Why is the U.S government, Federal Reserve and large banks that control the country and world afraid of the gold and crypto currency technology?
The simple answer is CONTROL.
Physical GOLD and SILVER
Let’s talk about physical gold first, as crypto currencies are based on similar principles as the gold standard. If physical gold or fractional gold backing of a new currency comes into pay, it threatens the current U.S dollar as the worlds reserve currency and Federal Reserve Central Bank organization. The U.S dollar is in actuality nothing but digital currency anyway 1’s and 0’s in a computer, which the Federal Reserve (central bank) can print Trillions at a “push of a button”. See my last post on missing 10 Trillion dollars.
There is only limited amount of gold in the world and government banks around the world are buying the physical gold supply up like crazy, because FIAT (paper) currencies like the U.S dollar will fail under the weight of debt.
America was under the “gold standard” until approximately 1970 after that the money printing era began. When on the gold standard their was more stability and if a form of the gold standard is re-established governments will have to be more responsible and can only use and manage the money supply that the physical gold allows.
After 1970’s the massive U.S dollar money printing began…this is effectively the U.S government going into debt and then all the secret and hot wars started. Vietnam war, Iraq 1, Kosovo, 9/11, Afghanistan, Iraq 2, Egypt, Syria and other overt wars etc, the list goes on there are too many wars to list. Just note, that American military expansion exploded after 1970’s. The money printing was used to fund overt wars and secret wars.
Giving the Federal Reserve powers to print money and go into debt, is like a teenager with a credit card that he/she thinks will never have to pay back and will spend recklessly. This is the situation today, the U.S government along with the Federal Reserve have now printed almost 17 Trillion U.S dollars, there is no way the U.S government can pay that back.
The “End Game” is that the U.S dollar will collapse, but the U.S government and Federal Reserve is going to “hide that fact” as long as they can, they would like to keep the U.S dollar scheme going on as long as they can and detract or discourage others from the “safe havens” most notably gold. That is why gold prices have been manipulated for decades.
The manipulation and suppression of gold prices is used as a psychological control. You see if gold prices skyrocket and goes up, then the public / masses will think that global economic instability is in the future. In today’s world instability is already here, but the gold prices are not reflecting the reality due to gold price manipulation. The U.S government also want to keep the perception that the U.S dollar is still a good currency despite the huge 17 Trillion dollar debt behind it.
Governments around the world are not stupid, they have been accumulating gold like crazy. China, Russia, India, Venezuela and Germany are some big ones. Recently, Germany has asked for its gold to be returned to them that they have stored in New York. The U.S government said “you can have it back in 7 years.” Watch the video: http://www.moneyaccumulator.com/1786/america-cannot-pay-back-germanys-gold-the-u-s-sold-it-the-blaze/
In less than a decade America’s federal debt will reach 20 Trillion U.S dollars (this is public knowledge) and the United States will need to default and the U.S government will try to start a global war to reset the system (research the debts of countries before WWII).
Governments around the world are preparing for this by accumulating gold (store of value / safe haven). In times of economic collapse and war, gold and secondarily silver have always been a store of value used in exchanges of goods and services absent of fiat paper money. Gold has been a great store of value for thousands of years.
With all this said, it is not certain that a gold standard will come back for good, but a temporary gold standard might be in place for some time after the U.S dollar collapse and possible war times, while a new reserve currency, whether fiat or crypto currency is being worked on and eventually put in place.
BITCOIN, LITECOIN, Maxcoin and Crypto Currencies
Bitcoin is the first of what is known as crypto currencies, electronic money not backed by government or banks. Remember, the U.S dollar is nothing but numbers inside a computer as well, it is also electronic money.
Crypto currencies is an idea and technological implementation of money that is an exact fit for the current economic situation of a world awash in debt by all governments with the U.S.A as the biggest debtor nation in the world.
Crypto currencies is an idea that is right for a time when governments and banks around the world have been shown to be untrustworthy and reckless (not responsible) with taxpayers money and the result is that regular people suffers for their recklessness.
Because of government and bank recklessness (debt and corruption), the people have to pay with higher bank fees, government service fees and taxes.
So what is the difference between crypto currencies like Bitcoin and fiat money like the U.S dollar.
This can be answered in several parts, with crypto currencies:
1. No entity controls it (Government and Banks cannot control it), decentralized ledger
2. Maximum amount that can be created and the rate of creation is controlled by “algorithm”
3. Transparency (tamper-proof ledger with checks and balances, forces responsible budgeting)
4. Anonymous transactions
5. No banking fees
6. Very low (miniscule) fund transfer fees
7. No double spend
8. No counterfeiting
9. Global (not tied to any country)
10. People and Citizens can create money for themselves through “mining”
Looking at the list above, you can see that the majority of the points are beneficial to society and its citizens in general and at the same time takes control away from governments and banks (Wall Street). That is why governments and banks are afraid of crypto currencies.
Recently, the mainstream media controlled by government and banks have painted Bitcoin as a risky bet and doomed to fail. It is no riskier though than gold, silver and it is certainly less risky than credit default swaps and mortgage back securities that crash the financial world in 2007-2009, which banks all around the world invested in.
So how can banks call Bitcoin and crypto currencies risky, when the banks lost billions themselves on CDS, CDO and mortgage backed security and other financial derivatives.
The mainstream media points out “theft” of Bitcoin, they point out “hackers” and the “sky is falling” with one of the Crypto currency exchanges Mt. Gox going out of business. They sensationalize the negative because simply put, they are afraid that Bitcoin or Crypto currencies does offer a viable alternative to FIAT.
What mainstream media doesn’t point out is the fact that all of the above negatives can be said about FIAT money (U.S dollar) in general, bank robberies happen everyday with real brick and mortar banks, money laundering happens everyday with real banks and U.S dollars being involved just Google “HSBC and money laundering drug money”. Financial companies go bust too like “Lehman Brothers” and also with FIAT money like U.S dollar Trillions of dollars can go missing too. See my last post.
Unfortunately, there will be more assaults on crypto currencies, but I can see the truth prevailing…people are not stupid and many has lost faith in the trustworthiness of banks and the media.
All the features, check and balances of the crypto currencies iike Bitcoin and Litecoin, is controlled by computer algorithms which can prevent the rules from being broken or manipulated by government and banks, thus stopping corruption and non-responsible behavior with a countries or nations money if ever a country was to adopt it.
The ledger’s integrity is maintained by tens of thousands of computers on the internet (de-centralized) all over the globe and these computers (mining nodes) and the people behind them are rewarded crypto currencies for helping to maintain the integrity of the ledger / system.
Government and banks are afraid of people / citizens , regular people “mining” or printing their own currency or coins. Hundreds of thousands of people around the world are printing their own crypto coins using the “mining process” (computers running a mining program on internet).
People are creating / mining coins (Litecoin, Maxcoin, Dogecoin) then exchanging them out for Bitcoins and buying gift certificates to buy groceries or items direct from Amazon.com or Overstock.com
As you can see, the power to create money is taken away from central banks like the Federal Reserve of the U.S. This effectively, remove their power to print trillions of dollars and make citizens, taxpayer responsible for paying it back. Now, every citizen can participate in a steady controlled rate of currency creation.
Printing of money by central banks in history have shown that the money was used to fund aggressive military expansive wars. Also, printing of money has been shown to steal money by government administration in power. The money gets funneled to friends, family and off-shore corporations of corrupted officials. All this the people (taxpayers) will have to pay back through raised taxes. With crypto currencies and the de-centralized ledger, the money trail cannot be hidden and corruption can be identified.
Bitcoin, Litecoins, Maxoins and other crypto currencies are only the beginning of this new money paradigm. Most people, who are not educated financially about how the world of “money and control” really works will keep on with the idea that governments and banks should keep dictating what fees and taxes we pay.
Other people, who are tired of banks and taxes will see the benefits of crypto currencies in keeping the governments and banks responsible or taking them out of the people completely as they have been shown time and time again to be reckless and the cause of debt bubbles , booms and bust which leaves in its wake, death, despair and destruction.
I encourage you to research further into crypto currencies like Bitcoin, Litecoin and others to see if it may have a fit with your ideals. Below are a few links:
http://what-is-bitcoin.co.uk/
https://bitcoin.org/en/
https://litecoin.org/
http://coinmarketcap.com/
http://www.coindesk.com/
http://gyft.com
This article was written by Das Brain of MoneyAccumulator.com
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Tags: and, Are Afraid of, Banking Cartel, Bitcoin, Crypto Currencies, gold, LiteCoin, other, U.S Federal Reserve, Why
