Yes, there appears to be convenience in digital money. But that convenience comes with dangers too.
Digital currency makes it easier to subject honest working people to draconian tax collections by our own IRS and world government bodies.
It is important to pay attention to the continual technological and political “herding” toward totally electronic money and the growing hostility toward cash (or other forms of currency, like gold and silver). You can count on me to monitor that trend and advise you accordingly.
Globalists, Taxers, and Government
Love the Potential of Digital Cash for Their Own Ends
Taxing the citizens of the world has been talked about for many years. Globalists want to tax your hard-earned money to pay for their schemes. Last month, the Economic and Social Council of the United Nations actually announced its desire for a worldwide tax.
These economic globalists defend their proposed tax as “very small” (just 0.005%) and dressed up their proposal in nobleness (the tax would be used “to ensure no one lives below a certain income level”).
The Cashless Society Agenda:
A Favored Goal of the Political Class
The fear and loathing of gold and other non-corruptible assets by the political class is difficult to understate. Central planners and big government cheerleaders the world over want, need, and must have unlimited access to credit to enact their power-seeking agendas.
Way too many of my fellow conservatives are not fully aware of this truth. They don’t seem to understand that only by cutting off the government’s unlimited credit card can we realistically restore limited government. It’s been proven time and time again that it is futile to limit government powers through a frontal assault against special interests feeding at the government trough.
Here are some other milestones on the road to a global tax:
2005 – United Nations bureaucrats used a string of euphemisms to open the door for a direct tax on world citizens in the “Draft Outcome Document of the High-Level Plenary Meeting of the General Assembly.”
2002 – The Paris-based Organization of Economic Cooperation and Development (OECD) came out with a report titled “The Future of Money” that is reported as saying a cashless society will “make it easier for government to collect taxes.”
2000 – The OECD felt low tax countries created “harmful” competition among (higher tax) member nations. In their report, “Towards Global Tax Co-operation,” it asked member nations to pressure low-tax countries to unwind their low-tax, pro-growth policies in an effort to be “fair” and harmonize tax structures. They even went so far to use the sales pitch of fighting money laundering to pressure nations to repeal their financial privacy laws!
The White House Seems To Be Involved
In the past, the U.S, has stood firmly against giving in to these ridiculous global tax proposals, which would force us to give up our sovereignty. However, things have changed. Just a few weeks after the U.N. announcement in 2012, the director of the White House National Economic Council Gene Sperling said, “We need a global minimum tax.”
The Weekly Standard quotes the Obama administration officials as saying, “… assurance that nobody is escaping doing their fair share as part of a race to the bottom or having our tax code actually subsidized and facilitate people moving their funds to tax havens.”
Are There Benefits
to a Completely Cashless Society? Not Really
Some say that handling, storing, and creating cash costs too much. Pennies and nickels cost more to mint than they’re worth, they argue. Of course, they never described how this is the fault of central bankers and their pro-inflation policies. Eliminating coins or digitizing them won’t solve that problem.
Many critics of a cashless society believe it’s just a ruse by big banks to create a monopoly to charge higher fees. A Business Insider article notes how swipe fees have escalated over the years, banks attempt to charge monthly fees to use debit cards, or to make up for lost revenue banks jump up interest rates on credit cards.
Others describe how people like and have grown accustomed to the convenience of cashless transactions. Swiping a card or running one over an RFID reader makes buying things faster. This is great for merchants and it can be convenient for consumers.
But, it’s not great for privacy and it gives others too much control over you. It’s easy to track what you bought, how much you spent, where you bought it, and when. And, at a click of button, your accounts can be shut down.
The convenience of digital currency has led many consumers to higher debt. A great number of people who’ve learned their lesson and looking to rebuild or improve their financial life depend on a pay-in-cash strategy to force self-restraint on their spending habits.
In a natural disaster or other emergency when phone, electricity, or even banks are shut down, a cashless society can be gridlocked very quickly.
Some proponents believe less cash in circulation makes things safer. In Sweden, where a cashless society has much support, they claim bank robberies dropped from 110 in 2008 to 16 in 2011, the lowest level in 30 years. Yet, computerized cybercrimes and fraud cases surged to nearly 20,000 in 2011 from 3,304 in 2000. Today’s bank robbers don’t use a gun and a mask; they use a mouse and a keyboard.
Even in the U.S., lawyer and money laundering expert Ellen Zimiles does not believe crime would decrease in a cashless society, because electronic currency makes fraud easier and anything you can store or send online can be stolen by a hacker. Currently, identity theft and cybercrime is an epidemic in the U.S. A purely cashless society would make the criminals’ lives easier and give them even more incentive to cheat innocent consumers.
Of course, there’s another type of money that’s based on neither cash nor electronics – we’re talking about gold and silver.
A major driver in the long-term precious metals bull market we’re just entering is private fears over the collapsing value of fiat currency and growing the power of centralized government. Gold and silver buyers are “voting with their dollars” by shifting more and more of their assets into tangible, physical, historically proven precious metals.