Who wants the cash-less society?
Many people are unaware of the dangers of a cash-less society and accept the thought of a total digitisation of all their money transactions.
On the face of it there are legitimate issues for the creation of a cash-less society:
* prevent bank runs
* eliminate black economy
* track criminal activity
* prevent terrorist funding
* stop hoarding of cash
However, these legitimate sounding issues is not what is driving the accelerated movement towards a cash-less society.
The real reason is more complex and has been building for a while, over a number of steps:
* Due to banker capture of the political class in the western developed economies a wide gap in purchasing power has opened up between the 1% and the rest. Large swathes of the population are so poor that they can’t buy anything, which is a problem in economies that depend to more than 50% on consumption. It leads to high unemployment and smaller tax revenues, and fiscal and trade imbalance. The national leaders try their hardest to avoid a new “great depression” long enough to be safely out of office and ensconced in a lucrative banking position before it breaks.
* The government spends money on bank paper to lower interest rates so that people who earn less can still consume on borrowed money. When government runs out of money it just gets freshly created money from the central bank in return for freshly created IOUs (quantitative easing). Soon interest rates are pretty much down to zero, and people still can’t borrow any more.
* The government doubles down and uses its QE to create investment bubbles in for example housing, cars or education to make people spend again. When one bubble pops another is inflated.
* The huge accumulated pile of government IOUs threatens the credit worthiness of the government itself, and so the QE is used to buy the governments own bonds/guilts, thereby holding the interest on debt issued by the government itself down. By now the government is so indebted that even a 1% interest rise in its external debt will lead to total financial collapse and default. Stock market must be kept elevated, and the prime alternative to the national paper currency, gold and silver, must be kept suppressed. In addition: government bonds form the collateral for innumerable other loan agreements (10 x the official market). The whole rotten edifice of this derivative market will implode if the value of the collateral in the form of bonds/guilts will significantly drop in value. This is a veritable economic atom-bomb, hot and heavy threatening to go off in the faces of politicians, dashing their hopes of re-election.
* All the new money created and funnelled through the banking system finally gives birth to NEGATIVE interest rates. Under these unprecedented conditions more and more individuals and organisations simply withdraw their cash from the banks, and are also unwilling to invest either in an overpriced stock market or in a bond market at a 300 years high. Remember also that of all the debt held in banks a disappearingly small part of it is in the form of physical coins and bills, and they soon run out.
This is the real reason cash is to be banned. Cash will no longer exist, and the banks, default custodians of all the savings of the people including pensions savings, will be free to gamble with all that money on the afore mentioned stupendously inflated stock and bond markets. (I told you the banks have captured the political class!)
One can easily see from the above points that the drive towards a cash-less society emanates from a point of such desperation among the leading class that it is almost guaranteed to materialise – unless the feared “great depression” and tremendous social upheaval intervenes…
Examples of selling the idea of cash-lessness to the public, and imposition of cash restrictions:
* A social experiment: http://www.handepay-cash-less-street.co.uk/
* Cape Town goes cash-less as mobile payment apps take off http://www.bbc.co.uk/news/business-30184359
* cash-less payments overtake the use of notes and coins http://www.bbc.co.uk/news/business-32778196
* HSBC imposes restrictions on large cash withdrawals http://www.bbc.co.uk/news/business-25861717
* Leading German Keynesian Economist Calls For Cash Ban http://www.zerohedge.com/news/2015-05-16/cash-ban-calls-continue-german-economist-says-bills-and-coins-obsolete
* Denmark Becomes First Country To Ban Cash http://yournewswire.com/denmark-becomes-first-country-to-ban-cash/
* Federal Appeals Court: Driving With Money is a Crime http://www.thenewspaper.com/news/12/1296.asp
* Cops and the Cash They Confiscate http://www.cato.org/blog/cops-cash-they-confiscate
* Today cash limits apply for withdrawals via ATMs
Dangers with a cash-less society:
* If you are a legitimate whistle-blower or a critic of government policy, and the government doesn’t like your activities, you can permanently be shut off from all economic activity by the click of a mouse
* Banks can charge as much as they want for card transactions, both to customers and shop owners, in the absence of a cash alternative
* Banks have actually started NEGATIVE interest rates in many countries. Without cash you are robbed of the option to keep your cash in a box on top of the kitchen cabinet or in the mattress.
* Badly capitalised banks are always at the risk of going under. International banking rules have already been enacted to allow “bail-ins” i.e. depositors’ money to be used to save faltering banks. Without a cash alternative you can not prudently avoid this risk
* Small businesses, such as street stall vendors, are highly disadvantaged as they don’t have the same facilities to accept card payments
* Without a cash alternative, pension funds and annuities funds are forced to keep their capital in a bank exposed to the risks of negative interest rates, bail ins, bank failure, and forced government bond financing.
Try to escape the clutches of a banking system wherein your savings are gambled with on international markets and automatically turned into a “risky investment”.
Here are some ways to fight against the dangers of a cash-less society:
* Use your national currency in the form of cash as far as possible
* Learn to trade Bitcoin with your friends
* Join the local LETS (Local Exchange Trading System)
* Support any local currencies and put them in daily use
* Keep your saving in precious metals, or even collectibles
* Obtain and develop tools for direct value creation such as arable land, solar panels, water collection facilities, DIY skills, etc.
* Practice centredness and presence. Act with joy and feel the love. Be less dependent on shopping and possessions
* Spread this knowledge amongst everyone in your locality