Cashless Society Is Totalitarian Dream

The WealthCycles Staff

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.

Not only do paper and digital currencies allow dilution, there is also the problem of custody. As Mike Maloney says: “If you can’t hold it, you don’t own it!”

Bass advised Texas teachers on the billions of dollars in gold they hold. The link is a short 2-minute video clip where Bass essentially says that for gold at the time, there was $80 billion in paper contracts stating that the holder owned gold (open interest), but only $2.7 billion worth of actual deliverables. He told the teachers to go get the actual gold. This is what entire nations are beginning to do. Germany, Switzerland and Venezuela are all repatriating gold; all want the actual gold back in their hands.

When it comes to cash, freedom is intertwined in control over that cash. Any type of money is a store of one’s labor, but some money does the job better than others. The very idea of placing your life’s labor solely in the hands of a system of electronic 1’s and 0’s is the dream of the totalitarian.

In a system in which all money is electronic, what happens when we have rolling blackouts, where electricity fails or is rationed? Do we simply stop human exchange until the lights come back on? When a computer virus strikes, when the banks close their doors, how will one buy produce from the roadside stand?

Already we live in a world in which the confiscation of coin from the people, by the banks, is underway.

The financial establishment-implanted banker-leader of Greece forced that nation to exchange its debt for even more debt. Within that contract, bankers wrote in their right to take the only money the Greek people had left, 3,568,732 ounces of gold. Additionally, in the (banker-) celebrated “deal” the people’s pensions and wage rates were demolished, ensuring that the only recovery forthcoming would be the recovery of Greek gold by the bankers.

Portugal is next up for this method of confiscation, based on its ratio of unsustainable debt to gold owned, some 12,297,660 ounces.

Switching to 1’s and 0’s is not only unsafe due to the vulnerability of an electric-dependent system, it potentially makes it possible for one person to control the fruits of labor of the entire global population, whether by adding to the supply of currency (inflation), or by simply deleting an account. Oh, and remind the totalitarians not to forget to defrag the hard drive.

Inflation is simply an increase in the supply of currency and credit. The rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling is defined by the term "price inflation." Central Banks attempt to stop deflation, a natural phenomenon which occurs in order to correct the prior inflation.

Great article Mike this is real news pay attention people the paperless society is upon us, make the fight physical. The weak will fall prey be strong visit us

Great article Mike, but here's the thing as I see it..
The powers that be and with all due respect they are
smart people. If and I suspect it to be true, if they have
knowledge of vast oil and gold seams that they can
bring on stream at their command, then they control
like puppet masters the price of everything...

Who died and made these people God. Long live
Independent thinkers like yourself.

God bless,

Gary McCusker Cavan ,

quality article guys! The brightest minds in the buz all agree on a decentralized currency system, represented by real assets and human labor.

i think nickels are 25/75 cu/ni

Can you expand a little more on the "Defrag the hard drive" metaphor?

Otherwise great article. The lack of control a client has over those digital numbers is often neglected. It may be recognized as "tangible" but the blatant confiscation of MF Global client funds is no different than Amazon/Audible deleting digital books in audio or PDF formats from users on the Kindle who may or may not have violated a law.

Where as, if you have the physical coin and physical book in your possession, it has to be physically removed from your person. Or must require authorities to justify raiding your personal residence.

This is great information Michael. This is just the kind of information we are trying to provide people with our Flying For Liberty air show promotions. Liberty is the key to our nation's success. Thanks!

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