The US is Becoming Obsolete

America is becoming obsolete. That’s right, obsolete.

While the whole world is evolving, not just in technologies, but in economic and financial system, the Fed is hell bent on keeping the status quo.

Exhibit A: Federal Reserve Chairman Jerome Powell is standing his ground when it comes to central bank digital currencies or CBDCs. Japan, China, and other European countries are pushing forward with the creation of their own CBDCs but Powell won’t be hurried.

During testimony before the U.S. Financial Services Committee, Powell said they are studying the feasibility of central bank digital currency or CBDC but will launch it when they launch it.

Yes, they don’t care whether the whole world is already testing it out. Instead of leading this revolution, we are opting to stay behind.

Of course, it’s good that they are not giving it to pressure but it’s sad that they are not seeing the value and importance of a CBDC.

The U.S. is falling behind in almost every aspect of economic and financial progress.

When it comes to developing a CBDC, China is getting close to implementing the digital yuan. El Salvador recognized Bitcoin as a legal tender and is now exploring a CBDC. If their response to Bitcoin is any clue, then we can expect a lightning-speed CBDC implementation as well.

When it comes to international relations, Europe and Asia and forging direct partnerships.

When it comes to technology, India, China, and Korea are revolutionizing the automotive industry, communications devices, and other digital technologies.

Digital cash is just another aspect of the progress we are ignoring.

He also said, and this is a point that I find more interesting, is that he thinks that when the US launches a sovereign digital currency, it could make cryptocurrencies such as bitcoin or stablecoins such as Tether unnecessary.

Powell said and I quote, “One of the arguments that are offered in favor of a digital currency, in particular, is that you wouldn’t need stablecoins you wouldn’t need cryptocurrencies if you had a digital US currency”.

Currently, the Fed is working on a report expected to be published in September, pushed back from July, that seeks to expand on benefits, risks, and considerations that must be taken into account when it comes to forms of digital payments, such as crypto assets, stablecoins and the formation of a CBDC.

This builds on work that the Fed undertook last year when it partnered with an MIT digital currency initiative to explore the idea of a CBDC.

Powell doesn’t see the need to rush because the US is the reserve currency with no real competition. It’s just how we work in this country. We like playing catch-up instead of leading the charge.

Powell notes that historically the U.S. has had a strong regulatory framework for other assets such as money market funds but digital assets like stablecoins have limited regulations. This makes it a risky asset.

Obviously, the Fed has no plans of giving up control over the currency. They will continue to print money when they want to print and we have no control over it.

That means inflation will continue and that’s not good for our economy and not good for our investments. We need to build wealth faster than the US devalues our dollar.

Go back to your portfolio and make sure you have everything covered. Make sure you are well diversified. ETFs, stocks, bonds, crypto, businesses, and a hedge, a store of value.

There is no other asset that’s better than gold to do that. All throughout history, each time we go through economic distress, instability, and any sort of conflict, gold holds up, it thrives.

That’s why you need gold. You need that one asset that will shoot up when everything else is down and will remain steady.

That’s where Noble gold investments come in. Even if you don’t want to buy and just have some questions, call us for a no-pressure conversation, (877) 646-5347.