Central Bank Digital Currency Touted as “Risk Free” Money
Stefan Gleason | Jan 21, 2022 12:14PM ET
By Mike Gleason
Last week was shaping up to be a pivotal one for precious metals markets with some breakout price action on the board. As the U.S. stock market got pounded, hard assets perked up on safe-haven buying.
These are the times that prove the indispensable role precious metals play in a balanced investment portfolio. Year to date, the S&P 500 is down 6%. The bond market is also down. And Bitcoin is suffering a double-digit drop so far in 2022.
There has been nowhere for investors to hide except in hard assets.
Bitcoin is touted by promoters as “digital gold.” Yet cryptocurrencies have been trading more like tech stocks than sound money.
The Oklahoma , Iowa, and South Carolina will be considering bills that eliminate all state income taxes on the sale of precious metals. In years past, states like Arizona have enacted such exemptions on constitutional money.
The importance of these sound money efforts should not be underestimated. After all, taxes on the purchase and/or sale of the monetary metals are real disincentives against their ownership and use.
Of course, individual states cannot bring soundness to America’s monetary system on their own. The root of the problem is the Federal Reserve, U.S. Treasury, and Congress who have fully embraced fiat money and abandoned monetary restraint.
The consequences of this are becoming more obvious by the day. With the Consumer Price Index now rising at its highest rate in 40 years, inflation is becoming the most pressing economic issue of our time.
But—even as federal policymakers seem only to be exacerbating the problem—a handful of states are trying to step up and give their citizens some tools to protect themselves.
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