A “Cashless” Economy And Its Perils

Permit us to briefly examine the legal ramifications of money before delving into a “cashless” economy and its perils associated with the complete abolition of currency and the imposition of digital transaction requirements.

As is the case in all economies with legal tender laws, only cash is accepted as currency in the United States in selective establishments. Cash will always remain king in my humble eyes.

There is a misconception that the funds in the balance of some individuals’ bank accounts represent money. When converted to lawful currency, your bank balance is one step removed. Say word?

Minimum reserve balances must be maintained by all banks, either in the form of cash retained in their vaults (a negligible amount) or in “reserve accounts” with one of twelve Federal Reserve Bank branches located in the area.

The bank reserves the authority to convert these reserve account balances into cash or physical currency. However, money held outside the banking system, such as in a wallet, cookie container, or personal safe deposit vault, is also included in the total cash in our economy.

No matter how one tries to sugarcoat the “benefits” of digital currency, a “cashless” economy and its perils are lurking.

The monetary foundation refers to the sum of cash on hand outside the banking system and bank reserves. The money supply and the monetary base are not synonymous. The majority of the money supply consists of non-reserve-backed bank credit.

When financial institutions grant loans, they transfer funds into your account as bank credit. In fact, the bank generated this currency virtually overnight. Notably, banks merely extended credit rather than establishing reserves; this is not the same thing.

The United States monetary base stood at $5.5 trillion as of July 2023, while M3, which represents the aggregate bank credit money, reached a value of $20.9 trillion.

That is to say, institutions could accommodate approximately one-fourth of the requests if everyone demanded physical currency (cash). Real is the possibility that your bank will fail. Thirty-eight thousand or more banks failed in the United States during the Great Depression.

Moreover, since 1913 this economy and banking as we know it has turned out to be one giant Ponzi scheme that behooves the one percent controlling it.

What are the dangers of electronic banking in a cashless economy?

By possessing physical currency rather than relying solely on electronic or check-based access to account balances, you safeguard not only against the unavoidable infrastructure issues that can arise with electronic systems but also against the imminent confiscation of a portion of your funds.

The use of cash is anonymous, in contrast to a bank account. Regardless of the circumstances, you will retain the ability to operate within the fiscal constraints of the available funds.

Suppose, for instance, that cash has been lawfully eradicated and that you have provoked the authorities—likely by expressing opposition to them and urging others to do the same. The banks need only freeze or completely eradicate your bank account. Two instances of this exact occurrence have occurred in the recent past.

Initially, the Canadian government suspended the bank accounts of all strike participants and supporters of the Canadian truckers’ general strike. Furthermore, for political motives, Nigel Farage, a British politician, had his bank accounts closed, and he was subsequently unable to bank with any other British institution.

Farage was on the verge of emigrating due to his lack of financial resources. Please reflect upon that for a moment. A thousand other tasks, including refueling a vehicle, purchasing supplies, and making rent payments, would be unattainable without a bank account.

The risks of CBDC

The implementation of digital currencies under their own control is a strategic initiative being developed by every major central bank in the world.

This threatens our civil liberties gravely. In contrast to the treatment of Nigel Farage by the British banking system, the government would no longer be required to secure the cooperation of the banks in order to suspend or “debank” your accounts.

You would be unable to access your financial accounts with the touch of a keypad, which would result in insufficient funds for necessities such as heating your residence, heating your vehicle, or food. Now you get the perils of a cashless economy.

This is a matter of life and death; no one should be permitted to possess such immense influence. Digital currencies are naturally marketed as modern and efficient. Such things do not exist. This constitutes a violation of civil liberties that must cease.