Posted November 23, 2022
By Jim Rickards
Germany Embraces “Biden Bucks”
As I have been warning my readers for many months, “Biden Bucks” is coming to America.
The Biden administration is moving forward with their government-backed digital currency.
To recap, I predicted that the U.S. dollar would be made obsolete, your cash would be confiscated — or simply become worthless paper.
I fear this will become the basis of a new system of full citizen control through the financial system, something akin to China’s social credit system that controls the entire population based on political loyalty.
The cash currency we have now will be replaced with a new, programmable digital token.
This new currency will allow for total control of all American citizens. Because every “digital dollar” will be programmed by the government. That means they will be able to “turn on or off” your money at will.
Just Look at Germany
If that sounds like a stretch, it’s not. Take a look at what's happening just this week in Germany.
As Reuters states:
“German authorities are stepping up preparations for emergency cash deliveries in case of a blackout to keep the economy running… as the nation braces for possible power cuts arising from the war in Ukraine.
The plans include the Bundesbank, Germany's central bank, hoarding extra billions to cope with a surge in demand, and possible limits on withdrawals.”
If things play out in Germany the way I envision, there will be blackouts, energy shortages, requirements to lower thermostats, the shutdown of manufacturing assembly lines with a consequent blow to Germany’s export sector, etc.
It will probably ignite social chaos in the process.
Creating the Panic Conditions That They're Trying to Avoid
Germans are going to run to the ATMs. They know that in case of blackouts, credit cards don't work, gas pumps don't work, etc. But cash does work. It allows people to go down to the store to buy some food for their families or whatever might be needed.
But the cash might not be there, or their withdrawals will be limited.
It’s telling that this would happen in Germany. For a major industrial society, Germans actually like using cash. Germans use cash more than other countries, certainly more than Americans. So the plan will meet significant resistance.
By limiting cash, the authorities are going to create the panic conditions that they're trying to avoid. There are probably going to be riots as events unfold. No one's encouraging that, but it's what history and human nature teach us.
It'll start with demonstrations, which will turn into riots. I've seen this happen in Lebanon, incidentally. They started burning down the banks and started rioting. You'll start to see that in Germany, and France may not be too far behind. Don't think it'll stop there.
This is the exact scenario I have been warning my readers about. But can something like that happen here? The short answer is, yes.
The World of Biden Bucks
In a country of Biden Bucks, the government will know every purchase you make, every transaction you conduct, and even your physical whereabouts at the point of purchase.
It’s a short step from there to negative interest rates, account freezes, tax withholding from your account, and even putting you under FBI investigation if you vote for the wrong candidate or give donations to the wrong political party.
And now it’s starting in America…
The Fed’s 12-week pilot program, which was introduced last week, will test the use of Biden Bucks and how the financial system will work when implemented.
A group of major banks and the Federal Reserve Bank of New York have started to test the use of digital tokens representing digital dollars to improve how central bank money is settled between institutions.
What happens if policymakers here limit the amount of cash individuals withdraw like what’s happening in Germany… or completely abolish paper money?
It would cause rioting in the streets and social unrest the likes you have never seen.
In a central bank digital currency world, you could get your paycheck or your return on your investment or interest or whatever into a bank and the Federal Reserve can because it's programmable.
Your Spending Must Be Government-Approved
They can say, "Okay, you got some money, good for you, but by the way, you can only spend it on gas and food. We're not going to let you spend it on vacations, because they're frivolous. We're not going to let you spend it on contributions to certain Republican candidates because they’re fascists and a threat to democracy, et cetera."
You can only spend your money on socially approved or politically approved purchases. That's how these things can play out.
You don't have to take it from me. Just look at Germany, we see them doing allocation. Just combine government allocation of what you can do or can’t do with programmable central bank digital currencies. It's all coming together.
When the digital currency finally rolls out, probably sometime next year, cash will dwindle. You're going to be herded into a digital slaughterhouse, you're going to have no choice. Your money in the bank won't be your money anymore.
Your Cash Withdrawals Are Already Limited
I tell people, if you have money in the bank, it's not your money, it's the bank's money. They'll give it to you if they feel like it. That's already true. If you have $100,000 in the bank, go down to your bank today and ask them for $50,000 in cash.
They'll tell you, "Sorry, we don't have that much. Come back, make an appointment. Bring your birth certificate and your passport and your driver's license," and everything else you can think of and they will file a currency transaction report with the Financial Crimes Enforcement Network.
That's the money laundering unit of the U.S. government. You'll be put in a file right next to Osama Bin Laden. My point is, people think they can get their money, but they actually can't. Try it. I guarantee you it'll play out exactly the way I described.
With digital currency, cash won't even be an option. There won't be any cash, you'll be in the digital slaughterhouse.