Trump Is Creating A Shadow CBDC Via His Direct Deposit 'Trump Accounts' Per The 'One, Big, Beautiful Bill'
Millions of babies born over the next several years will have accounts created for them managed and held at the Federal Reserve, which is effectively a CBDC in practice.
President Donald Trump is indirectly and quietly creating a system that paves the way for the introduction of a central bank digital currency, as per vague provisions laid out in his lauded “One, Big, Beautiful Bill” that passed the House last month.
The WinePress News noted last month that one of the reported focal points of the bill was the creation of so-called “MAGA Accounts,” a scheme that would give every U.S. citizen child born between January 1st, 2025, and December 31st, 2028, a $1,000 government-funded investment account at their birth. The funds would be invested in low-cost index funds. Families are limited to investing $5,000 annually. When the child turns 18 they can use the money and interest accrued for education, buying a home, or starting a business. Withdrawals for non-approved purposes before age 30 would incur income tax and a 10% penalty.
This concept was somewhat identically proposed by prominent Democratic figures in 2023 but was never adopted.
The interesting part of this scheme is that the government will be automatically creating these accounts. Yahoo Finance reported:
“Under the proposal, parents will have the option to open Trump accounts for any child under the age of 8 at a bank of their choice, but only newborns will receive the free $1,000. In cases where parents fail to set up an account for their baby, the government will create one automatically and notify them.
“From there, contributions to the accounts will be capped at $5,000 per year, with a limited exception for gifts from local charities. The money can grow tax-free until it’s withdrawn but must be invested in a broad stock index.”
And this is the kicker, according to Rebel Capitalist George Gammon. He asks, if these accounts are created automatically, then where does the account money come from and who manages it?
Gammon explains that the money for these accounts would be distributed by the U.S. Treasury, money that is drawn from the Treasury General Account (TGA) after the Treasury issues bonds or a new hidden tax to get this $1,000 for the millions of babies that will be born. But the TGA is managed by the Federal Reserve, meaning that the money would come from the Federal Reserve.
In other words, millions of babies born over the next several years will have accounts created for them managed and held at the Federal Reserve, which is effectively a CBDC in practice. Gammon draws comparisons to the Soviet Union’s Gosbank, described as a “single-tier banking system” that abolished smaller local banks and left only one ledger account operated by the central bank. “In other words, there is no distinction between central bank money and broad money.” So, the Soviet bank conceptionally had a CBDC a century ago, minus the digital format.
As Gammon explains in his short lecture, most people who have heard of a CBDC often misconstrue the concept as being limited to a “Fedcoin,” a digital dollar as a one-to-one replacement of the fiat paper dollar mitigated by the Fed. As long as the Federal Reserve or any other central bank has consolidation of accounts on a unified balance sheet, and can issue money and loans and penalties to the ‘customer,’ then it is still a CBDC.
Watch the entire video for more details.
AUTHOR’S NOTE: Gammon is an advocate for Bitcoin because he believes it is more decentralized. I am not an advocate for Bitcoin and I would argue this point (especially considering BlackRock, the largest asset manager in the world, controls the largest Bitcoin ETF fund in the world and has the second largest holdings; so just decentralized is it?)
President Trump has signed executive orders that state that under his watch he will not allow a CBDC to be created. But saying versus doing is another thing.
The WP noted in March that Trump signed two executive orders that modernize (digitize) payment methods for the Treasury (the same place where the deposits for the MAGA Accounts will fund), by eliminating cash and checks in an effort to reduce “fraud.” This executive order says this is not creating a CBDC.
The first order, “Modernizing Payments To and From America’s Bank Account,” states:
This order promotes operational efficiency by mandating the transition to electronic payments for all Federal disbursements and receipts by digitizing payments to the extent permissible under applicable law (but not, for avoidance of doubt, to establish a Central Bank Digital Currency).
All executive departments and agencies (agencies) shall comply with this directive by transitioning to EFT methods, including direct deposit, prepaid card accounts, and other digital payment options, and take all steps necessary to enroll recipients in EFT payments, except as specified in section 4 of this order.
The second order, “Protecting America’s Bank Account Against Fraud, Waste, and Abuse,” reads:
This order promotes financial integrity by enabling the Department of the Treasury to more easily conduct improper payment and fraud prevention screening prior to disbursing funds on behalf of agencies. This order increases transparency and accountability by requiring agencies to provide the Department of the Treasury with the information needed to track transactions through the General Fund in greater detail. This order also promotes operational efficiency by returning disbursing functions to the Department of the Treasury when possible and consolidating and standardizing core Federal financial systems.
The Secretary of the Treasury shall develop a plan to centralize and manage all payments previously disbursed by [Non-Treasury Disbursing Offices] NTDOs, ensuring seamless continuity of Government payments.
The Secretary of the Treasury, in coordination with agency heads, shall establish a transition plan for agencies currently operating as NTDOs, including staffing adjustments, system integrations, and legal or regulatory modifications necessary for full consolidation.
However, as noted in that report (read more for details), Trump’s actions effectively pave the way for the a CBDC, as the order plays on the misbelief of the masses who think a solitary “Fedcoin” will be created, as Gammon explained in his report.
Moreover, the first executive order references the use of using instant transfer payment rails as part of this new digitalization consolidation.
Though it was not named, the order presumably refers to the Federal Reserve’s instant transfer payment system FedNow released in mid-2023. FedNow is interconnected with people’s personal bank accounts, interlinked with participating banks, allowing payments of all kinds to be rapidly transferred in a minute or less. The platform will be operational 24/7, 365 days, including weekends and holidays.
Prior to its launch, Federal Reserve officials revealed FedNow would act as a springboard for CBDCs.
Fed Governor Michelle Bowman said during the VenCent Fintech Conference in Little Rock, Arkansas, in 2022:
“FedNow will help transform the way payments are made through new services that allow consumers and businesses to make payments conveniently, in real time, on any day, and with immediate availability of funds for receivers. Our assessment of these benefits has not changed even as we consider whether a central bank digital currency (CBDC) might fit into the future U.S. money and payments landscape.
“My expectation is that FedNow addresses the issues that some have raised about the need for a CBDC. As I’m sure you are already aware, earlier this year we published a discussion paper that outlined some design principles, costs, and benefits of a CBDC and solicited public comments. We received over 2,000 comments, and we are currently reviewing these comments and plan to publish a summary of them.”
Fed Chair Jerome Powell also touted FedNow’s benefits as well:
“A CBDC is going to be years in evaluation. And I think we can get this into the hands of the public very quickly, and we’ll have real-time payments in this country very very soon.
“[FedNow] will enable all the banks – any bank in the United States, not just the big ones – to offer instantly available funds and real-time payments to their customers.”
However, once the public became a little more privy to what FedNow represented and the concerns surrounding a CBDC, the Federal Reserve attempted to save face and claim FedNow does not enable a CBDC. But, as detailed by The WinePress, the Biden administration admitted in its “The Economic Report of the President” that FedNow does indeed enable a CBDC. The document concluded:
Certain innovations, such as FedNow and a potential U.S. CBDC, could help bring the U.S. financial infrastructure into the digital era in a clear and simple way, without the risks or irrational exuberance brought by crypto assets. Hence, continued investments in the Nation’s financial infrastructure have the potential to offer significant benefits to consumers and businesses, but regulators must apply the lessons that civilization has learned, and thus rely on economic principles, in regulating crypto assets.
So even though the Trump White House contends these latest executive orders are not preparing a path for a CBDC, the FedNow system they are inheriting does facilitate one.
Cleveland Federal Reserve President Loretta Mester also admitted in 2023 FedNow will allow the Fed and partner banks to mitigate and control transactions, claiming the instant transfer payment system would prevent fraud - the same language being used now by the Trump administration. Mester said (in part) in 2023:
“The initial release of the FedNow Service will include features to help banks manage fraud risk and mitigate fraud losses.
“It will include tools that allow participants to reject payments to and from accounts they have designated as suspicious and to put limits on the amount of the transaction.
“In addition, there will be tools that help a financial institution investigate erroneous or suspected fraudulent transactions. Combating fraud is a dynamic endeavor, so the service will be offering more fraud-prevention tools over time.
“A well-functioning and secure payment system is vital to our economy. As we modernize the payment system, it is important to remember that the foundation of a successful payment system is the public’s confidence in it.”
Elon Musk, the now-former head of the Department of Government Efficiency (DOGE), has also sought to retrofit government systems with blockchain technology, something a number of other governments use already.
Needless to say, Trump may say he is not creating a CBDC, but his actions speak otherwise.
AUTHOR COMMENTARY
Mr. Gammon was being too kind to Trump as he argues several times that Trump is not intending to do this, claiming he is confused and does not understand the underlying nuts & bolts of how this system works. I don’t buy that. One does not sign two executive orders like the ones he did in March and not know; and if he truly is ignorant, then he is no different than Biden or anyone else in this regard. While I appreciate Gammon’s explanation, I frankly am getting sooo tired of all these people taking a lukewarm stance when it comes to Trump, always blaming his counsel for his folly: well then, maybe then the Orange Herring needs to learn to pick better counselors!
"In politics, nothing happens by accident. If it happens, you can bet it was planned that way” - Franklin D. Roosevelt, former President and 33rd Degree Freemason
Putting that aside, presuming this “One, Big, [Abominable] Bill” passes the Senate (and it will), the President, the false Messiah for the masses, has once again played “4-D chess” and you were the pawns of it, as you get an even more empowered Federal Reserve that gets to exact more control over the masses, by consolidating more and power and wealth for themselves, in this new tokenized system world central banks are building right underneath people’s noses. Yet this will be cheered when it is enacted, as more money gets pumped into the artificially propped-up stock market so Trump and his criminal friends on Wall Street can continue to get richer and richer.
Proverbs 16:29 A violent man enticeth his neighbour, and leadeth him into the way that is not good. [30] He shutteth his eyes to devise froward things: moving his lips he bringeth evil to pass.
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On one of his missionary journeys, the apostle Paul visited Athens, Greece, where he said he witnessed “the city wholly given to idolatry,” and who were “too superstitious” and worshipped a plurality of gods and deities, though the people acknowledged that there was still one God above all that was a mystery to them. When questioned by the philosophers …
[7] Who goeth a warfare any time at his own charges? who planteth a vineyard, and eateth not of the fruit thereof? or who feedeth a flock, and eateth not of the milk of the flock? [8] Say I these things as a man? or saith not the law the same also? [9] For it is written in the law of Moses, Thou shalt not muzzle the mouth of the ox that treadeth out the corn. Doth God take care for oxen? [10] Or saith he it altogether for our sakes? For our sakes, no doubt, this is written: that he that ploweth should plow in hope; and that he that thresheth in hope should be partaker of his hope. (1 Corinthians 9:7-10).
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The inclusive dates provided for the participants tell me that 2028 or after is going to be a “big event”year.
The ole magician is up to his tricks again, the only problem is our eye is catching what he's doing, which blows the old adage "the hand is quicker then the eye": only we see quicker then he can do the trick. He'll make a great washed out act in Vegas.
God knows it before man even thinks about it and tries to do it under the table, so ta speak.