Dear Reader,
The major news outlets have declared Joe Biden the winner of the 2020 presidential election.
The Biden victory was declared by the media based on projections in several states, including Pennsylvania. But projections are not official certifications, let alone final votes in the Electoral College. (The composition of which will not be determined until 8 December. The actual Electoral College vote for president happens on 14 December.)
In particular, the Pennsylvania outcome is based on counting several hundred thousand mail-in ballots that were received after Election Day. Pennsylvania state law passed by the legislature requires that mail-in ballots must be received by Election Day in order to be counted. The Pennsylvania Supreme Court (dominated by elected Democrats) ordered that mail-in ballots could be counted if they were received up to three days after Election Day.
Trump could still emerge a winner
The US Constitution clearly says that state election laws are to be set by the ‘legislature’ of each state. Trump claims that the Pennsylvania Supreme Court decision is unconstitutional because it violates the requirement that legislatures set the rules. That claim is now headed to the US Supreme Court.
If that court agrees with Trump, then the late Pennsylvania ballots could be discarded, and Trump would win Pennsylvania. Depending on what happens in Arizona, Nevada, and Georgia, Trump could still emerge a winner. That’s a long shot and I’m not holding my breath. But numerous challenges are working their way through the system.
This article is a good non-partisan and calm look at the processes and deadlines in several states that could yet change the outcome of the presidential election. The article is worth a close read. Don’t bet on a Trump victory — but don’t rule it out either.
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Does China represent the shape of things to come in the US?
I’ve written frequently about the dangers posed from an all-digital currency system. I’m not talking about bitcoin or other so-called cryptocurrencies. I’m talking about leading currencies — such as the US dollar, euro, yen, sterling, and the Chinese yuan — being produced and held in digital form only with no paper currency in circulation.
This would force all citizens to use digital bank accounts, credit cards, debit cards, wire transfers, and perhaps new types of ‘digital wallets’ in order to possess and use money. The truth is that most currency transactions are already digital.
I use credit cards and electronic account transfers just like everyone else. Still, paper cash is a nice alternative. It’s convenient in some cases. It’s highly useful when there’s a power outage and the electronic systems don’t work. And, most importantly, it helps to keep the politicians honest (at least when it comes to money).
If governments move to negative interest rates (where they subtract ‘interest’ from your account instead of adding), you can avoid this confiscation by switching to paper currency. You won’t earn interest, but you won’t have your account reduced either. At least you can keep your hard-earned money.
More grave threats on the horizon
Negative interest rates are a threat, but it now appears there are even more grave threats on the horizon resulting from digital money. As described in this article, China is planning to require that everyone use digital forms of its currency, the yuan. China already has the world’s most invasive security state. It uses millions of digital cameras, control of the internet, tracking of travel, facial recognition software, and other means to keep tabs on over one billion citizens.
Now, with digital currency, China would have a real-time record of your purchases and your whereabouts at the time of purchase. This information would be added to information it already has (from GPS locators in mobile phones and the camera network) to identify your actions, right down to the vegetables you’re having for dinner tonight.
All this information is rolled up into what China calls a ‘social credit’ score. Citizens with high scores (meaning they toe the party line, don’t engage in controversial political discourse, and shop in the right stores) can go about their lives.
Citizens with low scores find they cannot travel on planes or trains, cannot obtain certain jobs, and their children will not be admitted to top schools regardless of academic merit. Of course, those punishments are all designed to keep individual behaviour in line with Communist Party-approved boundaries.
Digital cash is not just about negative interest rates anymore
It’s one of the most invasive forms of social surveillance ever conceived. Don’t think for a minute this is confined to China. There’s a strong movement to create this system in the US also.
There are already calls by some Biden supporters such as AOC to keep track of Trump supporters, and deny them attractive jobs at universities and government contracts. Digital cash will make it even easier to punish political enemies. If cash is digitised, there will still be one form of non-digital money the government has not figured out how to track. It’s called gold.
Regards,
 |
Jim Rickards,
Strategist, The Daily Reckoning Australia
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