Sunday, December 4, 2016

The War on Cash: The Digitization of Money

The big banks have been failing for some time now.  Remember T.A.R.P. and the bank bailouts?  Let us not forget this was done under a Republican president, George W. Bush.  Who could forget Bush's line that he had to violate free market principles to save the free market?  As the world of "too big too fail" spreads, the free market cannot operate.  Because nothing in Washington D.C. changed post-bailout, we find ourselves with the big banks having become even bigger and the economy even shakier.  When the big banks invest well, they pay themselves handsomely.  When they invest poorly, they come after your funds.

Most people think of their bank account as a safe deposit box.  We willingly take our money to the bank for safe keeping, right?  Wrong.  A bank account is an unsecured loan to the bank itself.    Banks use our money they have on deposit in order to secure the ability to loan out money to other customers such as small business loans and mortgages.  When the bank goes down, account holders are last in line to gain access to their own money.

The big banks do not like the idea of citizens holding large amounts of cash outside of its vaults.  The real game at work is the idea of negative interest rates.  This means banks charge you for holding your money.  You put money into the bank and end up with less at the end of the year.  Under free market principles, if we were charged to deposit our money, we would hold more cash at home and take it out of the bank.  A mass exodus would collapse banking systems and economies around the world.  Instead of a bailout this time, they need a bail-in; a forced, mass deposit of cash trapped in the big banks.  Central banks around the world need to push us into negative interest rates, but cannot get around the free market.  Until now.

The bail-in is the perfect option for the Central Banks if only they could devise a way to trap money in the big banks.  As we go through the recent examples let us remember one of the favorite progressive tactics which is to sell a loss of freedom as something that will provide security, stop criminals and/or is needed due to an emergency.  In addition, the goal is two fold.  It forces money into the banks and also forces spending.  How does the government force people to spend money in the economy?  Punish them for saving their money.  It provides a temporary bump in the economy.

If this sounds like conspiracy nonsense, let's take a look at what has happened in the last month with currencies around the world.  In the last month, India's Prime Minister Modi suddenly banned the 500 and 1,000 rupee notes, which is approximately equivalent to the U.S. $10 and $20 bills.  It was promised this would stop criminals.  Of course, the exact opposite occurred and money laundering is spreading at a rapid rate and the poor are suffering.  For more Check out this Bloomberg article by Anto Anthony.

Citibank decided to create cashless bank branches in Australia.  The bank branches will simply no longer deal in cash.  The following article describes how this phenomenon is occurring not only in Australia, but in Sweden as well. Business Insider Australia Article.

We need not say much more about Venezuela.  Venezuela's currency is so devalued people are bringing wheelbarrows of coins to buy toilet paper.  Well not toilet paper, considering they don't have any to buy in the country.  But you get the point. 

As whispers in the Fed continue about banning the $100 and $50 bills, why is the media not warning us all about this?  Although there are the occasional business articles about these occurrences, I really only hear Glenn Beck and Chris Martenson from Peakprosperity.com talking about these warning signs.  Once we are locked into a cashless society, we are ever traceable and forced into the banking systems.  With the 24-hour news cycle this should be all over the news.  Unfortunately, most of us have no idea of any of this because the media remains silent. 

1 comment:

  1. Would it be OK if I cross-posted this article to WriterBeat.com? I'll be sure to give you complete credit as the author. There is no fee, I'm simply trying to add more content diversity for our community and I liked what you wrote. If "OK" please let me know via email.

    Autumn
    AutumnCote@WriterBeat.com

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