Central Bank Fiat Currency: As Yoda would say, “Clear, your mind must be, if you are to discover the real villains behind this plot.”

Resources

• The Digital Impact Alliance
• FedNow® Service
• History of the Social Security Card: 1946, “Sixth version of replacement SSN card (1/46 revision). Both card and stub showed “For Social Security Purposes—Not For Identification” across the bottom…”
• Article I, Section 8 of the U.S. Constitution of 1878, “The Congress shall have Power…To coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures”
• History of the Federal Reserve Act of 1913 “To deal in gold coin and bullion at home or abroad, to make loans thereon, exchange Federal reserve notes for gold, gold coin, or gold certificates, and to contract for loans of gold coin or bullion…”
• Published Federal Reserve Act of 1913, as amended December 23, 2022
• Executive Order on Ensuring Responsible Development of Digital Assets, March 9, 2022 [I find the term ‘responsible’ to be hypocritical due to the present practice of the Federal Reserve practice of a fiat currency managed under the Modern Monetary Theory (MMT).]
• Congressional authorization is required for the Fed Chairman to issue a digital currency:
  • Powell Says Congressional Support Likely Needed to Adopt Fully Digital Dollar, March 22, 2021
  • Fed’s Barr says central bank ‘a long way’ from any decision on issuing digital currency, September 8, 2023
• The Federal Reserve Act as amended in 2022

A Brief History of Fiat Currencies

What is fiat currency?

“Fiat money is a currency that lacks intrinsic value and is established as a legal tender by government regulation. Traditionally, currencies were backed by physical commodities such as silver and gold, but fiat money is based on the creditworthiness of the issuing government.

China was the first country to use fiat currency, around 1000 AD, and the currency then spread to other countries in the world. It became popular in the 20^th century when U.S. President Richard Nixon introduced a law that canceled, the direct convertibility of the U.S. dollar into gold. Currently, most nations use paper-based fiat currencies that only serve as a mode of payment. 

Unlike the traditional commodity-backed currencies, fiat currency cannot be converted or redeemed. It is intrinsically valueless and used by government decree. For a fiat currency to be successful, the government must protect it against counterfeiting and manage the money supply responsibly.” The Corporate Finance Instictute (CFI)

Fiat currency is a Danger to our Republic

It can be said, “A picture is worth 33 trillion words.”

Why is the number above vital to you and to me? Here is another picture. The image is outdated but demonstrates our federal government’s out-of-control spending and unrestrained fiat money printing.

The Chinese invented fiat currency. Today, they remain a step ahead of our federal reserve. In the news story, China’s Digital Yuan Works Just Like Cash—With Added Surveillance, journalist Jennifer Conrad opines, “The hope for government-sanctioned digital currencies is that they will improve efficiency and spur innovation in financial services. But tech and China experts watching the country’s project say that eCNY, also known as the electronic Chinese yuan or digital yuan, also opens up new forms of government surveillance and social control. The head of UK intelligence agency GCHQ, Jeremy Fleming, warned in a speech last month that Beijing could use its digital currency to monitor its citizens and eventually evade international sanctions.“

As anyone knows, various U.S. enterprises have used their digital powers to block conservatives and Christians in the American marketplace. The communist Chinese are ahead of us in this matter, also.

I write to my Congressman, Rep. Pat Fallon, urging him to OPPOSE a central bank digital currency (CBDC) now under development by the Federal Reserve.

John White
Rockwall, Texas