Inflation is already spiraling out of control because of reckless Democrat spending.
But a new proposed measure could make things even worse.
Joe Biden is pushing to change the dollar completely with this extreme measure.
Many Democrats hold to modern monetary theory, the theory that governments with a fiat currency system can spend as much as they like without worry because they can always print more money.
This monetary theory was tested during Covid, and almost one in five dollars was created in 2020.
The inflation Americans are experiencing today is a direct result of the wild creation of money.
But now the Biden Administration is looking to increasingly lose monetary policy with the creation of a digital currency.
The Federal Reserve Bank of New York began a simulated digital currency initiative on Tuesday.
The digital dollar simulation will “experiment with the concept of a regulated liability network,” and the “digital asset transactions that connect deposits held at regulated financial institutions using distributed ledger technology,” according to a press release from the Federal Reserve Bank of New York.
BNY Mellon, Citi, HSBC, Mastercard, PNC Bank, TD Bank, Truist, U.S. Bank, and Wells Fargo are collaborating in the test.
Federal Reserve Chair Jerome Powell said last summer that his “mind is open” to creating a digital currency claiming that he was “legitimately undecided.”
This move is the result of Biden’s Executive Order 14067, “Ensuring Responsible Development of Digital Assets.”
The plan is that “The United States will continue to monitor the development of the digital assets sector and its associated illicit financing risks, to identify any gaps in our legal, regulatory, and supervisory regimes. As part of this effort, Treasury will complete an illicit finance risk assessment on decentralized finance by the end of February 2023 and an assessment on non-fungible tokens by July 2023.”
The Biden Administration claims it could “promote financial inclusion and equity by enabling access for a broad set of consumers,” the framework states.
But cryptocurrency has a tendency to be unstable. FTX experienced a liquidity crisis when users demanded $6 billion in withdrawals and the company was forced to declare bankruptcy.
FTX had been valuated at more than $30 billion before the crisis.
“The recent collapse of FTX is a loud warning bell that cryptocurrencies can fail, and just like we saw with over-the-counter derivatives that led to a financial crisis, these failures can have a ripple effect on consumers and other parts of our financial system,” Sen. Sherrod Brown (D-OH) said in a statement. “The cryptocurrency market’s continued turmoil is why we must think carefully about how to regulate cryptocurrencies and their role in our economy.”
Democrats say that cryptocurrencies are unstable but they want to make the American dollar more like a cryptocurrency. That’s insanity.
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