No Crisis Goes to Waste China has grown tired of a global monetary system that relies on the greenback. And you can bet it's going to use America's latest crisis as fuel to propel its agenda. It's got plenty of evidence. As of April 29, the Federal Reserve's balance sheet has exploded to a whopping $6.7 trillion. It's now the equivalent of more than 30% of the U.S. economy. That's $6.7 trillion worth of new money. And with every dollar we print, China's trillion-dollar stockpile of American debt is worth that much less. Clearly, it has plenty of reasons it must win the race toward a digital currency. Washington is currently losing the race... but it's thinking about tightening its laces and making a sprint. During the hoopla and debate over the (first) coronavirus stimulus deal, Nancy Pelosi allowed her teammates to concoct language that would have America on her way to creating her own government-run digital currency. The wording that would force the Federal Reserve to open digital dollar wallets for all its customers never made it into the final bill - thank goodness - but clearly the desire is there. In this case, Washington wants to use the digital dollars and their corresponding digital wallets as a way to quickly stimulate (or, of course, "destimulate") the economy. With the push of a button, Pelosi could put $1,200 straight into a voter's wallet... without any of the messy settlement issues we just saw with the first round of stimulus checks. Everybody would have a government-run FedAccount (a real term)... just like we all have Social Security numbers. Mark our words, when the government starts to pay all Americans just for being Americans - the idea of a "universal basic income" - this is the system it will be based on. When it happens... it will be a devastating blow for economic freedom. After all, it's tough to bury a digital wallet under the old oak tree in the backyard. That scares us. But it does make us want to buy a bunch of bitcoin. We've traditionally steered away from the highly speculative asset (still a term we use loosely with cryptocurrencies), but it's looking more attractive by the day. Especially when disruptive changes to our monetary system could come as soon as June 10… I've spent a lot of time researching this subject. I've compiled all that I've found in an in-depth presentation. Click here for my step-by-step guide on how to protect yourself this painful move. The money wonks have done some crazy things over the last two months... and this mess is far from over. Keep an eye on what's happening in China. It's a (worrisome) glimpse into the future. Good investing, Andy P.S. To hear more from me, click here and subscribe to my free e-letter, Manward Digest. (Clicking above will opt you on to Manward Digest's free e-letter and offers from us and our affiliates that we think might interest you. For any questions, take a look at our Privacy Policy.) | 
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