As more and more writers warn of the impending world financial collapse, what lies beyond that we will profit by considering? Even the Pollyannas selling our present ‘recovery’ seem strained these day, as though they might not believe in their product.
One obvious threat is the coming cashless society. Governments often fall as they lose control of the economy; the citizens wrest that from government with ‘black markets’ based on untraceable cash and an illegal but otherwise free, market takes over outside of government control. The citizens usually do this as a blind reaction to the failure of the government’s controlled, official market to function. People have to eat, so they make their own arrangements. Cash is the universal tool.
Government hates that, it puts too many people beyond government control. But short of jailing or shooting offenders trying to feed their kids, there has been little, when things get bad, that government has been able to do about it. But now, the internet has provided a weapon to government.
That weapon, built upon the omnipresent credit/debit card, is called the ” Cashless Society.” All transactions are confined to the internet banks; nothing else is legal tender. Use of any substitute is jail time. Simple!
With this, no citizen will buy or sell if the government does not approve. Even barter will be a crime. That’s a whole new level of government control, right? And as following the links will attest, it is already being advocated.
At the bank end of this, the accumulating years of Federal Reserve essentially zero interest rates have made holding cash a losing bet for banks. A cost in fact as opposed to an income source. Big banks are starting to charge for holding cash and they are considering extending that to savings accounts. Outlawing cash will be doing them a favor.
We suppose that this will be a hard sell at present but that as banks vanish in the next collapse, it will become more likely as government moves to ‘save’ us from out vanishing wealth held by dissolving banks. It will seem so convenient, until one considers hackers and a total inability to buy without government license. Combined naturally with government supervision of our bank accounts, a manifest aid to tax collection already open under Obamacare.
Before you remind us to remove and stash our tinfoil hat before bedtime, put yourself in the place of government for a minute: In that case, what would you do? Yeah …
No, we did not have an extra glass of wine at dinner. We just read the news on the internet. For those who wear a belt with their suspenders, we suggest a few silver and gold, small denomination coins under the mattress. Unmentioned.
If they come in handy, you will seem a genius; if not, they will be worth more later … And perhaps the mattress will seem softer to sleep upon with the metal under it.