The Cashless Society Is Going to Backfire on the Bankers

Governments would probably enjoy this as well. It would make it so much easier for them to track our purchases and profits, and tax them accordingly.

The desires of the banking cartel became perfectly clear two weeks ago when Willem Buiter, the chief economist for Citigroup, advocated banning cash to supposedly save the global economy.
The world’s central banks have a problem.When economic conditions worsen, they react by reducing interest rates in order to stimulate the economy. 

But, as has happened across the world in recent years, there comes a point where those central banks run out of room to cut — they can bring interest rates to zero, but reducing them further below that is fraught with problems, the biggest of which is cash in the economy.

Fundamentally, the ELB problem comes down to cash. According to Buiter, the ELB only exists at all due to the existence of cash, which is a bearer instrument that pays zero nominal rates. Why have your money on deposit at a negative rate that reduces your wealth when you can have it in cash and suffer no reduction? Cash therefore gives people an easy and effective way of avoiding negative nominal rates.

So basically what he’s suggesting is that by eliminating cash, it will make it easier for the banks to take your money. Right now it’s difficult for them to enforce a negative interest rate (which would ostensibly fuel the economy by making people spend money instead of saving it) because people will just take the cash out of their accounts. You can’t place a negative interest rate on money that’s hiding under your mattress.

They really just want to make it expensive for you to save money. They want you to spend it all on frivolous crap (to keep the global economic bubble going), which means that at some point it will return to the banking system, where they will be able to charge you even more than they already do, just for the privilege of keeping it there. Rinse and repeat until we’re all debt slaves.

However, these bankers really haven’t thought this through. They probably believe that a cashless society will work, because of success stories like Sweden, where four out of five purchases are done electronically. 

What they’re not taking into account is that Sweden has a successful economy despite going cashless, not because of it. 

They have a cohesive society with low crime rates, good schools, and an excellent infrastructure. They would have been successful either way.

But if they try going cashless in some basket case nation, they’re in for a rude awakening. I can already tell you what would happen in America. Unlike Sweden,  ……………Read the rest of the story at GramsGold.com