The War on Cash-Is it a Real Threat?
Emergency Cash Stash
A lot of us preppers have been urging everyone to have a supply of cash in case of unrest that causes the banks to shut down. While they tried to keep it from us, it’s well known that the meltdown in 2008 meant we were only minutes away from the failure of first the big banks and then the smaller banks. One of the leading members of the treasury department admitted that they were wringing their hands and wiping their brows before a fix was put in. Of course we all know that fix only helped for the moment but has caused all of us problems since.
This newest threat, though, is even worse. It’s already operating in other parts of the world, with Sweden being the leading example. Here in the United States there are those proposing that only $10.00 bills be available and that every other transaction has to take place electronically. The $100 bill will be the first one to go. Well, I don’t have too many of those lying around but I notice that most prepping sites encourage us to keep a supply of smaller bills on hand. Maybe that’s not such a good idea anymore. Who wants $20.00 bills in their secure fire-proof hiding places if they’re worthless? Maybe there’d be a time to cash them in, but who knows? In an emergency, they could just be declared illegal.
Why do away with Cash?
The main pusher of this is a man called Kenneth Rogoff who has written a book, THE CURSE OF CASH which explains the government’s thinking. Frankly the book doesn’t get very good reviews except from other economists but it might be good reading on Halloween. It’s definitely creepy. He, along with others in the “ruling class” offer what they say are pretty good reasons for banning cash, including:
- It would reduce crime. (Don’t ask me how. Criminals would just shift to another currency or to bitcoins.)
- It would allow the IRS and state treasuries to collect taxes on under-the-radar cash transactions.
- It would make the American dollar that people are holding in other countries worthless so the government would not have to honor its obligation to them.
- That’s it, folks. Oh, and I forgot to add that it would allow banks to charge negative interest. Say they tell you that you have to pay 2% for them to hold your money for you? (Don’t laugh. That’s already happening in some countries.) On $10,000 that would be $200. What happens if you object? You lose. There’s no other way to buy anything so you have to go along. I believe that’s called a dictatorship.
Whats Wrong With This Plan?
The truth is that there would be mostly negative conseuqences, such as:
- It would destroy privacy. Every transaction you make would be examined and monitored.
- They could confiscate your retirement funds and dictate how they could be spent.
- It would grant more power to the Federal Reserve, and who wants that?
- The potential for government abuse would be unlimited.
- It would expose those preppers who want to live off-the-grid, which is an honored American tradition.
- Transactions could be shared with insurance companies and even marketers and divorce lawyers, just to mention a few.
While I’m not shedding any tears for the money launderers or drug dealers, the truth is that those with the least money will be hurt the most. There are people in this country who do not have bank accounts or credit cards and operate completely in cash. The main group of these are young people who buy prepaid cards but these are loaded with high fees which punishes them. In many cases the people this would hurt the most are people who are honest and hardworking, trying to live quiet and peaceable lives and harming no one.
Say a neighbor hires you to help him with repairing his roof? How could he pay you? Or suppose homesteaders have farm stands that sell their honey or homemade apple butter or even sell you a steer? They’d have no way of charging you.
Actually, it’s such a ridiculous idea that I should be laughing my head off that someone thought of something that was so stupid. Sadly, it’s not a joke. It’s already being put into place in a lot of countries in the world. Let’s face it government loves electronic transactions. They don’t even have to print fake money. They can just say its there. Sounds like that old fairy tale of the emperor’s new clothes to me.
Germany, France, and Spain have all begun to limit cash transactions. To see how this works in a country that’s already started using it, let’s look at Sweden. Sweden has a long history of bank robbery, mainly because they don’t allow guns or self defense. So, using the rationale that it would stop bank robbers, they began to implement it. Now even the smallest transaction is made with a card or a cell phone. Cash is not accepted in almost all places even for a cup of coffee and soon not in any place.
What You Can Do Now!
What should we take away from this new threat? Awareness is the first step. The plans are to start this cashless system without your ever becoming aware until it’s too late. For now, I hope you’ll keep your antennas raised and see what you can learn. I’ll be writing more in the days ahead. If you are holding some emergency money, it might be wise to exchange anything over $10.00 for smaller bills. Especially do not keep $100.00 bills since the plans are to outlaw them first.
Until the next time…