ENCOURAGING ANGELS: Bitcoin Will Not Save America

By Stan Szymanski

…’This afternoon, I’m laying out my plan to ensure that the United States will be the crypto capital of the planet and the Bitcoin superpower of the world, and we’ll get it done.‘… (excerpt from Donald Trump’s speech at the recent Bitcoin Conference in Nashville, TN.)

…’I really do not understand these Bitcoin people. They put out all of these theories as if Bitcoin is the savior. These people are out to control EVERYTHING. Do you really think they will allow any cryptocurrency to survive?’…Economist Martin Armstrong of Armstrong Economics

Last week a proposal was made by Senator Cynthia Lummis of Wyoming:

…’July 31, 2024

WASHINGTON, D.C. – Following her announcement of a historic proposal to supercharge the U.S. dollar and pay down the national debt by establishing a strategic Bitcoin reserve, today U.S. Senator Cynthia Lummis (R-WY) officially introduced the Boosting Innovation, Technology and Competitiveness through Optimized Investment Nationwide (BITCOIN) Act in the U.S. Senate.’…(Lummis Press Release)

According to the proposed bill, the 1st $6 billion of net earnings of the Federal Reserve in any year will be utilized for the purpose of funding BTC purchase for the Bitcoin Purchase Program. This will not apply if the Federal Reserve does not remit net earnings for any fiscal year during the years of 2025 to 2029.

According to Coindesk:

…’The Treasury secretary would establish a “Bitcoin Purchase Program” of up to 200,000 BTC a year over a five-year period, for a total of 1 million, according to the draft. The bitcoin would be held for at least 20 years and could only be disposed of for the purpose of paying off federal debt. After that, no more than 10% of the assets could be sold during any two-year period.’…

Within 180 days of the enactment of The Act, Federal Reserve banks shall tender all outstanding gold certificates in their custody to the Secretary of the Treasury. Within 90 days of the tender of the last gold certificate the Secretary will issue new Gold Certificates to reflect the fair market value price of gold held against such certificates by the Treasury as of the date specified by the Secretary on each new Gold Certificate. Then, upon issue by the Secretary, each Federal Reserve Bank that receives a new Gold Certificate will have to remit the difference in cash value between the old and new Gold Certificates to the Secretary of the Treasury to deposit in The General Fund within 90 days.

The approximate current value Federal Reserve’s gold holdings are $11 billion. The Fed currently carries gold on its books at $42.22 per Troy ounce.

If the proposed bill becomes law, this would increase the value of gold on the books of the FRB by approximately a multiple of 50 at a current spot price of around $2,400 per ounce.

Mr. (President) Trump was crowing about BTC at the recent Bitcoin conference in Nashville, TN. In the above quote of Mr. Trump, he states: ‘I’m laying out my plan to ensure that the United States will be the crypto capital of the planet’.

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The BRICS nations are NOT betting on Cryptocurrency. They are betting on GOLD. They will not utilize crypto but they will implement -blockchain- as a method of account.

…’💵 ARCADIA ECONOMICS and others report that the BRICS entrant in the monetary face-off vs USD will launch in September or so. What is it? Not BTC (Bitcoin)

🥇THE UNIT was agreed in St Petersburg with operational support from China; a de facto BRICS monetary unit designed as follows:

* the unit will be 40% backed by Au (Gold) and 60% backed by two fiats; assumably the biggest trading partners within the group (CNY (Chinese yuan) and RUB (Russian Ruble)

* could not be 100% Au-backed as not all the BRICS have enough in reserve

* not a crypto, not a stable-coin; rather, a permissioned blockchain

💱SPECULATION THAT The Unit will merge with mBridge [see comment] (multi-CBDC Common Platform for wholesale cross-border payments) in such a way that no one ccy (currency) exceeds 30% of the basket. No one fiat will be greater than the Au allocation backing The Unit. Will it be a key Fx (foreign exchange) mechanism? (Bryan Byrne (Investment Committee Member at Assembler Growth Capital LLC) via LinkedIn)

As Martin Armstrong stated above: Do you really think they will allow any cryptocurrency to survive? The leading governments of the world -need- currency that they stand to benefit from. The US took this to the extreme and when the GFC (Great Financial Crisis) came in 2008 the other nations of the world saw the weaknesses, frailties and the financially xenophobic dollar system for what it really was. Now, 15 years later, they are ready and willing to begin opting out with their own, more equitable system. But again, the BRICS nations are NOT betting on Crypto!

In my humble opinion, the powers that be that are responsible for keeping the dollar system afloat and running are now ‘grasping at straws’ and the straws look like Bitcoin.

The US debt (Outstanding issue of US Treasuries) has just passed 35 trillion dollars. It is now growing at a rate of approximately $1 Trillion every 100 days. Receipts from individual taxes was only $2.632 Trillion in 2022. The debt itself is now growing at a rate higher than the individual tax receipts. Not good and the trajectory for the debt growth is OVERWHELMING…

…’”Interest is projected this year to be the second-largest federal program — it means your tax dollars are going to interest instead of going to everything else,” said Marc Goldwein, senior policy director at the Committee for a Responsible Federal Budget, a bipartisan think tank.’…(U.S. interest payments on its debt are set to exceed defense spending. Should we be worried?)

Once again leaning on Martin Armstrong:

…’“I think the US could default on its debt as early as 2025, but probably in 2027. 

We have kicked the can down the road as far as we can go.

It’s not just in the United States.  Europe is in the same boat.  So is Japan.  This is why they need war’…(Zero Hedge)

If Mr. Armstrong is correct- (and I am much more willing to put trust in Armstrong than a politician) what will making a 20 year commitment to Bitcoin do for a bankrupt nation?

The proposed bill by Lummis got one thing right at least in concept-The revaluation of gold. The problem is we really don’t know how much gold that the US actually has. There has allegedly not been an official audit since 1953. Even on the ledger of the Federal Reserve the Gold certificates are listed on the same line with ‘Special Drawing Rights’ certificates. So how much gold is actually in the possession of the US powers that be?

One of the greatest minds in writing on the precious metals markets and banking is Alasdair Macleod. Mr. Macleod was recently interviewed by Jay Taylor on his substack. The article is simply titled, ‘Bitcoin Isn’t Money’ Please take time to read the link. Only Gold and Silver (and Copper) are money-sound money that is, not fiat currency.

…’Which brings us to the rule: Only gold and silver coins, and notes freely redeemable in and fully backed by such coins, may serve as legal tender in the United States. The Founders did not legislate this rule by accident, they put it in the Constitution knowing very well what they were doing. Honest money is not just a good idea, it’s the law.’… (The Constitution’s Seven Money Clauses)

The Founders of our country did this for a good reason. They knew where unsound money would lead to-ruination. And now-at ruination we find ourselves.

IMHO, gold (and silver) will be revalued in a big way by the markets anyway. This is why the BRICS (and central banks) have been monstrous buyers of the shiny stuff.

And -none- of our politicians wish to concern themselves with constitutional righteousness-they are only concerned with power.

And when the government is consumed with ‘beggar-thy-neighbor’ monetary policies toward its own citizens in regard to the money in people’s 401(k)’s, pensions and pockets (all the money printing by the government is done to the detriment of the one holding dollar assets)-it is the people who suffer and get poorer by the day.

And if any BTC hawks want to argue that Bitcoin could replace the dollar (that’s not what Trump or Lummis are proposing but some BTC people think this could happen):

…’What made the depression so great was that private assets collapsed, and there was a flight to quality being cash. If Bitcoin replaced the dollar, the country would collapse, the debt would be unpayable or serviced, and private assets would decline, including gold. Democrats would no longer be able to run for office, for they could not promise gifts if you vote for them in the spirit of Marx.’… (Martin Armstrong)

Mr. Trump and Senator Lummis: Bitcoin will not save the US or your political careers. IMHO, in a few years you will rue the day that you chose a cryptocurrency that ‘printed’ 21 million units into existence at a cost of zero to save your country. Only sound money, gold and silver, can do that. But the US does not really know if we have any, now do we?

Are you personally betting on Bitcoin or Gold and Silver to survive a United States with a sovereign debt default looming as estimated by Martin Armstrong? Which one has been money for 5,000 years?

Our politicians do not seem to know.

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Stan Szymanski (or Encouraging Angels) is not a medical doctor. This is not medical advice. In all matters pertaining to the health and care of a human being consult a medical doctor. This is not legal, financial or personal advice. Consult appropriate professionals in those fields for that type of advice.