Previously from our analysis August 28th 2016
Give Me Convenience or Give Me Death
Remember when ATM's were introduced? We were petrified to use our Manny-Hanny cards at first. But they were a cost reducer for banks and the idea was TBTF for them. Tellers could be sacked then and the public embraced it for convenience reasons eventually. Like long lines from no tellers being open ( see EZ Pass today). Then it became a source of revenue as bank ATM's charge you money if the machine is not theirs. Bank sells on a cure for a disease they create. Imagine being a fired teller having to use an ATM the rest of your life. Dehumanizing we'd imagine.
You will eventually be charged for convenience on any innovation that reduces a company's operating cost through implementation of said innovation. It is the curse of incumbency. Once behavior becomes a habit, it is hard to break. Electronic incumbency is at the top of that list. Electronic Incumbency in business would be a function of lost executive function and addictive behavior in Psychology.
Here are some bullet points to consider on the topic:
- Abolishing cash makes it easier to manage the markets especially in a NIRP environment
- The rationale of transacting with ease via electronic swipes of a card is the pretense
- The reality is once cash is abolished there will be no way to transact business except with a debit/credit card
- And we will all be locked into the system, our choices made for us.
- Net effect, reduces bank risk via no clearing time, ease of transactions for user, forces all trade to be intermediated by a bank
- Banks get the ultimate exchange type franchise.
- Probably right afterwards they become pure utilities for the Government again.
- our childhood friends wouldn't be able to launder counterfeit $10's at hot dog stands- wait, ignore that one.. You get the point though. You would be a walking EZ Pass
Full Report HERE
Why Governments Are Winning the War on Cash
Authored by Jim Rickards for dailyreckoning.com
I’ve written many times about how the so-called “cashless society” is a Trojan horse for a system in which all financial wealth is electronic and represented digitally in the records of a small number of megabanks and asset managers.
Once that is achieved, it will be easy for state power to seize and freeze the wealth, or subject it to constant surveillance, taxation and other forms of digital confiscation.
Given these potential outcomes, one might expect that citizens would push back against the war on cash.
In fact, the opposite seems to be happening.
A recent survey revealed that more than a third of Americans and Europeans would have no problem at all giving up cash and going completely digital.
Specifically, the study showed 34% of Europeans and 38% of Americans surveyed would prefer going cashless.
Specifically, the study showed 34% of Europeans and 38% of Americans surveyed would prefer going cashless.
Notably, Germans are the most resistant to going cashless. Almost 80% of transactions in Germany are done in cash, and many Germans never use credit cards.
Incidentally, the German word for debt, schuld, also means guilt.
The German experience with hyperinflation after WWI and additional monetary chaos after WWII certainly plays a part in this resistance to the cashless society.
Other countries, such as Romania and Bulgaria, which have recent experiences with currency and financial crises, also tend to use cash extensively.
Of course, there’s no denying that digital payments are certainly convenient. I use them myself in the form of credit and debit cards, wire transfers, automatic deposits and bill payments. Significant portion of my wealth in nondigital form, including real estate, fine art and precious metals in safe, nonbank storage.
The surest way to lull someone into complacency is to offer a “convenience” that quickly becomes habit and impossible to do without.
The convenience factor is becoming more prevalent, and consumers are moving from cash to digital payments just as they moved from gold and silver coins to paper money a hundred years ago.
When the next financial panic comes, those without tangible wealth will be totally at the mercy of banks and governments who will decide exactly how much of your own money you’re allowed to have each day.
Just ask the citizens of Cyprus, Greece and India who have gone through this experience in recent years.
It will come to the U.S. soon enough.
END
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We, the shrinking United States middle class offer this to you, peddlers of trade restraint wrapped in convenience.
Dear Elitists, Multiculturalists, Globalists, and those Corporations that exploit noble but misplaced ideals.
We don't want to take what you can give We would rather starve than eat your bread, We would rather run but we can walk, never truly helped us out before We take the poor man's path and must refuse your test Push us and we will resist, this behaviours not unique We don't want to hear from those who know We don't want to limp so they can walk We don't want to be held in your debt, we'd rather pay it of in blood let
We're already cut up an half dead
Everything has chains absolutely nothings changed We don't want to take what you can give We would rather starve than eat your bread
The Soren K. Group
Adaptation of lyrics by D. Abbruzzese, E. Vedder, J. Ament, M. Mccready, S. Gossard
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