Three Investors Walk into a Bar

by | Apr 14, 2021 | Content Updates

Three investors walk in a bar.

One has a dollar, one a bitcoin and one a digital Chinese yuan.

bar

I wish I could continue with a joke, but the recent introduction of a Chinese digital currency is no joking matter.  In fact from a privacy point of view, I would call it a portent of doom.

My business, when it started over five decades ago, was all about global investing and maximizing the profits in the most legal, private way possible.   Our seminars used to begin with “How to become one man multinational”.  We taught the six point command posture, “Live in one country, Bank in a second country,  Hold assets in a third country. Earn income in a fourth, through a company in a fifth with an office in a sixth country”.

This totally legal approach to privacy and asset protection was so powerful that over the years the US government (and others) passed a myriad of legislation to make it impractical to all but the wealthiest few.  From a practical point of view, financial privacy for the average person in most of the developed countries is long gone.

Yet our privacy concerns are about to get worse as governments follow Bitcoin’s lead and create digital blockchain currencies.

What’s the difference between the current dollar, a bitcoin and a government created digital currency?

We’ll look at this question in two messages, today thinking about privacy and in the next looking at the question in terms of purchasing power.

To begin answering the question we need to remind ourselves what money is.

Real money is any item that has six values.  It’s durable, divisible, portable, desirable, defensible and rare. Anything that fits these tests can be used as money.

In a litigious, high tax, world, financial privacy can be a part of the defense feature of a currency,

Human nature being what it is… there are two times you do not want others to know how much money you have… when you have very little or when you have a lot.

Silver and gold fits all these standards to some degree.  This is why these precious metals have been a root of real money through the annals of mankind.  There is great volatility in the price of gold and silver due to speculation, but in the long term the purchasing power of these metals has  They have long term purchasing power integrity and can also be held privately.

Portability and defense are the precious metal’s weak link. They weigh a lot and are easily debased, plus are expensive to secure!

Paper money fits the first three requirements of money (durable, divisible and desirable) better than the metals.  Paper money is more durable (through reprinting), more easily divided and more portable than gold and silver.  Paper money is better than gold or silver… if it’s rare.

Fiat money (money not backed by anything rare) is a different story we’ll get to in the next message.

Paper money, along with the metals, can also be somewhat private.

So if those three investors at that bar are discussing privacy… the one with the US dollar (if it’s in paper form) can say… my money is really safe because no one knows I have it hidden under my mattress!

However he should also point out that using cash has become increasingly difficult, due in part to its privacy feature.  For example just about all businesses that receive a cash payment of $10,000 or more, need to file Form 8300 with the IRS.

In our digital world, legislation in many countries (the US especially) has pretty well eliminated financial privacy.  If an agency of a federal or a state, county or city government or many police department wants to know how much money you have, it’s pretty likely they can get a reasonable view.  Ditto for an attorney who is trying to get at your money and wants to look at your wealth.

Along came Bitcoin and other blockchain currencies that aimed to help solve that problem.

The investor with the Bitcoin can jump in and yell… “my bitcoin is even more private than your dollar”!

The Bitcoin blockchain is an open blockchain that makes politically neutral, uncensorable value transfers possible.

The Bitcoin’s boast is somewhat true.  If correct steps are taken Bitcoin can be a very private form of wealth.

Bitcoin adds a dimension of privacy.

Bitcoin is money based around cryptography.  Real money requires “rarity” or “full faith”.   I have not been able to have full faith in #%giuyrwkmn,s:{? but do believe that Bitcoin can be a very private way to store wealth.

The volatility of Bitcoin and the fact that I feel like I still don’t really  “get it” bothers me, but I do believe that if proper steps are taken, independent blockchain currencies offer increased financial privacy.

en.wikipedia.org/wiki/Cryptography

Image from Wikipedia’s explanation of cryptography (see link below)

This is where the investor with the Digital Chinese Yuan steps in and says, “privacy… who wants privacy.  I prefer convenience”  I hope the Bitcoin investor feels that way because central bank digital currencies (CBDC) have no financial privacy at all.

Government controlled cyber currencies are the exact opposite of Bitcoin type cyber currencies when it comes to privacy.

Cyber currency transactions are not totally anonymous. They are pseudonymous and can be traced. To maximize privacy one should use a new address for each transaction, avoid connecting one’s name, IP address or email to transactions and use encrypted communication when dealing n cyber currencies.  Plus for further safety cryptocurrencies, should be held in a personal wallet and kept  offline with backed up keys.

So, what’s the big difference with CBDCs?    CBCDs use a private blockchain instead of an open blockchain.  This makes all the difference in the world.

Central bank digital currencies operate on a closed system where each person has a digital identity linked to a personal, or business, identity that has every transaction tracked and controlled by the government.

The government providing the currency can see and track every transaction, as it takes place, and can use algorithms to flag and tag and even give approval ratings based on spending.

This makes the task of tracking the money you hold in that currency easier than easy.  The tracking becomes immediate, measurable and comparable.

The level of government control is dystopian. They will have the ability to directly intervene in each and every transaction in the economy.  Every penny (or fen or pence or euro or rin) will be accounted for and the government must consent to every transaction.

A recent Wall Street Journal article, “China creates its own digital currency a first for major economy” (1) shows the upcoming CBDC trend.

The article says: Digitized money looks like a potential macroeconomic dream tool for the issuing government, usable to track people’s spending in real time, speed relief to disaster victims or flag criminal activity. With it, Beijing stands to gain vast new powers to tighten President Xi Jinping’s authoritarian rule.

Elements of this kind of control already exist in China, as digital payments have become the norm. Mr. Mu has said the central bank will limit how it tracks individuals, in what he calls “controllable anonymity.”

The money itself is programmable. Beijing has tested expiration dates to encourage users to spend it quickly, for times when the economy needs a jump start.

As governments introduce CBDC the citizens will be given assurances of anonymity.  When US income tax was first introduced the assurances were that the tax would always be very limited and only affect the very rich.

Chinese digital currency

The Journal’s article also says of the digital yuan: “It’s also trackable, adding another tool to China’s heavy state surveillance. The government deploys hundreds of millions of facial-recognition cameras to monitor its population, sometimes using them to levy fines for activities such as jaywalking. A digital currency would make it possible to both mete out and collect fines as soon as an infraction was detected.”

Why I think CBDC will become the norm.

One reason I think CBDC are here to stay is convenience.

There is a saying that man can achieve the impossible, walk on the Moon, go to Mars, capture the power in the atom, but he can never overcome the inconvenient.

Digital currencies are so convenient for so many government tasks, such as taxation, payments, record keeping and law enforcement.

CBDCs are also really convenient for business.

Mankind has already shown an almost total willingness to give up privacy for the convenience of our computers and phones… so I doubt that governments will have to much of a hard sell as they slowly rob their citizens of even more privacy.

privacy

How far will the erosion of privacy go?

Digital currencies will change everything. For example, in 2019, Microsoft filed a patent application for “cryptocurrency system using body activity data” and was given the number W020200060606.  This application, by the way, did not mention implants, 5G or vaccines as many scaremongers state.   The idea of this innovation is scary enough without exageration.  Imagine being paid, not by the hour, but by the action.

This drawing from the patent application shows that the worker is given a device to wear.  The device signals the network and the network pays the digital currency as the worker moves.  No slacking off!  This is beyond piece work!

My mind has yet been able to wrap all the way around this.

blockchain

Crypto currencies also have an enormous military security aspect.

The aforementioned Wall Street Journal article explains how the Chinese digital yuan can hinder one of the greatest coercive systems (that avoids outright military intervention) is sanctions.

The article says: A cyber yuan stands to give Beijing power to track spending in real time, plus money that isn’t linked to the dollar-dominated global financial system.

The digital yuan could give those the U.S. seeks to penalize a way to exchange money without U.S. knowledge. Exchanges wouldn’t need to use SWIFT, the messaging network that is used in money transfers between commercial banks and that can be monitored by the U.S. government.

Nicholas Burns, a longtime American diplomat and favorite to be ambassador in Beijing, told the group, “The Chinese have created a problem for us by taking away our sanctions leverage.”

Computers, algorithms and artificial intelligence are changing our lives in so many ways, especially when it comes to privacy.

History professor Yuval Noah Harari, wrote in his book, Homo Deus: A Brief History of Tomorrow “Fiction isn’t bad. It is vital. Without commonly accepted stories about things like money, states or corporations, no complex human society can function.”

He also pointed out that money is the most successful fiction of all.

Pruppie thinking is use all of the great new innovations we are gaining to serve, grow and prosper.  But prepare, doing things you love, to have escape hatches and sustainability.  History has shown us that these valuable technological benefits can go awry.

Digital currencies are on the way whether we like it or not.   We’ll gain the most figuring out how to use them, while understanding we need to maintain abilities so we can survive without them as well.  That’s a formula for success that also provides good sleep at night.

Gary

CHAOS CREATES MANY OPPORTUNITIES FOR YOU

Cash in on the new normal.

If the pandemic has taught us anything it’s that the so called “experts” really don’t have a clue how to solve this problem. We cannot rely on their information. Instead, we need to plan for and prepare for our own “new normal” if we want to survive.

The pandemic is not the only problem.

The global response to this viral outbreak is just one signal of a world that’s sliding into a devastation and disorder.  The worst turmoil is still to come because of the economic destruction.

With mounting debt, we are well into an economic collapse that will be worse than the pandemic.

The current social economic archetype has already killed millions and destroyed the finances and lives of far more.   Worldwide, unemployment is at an all-time high.  Many businesses have been destroyed.

Governments are trying to solve the problem by throwing money on the fire and are they are being crushed in debt in the process.

Yet, this is just a beginning. It is estimated that it will take 10-15 years to recover from the economic devastation.

To survive the coming economic downturns, you’ll need to learn the importance of adjusting how you live, work, invest and take care of yourself for the next ten to fifteen years!
You can’t rely on governments to bail you out.

Adapt!

That’s exactly what Merri and I have been doing for the last 50 years.

3 d

We have learned the power of being able to adapt to constantly changing markets all over the world and created a not-so small fortune while doing so.  That’s why we’re uniquely qualified to teach you how to not just survive but to PROSPER during the challenging times ahead. Chaos always creates many opportunities for those who know how to spot them and take advantage of them. A good example has been the mass exodus from urban areas to more rural areas.

Since many are working from home, they can live anywhere. There is a shortage of good housing in rural areas now. Merri and I are buying then rehabbing houses to full the gap.  We saw this opportunity coming and jumped in early.

We let readers know of the risks of a pandemic, back in 2016.

Many are already enjoying a safer more secure and financially stable lifestyle already despite the lockdowns and crumbling economy.

Instead of waiting for things to get better, start preparing for things to get worse, much worse.

You also need to learn how to spot opportunities which are all around you. As the economy changes, the opportunities will change too.

That’s why Merri and I keep a constant pulse on opportunities worldwide and report our findings to a special club of unique individuals that we started over 30 years ago. For decades, this club has been called the International Club, but this year we renamed it the Pruppie Club.

What is a Pruppie?

Pruppieism, the new economic and social realism.  Pruppies, like Yuppies, expect everything to expand. They take advantage of every new benefit and technology they can. Pruppies enjoy using the fruits of our ancestor’s deliberations and labors to earn in this advanced technological world.

Pruppies, also, like Preppers, engage in activity that they love that will sustain them when society and the incredibly intricate weave of our global economy and society let us down.

We need to be both, Yuppies and Preppers, Pruppies!

Take profit from the incredible new technology that gives us super powers to earn and grow wealth. Be safe and secure, when social economic tidal waves like plagues, stagflation fascism and communism overwhelm the world.

Pruppies are prepared in case everything, everywhere, or at least everything relating to their income and savings fails and the fabric that surrounds their lives disintegrates into an unknown veil.

Yet a Pruppie’s preparation is not a sacrifice, but a joy as you will see.

Learn how you can become a Pruppie.

gary-scott-orange-grove

I’m no farmer but grow citrus so I’ll always have food to swap. Let me show you how to lock in your food supply.

EARLY ACCESS! We are changing more than the club’s name and you can be in the unique position as one of a select few who are charter members of our new Pruppie Club.

You’ll be the first to know about opportunities and trends all over the world in our bi-monthly report and monthly conference calls which are exclusively for members.

You’ll learn how to:

  • Create a sustainable income without a job or a pension – just in case you lose your job or there is a disruption in pension payments.
  • Learn how to make money working from home – wherever home might be.  A location independent business gives you the flexibility to move to a safer or more affordable location if necessary.
  • Turn your passion in to a profit.
  • How to create quick cash and lasting wealth when you don’t have any money to get started. This strategy can help you build a nest egg fast.
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  • Where the opportunities are now and the best way to profit from them.
  • Communication beyond internet – how to stay in touch if the internet or power goes down. Protect against government and businesses from snooping around what you wrote and say.
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  • Precious Metals, Crypto Currencies, and stock investing diversification strategies.
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All this and much more will be EXCLUSIVELY available to you as one of the select charter members of our Pruppie Club.

The regular prices for the International Club was $497 per year, but during this time of crisis we are dropping member ship to $249 .

I invite you to join those few who will become healthier, wealthier and more fulfilled in the decade ahead.  Become a Pruppie, one of the core persons who will glide through the destruction and be able to help the world restore order.

Ecuador-beach-condos

I’m no builder nor carpenter, but was partly responsible for creating these condos on Ecuador’s coast (above) and in Ecuador’s Andes (below), a decade before this expat community boomedFind out the trick for spotting trends like this early.

Ecuador real estate for sale

As an Elite Pruppie Member, you’ll get INSTANT ACCESS To:

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gary scott

I have no hatchery but learned how to raise trout like this, for fun, profit and a guaranteed protein supply.  Learn how to turn passions into protein.

THERE’S MORE…

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MONTHLY CONFERENCE CALLS! I will talk about the latest news and trends to help you jump on opportunities. This will not be about the doom and gloom that surrounds you. These one-hour calls are your chance to ask questions and share ideas too. ONLY Pruppie members will have access to the replay of all conference calls.

TWO BONUS REPORTS: Five Ways to Make Money With Real Estate Even You Don’t Have Any Cash or Credit eBook. The techniques in this ebook could help you make $3,000 to $5000 per month without a job. 



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Jackie’s book is a step-by-step guide for making money with real estate with less than $10 invested, not buying the house, and no repairs….yet still making at least $5000.

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jackie

GET READY!

Enormous, economic, social, political and productivity change was already in the process.  The pandemic however has accelerated and accentuated the process. You still have time to join the few who are left standing from the 2020 disaster.

You still have time to become one who will prosper during the 2020 decade. You can be one of a small elite group who will be able to help restore a healthy world order. The world will be very different from what we have known for the past seventy years, but when looked at in a framework of longer history… it’s the same old tale.

The last couple of millennia are filled with stories of empires rising and falling.  There are basic conditions in each of these tales.

  • First the idea of debt loses its real meaning and rising to levels that are unsustainable.
  • Interest rates charged for debt fall to extremely low levels so the idea of investing for a known amount stops making sense.
  • Central monetary authorities replace innovation and increased productivity as activators of the economy.
  • Disparity of wealth widens dramatically and the spread increases.
  • There is so much divisiveness in politics within countries that social and political conflicts spiral.

We’re seeing these changes rapidly happening now!

Fwd: gary-scott-tipis

I learned how to turn land into income producing property cheap and cashed in on the glamping craze a decade before the word was invented.  I want to share this trick with you.

Social and economic deterioration restricts safety, lifestyle, well-being and peace of mind. Social and economic shifts of this nature reduce the purchasing power of income.

Inflation, for example puts pensions and savings at risk. 

Growing deception allows manipulation of medical care, finances, the value of homes, how cars are bought, the price of gas, the education and raising of children, the food we buy and eat, the shows watched and the ways we work and play.

A very large and growing part of the public throughout the Western world no longer believes in the integrity of local or national government, law enforcement, health care, banking, pensions, legal systems, educational processes, media or church, just to name a few.

However, mistrust of anything authorities say has become so deeply rooted that even health assurances as serious as the pandemic have not been believed.

I invite you to join Merri and me in expecting the world to get better… to live and earn based on that expectation but…  to also prepare for bad times as well as good.  Just in case… the world goes sideways… we will still survive and prosper.

We do not give up anything much.  We can enjoy the good parts of the new economy, as we protect ourselves from what can be bad.

Let me be clear.  I expect that the world will get better, at least for the few who adapt and avoid the dangers that the changes from the COVID pandemic will bring.

The wealth of the world, albeit with inequality, will continue to grow.  This collapse of the global economy will bring an incredible new opportunity for those who know what to do.  These profit making avenues offer enormous income potential and even work well in disaster scenarios. Join the Pruppie Club so you can wake up every day knowing that you are prepared and in charge of your destiny.

gary scott

I’m no doctor but have learned how to avoid and survive the excessively expensive western health system and its hidden agendas.  See a simple $19.95 trick  used when the COVID-`19 symptoms appeared.

JOIN the PRUPPIE CLUB HERE.  $249  and $99 a year automatic renewal, but you can cancel at any time.

(1) www.wsj.com/articles/china-creates-its-own-digital-currency-a-first-for-major-economy-11617634118