Why We Need an Alternative Banking System and Why it Matters to You

A White Paper by

David Disraeli, Personal CFO


We are living in a time of political, economic, and global uncertainty that is unprecedented.  Unstable regimes now have nuclear weapons, and Federal agencies are being weaponized against their own citizens.  These factors create such an unstable economic environment that a present need exists to store and move funds outside the reach of ANY government, including our own. This paper will explore the dangers and reliance on our current systems and the need for both a new currency and a new banking system or, at minimum, an alternative monetary system.

Dollar Risk

Since the end of World War II and the subsequent implementation of the Bretton Woods Agreement in 1944, the United States dollar (USD) has been the world’s principal reserve currency.  The USD is currently the most commonly used currency for international trade. The high global demand for dollars allows the United States to borrow money at a lower cost and use its currency as a tool of diplomacy, but that comes with drawbacks.  Extensive U.S. sanctions have driven some countries to transact in alternative currencies, which then raises fears of “de-dollarization”. BRICS countries (Brazil, Russia, India, China, and South Africa) and others are considering a move away from the U.S. dollar.  If de-dollarization becomes a reality, the USD will drop in value, and the United States’ affluence will be at risk.

What happens when countries begin moving away from the dollar? First, let’s discuss what is meant by a reserve currency?  A reserve currency refers to a currency other than a country’s own currency that is kept in reserve in case the country’s primary currency faces a crisis. The dollar has been the “World’s” reserve currency; however, that is changing.  According to Statista, the two largest holders of dollars as their reserve currency are China which holds $1.1 Trillion U.S. dollars, and Japan which holds $860 Billion.  Compare that to the U.S. who has $760 Billion in reserves.  What you just read is that China has more U.S. dollars in reserve than we do! Why is this alarming? If countries like China and Japan relinquish their U.S. currency in favor of a separate currency, then U.S. dollars reenter the market.  U.S. dollars reentering the market in massive quantities causes devaluation. Safeguards need to be established beforehand.

An additional concern is the fact that BRICS is having a summit in August to discuss, among other things, the need to create a new gold-backed currency.  If BRICS does move away from the U.S. dollar, many countries will follow.  The bottom line is that there is a tremendous quantity of U.S. dollars that may find their way back to our shores, and if that happens, your dollars will shrink in value.  Until now, the dollar’s exchange rate and gold prices seemed to reflect that the world at large isn’t worried. But things seem to be shifting in another direction.


Government Overreach

On May 18, 2023, The U.S. Supreme Court ruled that the IRS can access your bank’s records WITHOUT telling you!  Every time you swipe a debit/card, Venmo someone, or write a check, a paper trail is created.  For most law-abiding citizens this may not be a problem; however, many believe that their business should be private.  In February of 2022, the Canadian Government froze a number of bank accounts of people who were involved in a protest – without a court order!  Justin Trudeau used his “Emergency Powers” to do this.  You can read the full story here.

Here are a few questions to consider:

  • Who else knows about your transactions besides your bank?
  •  What if you support conservative or Christian causes for example, and the government decides to investigate such causes?

It is an accepted reality that hackers can access your personal data and so can the government.  Every day, unsuspecting citizens’ assets are seized, or frozen by a state or the federal government, and/or judgment creditors.  Asset seizure is perfectly legal as long as a crime is suspected.  Notice I used the word “suspected”.  Assets are not afforded the protections of “innocent until proven guilty.”  Not only are the standards for government seizure low,  the time it takes for assets to be returned can be very LONG.  It should also be noted that a private party can issue a subpoena for bank records during a lawsuit.  A judge has to order such disclosure, but if he/she does, there is no way to stop the bank from producing the records.  Our monetary system simply offers no privacy.

Global Uncertainty and the Banking System

Global tensions have never been higher than they are right now.  It is concerning that there are at least four nuclear powers that have recently indicated their willingness to use their weapons. But also consider that, recently, three of the four largest bank failures in history occurred this year (2023) within weeks of each other: Silicon Valley Bank, Signature Bank, and First Republic Bank.  Interestingly, these three giant failures happened when there were no global financial crises.  The backstory of Silicon Valley Bank would take up an entire article of its own, but to summarize, management decided to invest a large amount of bank assets in long-term treasury bonds.  Wait. U.S. Treasury bonds are guaranteed by the U.S. government, right?  Yes, they are; however, these bonds fluctuate in price and drop when interest rates go up.  By the end of 2022, SVB had $16 Billion of unrealized losses on the books.  In March of 2023, word got out that several large venture firms were recommending that their portfolio companies withdraw their funds from SVB.  Bad news travels fast nowadays, so the FDIC had to close SVB to avoid a run on the bank.  90% of SVB’s deposits were not insured but the government decided to make depositors whole, rather than risk a complete banking meltdown.

The bottom line is global tensions and bank liquidity/health are tied together.  Everyone reading this will remember that 18 people caused the stock market to close for a full week during 9/11.  No one knew what their stocks were worth for an entire week or whether life would ever return to normal.  Indeed, the country’s financial system is fragile.  In fact, the FDIC is only required to keep 2% of the total insured deposits on hand.  If some future event caused another run on our banks, would the Government make everyone whole?

The Solution

The dollar went off the gold standard in 1971.  Since then, inflation has eroded the value of the USD by 87%. Gold on the other hand has gone from $37/ounce to $1930/ounce. I am not trying to be alarmist, but I am suggesting that you create a backup plan.  Gold has many positive attributes.  Gold has been used as a store of value for at least 5000 years.  The problem with gold is you cannot attach it to a text message.

The solution is digitized gold.  Digitized gold is a revolutionary way to store and send money.  Similar to Bitcoin, digitized gold takes the form of an electronic token that represents an exact quantity of gold sitting safely in a vault.  Using these digital tokens, you can send money anywhere in the world without a bank.  It is, in effect, a different monetary system.  This monetary system lives in a distributed computer network around the world which means there is no single point of failure.  There is no government interference because it lives nowhere and everywhere.  This technology is called blockchain. Blockchain technology was developed by a computer genius under the pseudonym of Satoshi Nakamoto. Whoever this person is, he/she created technology worth an untold amount and disappeared.  The technology was left as open-source, public-use software.  The beauty of blockchain is that every transaction of a token is recorded on a ledger that is available for anyone to see.  By design, the blockchain is as close to hackproof as you can get.  If your bank were hacked or failed that would cause distress.  With blockchain, not only is there no bank, there is no one database that can be corrupted.  This methodology is referred to as a “distributed ledger” meaning exact copies of it are everywhere.  You can even download the entire thing onto a computer, or read it online.  Intuitively, what I am describing sounds like a huge privacy problem.  Not at all.  Every person buying, selling, or sending these tokens uses an encrypted address called a digital wallet.  Since your wallet can be stored offline, it too is hackproof.  Your identity is only known by the people you give it to and yourself.  However, without physical access to your wallet or a twelve-word password, no one including you has access to your money.  There is no judge, government, spouse, or litigant on earth that can force you to open your wallet.  Therefore, this may be the most effective asset protection vehicle in existence.

One last thought – The best way to understand the concept of digital gold is to think of a car title.  This official document represents ownership of a vehicle and can be transferred to anyone you wish.  The vehicle itself could be in a garage halfway around the world but the proof of ownership is in your hands.  There are specific gold tokens that represent a precise amount of pure gold, held in your name in a vault.  The top companies who created these tokens have regular audits to ensure that the gold in storage matches the tokens that are issued.  If you want the physical gold, it can even be shipped to you.  After a great deal of research, I have determined that Kinesis Money is the best option to safely store and send gold.  To claim half an ounce of silver from Kinesis Money, start by signing up for free with my referral link: https://kms.kinesis.money/signup/KM13922088.  Each of these tokens has its own nuances and I am happy to discuss them with you.

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