Have you noticed that there’s a war on cash? In Europe, the €500 note will be taken out of circulation. Speculation is that the $100 bill will also be removed from circulation in the USA.
People are being herded towards using digital money. Your salary gets wired directly into your bank account. Your bills are paid directly from your bank account. You pay for goods and services with a credit or debit card. All digital money.
“But I can go into a bank and withdraw cash any time,” you say. Try taking out $5,000 in one go. It’s your money but you’ll be treated like a terrorist, a criminal or a drug dealer; i.e. with suspicion. You’ll have to provide identification (even if you’re well known to your teller), answer questions, fill in forms, talk to other bank officials and maybe have to wait a few days before the money will be provided.
This is all to prevent illegal money laundering we’re assured. But the upshot is that banks are wresting more and more control over our money from us. Every digital transaction now incurs a fee, which a cash transaction does not. Every transaction is recorded in detail, which is not the case with cash transactions.
“Hey, but I can withdraw a $1,000 from the ATM!” you say. Yeah…but try withdrawing another thousand and you’ll be told that you’ve reached your daily limit. You’re being told you don’t have 100% control over your own money. And those ATM daily limits can be easily changed. Maybe the daily limit will be dropped to $300 because who needs more than that for gas and groceries each day?
Banks and the government want to control, charge for and record every transaction. It’s a gross invasion of privacy but people are blindly walking down the alley to the slaughterhouse in this regard.
On foot of this will come SDRs, essentially a world currency issued by the IMF, according to Jim Rickards. In the above interview, he discusses the state of the world economy, the likely introduction of the SDR world currency and the war on cash, and how it’s already been won by the banks and government.
According to Investopia…
An SDR is essentially an artificial currency used by the IMF and is basket of national currencies. The IMF uses SDRs for internal accounting purposes. SDRs are allocated by the IMF to its member countries and are backed by the full faith and credit of the member countries’ governments.
A fuller description of SDRs is available here.
At 30:27, Rickards describes how demand for gold is now greater than supply (demand is about twice the supply). This means that gold supplies are going to dry up and there’ll be long wait times before what you ordered will actually be delivered. And rising demand will push up prices. If you wait to see when the price of gold starts to continuously rise, it’ll be too late to buy. The time to buy is now!
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Back in 1988, The Economist ran an issue with this cover which predicted the rise of a “Phoenix” world currency from the ashes of national fiat currencies such as the Dollar and Pound Sterling (the Euro wouldn’t make an appearance for another 11 years). Hyperinflation would have destroyed those currencies. Prescient or not?
I’ve invested in bitcoin this idea seems more solid. Like gold
I thought Bitcoin had a strong future. Now I’m not so sure. The blockchain tech is great but too few people have too much control over the price of Bitcoin as a currency. It’s not how Satoshi Nakamoto (whoever he actually is) saw things going. I’ve now sold the few Bitcoins I had and bought gold with them. 🙂
Daryl
I dont have a lot of money in the bank but it is so true that when I try to withdraw more than my daily limit, it stops. Another part of my frustration is when I deposit my money, they have to hold most part of it before I can start using it. And with my cheques! It takes 7 days before they can release it.
Hi Von,
It seems that anyone who wants to deal in cash is guilty of something until…well, they’re just guilty…of something. Apparently we can’t be trusted to use our own money responsibly, so it’s doled out to us like pocketmoney.
Once you deposit money in a bank, the money is no longer yours. The bank can do almost whatever it wants with it without consulting you. It must retain a fraction of it in order to be able to pay withdrawals by other depositors. The rest is used for creating more money (money gets created when a loan is created) and a bank can loan out about 9 out of every 10 dollars deposited (I can;t remember the exact figure). Some of your money goes into financial speculation. And when things on that front go south, the banks have to get bailed out by the tax payer.
In this age of digital money, there’s no reason that a check can’t be scanned by a teller and the funds deducted immediately from the check issuer’s account. Instead, the bank have to “clear” the check which means your money is held for 7-30 days somewhere where it will make money for the bank. You don’t receive any recompense for the inconvenience.
There’s a reason they’re known as Banksters! 🙂
Daryl