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I think any kind of CBDC is dead on arrival in the US, for one simple reason: Turbo Tax. The federal government has all of the information to do everyone's tax

I think any kind of CBDC is dead on arrival in the US, for one simple reason: Turbo Tax. The federal government has all of the information to do everyone's taxes every year, mail you a postcard with the result, and offer you the chance to file an amendment if you disagree. This would make everything much simpler for everyone, and would solve a number of enforcement problems, too. It's a no-brainer. But Turbo Tax has paid enough money to enough politicians to prevent it from happening, because Turbo Tax makes billions of dollars from the old and broken system. If the Fed started moving toward a CBDC, and encroaching on the territory now occupied by banks, credit cards, and other entities, the skies would turn black from all of the jets flying lobbyists into Washington to kill that proposal dead.

BuyMyBitcoins 5y ago
The Federal Reserve is more powerful than congress. Heck, just saying that makes me sound like a conspiracy nut. But the Fed is supposed to act independently and not be beholden to Congress’ whims.
- dragonwriter 5y ago
  > The Federal Reserve is more powerful than congress. Congress can eliminate the Fed or any and all of its powers at a whim, the reverse is not true. Ipso facto, Congress is more powerful. The Fed and the myth of its power are a convenient responsibility dodge for Congress, though.
  - baryphonic 5y ago
    Congress could have ended the Iraq War, the Afghan War, reined in domestic spying, broken up the banks, passed serious financial and bankruptcy reforms after the '08 crisis or even repealed the ACA. They did exactly none of these things. Why is that, since they have so much power? Congress has power theoretically, on paper. So does the Monarch in the UK or the National People's Congress or, historically, the Supreme Soviet. But Congress these days rarely exercises real power. Congress is mostly a rubber stamp with some third-rate acting and drama. The Fed has real power. They started paying interest on reserves in the wake of the financial crisis, and seemed to have no explicit authority to do so. They also started buying much riskier assets than they had before, and also seemed to just so it. They did the various iterations of QE with no real guidance or oversight. And the Fed controls the money, the lifeblood of any organization. Without the money, Congress does nothing, the president does nothing. That's a lot of power that is frankly unmatched in the US government.
    - dragonwriter 5y ago
      > Congress could have ended the Iraq War, the Afghan War, reined in domestic spying, broken up the banks, passed serious financial and bankruptcy reforms after the '08 crisis or even repealed the ACA. They did exactly none of these things. Why is that, since they have so much power? Because a majority of Congress (or the supermajority necessary to override a Presidential veto, in the cases where the President was opposed) didn't want to. On the other hand, they authorized the Afghan War, and the Iraq War, and prevented the President from abandoning the detention facilities at Guatanamo Bay, etc., etc., etc. Them choosing to exercise powers in ways you don't like, and not choosing to exercise it in ways you do like, doesn't mean they don't have power, it means they have different priorities than you do. > And the Fed controls the money No, Congress controls the money. They choose to allow the Fed to exercise some part of that power on their behalf, because their is perceived to be political value in doing so, but the power is entirely Congress’s.
gjs278 5y ago
this conspiracy theory is nonsense. plenty of companies that do heavy lobbying still end up killed when the government just says fuck it and does it. the amount they could collect on taxes would massively outweigh the “contributions” of turbo tax and grass root candidates are getting elected more often every day with less financial backing.

BuyMyBitcoins 5y ago

The Federal Reserve is more powerful than congress. Heck, just saying that makes me sound like a conspiracy nut. But the Fed is supposed to act independently and not be beholden to Congress’ whims.

dragonwriter 5y ago
> The Federal Reserve is more powerful than congress. Congress can eliminate the Fed or any and all of its powers at a whim, the reverse is not true. Ipso facto, Congress is more powerful. The Fed and the myth of its power are a convenient responsibility dodge for Congress, though.
- baryphonic 5y ago
  Congress could have ended the Iraq War, the Afghan War, reined in domestic spying, broken up the banks, passed serious financial and bankruptcy reforms after the '08 crisis or even repealed the ACA. They did exactly none of these things. Why is that, since they have so much power? Congress has power theoretically, on paper. So does the Monarch in the UK or the National People's Congress or, historically, the Supreme Soviet. But Congress these days rarely exercises real power. Congress is mostly a rubber stamp with some third-rate acting and drama. The Fed has real power. They started paying interest on reserves in the wake of the financial crisis, and seemed to have no explicit authority to do so. They also started buying much riskier assets than they had before, and also seemed to just so it. They did the various iterations of QE with no real guidance or oversight. And the Fed controls the money, the lifeblood of any organization. Without the money, Congress does nothing, the president does nothing. That's a lot of power that is frankly unmatched in the US government.
  - dragonwriter 5y ago
    > Congress could have ended the Iraq War, the Afghan War, reined in domestic spying, broken up the banks, passed serious financial and bankruptcy reforms after the '08 crisis or even repealed the ACA. They did exactly none of these things. Why is that, since they have so much power? Because a majority of Congress (or the supermajority necessary to override a Presidential veto, in the cases where the President was opposed) didn't want to. On the other hand, they authorized the Afghan War, and the Iraq War, and prevented the President from abandoning the detention facilities at Guatanamo Bay, etc., etc., etc. Them choosing to exercise powers in ways you don't like, and not choosing to exercise it in ways you do like, doesn't mean they don't have power, it means they have different priorities than you do. > And the Fed controls the money No, Congress controls the money. They choose to allow the Fed to exercise some part of that power on their behalf, because their is perceived to be political value in doing so, but the power is entirely Congress’s.

gjs278 5y ago

this conspiracy theory is nonsense. plenty of companies that do heavy lobbying still end up killed when the government just says fuck it and does it. the amount they could collect on taxes would massively outweigh the “contributions” of turbo tax and grass root candidates are getting elected more often every day with less financial backing.