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Weekly Touchpoint: Consequences of Digital National Currency

Posted By Isaac Nuriani |

You may remember a piece we published recently about the possible consequences that could arise with the advent of a digital national currency. The principal concerns include how easy it would be for the federal government to monitor every transaction you ever make – and the fact that we would be trapped in a digital “money prison” that exposes all of our dollars to the most drastic monetary policy measures, such as negative interest rates. In spite of these and other worrisome possible outcomes, two U.S. Congressmen recently encouraged the Federal Reserve to move forward with the idea. A closer look at this development begins our weekly roundup of valuable news items for retirement savers.

  • CoinDesk reported that two U.S. lawmakers – U.S. Congressmen French Hill (R-Ark.) and Bill Foster (D-Ill.) – sent a letter to Federal Reserve Chairman Jerome Powell asking that the U.S. central bank move forward with the development of what would be a digital version of our national fiat currency. The letter reads, in part: “With the potential for digital currencies to further take on the characteristics and utility of paper money, it may become increasingly imperative that the Federal Reserve take up the project of developing a U.S. dollar digital currency.” Imperative? They are completely ignoring Americans who see it as imperative that they distance themselves from the banking system by adding physical gold and silver to their portfolios.
  • Could another mortgage crisis soon bring the global financial system to its knees once again? A MarketWatch article sheds light on distressed borrowers who previously secured mortgage modifications to avoid foreclosure only to face a little-discussed but serious problem: re-defaults. According to data from the U.S. Office of the Comptroller of the Currency (OCC), 21% of the loans most recently modified had re-defaulted within a six-month period. Only 47.3% of loans modified by servicers between 2008 and 2012 (the height of the financial crisis) remained current by the end of Q1 2013. The article cites a wide variety of data sounding the alarm on re-defaults, including figures revealing “the most recent Fannie Mae [loan] modifications in 2015 showed the fastest re-default rates since 2010.”
  • UBS Group, a respected Swiss multinational investment and financial services company, is regarded as one of the more conservative megabanks when it comes to its analyst projections for markets and assets. The “too-big-to-fail” bank’s recent decision to raise its price forecast for gold a second time in less than two months took many observers by surprise. This move by such a conservative company added more credibility to the belief that gold’s remaining upside is robust. In August, UBS said it was looking for $1,680-an-ounce gold in 2020. Now it’s saying the metal could hit $1,730 an ounce next year. Because UBS is known for subdued outlooks, it’s fair to say these price projections are considered low. Other institutions believe gold will have little problem breaching $2,000 an ounce. Get more details at Forbes.
  • There’s an asset out there known as the “crisis commodity” for its demonstrated capacity to strengthen not only during periods of economic turmoil but during times of political and geopolitical upset, as well. As it turns out, this “crisis commodity” benefit may prove particularly valuable if a recent Iranian drone attack on Saudi oil operations manifests into all-out war. According to Saudi Arabia’s crown prince, “a total collapse of the global economy” may shortly challenge retirement savers if heightened tensions in the region explode. For the complete story, and to learn the identity of the “crisis commodity” that could help secure your portfolio if the Middle East becomes a war zone once again, read Augusta’s latest blog article here.

Gold still hovers around the $1,500-an-ounce mark in what many experts believe is a mere pit stop on the way to $2,000-plus an ounce. If that move skyward continues, it could be due to gold simply resuming the climb on its own. Or it could be due to a specific catalyst reigniting it, similar to the way gold began this current surge on the heels of a Federal Reserve announcement of lower interest rates. Regardless, what really matters is that you’ve seen fit to include gold as a core asset in your portfolio. As long as you’ve done that, the benefits of rising gold – for whatever reason it rises – naturally accrue to you. For more information, call Augusta Precious Metals at 800-700-1008 or visit

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