Wow! One of the best technical pieces I've read on Substack!
You covered everything succinctly -- and without throwing around a bunch of financial lingo.
What I'm wondering about is the Chevron ruling from the SCOTUS. Where government agencies are no longer able to "create law" through regulatory actions. At least, they can be sued and perhaps stopped in some cases.
I don't think the Chevron ruling is applicable to FedNow. It's not a regulatory ruling or a piece of administrative law, it's an actual "service" provided by the Federal Reserve which in both form and function stands as a direct competitor to Zelle and similar fintech services.
That is I think where a real legal challenge should be mounted -- with the idea that the government should not be entering into competition with commercial entities.
👏👏👏👏👏🎩🎩 excellent piece, and thank you for pointing out that the really concerning bits are not in the focus (a good thing) on CBDC's, but in the disguised maneuvering of the framework creation. It's not the product (CBDCs) that is the problem, it's the vague, veiled structures and policies that it opens the doors for.
Likewise, with AI. It's not "good" or "bad" in itself. It's how it gets used and/or the ethic regulatory framework that should/could/may not be put in place, protecting (or otherwise) from abuse.
Keep doing what your doing, more people need to understand what brave new and potentially terrifying territory we are standing on the brink.
Not being an attorney I can only speculate on how such a lawsuit would be received by the courts, but based on the text of the Constitution such a lawsuit is exactly what should happen. If the Fed is exceeding the limits of the Constitution no act of Congress can bar a private entity from seeking redress of grievance.
Not to slight any of your other work because it’s great but understanding these issues may be the most consequential for our understanding. Thanks again!
Well, thank God for our Constitution, because that gives us a legal route out of this (eventually). But I would love to read a column in your Substack speculating on other ways that FedNow could result in ‘unintended consequences’ that could torpedo this whole program. Could organized crime hack FedNow in ways that show the system too leaky to be useful? Could foreign powers hack or manipulate FedNow to their advantage, showing it to be a corrupted political tool? I’m grasping at straws here, looking for a way for this tyranny to die.
You are right! Organizations such as Del Bigtree’s ICAN will have to file suit(s), maybe in several jurisdictions, to challenge this on Constitutional grounds. I’m saving up my pennies...
Wow! One of the best technical pieces I've read on Substack!
You covered everything succinctly -- and without throwing around a bunch of financial lingo.
What I'm wondering about is the Chevron ruling from the SCOTUS. Where government agencies are no longer able to "create law" through regulatory actions. At least, they can be sued and perhaps stopped in some cases.
https://www.scotusblog.com/2024/06/supreme-court-strikes-down-chevron-curtailing-power-of-federal-agencies/
However, someone would have to prove damages from FedNow in court, before anything would likely be done about the FED's overreach.
Thank you for your kind words.
I don't think the Chevron ruling is applicable to FedNow. It's not a regulatory ruling or a piece of administrative law, it's an actual "service" provided by the Federal Reserve which in both form and function stands as a direct competitor to Zelle and similar fintech services.
That is I think where a real legal challenge should be mounted -- with the idea that the government should not be entering into competition with commercial entities.
Reread just now given recent developments Fed accelerating its rollout. Any updates or new ideas since this piece?
Thanks as always.
And may your Sunday be filled with His peace and grace.
Dt
The concerns remain the same. Probably after July ends I'll revisit the topic to gauge the rollout of FedNow.
👏👏👏👏👏🎩🎩 excellent piece, and thank you for pointing out that the really concerning bits are not in the focus (a good thing) on CBDC's, but in the disguised maneuvering of the framework creation. It's not the product (CBDCs) that is the problem, it's the vague, veiled structures and policies that it opens the doors for.
Likewise, with AI. It's not "good" or "bad" in itself. It's how it gets used and/or the ethic regulatory framework that should/could/may not be put in place, protecting (or otherwise) from abuse.
Keep doing what your doing, more people need to understand what brave new and potentially terrifying territory we are standing on the brink.
#whenulookintotheabyss
#wearemany #wearememory #wewillnotforget #getnoisy
Thank you for your kind words.
Make no mistake, central banks are a problem on every level, with or without CBDCs.
I would say that digital currency is not the threat, but central banks most assuredly are.
What would prevent current private payment companies from suing the fed on constitutional grounds?
Not being an attorney I can only speculate on how such a lawsuit would be received by the courts, but based on the text of the Constitution such a lawsuit is exactly what should happen. If the Fed is exceeding the limits of the Constitution no act of Congress can bar a private entity from seeking redress of grievance.
Been waiting for this dive! Great information.
Thanks!
I need to do another one on what the Fed is doing with CBDCs. Half the challenge is blocking out the time to do the background reading.
Not to slight any of your other work because it’s great but understanding these issues may be the most consequential for our understanding. Thanks again!
What happens when the grid goes down?
All those "worthless" greenbacks and metal coins become ginormously valuable.
Like an EMP?
Bravo!!! A sourced deeper dive - will be sharing asap. You are one of the brave few competent people speaking out - the truth sets us all free.
Thank you for sharing my work and especially for your kind words. They are greatly appreciated.
Well, thank God for our Constitution, because that gives us a legal route out of this (eventually). But I would love to read a column in your Substack speculating on other ways that FedNow could result in ‘unintended consequences’ that could torpedo this whole program. Could organized crime hack FedNow in ways that show the system too leaky to be useful? Could foreign powers hack or manipulate FedNow to their advantage, showing it to be a corrupted political tool? I’m grasping at straws here, looking for a way for this tyranny to die.
The constitution is not self executing in that without claimants demanding its obedience in court we have no liberty or rights.
Our fundamental rights are inalienable. They are never surrendered nor are they bartered away.
However, to enjoy our fundamental rights we must be always willing to stand up for our liberty in defense of those rights.
You are right! Organizations such as Del Bigtree’s ICAN will have to file suit(s), maybe in several jurisdictions, to challenge this on Constitutional grounds. I’m saving up my pennies...
Thanks. Peter, I ’m saving this excellent explanation.