Financial preparedness: What are the dangers of a "cashless" economy?

By zoeysky // 2023-11-02

Mastodon

Parler

Gab

Copy

For modern shoppers, cashless payment methods may seem like a convenient and secure option. But if you want to avoid common risks like credit card fraud and digital systems that are vulnerable to cyberattacks, cash will always be king. (h/t to SHTFPlan.com) In the U.S. and other economies that have legal tender laws, only cash is recognized as money. While others think that the balance of their bank accounts is money too, that is not quite the case. After all, your bank balance is one step removed from legal money. All banks must maintain minimum balances of reserves in cash held either in their vaults, which makes up only a very small amount, or in their "reserve accounts" with their local Federal Reserve Bank branch. These reserve account balances may then be converted to real money, or cash, at your bank's discretion. But the total cash in the U.S. economy also includes cash held outside the banking system, such as the money in your wallet or an emergency money cache hidden at home. The total of bank reserves and the cash held outside the banking system is called the monetary base, but it is different from the money supply. Most of the money supply is made up of bank credit not backed by reserves. When banks make loans, they credit your account, which becomes bank credit money. This money was created by the bank "out of thin air." Keep in mind that the banks did not create reserves, only credit money, which is not the same thing. As of July 2023, the monetary base in the U.S. was $5.5 trillion, while M3 (the total bank credit money) was $20.9 trillion. This means that if everyone demanded real money or cash, the banks would only be able to honor around one-fourth of all requests. This highlights the fact that the possibility of your bank failing is real, especially since more than 9,000 U.S. banks failed during the Great Depression of the 1930s.

What are the risks of electronic payments?

Cash is important because being able to hold real cash, not just bank balances accessible by check or electronic means, protects you from the potential infrastructure problems linked to an electronic system but also from the sudden seizure of all or some of your money. As a prepper, cash is also preferable because "real" cash is anonymous and your bank account is not. When disaster strikes, you can still purchase essential goods or services as long as you still have money in your wallet or an emergency cache. If that cash has been eliminated by some legal means and if you have angered the powers that be for whatever reason, such as opposing them and asking others to oppose them too, all banks can freeze your bank account or eliminate it. In February 2022, the government of Canada froze the bank accounts of everyone who participated in the Canadian truckers' general strike, along with those who helped them. This year, British politician Nigel Farage had his accounts closed for political reasons. He also revealed that no other British bank would serve him. Without the means to use money, Farage said he came very close to emigrating. Imagine if that had happened to you, especially if you weren't a prepper. You wouldn't be able to pay for gas for your car. Without cash, you wouldn't be able to buy groceries or supplies for your emergency stockpile. Soon after, the BBC formally apologized to Farage over a story it ran on the closure of his accounts at NatWest's private bank Coutts, which the former Brexit Party leader correctly said was due to his political views. The BBC previously reported that the reason for the closure was Farage allegedly fell below the financial threshold required to be a customer at Coutts. The Coutts website advises that its clients should be able to borrow or invest at least one million pounds ($1.28 million) with the bank or hold at least three million pounds in savings. However, an internal review of the bank account obtained by Farage revealed that the private bank's wealth reputational risk committee had said his values did not align with the bank's own. "We acknowledge that the information we reported - that Coutts' decision on Mr. Farage's account did not involve considerations about his political views - turned out not to be accurate and have apologized to Mr. Farage," said the BBC in the corrections and clarifications section of its website.

What are the risks of central bank digital currency?

All of the world's major central banks are currently devising plans to institute central bank digital currencies (CBDC) that they will control. This is very dangerous for the civil liberties of all citizens across the globe. (Related: British activist threatened with arrest for using CASH in cashless Aldi grocery.) If this becomes a reality, the government would no longer need to seek the cooperation of the banks to freeze your accounts or "debank" you entirely, as the British banking system did to Farage. With the push of a button, you could lose access to your financial accounts and you wouldn't be able to buy food or supplies. No government should be allowed to hold such power, which could easily become a life-and-death issue for a bank holder. Yet despite these serious risks, digital currencies are being promoted as efficient and modern. Don't be fooled. This is a civil liberties issue and it must be stopped now if you want to retain your freedom and privacy. Watch the video below to learn more about the dangers of a cashless society and central bank digital currency. This video is from the Communicate channel on Brighteon.com.

CITIZENS NEWS

What are the risks of electronic payments?

What are the risks of central bank digital currency?

More related stories: