In less than a week the South African Food & Supplies Outreach has collected so much food it could fill up half the stadium that has been offered as storage space for distribution. The volunteer distribution staff has had to quadruple and they currently have enough food to feed a million people. Below is a testimony I was sent by one those who live in SA and is administering this effort by Boulder Foundation: Anyone Who Wants to be Part of the Most Awesome Time Ever The last 18 months in worldly terms was terrible but I want to tell you of the Greatness of our God. Yes these reports are true but why do some trusting with fullness in God experience this totally different.
We have a property in the Heart of Durban (we call it God’s flowerbed in the heart of Durban City) where we support a pastor and his family from DRC for the past 8 years. We know God has a plan for Durban City and not a week goes past that we don’t pray for that city and Oscar (The Pastor). When this unrest started I called Oscar not concerned but with a heart how can we help. Obviously with a bottle store and a supermarket TENANTS in the building we should have been looted and part of this destruction story. BUT God protected us and not only protected us but enabled us as group to use this building as a distribution place for food to these poor people.
A week ago on a prayer call we prayed for three of the group’s friends we knew in this area. We did not get into this due to despair and hopelessness but because God gave the body a means to THE SOLUTION in every place where the physical human nature says different. Within less than a day God made it possible to fly in food to help. This small act of help was the beginning of many testimonies that is still unfolding.
Yesterday after ness than a week I received a cash Offer for my Small farm less that 10 km from one of the major areas of destruction in Johannesburg. The world says no, no, no GOD says this my child is another opportunity to proof my love to people, and another opportunity for ME to love people. What the world deemed as disruptive, destructive and harmful God ordained to be another opportunity. Be encouraged Family
Certain areas of South Africa are in anarchy and citizens are under strict stay at home lockdown and many are threatening to be shot by both government and the anarchists, if they leave their homes. People can’t go out and buy food or any other provisions. Zuma the former president who was very corrupt and stole from everyone while in office was put into jail and that ignited the demonstrations and its escalating. The crisis in South Africa is very severe, even if people could manage to get to a store, there no food or provisions on the shelves.
Currently an effort is being put together to assist South African citizens to get them food and supplies. They are putting together a plan that is mobilizing private planes, private pilots, trucks, businesses, ministries, and people in a matter of hours. They have secured 18,000 meals that are in the process of being delivered and they would likely increase that amount as much as possible. This literally is happening now as we speak, and we can be a part of it in both in prayer and donations. I have forwarded this information to Rick, both by text and email and he can put it on the sight tomorrow. The donation can be made to the Boulder Foundation and it will be the first option listed as Emergency Relief for South Africa link on their website.
Lines are being drawn in the sand across every facet of our society, our schools, the church, social media, mainstream media, sports, small business, big business, Wall Street, federal, state and local government, and international relations. Division, accusation and animosity between opposing forces are constantly increasing. China vs. the US, Texas; Florida & North Dakota vs. the federal government; Fox vs. CNN; Conservatives vs. Progressives; Republicans vs. Democrats; BLM – Antifa vs. Police – all authority and the foundational principles of society; and Big Tech vs. everyone.
Controversy and volatility are the rule of the day and have always been perpetuated by those who stand to benefit from them. The instant mass communication technology of our day, however, is threatening the ability of the wealthy powerful few to manipulate the masses, and as these elite try to push back and maintain control through distraction and division, things will likely continue to escalate. One of the few things people seem to agree on is that Big Tech is too big and too controlling. US Markets, although volatile, are still at record highs, but market watchers and economists warn of bubbles and inflation. C-19 policies are also creating havoc, especially in CA where many of their large cities are not enforcing shoplifting laws for under $950.00. This has resulted in many retail stores closing; Target has closed six of their outlets there. C-19 policies have also cause employment shortages, as a greater number of people choose not to work due to increased and extended unemployment benefits.
What Happens When The Law Says Stealing $950 Isn’t Stealing (7.6.21) IFA & ABC7
Banks & Central Banks
Most Central banks continue to print money and keep interest rates artificially low to keep their nation’s economy afloat. They are also venturing into unchartered territory with their avocation of cryptocurrency. Reuters reported, “The Bank of International Settlements (BIS) has given its full backing to the development of central bank digital currencies (CBDCs), saying they are needed to modernise finance and ensure ‘Big Tech’ does not take control of money. Dubbed the central bank to the world’s central banks, the BIS, which is coordinating many of their discussions on digital currencies, set out recommendations on Wednesday on how a CBDC such as a digital dollar, euro, yen or yuan should look.”
Wells Fargo has closed down all personal lines of credit, they gave all kinds of reasons, but nothing substantial. If you wanted to limit your risk exposure to a coming financial crisis, however, that would certainly do it. Another sign banks are preparing for a crisis is their uptick in the purchase of gold. Russia is planning a $4.4 billion purchase this month and is also moving out of US dollars. Bloomberg reported, “Russia said it will eliminate the dollar from its oil fund to reduce vulnerability to Western sanctions.” CNBC reported that “Deutsche issued a dire warning that focusing on stimulus while dismissing inflation fears will prove to be a mistake, if not in the near term, then in 2023 and beyond.”
Wells Fargo Confirms Its Shutting Down All Personal Lines of Credit (7.8.21)
Central Bank Digital Currencies Get Full BIS Backing (6.23.21)
With every passing quarter, more and more things fall into place which lay the groundwork for paper currencies to change to digital currencies. The Bank of International Settlements (BIS) gave its full backing for the move. Some countries will handle it well, while others like China will use it to control and manipulate their citizens and businesses, as well as international businesses or anyone that uses their digital currency. In an Epic Times interview, Kyle Bass (founder of Hayman Capital Management) said, “Imagine a currency that almost has a mind of its own… It knows your account data, knows your birthday, your social security number, where you live and exactly what you like to buy. And all of this knowledge would be sitting in the hands of the Chinese Communist Party.” Bass explains the threat and potential dangers of China’s new digital currency in the link below.
Glenn Beck said, “There’s a race happening now between the U.S. and China to see which power will develop a national, digital currency first. The U.S. wants to develop a sovereign cryptocurrency that could give the government complete control — and most Americans don’t realize how close that plan is to fruition.” CoinTelegraph.com also reported the following quote from DOE governor Andrew Baily:
“… stable coins have created a whole host of issues that central banks, governments and society as a whole need to carefully consider. It is essential that we ask the difficult and pertinent questions when it comes to the future of these new forms of digital money.” The banks and central banks are concerned because they have control over stable coins digital currencies which offer greater rates of interest than the banks can, as it is an industry disrupting new innovation.”
The IMF has plans to issue massive amounts of SDRs which is a world currency. If they do this it would diminish the power of the US dollar (USD) internationally and would devalue the USD increasing inflation in the US. The greatest beneficiary of this will be China, which begs the question why would the Biden administration agree to this, if it benefits China and hurts American citizens?
Concerns Surround IMF Plan to Flood World With Liquidity (7.13.21)
US Stock Market numbers are high and it’s predicted that trend will continue in the near term, however, the last few weeks have seen radical shifts up & down. For example, the Dow lost almost 300 points on Thursday, only to gain over 400 on Friday. Needless to say, we have a volatile market with positive leanings; however, concerns are being voiced with these leanings, such as valuations that are trading much higher than their expected earnings. The WSJ reported, “Wall Street is heading into earnings season this week with high expectations after strong profits fueled a stock market rally in the first half of the year. The S&P 500 traded Thursday at nearly 22 times expected earnings over the next 12 months, above a five-year average of a little more than 18. “Valuations on their own don’t kill a market, but valuations make you vulnerable if there’s an unpleasant surprise,” said Tom Hancock, lead portfolio manager of the GMO Quality Fund.”
One positive is that the Biden Administration is ending the moratorium on foreclosures and evictions which has caused tremendous hardship for landlords, especially everyday citizens who own one or two rental units. One negative is that the G-7 & G-20 plan to create a worldwide corporate tax; this would greatly hurt corporate bottom line, discriminate against smaller countries and result in massive unemployment. The chances of this passing the Senate at the moment is very unlikely, but it’s one of the only ways the Biden administration believes it can raise taxes to support its exponential spending plans. The Epoch News reported that 9 countries have refused to sign the agreement, many of which are EU nations which can’t raise taxes without unanimous approval of its members.
Employers in the US, Italy and other nations, are struggling to find help because these governments cannot politically wean themselves from their C-19 emergency provisions. In the US employers are having a hard time finding workers, and they also have one of the highest amounts of underemployed. Reuters reported, “5.8% [unemployment] is still a high rate and leaves over 9 million unemployed. This shows up in a statistic called the “labor force participation rate” which is currently about 61.4%, close to the lowest rate since the 1970s.”
A new force with a new agenda is asserting itself into Wall Street; climate control and the Green Agenda are taking over corporate boards like Exon, and hiring big name corporate lobbyists. NYP wrote, “Nobel prize-winning economist Robert Shiller is worried a bubble is forming in some of the market’s hottest trades. He’s notably concerned about housing, stocks and cryptocurrencies, where he sees a “Wild West” mentality among investors, the Yale University professor told CNBC’s “Trading Nation” on Friday. Big name Lobbyists being hired in Washington to push both the Biden Administration and Leftist corporations’ policy agendas.”
In another part of the world, Bloomberg reported that China is busy destroying what’s left of free markets in Hong Kong. If short-term gains are your only consideration, then you may stay with Chinese stocks. But, if you’re looking for long-term profit and wealth preservation, Chinese capital markets are toxic and best avoided.
US Consumer Prices Surge in June, Inflation Climbs to 13-year High (7.13.21) Reuters
Earnings Kick Off With Sky-High Forecasts, Record Stock Market (7.10.21) WSJ
The Netanyahu government fell and a new Israeli coalition led by Naftali Bennett has taken over, but it is unclear if it will hold together. Egypt and Ethiopia are at odds over a new hydroelectric dam and water rights, as water rights have become a point of contention in many regions around the world. The Hattian President and his entire family were killed. Thousands demonstrated in Havana and other cities demanding an end to the country’s 62-year dictatorship amid a hard-currency shortage and rising coronavirus infections.
WSJ REPORTED, “A dispute over the Nile, the world’s longest river, is coming to a head. At stake are the lives and livelihoods of millions of people who depend on its water. Egypt is objecting to efforts by Ethiopia to start operating a $4.8 billion dam on a major tributary of the Nile, a hydroelectric project that it hopes will power a social and economic transformation of the country, without a binding agreement that preserves Cairo’s rights to the waters.”
South Africa is in anarchy and citizens are under strict stay at home lockdown with the threat of being shot if they leave their homes. People can’t go out and buy food or any other provisions. The escalating demonstrations ignited when former president Zuma, who was very corrupt,, was jailed for his crimes.
Cubans Are Rising Up Against Oppression & Communism (7.13.21) IFA
The greatest threat to the freedom and security of the world is China, who is pushing its agenda and threatening the world community on many fronts socially, economically and militarily. They have dropped all pretenses of diplomacy and cooperation and are simply issuing edicts, threats and warnings. Currently, there is no one keeping them in check since Trump exited the presidency. The international community is showing meager resistance and issuing verbally weak, ambiguous statements and threats to counter the Chinese threat. Internationally, the threat of China taking over Taiwan is becoming a great concern, which would likely draw the US and other nations, who by treaty are committed to defending Taiwan, into a war. If this were to happen it would also put Japan in great danger as being next on China’s list.
Currently, no one trusts China; many are limiting their trade with China, especially in the areas of critical infrastructure. Unfortunately, China will probably continue its push and this tendency is likely to increase. NATO discussed the Chinese threat at their June 28th meeting. China is not only pressuring and attempting to increase their control over the international community, but they are also greatly increasing their control over their own citizens. This is creating resistance and strife internally; the resistance is growing against the dictatorial control of Xi over the CCP and the people. In an Epoch Times interview, Roger Garside said, “The Chinese regime is “outwardly strong, but inwardly weak,” says China expert Roger Garside, and it’s plagued by a brewing financial crisis, a moral vacuum in society, and the malaise of rampant corruption.” Garside predicts a coming coup will ultimately end China’s communist dictatorship.
In the 1860s the US became divided based on race, slavery and white supremacy. France and England were actively influencing the narrative, hoping that what they couldn’t accomplish by a war could be accomplished by America destroying itself from within, after which they were posed to easily take over what remained. In the 2020s the same narrative and game plan is again attempting to divide America and just like 160 years ago the real goals and objectives are only being whispered. A growing number of states are resisting the narrative and a new civil war is brewing which may not evolve into a shooting war, but refusal to follow federal mandates and secession could happen just like it did before.
Below are links to my BitChute & Rumble video channels, with links to my Prep videos at the bottom. I have also listed the link to our Isaiah 58:12 website. I would appreciate it if you would hit the thumbs up button below each video you watch, as it causes the video to be shared with a much greater audience. Also, if you hit the subscribe/follow button on each site, you will automatically receive a notice each time a new article or video is posted. Don’t forget to follow my blog while you’re here as well.
As a result of actions taken by the previous administration, the US economy and markets performed very well in the first quarter of 2021. The current administration, however, has already taken detrimental action that will eventually damage the US economy. The tax hikes being proposed could cost a million jobs, the cancellation of the pipeline will cost over 8,000 jobs, raising corporate taxes and increasing regulation would cause many companies to find more business-friendly nations for their corporate headquarters and production facilities. What legislation or parts of the spending bills will pass the Senate is still unclear.
According to CNC: “First-time claims for unemployment insurance rose more than expected last week despite other signs of healing in the jobs market, the Labor Department reported Thursday. The declining headline unemployment rate ignores over 10 million able-bodied Americans between the ages of 25 and 54 who do not have jobs, but are not counted as unemployed because they haven’t looked for a job recently.”
The future is looking less bright economically, but there are also all kinds of social, constitutional, and international concerns looming as well, with no clear resolution insight. Even former Clinton appointed Treasury Secretary has criticized Biden’s economic policies. The Epoch Times reported, “Economists, including Larry Summers, the former Treasury secretary of President Bill Clinton, raised concerns earlier about President Joe Biden’s $1.9 trillion relief package and warned that excessive government spending could overheat the economy and fuel inflation.”
US Taxation & Regulation Not Business Friendly Anymore Biden’s tax plan will not generate sufficient revenue to pay for the administration’s spending proposals. In regard to the plan, Reuters wrote, “This bill would help foot the bill for Biden’s ambitious economic agenda. The proposal calls for increasing the top marginal income tax rate to 39.6% from 37%, the sources said this week. It would also nearly double taxes on capital gains to 39.6% for people earning more than $1 million. That would be the highest tax rate on investment gains, which are mostly paid by the wealthiest Americans, since the 1920s. The rate has not exceeded 33.8% in the post-World War Two era.”
The US future outlook from a taxation, cost of living and cost of doing business stand point, does not look good. The outlook of states like California and New York and cites like NY, LA, Portland and Minneapolis are worse because of their mishandling of Covid-19 and the violent riots in 2020 and 2021. According to a NYT article:
“No man’s life, liberty or property are safe while the Legislature is in session.” That’s how Gideon Tucker — a New Yorker who knew Albany as a former legislator, secretary of state and judge — put it back in 1866. Yet there is something different, and especially troubling, about this time. The possibility of permanent decline and the ultimate destruction of the New York we know is unmatched in modern memory. Socking New York’s businesses and wealthy residents with $7 billion in new taxes will likely trigger the worst exodus since the Big Apple flirted with bankruptcy in the 1970s, a huge group of major employers and small business owners warned Tuesday…, In a letter to Gov. Andrew Cuomo and the state’s legislative leaders.”
Most business periodicals give New York City a ten to thirty-year recovery timeline, if they can fully recover at all. NY and CA are the top exit states in the nation for both businesses and population. In fact, both states lost one representative in the US House after the 2020 Censes, while Texas and Florida each increased by their US representatives by one.
Biden to Float Historic Tax Increase on Investment Gains for The Rich (4.23.21)
Most Central Banks have continued to print stimulus money and keep interest rates artificially low. America’s central bank, the Federal Reserve, has continued in this vein as well, with the Epoch times reporting:
“The Federal Reserve announced on April 28 that it would keep U.S. interest rates near zero as the pandemic “continues to weigh on the economy.” The Fed officials expect a temporary spike in inflation due to strong consumer spending as the economy continues to reopen.” The WSJ wrote, “The Fed has said it will hold rates near zero until it sees the labor market return to full employment and inflation rise to 2% and is forecast to moderately exceed that level for some time. Mr. Powell reiterated that he thinks it is highly unlikely that the Fed would raise interest rates this year and noted that most central-bank officials see rates remaining near zero through 2023. He also went on to say they expect to reduce bond purchases.”
A new area central banks are venturing into is climate control. In the past year we have seen the judiciary politicized, and now we are seeing central banks being driven by progressive political agendas instead of economics and monetary policy. Project Syndicate wrote:
“Monetary authorities are increasingly expected to address issues such as climate change and inequality, over the objections of those who insist that central banks’ narrow mandate is what sustains their operational independence. But ignoring these issues, or saying they’re someone else’s problem, is no longer an option. “We are used to thinking about the remit of central banks as focusing narrowly on price stability, or at most as targeting inflation while ensuring the smooth operation of the payment system. But with the global financial crisis of 2008 and now COVID-19, we have seen central banks intervening to support a growing range of markets and activities, using instruments that extend well beyond interest rates and open market operations.
This, clearly, is not your mother’s central bank.”
Fed Holds Interest Rates Near Zero, Expects Temporary Rise in Inflation(4.28.21)
The world is moving rapidly toward digital currency replacing paper currency. China declared, last year, that the yuan will go digital Jan 1, 2022, just seven months from now. Other major global currencies are preparing for that time as well. Reuters reported:
“China proposed a set of global rules for central bank digital currencies on Thursday, from how they can be used around the world to highly sensitive issues such as monitoring and information sharing. Global central banks are looking at developing digital currencies to modernise their financial systems, ward off the threat from cryptocurrencies like bitcoin and speed up domestic and international payments. China is one of the most advanced in its effort.”
Not all countries are supportive of digital currencies. According to Reuters: “India will propose a law banning cryptocurrencies, fining anyone trading in the country or even holding such digital assets, a senior government official told Reuters in a potential blow to millions of investors piling into the red-hot asset class. The bill, one of the world’s strictest policies against cryptocurrencies, would criminalize possession, issuance, mining, trading and transferring crypto-assets, said the official, who has direct knowledge of the plan.”
The reason for this is the way India taxes its citizens, which is based on the amount of Indian currency they have in the bank; they can’t tax digital currency, so they’re attempting to ban it, emphasis on “attempting.”
Bloomberg sums it up this way: “The financial services industry, braced for what could be its biggest disruption in decades, is about to get an early glimpse at the Federal Reserve’s work on a new digital currency. Banks, credit card companies and digital payments processors are nervously watching the push to create an electronic alternative to the paper bills Americans carry in their wallets, or what some call a digital dollar and others call a Fedcoin. As soon as July, officials at the Federal Reserve Bank of Boston and the Massachusetts Institute of Technology, which have been developing prototypes for a digital dollar platform, plan to unveil their research, said James Cunha, who leads the project for the Boston Fed. A digital currency could fundamentally change the way Americans use money, leading some financial firms to lobby the Fed and Congress to slow its creation — or at least ensure they’re not cut out. Seeing the threat to their profits, the banks’ main trade group has told Congress a digital dollar isn’t needed, while payment companies like Visa Inc. and Mastercard Inc. are trying to work with central banks to make sure the new currencies can be used on their networks. A U.S. digital dollar could also put the final nail in the coffin for Bitcoin as a means of exchange, Brito said. Crypto enthusiasts have already started to acknowledge that’s happening anyway, and instead tout the currency as a store of value or “digital gold.”
The new administration has spent more in its first hundred days than any other before it. The Hill wrote, “No sooner did Biden sign the $1.9 trillion COVID relief bailout bill in March, than his administration proposed another $4 trillion of deficit spending for “infrastructure.” The Democrats are in a super rush to get this done.”
A common misconception is that you can print your way out of a financial crisis, but every county that’s tried has failed. Albert Einstein said “The definition of insanity is doing the same thing over and over again, but expecting different results,” and Winston Churchill said, “A nation that forgets its past has no future.” However, the current administration doesn’t remember history, which shouldn’t surprise us, considering who is advancing this agenda.
Pelosi wants Biden infrastructure bill done by August (4.8.21)
Gold, silver and precious metals have risen rapidly over the last year, and it is unlikely that trend will subside in 2021. BullionStar.com has expressed concerns that, if the rapid rate of precious metal purchases continues, it could create shortages. Simon Black also shared his thoughts on the rapid ascendancy of gold & silver saying, “It appears that the Federal Reserve has landed itself in this position. In its efforts to boost the economy during the pandemic, the Fed slashed interest rates so much that the average 30-year mortgage rate for homebuyers reached an all-time low of 2.65% earlier this year. Similarly, AAA-rated corporate bond yields reached record low 2.14% last summer. The US government 10-year Treasury Note dropped to a record low 0.52%. And the 28-day US government Treasury Bill rate actually turned negative for a brief period– something that has never happened before. The effects of such cheap rates are obvious.”
Political leadership is changing globally, and in some cases, like the US and Germany, the new leadership is radically different than the old. The leaders in three of the four largest export economies in the world Japan, Germany and the US, have changed or are about to change. The WSJ wrote:
“With Merkel retiring, surging Greens challenge German orthodoxy on debt and government spending. A decade ago Germany’s intransigence over bailouts and borrowing prolonged the eurozone’s sovereign debt crisis, one reason the region’s economic recovery lagged behind the U.S.’s. Another crisis, another lagging recovery for Europe, and again the size of fiscal stimulus is a factor. But Germany isn’t the obstacle it once was, and the rise of its Green Party could further push both country and continent toward the U.S. model of aggressive government stimulus.”
The WSJ also wrote that “Meeting President Biden’s goal of sharply reducing U.S. greenhouse-gas emissions by 2030 would require dramatically reshaping key sectors of the economy. While U.S. industries are already transitioning to a lower-carbon future, Mr. Biden’s target would require companies in industries from energy to transportation to agriculture to greatly speed the pace of change. Some segments of the economy appear to be ready. Others would face extraordinary challenges. All would face significant new costs—exactly how much is unknown—and it is unclear how much would be subsidized by government tax policies or incentives, since the Biden administration has yet to detail how it would seek to reach the aggressive new goal.”
The current US administration is always short on details and their math leaves much to be desired. Many nations of the world are worse off than the US however, like Zambia which just defaulted and may look to China to bail them out, the price of which will likely be their national sovereignty.
A Green Germany Could Pump Up Europe’s Fiscal Push (4.28.21)
The world is still trying to find its footing in the aftermath of the restrictions and disruption caused by the CCP originated virus. Just as with the virus they caused, the entire world is also reacting to an increasingly aggressive Chinese government that is threatening and intimidating others with economic and military actions, not to mention their severe and inhumane treatment of their citizens who profess faith in God and not the CCP. The Epoch Times reported:
“The UK and the West in general may be forced to capitulate “without a shot being fired” if they continue “ceding the strategic initiative” to rivals such as China and Russia, a senior British military commander has said. “While we drained our strength in interventions like Iraq, others used the time and space to further their interests more strategically,” General Sir Patrick Sanders, commander of the UK’s Strategic Command, wrote in The Times of London on Saturday. … China has pursued a strategy of winning without fighting, changing the terms of the international order,” he said.”
Epoch Times also reported, “The Chinese regime is on its way to becoming a “near-peer competitor” for the United States and is the “unparalleled priority” for the country’s intelligence community, the U.S. Director of National Intelligence (DNI) said on April 14.”
China is threatening so many nations, individuals, companies, groups and organizations, that, rather than list them all, I’ve included links to articles below that you can read for yourself. Other areas of political unrest are Iran, Chad, Egypt and Russia, however, it is becoming increasingly difficult to determine who the bad guys and good guys are in all of these situations. France and other nations are beginning to deploy AI in their quest to monitor and identify those they see as aggressors within in their country, with the WSJ reporting, “The government of French President Emmanuel Macron aims to deploy algorithms and other technology to monitor the web-browsing of terror suspects amid growing tensions over a group of retired generals who recently warned the country was sliding toward a civil war.”
France’s Macron Eyes Artificial Intelligence to Monitor Terrorism (4.29.21) WSJ
In closing, Simon Black wrote: “Last week I wrote to you about billionaire hedge fund manager Ray Dalio’s most recent advice for people to diversify their investments OUT of the US dollar. Dalio didn’t pull any punches when he laid out his analysis for America’s economic future. He warned readers of the very real risk of stagflation (starting “late this year”) and tax increases that could be even “more shocking than expected”. He also advised people to anticipate the possibility of capital controls and prohibitions against assets like gold and cryptocurrency.”
Bitcoin is a crypto/digital currency, its money much like paper currency and it fluctuates against other currencies, both paper and digital. It’s a method of legal tender to whoever agrees to accept it, no different than any other currency. There are over 7,800 crypto currencies, with Bitcoin being the most recognizable because it was the first, and in many ways, acts as the unofficial world reserve digital currency.
Most governments have concerns about cryptocurrencies because they can’t effectively control, track or tax them, but many people consider that to be one of cryptocurrency’s most attractive features. Peer to peer crypto transactions enable people to anonymously purchase things with no paper trail, a feature that applies to cash as well. Crypto currency transactions made on digital exchanges which group companies, purchasers and sellers together on platforms can be regulated or banned. Some nations such as China, Algeria, Bolivia, Morocco, Nepal, Pakistan and Vietnam have banned crypto currency exchanges, but cannot control individual/private peer to peer transactions. In 2017, the IRS ordered Coinbase, the largest crypto currency depository\electronic wallet, to report to them the names and amounts of Bitcoin purchases over $20K.
Initially, crypto currencies were not intended to be an investment, but that is widely how the public and markets are treating them today. When you purchase/exchange your currency into cryptocurrencies, you are getting a digital representation of a currency that has a specific value at that moment. Digital currencies go up and down against other digital currencies, like the USD goes up and down against other paper currencies.
Many people are interested in purchasing crypto currencies, but are uncertain about how to do it and how these currencies really work. There are many companies and crypto brokers who hire themselves out for a fee to instruct people in how to do it. When Bitcoin goes up it really goes up and when it goes down it really goes down. Some people have made a lot of money purchasing it, but most have lost a lot, because, like stocks & bonds, most people have no idea what they’re doing. A prudent investor ought not to buy what they don’t understand, because they won’t know what to buy or when to buy or sell it, may be taken advantage of or simply make a poor decisions. Unfortunately, too many only look at the rapid gains and jump on the band wagon.
Regardless of the volatility, crypto currencies are here to stay and corporations, the markets, the regulators, the IRS and even the banks know it. Physical cash will eventually be replaced by digital currencies and this could happen within as little as two years. China has said they are going digital Jan 1, 2022. The European Central Bank said they have been preparing a digital currency and will be ready to make the change at the right time. The Federal Reserve has one ready to go as well.
There are many pros and cons to going digital for companies, global markets, banks, governments and individuals. In a nutshell, the positive side for corporations and governments is the convenience, control and cost effectiveness, as well as making it very difficult for criminal operations like money laundering, drug and human trafficking to transact business. On the negative side, your personal anonymity would be all but eliminated, and if there was a banking and\or economic crisis, you can’t withdraw your money and bring it home. The greatest change would be that governments would now be in complete control of everyone’s money with no checks & balances or oversight; anyone could be labeled a threat at any time and have their ability to transact instantly blocked. One way to prepare for this change could be to open your own crypto currency account, while there are few regulations. After the change from paper to digital currency occurs, the three main ways to hold cash and transact outside your digital bank account would be gold & silver, bartering goods & services and having an alternative crypto currency account.
How do you get crypto currency?
The process of opening a crypto currency account, converting your cash into digital currency, purchasing specific cryptos and then storing them, can be somewhat complicated and cumbersome. You have to methodically complete every step to protect your transaction. If you’re not technically inclined, the learning curve is steep. This is why people are willing to pay for someone to do it for them. The first step in opening a cryptocurrency account is establishing an electronic wallet which becomes your digital depository. There are many options, but Coinbase is the largest and most widely accepted. I am not advising anyone to buy/convert to cryptocurrency, but I have listed the basics steps below for information’s sake.
Go to coinbase.com click “Get Started” and complete account opening process
Once account is open, complete test deposit from your bank account, debit card or credit card (confirmation of this transaction will vary depending on your financial institution)
Once transaction is confirmed, repeat the process to complete your actual transfer
Then choose one of the digital currency options your electronic wallet offers (i.e., Bitcoin, Ethereum, Litecoin)
Once transfer is complete and confirmation is received, it is possible to transfer into other digital currencies or currency platforms
After completing your first purchase, you must place it in a “digital wallet,” which is usually a part of the digital platform company you chose
Only one currency may be purchased at a time, so a majority of the process must be completed each time you purchase a different crypto
You must have a smart phone or computer or you cannot complete the process. Anyone who is not proficient on the computer and smart phone should think twice before attempting to purchase crypto currency.
Most crypto currencies are even more fiat than paper currency, because they are not even backed by the “good faith” of a government (whatever that’s worth). The question is: who is really in control of it? Billions have been lost when various Bitcoin exchanges have been hacked, and because transactions are difficult to track, there was no recourse. The exchanges claim they have fixed the problem, but that begs the question: who fixed it and how did they fix it? It is claimed that peer to peer transactions can’t be hacked, which so far seems to be true, but there is still much uncertainty surrounding this new market.
Cryptocurrencies that have a greater technological functionality in transaction and exchange of goods and services have a greater chance of success. The most widely used digital currencies in the U.S. to transact business are Ripple and Ethereum.
My greatest concern in regard to digital currency is how easy it makes it to shift into a national, and, ultimately, a one world currency. Everyone would be forced to participate in this new system, but could also be blocked from it with the click of a button. Once in place, this kind of system could destroy people’s ability to buy things privately and anonymously, as well as block individuals from transacting with others in the system. While there are many benefits to digital currency, there are also potential dangers and unanswered questions, anyone considering participating in crypto should proceed with caution and be very well informed about what they are doing and the potential risks.