U.S. Treasury Secretary Janet Yellen is currently trying to level the playing field on the global economy by making the case for a global minimum tax rate. To better understand what this may mean for investors, America’s Voice Live (AVL) recently spoke with Terry Sawchuk, founder and chairman of Sawchuk Wealth, for insights.
According to Sawchuk, while the corporate tax rate is important, what is more important is Yellen’s reference to digital inequality. “Ultimately what this is going to do is move towards a digital currency that’s backed by central banks, which is very very different than anything we have seen before,” he explains.
If this does occur and the central banks gain a digital basket of currencies, Sawchuk believes that a number of events will occur. One of these potential impacts might consist of getting rid of the commercial banks in the middle, which can cause major ripples for consumers.
“The issue is they become so powerful because if they circumvent that system and go straight to the consumer it means they control the flow of moneys,” says Sawchuk. “They control how people spend it. They control how it’s taxed. They can control the printing of it… It’s like nothing like we’ve seen during our lifetimes.”
Another potential outcome is the illegalization of cryptocurrencies. However, Sawchuk believes that this is an unlikely outcome given the size of the already existing cryptocurrencies, such as Bitcoin.
“For a while, they made it not legal to make gold, yet gold didn’t disappear,” Sawchuk tells AVL’s Steve Gruber. “They aren’t going to be in a position in which they can make it go away. I mean Bitcoin right now has gotten a market cap of over $1 trillion and crypto has a market cap of over $2 trillion. That’s a lot of money and it’s only just begun.”
Securities offered through J.W. Cole Financial, Inc. (JWC) Member FINRA/SIPC. Advisory services offered through J.W. Cole Advisors, Inc. (JWCA). Sawchuk Wealth and JWC/JWCA are unaffiliated entities.
The information contained in this video is intended for informational purposes only. Any opinions are those of Terry Sawchuk and not necessarily those of JW Cole Financial, Inc. or JW Cole Advisors, Inc.