase out paper currencies, in theory.  You never know.  It doesn’t matter how long it would take the government to phase anything in or out, when the announcement comes, if the government is ready or not, Bitcoin and the like will be public enemy number one!

Those who own Bitcoin will be told that all transactions using Bitcoin are illegal, however, you can turn in your bitcoin for cash (at their determined rate of exchange and I’ll promise you it’ll will not be anywhere even remotely close to where Bitcoin is today – it’ll be closer to where Bitcoin started out). You can then exchange your paper for the Federal regulated digital currency or face a fine or jail time. It’s an old story that the government has told before, this will be no different.  Don’t believe me? What was threatening the dollar back in early 1900’s? Physical gold. What did the government do? If you don’t know that will be something fun for you to look in to.

I know what you are saying, what about all the people who are accepting bitcoin already and/or starting their own crypto currency (e.g. Amazon)?

That’s easy, reference what I mentioned already about the open source, the government will have the code, it’s an easy patch (or easy in the grand scheme of coding) to change all Bitcoin vendors to accept the new Federal version.  You’d still be able to use a crypto currencies, however, it would have to be converted or go through some form of exchange (as we see with paper foreign currency exchanges) before it could be used.  Think petro-dollar as an example, if you want oil you exchange your countries currency into dollars, however many dollars you get at that given time (whatever dollar to your currency exchange rate is) that is how much oil you can get.   No one needs to reinvent the wheel here. It’s all set up.

Even before the bandwagon started moving with Bitcoin, their has been talk of going digital with our currency. You can find references to this long before Bitcoin was ever invented.  How do we know this hasn’t been one big global government test? We don’t.

We have no idea who created Bitcoin, your imagination is the limit as to what/who created it and their purpose.  Was it simply a new way to look at currency (aka: money) created by a guy who was tired of government regulations on his hard earned currency or is it a massive global conglomerate test market of how feasible a global digital currency truly is and the inter-workings of it?

Do you have indisputable proof of anything? Nope. Neither do I.  Does bitcoin in all it’s glory sound like something a simple computer programmer could accomplish alone? Maybe, maybe not.

It certainly seems to be that Bitcoin is moving along just fine on it’s own, without government or any one else interfering (outside of an open source code).  Again, I have to ask, how do we know that there isn’t or better said, that there hasn’t been “interfering” all along? Is this getting too conspiratorial?

I was told years ago that most complex problem can be solved with the most simple solution, so always look for the most simple solution.  In the Bitcoin equation, is the most simple solution that it is what we have been originally told? One guy saw a need and devised this genius code to govern and solve a problem that has been plaguing societies and governments for as long as forms of trade have been introduced?  That is a simple solution.

I can imagine that there will be some “crisis” that will be blamed on crypto currencies, which will usher in some drastic changes imposed by the federal government(s) and global regulatory folks. It’s only a matter of time.  It’ll all be for the better good, to save you and me, they have to protect us from the evils of some source that needs no government oversight to function properly.

Do you honestly think that anything will change when the world’s central banks start using their own crypto currency? It’ll still be backless (unless someone huge is brave enough to create a truly backed system…did I hear someone think China?).  It’ll still be debt driven, only now they will be able to monitor every single action and transaction. Land of the free.

According to our calendars 2018 is about to begin.  It looks to be a year that will require some serious financial insurance! You need to have physical gold and silver, end of story.  You can have your digital currencies, your real estate, your art, your collectibles, whatever you feel is a form of financial insurance, please, be sure that you have the only true, tried and true, form of financial insurance going in to the new year, physical gold and silver.

We hear and talk more about the negative than the positive that surrounds us daily.  There is far more positive out there than we are shown.  I had a flat tire the other day, four people stopped to help me, four! I never expected one, by the time I change out to the spare four people stopped. This should not have happened based on how divided we are told we are.  We are all humans, many think differently, true, but that is what can give us so much beauty, if we stop listening to how we should respond/react and truly listen to our hearts.

We do need to have financial insurance and we need to be educated, that’s a given.  In this new calendar year remember that you have to be prepared, but you also need to simply laugh at all of life’s absurdities, and there is a lot of absurdity out there.  When you see it for what it is, it’s easier not to get weighed down by.  All you can control is what you do and how you think.  I am not sure who can be credited for this statement, but I find it to hold a solid truth: When you change the way you look at things, the things you look at change.

Here’s to a safe, exciting, prosperous, joyous, wonderful new year! Here’s to new ways of thinking, being, loving and living.

Happy New Year!!

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