Search This Blog

Tuesday, May 13, 2014

The Power of Cash in an Increasingly Cashless World

We read an interesting statistic yesterday.. not necessarily a positive one but just interesting..

Nearly eight in ten Americans (78%) carry less than $50 on them at all times with half the respondents to a survey saying they carry less than $20 in their wallet/purse.

The reasons that's not a positive or good thing is:

1) When you pay cash, your transactions are anonymous and private; when you pay by credit or debit card, everything is in the open for any one to peek in and look at at any time

Banks, credit agencies, law authority, government agencies...

You don't have to be a criminal or have a record to be concerned..

Quick example:  If you buy a $1000 TV and pay cash and ultimately need to file for bankruptcy, no one knows to go after the asset.  If you pay by credit card, its a visible transaction and its being repossessed to pay creditors..
2)  You're at the will of your 'Master' charge..   If/when a credit card cuts your credit limit or cancels, they do it first and then send notice in the mail which takes up to 10 business days to receive.

This means you could be going to buy a TV set thinking you have $1000 avail. credit and is a realistic probability you could have less available than you thought when time to purchase..

Credit cards also limit access to your own money..

Most ATMs have a $500 daily withdraw limit..  Debit Cards usually have a  daily $1500 purchase limit and regular Credit Cards will decline purchases to protect themselves if you use your card in ways inconsistent with past behaviors...

Cash-- its 100% yours.. No one can control you or your usage.
3)  When you purchase in cash, you buy the item or service at the price offered.. It's paid..  It's a done deal..  No statements, due dates to forget, checks to get lost in the mail or interest to be paid..

You can't be continually profited off of.

The ultimate goal of the global bankers is a cashless society..

Specifically, the ultimate goal for banks and government is for every person to have inserted in them a 'chip' that holds all their banking info, credit history, medical history, tracking info..
The chip would inserted in the wrist or via a retina display and you get scanned at checkpoints so anyone interested in retrieving data can know your whereabouts and habits at all times..

It also makes people much easier to control, contain and punisg if there's civil disturbance or disobedience or displays of mass protest

But even if you don't believe the previous paragraph and that's your right to disbelieve for now, at the very least goal for the powerful few is to end cash as currency for the masses..

Why?
1)  As we said before, cash purchases means anonymity and privacy and governments fear their populace.. even the US..  

Especially in the US i.e Patriot Act among other laws..

2)  Much easier to expand monetary policy, QE, etc if there's no cash to print and coinage to create.  This creates more debt but then governments can just increase the cyber-money flow

3) Total government control to the accessibility of your money..

Speak out against the government or present a contrarian view that possibly may stir dissent in others?  Access to most or all your funds suspended for set period of time..

Its pretty scary..  
~ "Meoww.. I wanted real cash.. Not Johnny Cash.. Meowwww!"

Pretty Orwellian actually..   And it is coming..

Now of course there's another reason most people don't carry much cash and it has little to do with convenience or feeling safe..

They simply don't have much money to carry..

Budgets tight, incomes stagnant..  Struggling while trying to give outward appearance that everything is A-OK

There's also the naive mindset in a great many that there will never come an emergency or situation where cash will be needed in a pinch..   And if so, there's a million-billion ATM's around..

Total stupid grasshopper mindset..
When the market crashes.. when government weakens, it is so much easier to control a populace that does not possess cash because cash means freedom..  means options.. means individuality..  means the ability to create and engage in a black market if troubles dictate such a need..

But this isn't an American problem..   As we said before, cashless societies are becoming global which is what the global banks want..

We hate credit cards..  Vultures...

If it wasn't for retail stores freaking out at the sight of cash to make large purchases, we'd never use cards at all..

Speaking of which, we found this story in the Moscow Times which made us smile at its absolute cleverness..
"International payment systems Visa and MasterCard will be forced to provide Russian authorities with multi-billion dollar security deposits if they wish to continue working in the country beyond July 1, under a law signed by President Vladimir Putin..

The law also creates the basis for a new Russian national payment system that hopes to compete with the two U.S. companies. This system will be built and run by a new company created under the aegis of the [Russian] Central Bank."

This is quite brilliant because it goes against the thrust of US led sanctions on Russia for their justified re-acquisition of Crimea
Under the new Russian law:

"Foreign payment systems will be forbidden by the law to unilaterally cut services to Russian clients and require them to base their processing center in Russia. 

They will also have to leave a security deposit at the Central Bank equivalent to the value of two days of transactions processed in Russia. Visa and MasterCard, which together service about 90 percent of payments in Russia, processed $1.9 billion per day last year, meaning that they will be obliged to relinquish about $3.8 billion to the Central Bank," payable in quarterly installments, starting July 1."

Ingenious.

Will the two credit cards comply?
Remains to be seen but we would wager they will because to corporations money trumpets ideology..

If Google can agree to let China censor its search engine because of the lucrative profits they offer in return, we imagine Visa & MasterCard will do what they need to do..

Everything is about money..

People think wars start over religion..  Many yes but not 'All'

All wars start over economics.  For instance Ukraine has a lot of oil-rich reserves perfect for Western oil corps to go in and frack the hell out of like they're currently doing in Poland and the Baltic..

Putin would like that black gold as well..
But economics ultimately is money..  

And money is power and status

And its not even so much who is in possession but also who can access, siphon and thus control another's money

Control the citizenry's wealth and access to more..

That's the society we're degenerating into and the younger generations have no clue the power over their lives they're willingly and ultimately giving up in exchange for a little convenience.