Congressman Brad Sherman did not have one nice word to say about cryptos in a Subcommittee hearing yesterday examining cryptocurrencies and Initial Coin Offerings (ICO).
Crypto “Hurts the US government in two ways: our contr… ability to have the dollar to be the chief mean of international finance is what has underpinned our ability to impose sanctions, and, erm, and stop tax cheating.
And furthermore, when we have people take risk, we don’t encourage gambling, we encourage investment in the real economy,” he says.
The Democrat clearly doesn’t think pretty much instant and almost free cross-boarder payments have anything to do with the “real economy.” Perhaps because his biggest donation is from something called Allied Wallet.
That’s their fees, which made them millions in profits. Some of those profits, around $13.5 million, were handed over to DOJ, which said they knowingly assisted in money laundering.
The DOJ press release has somehow gone missing sometime in 2016, but we screenshot a Wikipedian who entered this in 2015:
One news report from then says “U.S. prosecutors claimed some of the money in question was traceable to wire transfers from outside the United States ‘by individuals and entities who knew that the funds involved represented the proceeds of the illegal transmission of gambling information and the operation of an illegal gambling business.'”
Sherman continues to say that cryptos are “harmful in one other way… seigniorage is the benefit the US government gets by issuing currency… it is the fact that we do not pay interest on newly created dollars. We lose that as well.
And the FED is able to return well over $50 billion to our treasury in many of the recent years. We undercut that.”
That $50 billion, of course, doesn’t come from thin air. It comes from American citizen who are effectively being taxed in a stealth manner on top of the many other taxes they have to pay.
Moreover, we do not really know how much the seigniorage profits really are, because the FED has never been audited. We just trust what they say is true, without having any reason to trust them when it comes to so much money.
Plus, the amount of real money printing is far more. The FED money printing, or otherwise called legal counterfeiting of the dollar, is a tiny portion of commercial bank legal counterfeiting. Those commercial banks pay taxpayers nothing. Instead, citizens pay them through inflation, better known as stealth taxation.
To top it all, out of that $50 billion the FED gives to the treasury, they give 6% of it to banks, because the FED is a semi-private body with banks as shareholders. Banks then go on to pay their CEOs millions as reward for crashing economies.
Why would citizens not want to undercut these forced payments to banks, which does amount to paying pretty high interest on each dollar? Especially when such banks go crashing now and then, asking for trillions on top?
Well, as we have seen recently, they may well want to do so. And the Swiss citizens may well remove the ability of commercial banks to counterfeit money in a binding referendum.
Then, perhaps, Sherman can more correctly raise seigniorage as currently any profits from it mainly go to commercial banks. Which is why the US debt level is as high as it is.