the secret truths of Central Bank digital currencies that nobody is
talking about I’m going to explain this to you and I’m going to tell you how you
can protect yourself from the future tyranny of Central Bank digital
currencies in three simple fast Steps step number one let’s go over how the
current system works all right this first quadrant is how most people view
the monetary system so we have the average Joe right here that takes his bag of money
and he gives it to the bank now I know this bag of money may be in the form of
an electronic transfer or wire but still in people’s minds when they deposit
money at the bank like their paycheck they see this is them giving the bank
something and then the bank takes what they gave them and they might lend it
out to someone else like your friend and family member Fred right here and then
Fred has this stuff that you gave the
bank and then what happens if the bank gets in trouble
and the Federal Reserves needs to do quantitative easing or something like that then the Federal Reserve
prints up some more of this stuff that you gave the bank and gives it to them
so they don’t go Bust or maybe they need some more so then the bank takes what
the FED gave them and then they give it out to other people that want to buy it to borrow stuff
and those people take the money that they received from Fred and they give it right back to the bank
this is completely inaccurate now most of you have been watching my
videos for quite some time so you’ll be saying to yourself okay George I get it I get it I get it it actually doesn’t
work with this money going back and forth really the banking system themselves create the money
so if they want to lend to your friend and family member Fred they really don’t
even need Joe to deposit money in the bank they go ahead and
create the money out of thin air so then their balance sheet has the money they
just created and that’s a liability of the Commercial Bank that’s an asset of
Fred but then on the asset side of their balance sheet they have the loan
the contractual obligation for Fred to pay them back with interest
and obviously this loan would be a liability on Fred’s balance sheet so in
this scenario the bank is acting as an intermediary let’s say and in this scenario Which is
far more accurate the bank is creating money and I’m just using the term money Loosely for let’s say dollars they’re
creating those dollars out of thin air but I must admit that even this
is inaccurate let me show you what I mean let’s go
down to this next quadrant where we’ve got the Federal Reserve
and a bank we have their balance sheets assets on the left liabilities on the right
well this is simply a ledger that’s all it is
just like you having a shared Excel spreadsheet or Google Docs something
like that so let’s just assume on the liability side of the bank they have 100.
okay on the asset side 100 . all right well those assets are a
liability to the Fed so if the FED shows 100
on their liability side and then they have a hundred worth of assets to match up boom green
check mark we are all good to go now all of a sudden because these
ledgers reconcile that means effectively
we have money but what happens
if we have 100 100 and 90.
now all of a sudden the ledgers do not reconcile something is wrong
therefore the system breaks the ledgers don’t work there’s no trust between
counterparties and all of a sudden we have no money
and if you’re not following this completely don’t worry about it I’m going to explain it further throughout
the rest of this video in fact let’s go over to this next quadrant I’m going over the main takeaways from this step
number one and the main takeaways from this entire video I think or the
main takeaway is you have to get your head around the fact
there is no money it doesn’t exist there are no dollars
there are no Euros there are no pesos they’re no you want there’s no yen
nothing it’s pixie dust it doesn’t exist very
dust it doesn’t exist it’s never landed it is no matter it’s not on the elemental chart it it’s not unreal now
it is true the cash in your pocket exists obviously those green pieces of
paper currency Cold Hard Cash that exists but that is a very small fraction
of the overall monetary system but what most people see as money which is their
checking account balance really isn’t money at all like my good friend Chris
Cole says it’s simply a thought abstraction and putting it into more real terms all
it is a network of ledgers that reconcile therefore provide the
trust for the participants in the real economy in the financial economy for that matter to go ahead and
transact let me give you a super simple example so everyone is on the same page we’ll go
right up here and we’ve got two cavemen
obviously we’ve got caveman Mo and we’ve
got caveman Joe so caveman Joe needs some sort of
dinosaur cow type of creature and he gets this from MO
okay well what does MO get well they simply go to the nearest cave
and they go up on the wall and they say Okay Moe we’re going to go ahead and give you
two points and Moe says okay well what do I need these two points for
Joe says because I’m going to take your cow dinosaur
you’re going to give it to me and then I’m going to go ahead and give
you milk that you need for your family and when I give you a certain amount of
milk we’re going to go ahead and delete the two credits that you have
we’re going to erase them from the wall of the cave and then we’re going to go ahead and be all square
now in this transaction was there any money
no it was just simply a very crude Ledger just like the ledgers that we use
in the banking system in the Federal Reserve today and the main reason that this
transaction occurred was because there was Trust within the two counterparties
there was no money the only thing there was a record of the transaction and the
agreement between the two counterparties involved so my point is a central bank
digital currency is not new money how can you have new money when money
doesn’t exist to begin with what it is is a modified version of our
current Network and Ledger system and this is the truth about Central Bank
digital currencies that nobody is talking about and this makes a huge difference as to
how they will impact your life not if they come but when they come
step number two now let’s go over how the central planners and the
authoritarians will most likely implement the Central Bank digital
currency or better said the cblss
that’s what I’m calling it from now on the Central Bank Ledger system
and software a much more accurate title
so this is the way the system works now as far as the balance sheets we’re going
to take it one step further than we did in Step number one we’ve got the Federal Reserve right here the banks and we have
the average Joe business Bob and the fat cat the guy that runs the hedge fund or
the financial institution the non-bank financial institution
so right now on the liability side of the fed’s balance sheet we have the Bank
Reserves these are assets of the commercial Banks themselves
now again there is no money in here it’s just a very
pretty crude Ledger system it’s a way of keeping score just like the cavemen
we’re doing in Step number one but I’ve got things color coded in this
step so you can really start to understand whose assets are whose liabilities
all right so let’s go through this like we said the assets of the banks well just assuming the Bank Reserves are
liabilities of the fed the assets of Joe Bob and fat cat
are liabilities of the commercial Banks and again I’m talking about assets I’m
just talking about their dollar assets their quote unquote cash
so when they implement this system what will change first is the modification of
the ledgers or the consolidation of the retail ledgers onto the feds Ledger
I know that may be a little confusing so let me walk you through it so after the
change is made to a central bank Ledger system and software
the assets of Joe and Bob will go from
the commercial Banks to the Federal Reserve
so what I’m saying here is their checking accounts instead of being liabilities of the banks will be a
liability fed said another way all of the information
from their daily transactions will be aggregated and in real time will
go directly to the Federal Reserve instead of
the banks just think about the bank statement you have right now that you could go to lunch this afternoon at
Chipotle and you could go home and you could pull up your bank statements
online and it would say Chipotle twenty dollars or whatever it is and you would
see that going to your bank’s website but in the future the Commercial Bank
will not have that information it will go directly to the federal
reserve’s Ledger and then they will have the new software
to be able to track those transactions and another detail that nobody is
talking about is although the assets the dollar assets of the retail participants
and the economy will go to the fed’s balance sheet I don’t think the
financial institutions assets will because I don’t think the FED wants to
completely disrupt the current system what about the repo Market what about
the euro dollar market what about the financial economy that we talk about on
this channel all the time the FED knows darn well that if they disrupt that then
the whole entire house of cards comes crashing down and that would have
devastating impacts for Society at large not just the real economy
so the assets of the fat cat will remain on the bank’s balance sheet so they can
continue with their financial economy it’s almost like we’re compartmentalizing the financial economy
with the real economy and the real economy’s balance sheet is
moving to the Federal Reserve or said another way The Ledger system
for the real economy is moving to the power and control of The fed’s Ledger
system it’s consolidating it where the Ledger system for the financial economy
will most likely remain intact so what’s going to be the Catalyst that will
prompt this change is the government going to force people to do this
no actually I think this is the easy part because when we have the next financial crisis
I think most likely the FED will do a different type of quantitative easing
most of you know from watching my videos that quantitative easing is where the FED buys assets
from the commercial banking system or this is one form of quantitative easing
but I think in the future in the next financial crisis what they’ll do is say
hey guys instead of buying assets why don’t we just take your liabilities
because if the average Joe and Jane and if Bob and if fat cat are worried about
their money being good at the bank and the bank’s collapsing if they’re worried about the next GFC well that’s easy all
we have to do is take those assets onto the balance sheet of the Fed because the Federal Reserve is a bank
that can’t go bust so this instills the confidence that
they need in a panic type of situation and I think they’d also include
Universal basic income and higher interest rates so if you’re the average
Joe and Jane that knows nothing about this what’s not to like
you get free money your money is safe you don’t even need FDIC insured Banks
anymore and plus you get a higher rate of interest on your checking and savings
account then of course what the government will need to do is Ban cash more on that in
Step number three but also and this is key they’ll need to involve
Bob the businessman or businessman Bob whatever his name is because the only
way this plan will work is if they change or have a new type of Software
System a new network for point of sale I
know most of you saw POS and thought it stood for something else
but we won’t go down that path we won’t go there so I think in this new system
what the government will do along with Banning cash is they’ll say hey businessman Bob
in order to get your business license you have to use this new software and
this software will be a part of the network that will give the fed
the additional data they need to control your life
and when I say the fed I’m using that as a proxy term for the central planners
and the authoritarians so let me give an example of how this would work well we talked about you
going to lunch today at Chipotle and then going to your Wells Fargo account
and seeing the transaction right there on your bank statement okay well we know
that because you use your Wells Fargo account your card that Wells Fargo has
the information from Bob say he owns Chipotle because
you use your debit card there but what the banks don’t have is the
details of those transactions and that’s what the central planners and the authoritarians want
so they’d have to modify or use a different type of software which would
give them not just the name of the vendor in this case Chipotle but also an
itemized list of exactly what you bought so now when you go to your fed bank
statement let’s say it’ll not only show that you went to Chipotle for lunch but
it’ll also show what you ordered did you order chicken did you order beef
did you order something vegetarian why do they want to know this so they can give you a carbon credit
score and they can control your spending
for whatever is convenient or whatever fits the current political narrative in
this case I’m assuming it’s going to be climate change so quick review of this point of sale
for the new Central Bank Ledger system and software AKA Central Bank digital currency is
instead of them just getting the vendor information they’re going to get the vendor information along with every
single item you purchased that goes instead of to the Commercial Bank that goes to the fed and they have the new
software that takes all the new data which gives them this whole new type of control
so then the next question becomes okay George well I understand the banks are
still going to operate the way they do in the financial economy but what
happens if I want to get a loan because right now the banks create all of the
new money they keep track of the retail Ledger system and they can add they can
increase the money supply or they can decrease the money supply based on how
much they want to lend or how much credit they’re extending into the real economy and if the retail was now on the
fed’s balance sheet if the banks actually create the loans then that would give them power to increase or
decrease the size of the fed’s balance sheet and the
central planners probably won’t like that so the way I think this will work is if
you want a home loan or an auto loan you will still go to the banks they will initiate the loan they’ll be
like a loan broker but they’ll just act as a middleman and receive a commission
very similar to the way Fannie and Freddie work right now so when you go down to Wells Fargo to
get a home mortgage let’s say they send that to their underwriting but in reality it’s not Wells Fargo’s
underwriting it’s Fannie and Freddie they’re just checking off all the boxes
because when they give you the loan they increase the money supply before the inks dry they sell that loan to Fannie
and Freddie and that goes on to their balance sheet so I think it would be the exact same thing with auto loans it’s
pretty much every type of loan in the future is the underwriting would come from the central planners
but the execution of the loan itself would come from the banks and they would receive a healthy
commission from the Federal Reserve after the banks received the commission then the borrower’s account would be
increased by that amount and the loan would go from the bank straight over to the Fed
so in my opinion this is how it would play out step number three how to
protect yourself from Big Brother and
1984. most of you watching this video understand the downsides of a central
bank digital currency or this change that we’ve been referring to throughout
this video so I’m not going to spend too much time going over why this would be
an orwellian nightmare so let’s focus on what you can do to make sure that you
protect as much of your freedom Liberty and privacy as possible so right here
we’ve got the Federal Reserve and the real economy these are the central planners
and over here in the real economy we’ve got the average Joe and James and the businesses
okay so in Step number two we talked about how this network would change and
how all the data would now be going to the centralized Ledger the Federal
Reserve let’s say or the treasury the government and how that would give them complete control over what you spend
okay so the initial reaction in even my initial thought was okay well let’s just
make sure they don’t ban cash because if they don’t ban cash
that gives you some sort of purchasing power to where you could go down to
Chipotle you could give them a twenty dollar bill instead of using your bank card
and then the data wouldn’t go anywhere there wouldn’t be
any data to go to the centralized ledger so they’d have no way of knowing how
much beef or how much diesel you purchased during the month
and that wouldn’t go against your monthly allotment based on their climate
change objectives I’m just using that as a hypothetical example but after I really started to
think this through and I’m talking about just within the span of the last couple
hours you guys are literally seeing me think through this problem in real time
unfortunately I don’t know that cash
is a solution let me tell you what I’m referring to
see this really depends on the existing system so in the existing system you
have two options you’re either going to use your card which the bank is going to know about
or you’re going to use cash which only you and the vendor know about
but if I’m a central planner I’m going to understand that this is
going to be a problem and even if I do ban cash still people might use it I’m not going
to be collecting all the data I want so
and I hope it doesn’t come to this but if I had to put on my Evil Genius hat what I would do is I would realize that
it’s not about money it’s really about the network
and controlling the network through the Central Bank Ledger system and software
so let’s just say that you go down to Chipotle this afternoon and you have your 20 bill
and you say aha I’m going to get around the central planners and the authoritarians by using this cash well
let’s see it’s gold silver Bitcoin what have you but let’s just say that prior to
ordering when you walk through the door there’s a camera that has facial recognition
and that can read your lips that can tell everything you’re saying if you have a microphone
so when you go to order regardless of how you pay
the data still goes to the central planners and
we could also Envision that in today’s day and age even without all of the spy
equipment and Tech that you’d walk into that Chipotle and just before you place your order
the nice employee says sir before you do if you could do me a huge
favor and just give us your fingerprint right on the pad
great we got it what can I get you for lunch so obviously if they have your
fingerprint or if they have your facial recognition you could pay in seashells
it doesn’t matter that data is still going to go to the Federal Reserve and
they are going to be able to control what you buy
see again it’s this network with the vendors and the central
planners and why would the vendors cooperate because if they don’t the
central planners will take away their business license there will be some sort of financial penalty that will be so
onerous that the business owners will comply even if they hate the policy even
if they’re Patriots even if they’re freedom and liberty lovers they still
have to put a roof over their head and feed their family so they don’t have a
choice so then I know a lot of you are saying okay well there’s going to be some vendors that are outside of the system
there will be a black market where they will take gold or silver okay great fantastic and more power to you that is
definitely a solution but right now you have to start planning for that you have
to understand that your standard of living will deteriorate massively what
I’d like you to do is a one week challenge so if you live in the United States or
Europe or wherever try to go an entire week without using the local currency
at all try using exclusively gold silver or
Bitcoin you can’t do it well you might be able to if you live on
a farm or if you’re completely self-sufficient but if you’re the average American your
standard of living is going to decrease rapidly dramatically within that week
now I’m not here to say that if they try to ban cash we shouldn’t push back we
should absolutely put our foot down as a society but we have to understand that
this might not be a total solution because they might incorporate that new
technology such as facial recognition or your fingerprint so you need to have a
game plan you need to start thinking about this right now so what can you do to protect yourself
well first and foremost I think Community is absolutely key whether
that’s around your physical location or online why because this will give you
the ability to barter the specific climate change rations they give you let
me give an example so let’s just say that they give you a certain carbon allowance per month so you can only buy
five pounds of beef okay well let’s say that someone within your liberty-minded
community is a vegetarian but they drive a diesel truck
so let’s say they get to their monthly limit for diesel and you get to your monthly limit for
beef let’s assume you have a gas car okay great so what you can do is you can go ahead and buy diesel and give it to them
and they can go ahead and buy the beef and give it to you
and there’s absolutely no way that the government at least no way that I can
think of that they’d be able to track that next is to set up a plan for Mobility I
know a lot of people online especially in the Bitcoin space say hey if the government does this well fine so be it
I’m just going to take all of my purchasing power put it right in my back pocket and because it’s so transportable
I’m just going to hop on the next plane and go to XYZ country that is far more
favorable and this is a good plan absolutely but that applies to bitcoin
gold silver cash what have you just going to a country that like my good friend Andrew Henderson says where you
will be treated best or in this case maybe where you will at least be treated
better but right now this option applies to very few people why because we have a
life we have a family your kids in school you have a husband you have a wife you have
friends you have grandparents you have a sense of community around you
and how many of you right now would pull your kids out of school would get rid of
your country club membership would get rid of your gym membership would have a spouse that would be
agreeable to just packing up tomorrow and moving to El Salvador
very few so my point is start talking about that
right now start trying to figure out how you would make that move if necessary and what
would be the Line in the Sand that would prompt you to go ahead and take action
because then it becomes a rational premeditated decision instead of an
emotional reactionary decision and lastly I’d like to encourage you to
think about living a hybrid type of life if this Mobility is not an option for
you so what does that mean okay well let’s say that you have some sort of diesel truck and you know that the
government is going to frown on that and every single month you’re going to hit your maximum okay well try to find some
other fuel source and I like diesel trucks but I’m by no means an expert but
I do know they will run on different substances so maybe you can create or
make that substance in your shed or if you’re someone that enjoys beef but you
know that at a certain point going to the store that’s not going to work then maybe you could grow your own cattle you
could have your own ranch or something like this what I do is I create a list
of things that are important to you that the government most likely won’t like
and then I would simply ask myself how can I grow or produce these items myself
so if I have to I’ll sit there and live in their stupid system but I’m not going
to let it impact my life because what they won’t give me I’ll go ahead and
create on my own and within the community that I have at a local level
and if you’re not already pissed off enough about what will likely happen in
the next decade or so I’d like to remind you that my base case is that your life
will change dramatically the real economy will be micromanaged by the
central planners but the financial economy there will be no change
the banksters the fat cats the Jamie diamonds of the world
they won’t be controlled at all it’ll just be you the average Joe and
Jane an entrepreneur business owner watching this video right now
at the end of the day you are the serf The Peasant the pleb that they despise
and want to rule over for more content that’ll help you build
wealth and thrive in a world of out of control central banks and big governments check out this playlist
right here I will see you on the next video