With Reserve Requirement for Banks Set to Zero by the Fed, You Need to Think Making Bitcoin Your Bank

If you continue to trust the banks, it will be at your own risk.

The month of March 2020 is forever etched in history. The strong spread of the coronavirus around the world will have played the role of trigger in the economic crisis announced for years by economists from all sides.

The financial markets were the first to be shaken by this strong climate of uncertainty. Panic even gripped the markets during the week of March. From this panic came a liquidity crisis that spared none of the liquid markets.

Concretely, a large majority of people wanted to recover as much liquidity as possible. Wall Street signed its worst month since 1987. Gold even lost more than 10% in the middle of March before recovering since then. Bitcoin had its Black Thursday on March 12, 2020. On that day, Bitcoin price dropped more than 50% from $8K to 3.8K.

Like gold, Bitcoin has since recovered to see its price rise above $6K in a move that seems to prove its status as a hedge against currency devaluation.

The big issue for individuals like you and me is precisely this large-scale currency devaluation that we will have to face in the coming weeks. This unprecedented currency devaluation in such a short period of time has been decided by the Federal Reserve in a totally arbitrary manner.

Not elected by the people, the members of this institution simply decided to carry out a program of unlimited quantitative easing. Neel Kashkari, President of the Federal Reserve Bank of Minneapolis, even went so far as to say that the Fed had an infinite amount of U.S. dollar at its disposal to save the banking system:

“There is an infinite amount of cash in the Federal Reserve. We will do whatever we need to do to make sure there’s enough cash in the banking system.”

— Neel Kashkari

To facilitate this easy money policy, the Fed had paved the way ahead in the previous days by cutting interest rates by 150 basis points in two steps: 50 basis points on March 3, 2020 and 100 basis points on March 15, 2020.

With interest rates at zero, the Fed can now afford all the craziness even if it means devaluing even more what American citizens own. The current monetary and financial system must be saved at all costs.

You are aware of this problem which makes the Bitcoin plan increasingly inevitable.

Among the measures announced by the Fed during the month of March 2020, there is one that is just as serious, if not more, that has escaped many people so far.

The measure of concern is the lowering of the reserve requirement for U.S. banks to zero. In what follows, I propose to explain to you why this is a major threat to your money, and especially what you can do to prevent against it.