Tuesday, March 27, 2012

Cashless Society Is Totalitarian Dream

Cashless Society Is Totalitarian Dream
In a recent Slate article, the author asks the question, “Would the United States save money by switching to a cashless economy?”
Reading the replies alone is more revealing than the contrived article, which seeks to condition the population for an ongoing attempt at a transition away from cash.
One reader asks, “Will the tooth fairy leave a debit card under the child’s pillow?”
The social implications of relinquishing the last vestige of liberty, personal control over one’s labor, as represented by one’s paycheck, are grave and manifold.
Already, as it stands today, the vast majority of transactions are denominated in currency, a system set up to allow an infinite number of other currency units to be counterfeited and handed to (banks) connected institutions.
The Swedish public, who pay for the public bus system, can no longer ride a bus unless they pay electronically. This means location tracking.
In Finland, merchants have to pay to make cash deposits, and banks charge customers for cash withdrawals.
In Turkey, the banking regulator will soon roll out a plan to pay interest on gold on deposit. Clearly gold and silver are money, but as Slate points out, so is zinc. The penny and the nickel are mostly zinc, and are finally worth more than the face value. This means that these coins are worth more than paper or electronic 1’s and 0’s.
I don’t know about you, but I want my money to grow in value, and we measure value in the terms of what our can purchase.
So what is common between a 70-year old housewife from Istanbul, Turkey and famed hedge fund manager Kyle Bass of Dallas, Texas?
Here is what the housewife said about the plan to give your gold to banks: "I'm keen to save, so keeping gold at home is easy for me; there is no complicated procedure," she said. "In an emergency, I can convert it to cash, and I don't have to wait for the bank to say the asset has matured."
Sound familiar? Just as silver can be converted to any other paper or digital currency in an emergency, exchange also can take place with the coins themselves. Storing wealth in a tangible manner, such as owning physical gold and silver, gives ultimate flexibility and choice—and doesn’t depend on the security of an electricity grid.
As for Kyle Bass, he bought 20 million nickels, exchanging 1 million dollars in digital money for the real thing. Now that the zinc coin buys 6.8-7 cents worth of goods, those who hold onto real money, like the housewife, are positioned to protect their wealth.

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