Bank failures fednow and Central Bank Digital currencies these are fun topics But don't worry we're not going to go Off into the weeds we're not going to Talk about the scary things that might Be out there we are here to find a path I heard it's paved with something I think it's yellow So we're going to mostly skip over gold Price for a minute I've already made my Point about making purchases when the Price of gold is on its way down when You can and then being careful about Rushing in when price is on its way up That goes against Instinct but it'll Save you money we're going to focus Instead on two interconnected events That are playing out in real time right Now events that could have long-term Implications on a lot of things really Including gold and I don't just mean a Short-term price spike I mean how Important it could be to have some as Part of a backup plan And the first of course is the banking Fallout that shouldn't be any surprise The second is the introduction of fed Now maybe you've heard about it this is The fed's new payment system it's going To be rolling out in a few months now Both events are getting a fair amount of Attention which means that there's both Good information and there's bad and That bad stuff it feels a little bit
Like walking through a pop-up Halloween Haunted house some high school kid with A rubber mask jumps out and yells boo It'll make you jump but it's not going To leave you with anything useful so We're going to try to split some of that Out we're going to think through how to React in practical ways now both of These scenarios the bank Fallout and the Rollout of new fed Payment Systems make Strong cases for having some gold and We're going to get to that in a minute Now the reason that I say that the Banking issues in feds new instant Payment service are interconnected is Simply that if the population loses Trust in the banking system you're going To be more open to an alternative this Is not something that's only happening In the United States by the way the Banking issues they might seem specific To countries or regions and fed now is Definitely specific to the United States But the idea of alternatives to Modern Banking is not a localized thing I've Shown maps of global Central Bank Digital currency testing and Implementation before this is happening In most developed countries in the world According to the Atlantic Council that's Where I got this map 114 countries representing over 95 Percent of the global GDP are exploring A cbdc
We need to clear up some words here Though fed now is not a cbdc it's not Phase one of a cbdc it doesn't allow you To have a bank account with central Government like I've heard some people Explain and you aren't going to lose Control of your money beginning in July Of this year fed now is actually an Instant payment system there are Advantages to that system revolves Around at speed it's meant to allow Real-time payments I'm sure we can all Come up with our own ideas of what the Downsides would be but that speed is one Of the major advantages that's typically Noted for cbdcs Now one of the significant differences Between fednow and a central bank Digital currency is that fed now is an Intermediary it does not replace your Bank account it works a little bit more Like stripe or PayPal in that it's a Payment processor it's not a wallet the Reason that that's important is that a Lot of the hypothetical Evil Shenanigans That a cbdc could Implement require that The system is centralized and that you Are locked into it one example Shenanigans that's been thrown around is The idea that expiration dates could Require you to use it or lose it that Would be for certain entitlements or Payments another might be that you can Only make purchases for certain things
Or certain amounts from certain vendors Now I've mentioned these ideas myself But all of these are hypothetical They're the programmable features that Could come but again they require a Closed system with a new currency you Can't simply transfer out so that's what The United States is up to with fednow It is possible that that's groundwork For an eventual cbdc it's also possible That it's addressing the needs for Instant payments and that could even Push back the roll out of a cbdc at Least here in the United States it's Hard to say but the US is not looking to Get rid of regional banks at this point And that would allow those Banks to Maintain their place as a home base for Account holders and what that means is That you'll continue to have options So we can be clear about this you are Not losing control of your money in Three months as I've seen people suggest This is not the end I've seen that too There may be more to the bank issues Than we're seeing today Banks they need To get their act together soon or there Really is no other way to look at this If things get bad enough a cbdc is Actually going to look pretty good to Some people probably not to a high worth Individual maybe not to a business but There are a lot of people living Paycheck to paycheck who might not see
Any real reason to keep a relationship With a local bank anyone talking about Future banking here on YouTube well They're just speculating so we're going To move on we're going to look at the Part that we don't have to guess about And that is how to put aside a Reasonable amount of assets outside the System and I'd say that there are two Parts to this the first is making sure That we don't lose any of our money in a Possible Bank collapse and then the Second is having an alternative if we Don't like the idea of future purchase Is being governed From a planning perspective those two Things they're more or less the same but They differ in scale we're going to Speed past the obvious stuff you know Make sure whatever you have in the bank Doesn't exceed the limits of FDIC Conforming accounts spread your assets Out brokerage accounts retirement Accounts bonds equities whatever or Don't but if we're going to call this Common Sense planning I think we need to At least mention the idea of those Traditional routes Beyond those I would Say there are three main categories to Consider that would give you some Flexibility at a transactional level and Those are cash metals and digital Currencies there are other Alternatives Of course but these are the ones that I
Think are the big ones Cash is the first of those categories It's an easy one I think you should have Some it makes sense in most situations And I think that you should probably Have some available at all times how Much is up to you I don't know if There's any rule of thumb at least not One that makes sense for everyone but if I was concerned about a systematic bank Failure or cbdc lock-in cash would be The first thing that I would want to Make sure I had available Metals are next up they're harder to use In direct transactions though obviously And if that was your plan well it's not Particularly efficient to stack that way Because the increments that might fit Daily use they come with very high Premiums that would be like silver coins Maybe one tenth ounce gold coins I'm not Saying you shouldn't have those but if You were to stack those increments as if That was all you were going to be able To use until the end of time well They both have very high premiums that Would be expensive even constitutional Silver has high premiums I personally Think junk silver is kind of a huge Racket anyway but I'm going to try to Stay on topic the smaller the increment The higher the premium so I don't plan On using Metals for small things Personally I see them as long-term
Wealth protection The third category is digital Cryptocurrency no I'm not trying to Convince anyone of anything but if You're sold on gold and silver Particularly silver for those smaller Transactions well I think that it's Worth considering the fact that they are Not easy to spend directly and that is Where crypto is different it's an entire Subject I'm not going to get into but if You're serious about having alternative Options to a digital dollar Bitcoin Makes a little bit of sense here makes a Lot of sense to me personally and then On the flip side of that of course if You're already sold on bitcoin or xrp or Ethereum or something else I would say That you should be considering how Volatile cryptocurrency is and that's Where gold makes sense it's stable my Point here is just that if things are Changing fundamentally with the way that Money works the way that money moves it Might be time to get serious about Backup plans and actually consider all The options Now the upside here despite what Everyone seems to want to tell us is That we actually do have time to work on This you don't need to listen to anyone Throwing out mindless suggestions about Cbdc's being here in July you losing Control of your money at that point
Telling you to run out buy up all the Gold and silver that you can get on a Price spike We have time to get ahead of this and we Have time to get ahead of it in a Meaningful way even when an actual cbdc The actual digital dollar and the wallet Rolls out it's not going to be a total Lockout the system just can't change Overnight yeah but the pandemic I mean I Get it the kids with the rubber masks And the fake chainsaws they make us Jumpy but none of this is new the Doom Strategy has been around as long as I've Been alive and it should not take us off Course we're going to get the Doom from At least two sources there are certain Bullion dealers who are always going to Have reasons that you should buy gold And silver Just think about that one for a minute Because that's where a lot of the hype Comes from from people whose livelihood Depends on you buying more of course They're going to exaggerate what's going On it's good for business and another Source is from people looking for views Here and everybody knows fear drives Attention so I would say tune it out for A while focus on two things what would Be the most useful to you if you needed An alternative to a typical bank account That's either short-term or long term And then second how much might you need
Now I mentioned my ideas here a few Times I'm not going to go real deep Right now I have some cash for immediate Needs there are a lot of places that Don't take cash don't like cash I get it But in a wide scale issue Far and Away That's going to be the easiest to use Metals to me are more about savings I Don't plan to barter with them unless Something completely crazy happens and That would be an extreme Edge case for Me I know I won't sell it outside of an Emergency need so it's a great savings Account and I want to build up an ounce Of gold for every month that I think I Might need some help Everybody's expenses are different They're available capital is different The length of time they've been buying Is different everything is different all I can tell you is what I do and I like To keep two ounces a month for two years I think of anything over that amount Differently it's for a different plan I Still keep going I don't stop But it's no longer about day-to-day Continuity at that point it's more about Trying to save against a longer term Lifestyle depreciation and hopefully That's more about something that could Happen in my kids lifetime rather than Something that happens in my own Retirement with crypto I can't tell you A whole lot there I'm just not the right
Person I have Bitcoin I have ethereum I Have a few others and I'm holding them I Used to trade it for a while I did okay I might do it again in the future if Things change but my plan right now Is more about holding on to some with The expectation that they might be more Important at some point in the future And I would rather get a hold of some Slowly over time than rush in down the Road so that's my plan in a nutshell my Take on cbdc is a little bit of a look In on fed now and one last word on time And patience I think we should have them We're going to call it good there so let Us know what you're up to what you think Makes sense here as backups both long Term and short hit us up in the comments With your ideas and then while you're There be sure to hit the like button if You found any of this interesting be Sure you're subscribed with Notifications turned on if you'd like to See more on the topic And if you're still here thanks again For watching I always appreciate your Time Take care Foreign
