One of the truly great men of the 20th century was Soviet dissident and human rights advocate Alexander Solzhenitsyn. He was formerly an avid Marxist, but criticized Joseph Stalin in a private letter and was sentenced to prison. He later returned to his Christian roots and became one of the world's most famous writers. He authored The Gulag Archipelago, a classic, instrumental in removing the blight of communism from his beloved Russian homeland. It did so by exposing the hypocrisy and lies of communism, revealing its' evil, anti-justice reality
On June 30th, 1975 Solzhenitsyn said: "I call upon America to be more careful with its' trust, prevent those who are attempting to establish even finer legal shades of equality because of their distorted outlook, shortsightedness and self-interest from falsely using the struggle for peace and for social justice to lead you down a false road. They're trying to weaken you. They're trying to disarm your strong and magnificent country in the face of this fearful threat, one that has never been seen before in the history of the world."
America rose to the challenge in the 1980s, and 90s, but now we are facing the same threat again, only repackaged. Solzhenitsyn stated: "If we don't know our own history, we will simply have to endure all the same mistakes, sacrifices, and absurdities all over again." Solzhenitsyn warned the people of America not to enslave themselves. He warned that there would be agitators among us seeking to bring despotism, but disguising it as freedom and equality in America.
We have a constitution that guarantees our liberties, but that does not mean unscrupulous radicals won't be able to sway the people with deception or coercion, or tempt them, into enslaving themselves. We see a propaganda war and we also see the universal implementation of contemporary technologies for convenience and entertainment. Both are converging to create the very despotism that Solzhenitsyn warned us about. John Locke explained that despotic power is absolute arbitrary power of one person to take the life and property of another against their will. Locke shared that a century before the American Revolution and it is still true today. Of course, no one could have envisioned all the ways technology could make despotism even easier.
Bitcoin and other cryptocurrencies have been popular because they are mostly anonymous. Cryptocurrency is a way to store your money and nobody really knows that it is yours. Having said that, they are working on taxing it now. Every time you do a transaction, it could be considered a capital gain or loss. Governments are wary of Bitcoin. China has cracked down recently on Bitcoin and this dropped the prices from $60,000 for one Bitcoin to under $30,000. Some people believe that the main reason for any crackdown is to stop competition with government money. Presently, China is developing a cryptocurrency and the Federal Reserve is pushing for a digitized currency as well. Now that sounds good. It would be convenient. It's modern. It's sophisticated.
It is important to note, however, that the Chinese Communist Party (CCP) wants to use their new digital yuan in the Belt and Road initiative, and they have made clear that they want to displace the US dollar. That's part of it. Another part of it is they want the tracking capability of this currency and the data capture. They are looking for even more control. Essentially, they are creating a programmable currency and want to get the world hooked on it.
What if a government sanctioned a currency, but they only allowed you to use it in certain ways? Imagine a new cryptocurrency in China and they say: "OK, it's your money, but you can only use it in this location, but not outside of 10 miles from your home. You can't use it that way." They can control you and keep you at home. It would be a new form of lockdown.
What if they said you can only use it to buy certain foods because you are obese and you need to eat the "healthy" foods they want. Do you think I'm exaggerating? Do you remember Mike Bloomberg's plan as mayor to say you can only have x amount of soda, you can't have y? That is clearly the level of control pursued. If they control a cryptocurrency and you have that money, you can only use it the way that they approve.
What if they say you can only buy an electric car, not a gasoline-powered car? What if they say "this retailer here, we don't like what they do, so you can't buy from them, but you can buy from this one." The level of control is astounding. What if they say we are going to put expiration dates on your money to force you to spend it now or we are going to freeze it so you can't spend it? Government controlled "programmable currency" would represent nearly unlimited power. Imagine what would happen if they could tax you at will by simply making certain money disappear or move it to another account.
Remember the golden rule? He who has the gold makes the rules. But in this case, he who controls the currency makes the rules. We are witness to a war on cash and it is accelerating. Here is an example from a friend: "I work in Beijing, same as working in New York. I go to work, they pay me. I go out for drinks with my friends". That was true until one day on his way to dinner he happened to jaywalk. He just walked across the street. A surveillance camera took a picture of him. They sent it to him on his phone. They took a fine straight out of his account. That's the level of control we're talking about.
According to an April 24, 2021 article from the American Institute for Economic Research, the CPC introduced a digital version of its' currency, the yuan, for use in four Chinese cities. The CPC sees two major benefits to this experiment: a tangible challenge to the US dollar's global ubiquity, and a way to control how Chinese citizens spend their money. The digital yuan can be manipulated and monitored in a number of ways. It is programmable. According to The Wall Street Journal, Beijing has tested expiration dates to encourage users to spend it quickly for times when the economy needs a jump start. This sounds like a despotic government's dream come true and a citizen's worst nightmare. Bureaucrats can finally exterminate all traces of freedom in the marketplace. They can "reward" good behavior, punish "bad", tax at will, create money at will, replace and redistribute currency and wipe out the black market.
During gold confiscation in this country in the 1930s they said you could not own gold. According to Peter Earle, "a state determining a populace is insufficiently supportive of a military campaign may decide that hardships are not being sufficiently shared. Sudden unannounced attack on bank balances resulting in immediate loss of purchasing power could be imposed to align your interests. Could a failure to consume certain goods, say "green friendly" versus higher quality, trigger a government decreed disciplinary lopping off an offender's bank balances in the same way that a former president allegedly used the Internal Revenue Service to harass political opponents…?"
A digital currency can be used to enslave. Not only can they reward or punish behavior, they can punish saying the "wrong" thing versus saying the "right" thing. President Trump was "deplatformed" on social media to prevent him from communicating ideas censors did not want people to consider. With digital currency, authoritarians can literally take your money away in addition to taking your voice away.
And don't think you will be able to avoid a digital currency. In China they gave out "free money" and people took it willingly. The government considered giving Covid relief in digital form. What if the only way to get your tax refund was digital? Or if employers were required to pay in digital dollars to reduce tax issues?
Remember, Solzhenitsyn was sent to the gulag for things that he wrote in a private letter. In this case there is no expensive incarceration. You just shut down the people's money to punish them in addition to depriving them of communication technologies.
We require ID for almost everything (except voting for some curious reason), and you wouldn't be able to buy or sell until you prove that money in your account is yours with an ID. Unfortunately, this may not be an experiment for much longer. The Federal Reserve is ramping up efforts to build and test a digital dollar. Expect major announcements in coming weeks.
Fortunately, this dystopian nightmare does not have to be inevitable. We can work together and weaponize our money before it is turned into a weapon against us. Get a financial advisor to help you weaponize your money for liberty, not oppression. We must all hang together or we may hang separately. We will need an army of financial advisors for what is coming. It is going to get complex and challenging. But if enough of us begin now, we can make a difference.
There are three things you can do with your money. Spend it, give it, or invest it. If it is just you, you have already lost. I spent time in Washington, D.C., and I have spoken with members of congress and senators, and they always ask me: how many people do you represent and how much money? It shouldn't matter if one person with a single dollar has the right solution and the truth, they should listen. Individual liberty should matter. But that is not the case. That's why we started the NSIC Institute.
Our goal is to train ten thousand financial advisors with a combined $1 trillion of capital. They will represent millions of investors who vote. That will get the attention of policy makers. We train financial advisors to help people protect themselves and prepare for the challenges ahead. You should not be financially supporting those who are seeking to harm you or destroy your liberty. Polling indicates that investors want like-minded advisors, those who share their values. Considering at least 74+ million Trump voters, there's a lot of money represented there. Plus add in the Biden supporters who don't want the government controlling their money either.
We need ten thousand financial advisors to have the impact we want. That's why we're launching the Economic War Room training at Liberty University. Beyond that, we want to explore a new idea, something that we have been working on since 2009, and may be a better form of money. It might eliminate all these risks and it might even address the threat of inflation. Imagine a currency that has inflation protection built-in, backed by a government, but also backed by gold. And no, it's not the Chinese digital yuan (although they're claiming they're going to back it by gold).
The digital yuan is the Chinese Communist Party and they made clear they want to use it to destroy American economic power. What if the Constitution allowed for this new currency? According to my pocket US Constitution, Article one, Section ten says: "No state shall coin money or make anything but gold and silver coins, a tender in payment of debts. So we've started something.
I worked with the state of Utah with their fiscal risk commission. In 2011 they passed the 2011 Utah Legal Tender Act. They gave me a one-ounce silver .999 pure silver coin that is legal tender in the state of Utah, framed in a nice plaque. But what we're doing in Texas is the next step. We started the Texas Bullion Depository. It was started by my state representative, Giovanni Capriglione. But that was just the beginning. Here's the full plan. What if you could take your gold and silver and deposit in Texas or give us cash in US dollar form? Use a Federal Reserve note and buy gold. Texas stores it for you. Then we create digital coins like a bitcoin, but it's tied to your deposits. There would be no privacy violations. We would only track the amounts, and you could spend it like you would a prepaid debit card; that solves most of the problems. This would be good money, but we need one more thing.
We need an IRS letter that the federal government will not tax capital gains or losses as they do with actual gold and silver, the way they're taxing Bitcoin. Every time you do a Bitcoin transaction, you have a gain or loss and you have to pay tax on it and keep track of it. But do taxing powers extend to Constitutional money issued by sovereign states? There should be no way they should tax it as it is not income! We either need the IRS to admit that state issued coins are non-taxable in regard to their purchasing power fluctuations or we need to take it to the Supreme Court and force them to admit it. If your dollar gets stronger with deflation, you don't pay tax. If your dollar gets weaker from inflation, you don't get a deduction. This would be constitutional money and other states would, no doubt, follow suit or they could just partner with Texas. This is more constitutional than Federal Reserve notes and it's likely that money would flood in from around the world to be held in gold protected by Texas. It's infinitely divisible with the blockchain because you could have fractions of an ounce of gold represented. And it would be more trusted than a digital yuan.
The CCP is hinting they are going to back the digital yuan with gold, but there are reports of bars painted with gold paint that they are claiming are gold. Can you trust communist China? We want to set a standard that the Federal Reserve would feel pressure to beat.
According to the Federal Reserve, there are three functions of money: It's a store of value. It's a unit of account, and it's a medium of exchange. I want to add a fourth: It should be stable. A programmable dollar would be subject to the old adage: power corrupts and absolute power corrupts absolutely. We need for Texas to adopt this plan in full and then push the IRS for a ruling or initiate a lawsuit. Clearly, the founding fathers of our Constitutional Republic wanted states to have stable currencies. This meets the definition. Everything else is now either in place or available. We've got the bullion depository. The technology exists. You can use block chain. The Constitution provides for states to issue gold and silver coins. And people are clearly ready for a new monetary system that they can trust as an alternative to the US dollar.
There is going to be political opposition. Lots of people make money from the current system, and some powerful interests are in position to benefit from a programmable dollar that is more similar to the digital yuan. But the will for change is strong and Bitcoin proves this. This may not be the only solution, but I think it is worth exploring. I mentioned this in my book, Game Plan published in 2014. You can find it on page two hundred and twenty-three.
I think the time to launch is now, but we need a political movement. This goes back to the question I was asked repeatedly when briefing Congress. "How much money and how many people do you represent?" The answer is that we have a large and growing audience, but we need you along with everyone you know to weaponize your money. And we need trained financial advisors to help us do it. Ten thousand advisors trained represents approximately $1 trillion in capital, and that is just the beginning. Not all advisors will agree. But do you want an advisor who doesn't agree with you? We are going to band together at the NSIC Institute – National Security Investment Consultant Institute. If your advisor is not willing to support you in this, find a new advisor. There are lots of advisors looking for new clients. And if you are an advisor, this may be your niche. There are lots of clients who will want your help with this.
Remember, what we see as a marketplace our enemies view as a battlespace.™ Programmable money is a threat that even George Orwell could not have imagined. But we have the answer. Nominate your financial advisor at EconomicWarRoom.com/advisor. This training is offered by invitation only. Nominating your adviser is the first step.
[Note: Our July 8, 2021 episode of The Economic War Room will focus on Programmable Money. Also, this article was written for Tactics and Preparedness magazine and will appear in a forthcoming issue.]