the daily stirrer

The War On Cash

Political, academic and business elite push for introduction of Cashless Society

> The ' cashless society' has been a pipedream of technology nerds, control freak politicians and academics who favour global fascism for some years. The technology now exists, the political consensus appears to exist (because the elites have underestimated the strength of feeling against globalism around the world, and the voices raised in support of this latest attack by the technology tyrants on individual liberty and privacy are geting louder.

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The Cashless Society - An Attack On Libety And Privacy

Contents




How A Cashless Soiciety Might Work

by Phil T Looker

Calls by various mainstream economists to ban cash transactions seem to be getting ever more louder.

Cash, paper money and coins make up about 10% of what economists call 'M2' monetary aggregates (currency plus accessible bank deposits) in the Europe, USA and the developed world. Recently we have heard the voices of several leading economists, officials of the US Federal Reserve, the Bank of England, Germany's Bundesbank and the European Central Bank (ECB), the financial arm of those European Union states that are members of the single currency system (Euro) and businessmen such as Bill Gates call for the abolition of cash and the switching of all transactions, even the most trivial, to electronic systems. Presumably the goal of such a policy is to bring the percentage of economic activity conducted in cash down to zero. In other words, eliminate your right to keep your purchasing power in paper currency, and your shopping habits private.

By forcing people and companies to convert their cash into bank deposits (held in government controlled bank accounts, several economists have insisted, the hope is that the public can be nudged into spending their money rather than save it. Towards this goal it is being suggested credit balances in those accounts will carry considerable costs through the imposition of fees or charging negative interest rates. In other words you will have to pay in order to be allowed to save a little.

In theory penalties on saving could boost consumption, GDP and tax revenues to help pay off the massive debts we have accumulated. The highly controversial notion that citizens might in the future have to pay the government for the privilege of holding their hard earned money in liquid form after it has already been taxed rather than tying it up in government approved financial services products seems to offer a way out of the current perpetual economic depression, but at what cost to the fabric of society.

The US adopted a similar approach to controlling personal finance in the 1930s, prohibiting its citizens’ right to own gold so they could no longer “hoard” it. At that time the US dollar was based on the gold standard so the goal was to restrict gold. Now that we are all in a “paper” standard the goal is to restrict paper.

However, while some economic benefits may arguably accrue in the short-run, this needs to be balanced in relation to some serious distortions that could rapidly develop beyond that.

Pros and Cons

To be most in any way effective, banning cash would have to be coordinated between the US and the EU. Otherwise if only one of the two Western economic blocks were to do it, the citizens of that block might start using the paper currency of the other, thereby circumventing the restrictions of this policy. Can’t settle your purchase in paper Euros? No problem, we’ll take US dollar bills. This is what used to happen in the USSR when currency controls prevented Russians from holding cash. Cood that could not be bought in Russian shops for Roubles were traded in the dark economy for US dollars, British pounds and German Deutschmarks.

This is just one aspect that can give us a glimpse of the wide ranging consequences the intrduction by governments of a chashless economy. Here are a few more: Pros:
Enhance the tax base, as most / all transactions in the economy could now be traced by the government;
Substantially constrain the parallel economy, particularly in illicit activities;
Force people to convert their savings into consumption and/or investment, thereby providing a boost to GDP and employment;
Foster the adoption of new wireless / cashless technologies.

Cons:
The government loses an important alternative to pay for its debts, namely by printing true-to-the-letter paper money. This is why Greece may have to leave the euro, since its inability or unwillingness to adopt more austerity measures, a precondition to secure more euro loans, will force it to print drachma bills to pay for its debts;
Paper money costs you nothing to hold and carries no incremental risk (other than physical theft); converting it into bank deposits will cost you fees (and likely earn a negative interest) and expose you to a substantial loss if the bank goes under. After all, you are giving up currency directly backed by the central bank for currency backed by your local bank;
This could have grave consequences for retirees, many of whom are incapable of transacting using plastic. Not to mention that they will disproportionately bear the costs of having to hold their liquid savings entirely in a (costly) bank account;
Ditto for very poor people, many of whom don’t have access to the banking system; this will only make them more dependent, in fact exclusively dependent, on government handouts;
We wonder if the banks would actually like to deal with the administrative hassle of handling millions of very small cash transactions and related customer queries;
Illegal immigrants would be out of a job very quickly – a figure that can reach millions in the US, creating the risk for substantial social unrest;
If there is an event that disrupts electronic transactions (e.g. extensive power outage, cyberattack, cascading bank failures) people in that economy will not be able to transact and everything will grind to a halt;
Of course enforcing a government mandate to ban cash transactions must carry penalties. This in turns means more regulations, disclosure requirements and compliance costs, potentially exorbitant fees and even jail time;
Banning cash transactions might even propel the demise of the US dollar as the world’s reserve currency. The share of US dollar bills held abroad has been estimated to be as high as 70% (according to a 1996 report by the US Federal Reserve). One thing is to limit the choices of your own citizens; another is trying to force this policy onto others, which is much harder. Foreigners would probably dump US dollar bills in a hurry and flock to whichever paper currency that can offer comparable liquidity.

In light of the foregoing does banning cash transactions make sense to you? Aren’t the risks at all levels of society just too large to be disregarded?


Then there are the Unintended Consequences. The authors of 'great ideas for social progress' always forget about the inevitable unintended consequences.

Paper money can be thought of as a form of interest-free government borrowing and therefore as a saving to the taxpayer. Given the dire situation of Western government finances, probably the very last thing we should do right now is to ban cash transactions and discourage the holding of cash. If the government prints bills and coins to settle its debts, rather than issuing bonds, it does not add to its snowballing debt obligations. Of course the counterargument is that this might result in significant inflation once politicians put their hands directly on the printing press. But isn’t this what the mainstream economists are so desperately trying to do to avoid deflation?

And it’s not like people in the West still stuff their mattress with money. It is estimated 30% of US paper money is held by residents, about 2% of GDP. It is doubtful therefore that any boost to economic activity will be significant. In fact there is no empirical evidence that demonstrates this policy will work as intended (not that this has ever stopped a mainstream economist) Moreover, an economy’s ability to create money would be even more impaired if its banking system were to crash – exactly at the time when it would need it the most. In reality it could be hugely deflationary because there would be no other currency alternatives. Talk about unintended consequences.

As to who could replace the US and EU in providing paper liquidity to the world, we don’t need to look far. China will surely not ban cash transactions given that almost a billion of its citizens are still quite poor and most have no access to banking services. Replacing the US in offshore cash transactions would create substantial demand for the Chinese yuan, at that stage without any real competition from other major economies as presumably none would be using paper.

It is unlikely therefore that US political leaders would ever endorse such a policy; they would be effectively giving up on an incredible advantage to the benefit of their main geopolitical competitors. However, given the considerable influence of mainstream economists and academics, people who live in an akternative reality, in financial and political circles such a foolish move cannot be ruled out. Ideoogically driven theories about equality and wealth redistribution whould surely trump any practical considerations, especiall if the name of the God Progress is invoked.

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New Global Crisis Imminent, New Geneva Report Warns The Geneva Report refers to a “poisonous combination of high and rising global debt and slowing nominal GDP [gross domestic product], driven by both slowing real growth and falling inflation”. The total burden of world debt, private and public, has risen from 160 per cent of national income in 2001 to almost 200 per cent after the crisis struck in 2009 and 215 per cent in 2013. “Contrary to widely held beliefs, the world has not yet begun to delever and the global debt to GDP ratio is still growing, breaking new highs,” the report said.

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Establishment Pushing ‘Cashless Society’ to Control Humanity
The global establishment is increasingly pushing the notion of what it calls a “cashless society” — a world in which all payments and transactions would be conducted electronically, creating a permanent record for governments to inspect and track at will.Multiple governments from Africa and Asia to Europe and ...

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/banks want us all to have 'tap and pay' cards... even though they're a criminals wet dream

by Xavier Connolly

Are any words in the English language more abused than ‘for your convenience’? As soon as you read them you know that it’s not your convenience an organisation has in mind, but its own.

Last week, my bank sent me a contactless debit card. If you don’t have one yet, the chances are you soon will have.

It looks like any other credit or debit card, but contains a tiny radio receiver which - when it is waved within a couple of inches of a ticket machine or terminal at a shop checkout - can be used to make a payment.

Unfortunately while the banks and tachology giants have been ironing out problems with contactless payment technology (like its habit of doing your good deed for the day by paying for other people's stuff), the crooks have been forging ahead with non-accidental ways to rip off your card. Thieves can easily steal key data from contactless credit and debit cards using equipment bought "easily and cheaply" online, consumers magazine Which? has warned UK consumers.

The technology, available "easily and cheaply" from a online retailer and catalogues such as CPC Farnell (and has many legitimate uses it must be said) can clone enough information from the contactless payment cards to make fraudulent orders.

Researchers tested six debit cards and four credit cards and were able to purchase a £3,000 television set with the stolen payment details, Which? has claimed.

All ten credit and debit cards tested revealed some data using the hack.

But while none gave up the three-digit CVV security code on the back of the card, one online store allowed the team to order a £3,000 TV with the incomplete data gathered.

Contactless cards are supposed to mask personal data during a purchase – however, the technology clearly has flaws, a Which? spokesperson added.

There are plenty of ways I wish my day-to-day life could be made more efficient: I wish the council would remove the bus lanes that jam the traffic into my nearest town; I would love it if it didn’t take five minutes to boot-up my computer; or if I could find an electrician who could come at the drop of hat, rather than leaving me waiting in the dark for several hours.

But it has never crossed my mind that I have been wasting valuable seconds by having to press four buttons each time I buy something with my debit card. The very idea that we can save a useful amount of time by being able to wave a card at a machine instead of entering a PIN is absurd.

The reality is that it isn’t my life that will be made easier thanks to my new contactless card, it is the lives of criminal gangs wanting to steal from my account.

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The "Better Than Cash Alliance" Has An Orwellian Plan

by Tyler Durden

Way back on the autumn of 1910, under the pretense of a duck hunting trip, a group of powerful bankers, political figures, and businessmen (a kind of proto Bilderberg group) met at Jekyll Island, GA to plan the creation of a central bank for the United States. The "game" that this elite group of "hunters" brought back to their ivory towers of Lower Manhattan and Capitol Hill was the blueprint for one of the most destructive financial institutions in modern history, the Federal Reserve.

One-hundred years later, another group of powerful bankers, political figures, and businessmen have converged to promote a cashless society, an economic system that would compel every man, woman, and child to utilize proprietary, government-monitored electronic systems to make purchases of any kind. This group, which calls itself the Better Than Cash Alliance, is as dangerous as the group of “outdoor enthusiasts” that met at Jekyll Island that fateful early-20th Century November.

And, just like the Jekyll Island group sold their grand plans based on a lie (they claimed that the Fed would guarantee liquidity in times of financial panics), the Better Than Cash Alliance is selling the idea of a cashless society based on the farce that eliminating cash would stimulate entrepreneurship among the poor.

In reality, the elimination of cash would reduce a great many opportunities for entrepreneurship for people of few means. Gone would be the informal businesses the working poor often operate: roadside produce stands, street performances, handicraft tables, and day labor. Contrary to the assertions of the BTCA, a cash-free society would limit entrepreneurship to those with the means to incorporate a business, afford the proprietary system required to accept payments, and understand the local, state, and federal tax burden the payment system would create.

Although they won’t admit it, the 12 central governments that currently support the BTCA (the U.S. is one of them) do so because a cashless society would enable them to track and tax every purchase made with sovereign currency within their borders. In addition to producing new government revenue streams, the payment systems would increase governments’ social engineering capabilities: They would compel consumers to purchase goods and services from tax-paying, licensed organizations.

Freelance service providers such as barbers, music teachers, and tutors would be forced to either jump through the hoops of incorporation or seek work with licensed businesses (which would inevitably take a cut of their earnings and subject the remainder to payroll taxes). The black market would also be squeezed, escalating the War on Drugs, and subjecting every “sin” and self-defense purchase to government scrutiny. Under the guise of “national security”, of course. READ MORE ...

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Secret Meeting in London to "End Cash"

from Red Ice Creations / Infowars

Central banks aim to institute "governmental approval" for all purchases and sales

Economist Martin Armstrong claims there is a "secret meeting to end cash" set to take place in London before the end of the month involving representatives from the ECB and the Federal Reserve.

Armstrong, who is known for successfully predicting the 1987 Black Monday crash as well as the 1998 Russian financial collapse, expressed his shock that no news outlet has reported on this upcoming conference.

“I find it extremely perplexing that I have been the only one to report of the secret meeting in London. Kenneth Rogoff of Harvard University, and Willem Buiter, the Chief Economist at Citigroup, will address the central banks to advocate the elimination of all cash to bring to fruition the day when you cannot buy or sell anything without government approval,” writes Armstrong.

“When I googled the issue to see who else has picked it up, to my surprise, Armstrong Economics comes up first. Others are quoting me, and I even find it spreading as far as the Central Bank of Nigeria, but I have yet to find any reports on the meeting taking place in London, when my sources are direct.”

Armstrong first brought attention to the alleged meeting earlier this month when he revealed that representatives from the Federal Reserve, the ECB as well as participants from the Swiss and Danish central banks would all be attending a “major conference in London” at which Kenneth Rogoff of Harvard University, and Willem Buiter, the Chief Economist at Citigroup, would give presentations.

“We better keep one eye open at night for this birth of a cashless society that is coming in much faster than expected. Why the secret meeting? Something does not smell right here,” concludes Armstrong.

Discussions and moves towards banning cash have repeatedly cropped up in recent weeks.

Willem Buiter, who Armstrong claims is speaking at the secret meeting, recently advocated abolishing cash altogether in order to “solve the world’s central banks’ problem with negative interest rates.”

Last year, Kenneth Rogoff also called for “abolishing physical currency” in order to stop “tax evasion and illegal activity” as well as preventing people from withdrawing money when interest rates are close to zero.

Striking a similar tone, former Bank of England economist Jim Leaviss penned an article for the London Telegraph earlier this month in which he said a cashless society would only be achieved by “forcing everyone to spend only by electronic means from an account held at a government-run bank,” which would be, “monitored, or even directly controlled by the government.”

Big banks in both the United Kingdom and the U.S. are already treating the withdrawal or depositing of moderately large amounts of cash as a suspicious activity. Reports emerged in March of how the Justice Department is ordering bank employees to consider calling the cops on customers who withdraw $5,000 dollars or more.

Meanwhile in France, new measures are set to come into force in September which will restrict French citizens from making cash payments over €1,000 euros. Armstrong suggests that “financial police” could enforce this new law by, “searching people on trains just passing through France to see if they are transporting cash, which they will now seize.”

As Armstrong notes, banning cash in order to eviscerate what little economic freedoms people have left to avoid disastrous Keynesian central bank policy is nothing short of economic totalitarianism.

“In the mind of an economic tyrant, banning cash represents the holy grail,” writes Michael Krieger. “Forcing the plebs onto a system of digital fiat currency transactions offers total control via a seamless tracking of all transactions in the economy, and the ability to block payments if an uppity citizen dares get out of line.”

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Cashless Society: The Spy In Your Wallet

Back In 1971 Libertarians Were Predicting Debit Cards Would Become A Spy Tool For Authoritarian Governments

In 2013 The Wall Street Journal reported that the Naional Security Agency (NSA) was monitoring the card transactions of American citizens. Following that, two Senators, Wyden and Udall – who both sit on the Senate Intelligence Committee and thus have access to classified information about the government’s digital snooping intelligenece gathering programs wrote:

Section 215 of the Patriot Act can be used to collect any type of records whatsoever … including information on credit card purchases, medical records, library records, firearm sales records, financial information and a range of other sensitive subjects.

Many other government agencies track your credit and debit card purchases and other elctronic transactions. In fact, all U.S. intelligence agencies including the CIA are spying on citizens finances. And you can bet if the US government are doing it, other governments are too.

This is not a new thing, I worked in computers and was aware from the 1970s that governments, banks and corporate businesses foresaw a world in which all business was conducted digitally and it would be possible to create an electronic Panopticon, a total surveillance society. Stories about how the world wide web was 'invented' by a mild mannered, self effacing British scientist are bollocks. A global netweork was being planned from the time computers exchanged information over telephone lines at a maximum of 1200 bits per second.

In late October 1971, Matt Novak of Gizmodo reports, a group of academics and technologists were invited to attend a conference in Georgetown, a suburb of Washington D.C.. They were tasked with devising a comprehensive but invisible surveillance system. Their solution looked a lot like our current debit / credit card system.

This was the problem statement given to that conference in 1971:

Suppose you were an advisor to the head of the KGB, the Soviet Secret Police. Suppose you are given the assignment of designing a system for the surveillance of all citizens and visitors within the boundaries of the USSR. The system is not to be too obtrusive or obvious. What would be your decision?

What amazing, unobtrusive surveillance system did they come up with? It wasn’t a network of intercepting every phone call or placing cameras on every street corner. They imagined an EFTS (electronic funds transfer system), that looks strikingly similar to the transaction processing software in use today.

"Not only would it handle all the financial accounting and provide the statistics crucial to a centrally planned economy, it was the best surveillance system we could imagine within the constraint that it not be obtrusive." Paul Armer wrote in a 1975 edition of Computers and

People recounting the KGB-infused thought experiment.

The full article gave readers a preview of the system that would evolve:
"Let’s look at one way it might work. Say you are about to buy a book. You present your card (sometimes called a “debit card”, although National Americard calls theirs an “asset card”) to a clerk who puts it into a terminal which reads it and then calls up your bank. If you have enough money in your account, or if your bank is willing to grant you that much credit, the transaction is okayed; your account is debited; and a credit is dispatched form you bank to the book store’s bank account.

Armer, a computer scientist at US Defence contractor RAND was an advocate of digital privacy long before most people had credit or debit cards and the internet was a pipedream usually referred to as 'The Information Superhighway'. Computers in Armer’s era were much larger and their networking tools were much more primitive. But Armer could see what was coming and was one of the few to predict this envisaged cashless society actually posed a threat to the liberty of individuals in democratic societies.

Think about all the data banks collect every time you swipe your card. There is nobody watching you as an individual of course, but while Artificial Intelligence will never be a reality unless we radically redefine what we mean by intelligence, the great advantages computers have over humans are first, they can parse huge amounts of information exteremely quickly, and collate results from masses of search results and secondly that they don't get bored. After a few weeks of digital transactions, anyone with access to that information can start to paint a pretty detailed picture of how you live your life.

Most importantly perhaps, that picture is being painted without you giving it much thought at all. Thus the bank official who will approve your loan application or decide to foreclose on your mortgage will know in a matter of seconds precisely where, when, and how you’re spending your money and whether you are a financially responsible person. Woe betide you if you like a bet on the horses, consult psychics or fortune tellers, visit massage parlours or indulge in dangerous sports.

This looks even more sinister when we observe that governments, academics, the finance industry and creepy individuals like Bill Gates of Microsoft and Eric Schmidt of Google are promoting the cashless society, so they can surveil and control us.

The threats to privacy and freedom are multiple if society becomes cashless. All transactions would be trackable, and because individuals could not hold cash and all electronic transactions are monitored all private financial holdings would be vulnerable to seizure or attack by the government next time they need to bail out banks or corporations that are too big to fail. This would be the ultimate form of control, it has already happened in Cyprus and is probably about to happen in Greece.

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Why Europe Will Lead the Charge to Eliminate Cash – The Next Step in Global Meltdown

Martin Armstrong May 20, 2015

Europe will lead the world into this Economic Totalitarianism because government is now desperate to retain the Euro. If the Euro collapses, so will Brussels. The government exists solely because of the Euro.

The fatal design of the Euro is the key. The failure to have consolidated the debts of all individual member states has been the worst possible mistake perhaps ever made in this post-Great Depression era of New Economics where government lawyers assume they can just write a law and that will be followed as some new modern dictator.

Because of the failure to consolidate the debts, the reserve of the banks had to then be politically correct to conform with Brussels holding a piece of all member state debts. That meant that the defaulting in part or in whole of individual sovereign debts of member states undermined the banking system. This would be as if in the USA bank reserves were made up of state debts. If one state failed, everyone would scramble to sell the banks who had the most.

Since Brussels will not reform, as Einstein put it correctly that you cannot solve a problem with the same line of thinking. This whole idea of negative interest rates is just following the same Keynesian concept that lowering rates will stimulate demand. The missing element is CONFIDENCE. If you do not believe you will make even 1%, you will not pay 0%. While they keep lowering rates to stimulate borrowers, they are wiping out the elderly who now cannot live from their savings reducing their spending destroying the entire idea of pensions and retirement (the social contract). The lack of CONFIDENCE prevents new businesses from forming and therein results in the lost generation of youth who cannot find a job. The elderly are forced to work so there becomes a shortage of jobs resulting in higher unemployment among the youth.

Add to that trend wiping out the elderly and the youth, we then have the rising tensions against foreigners everywhere because they see them as taking precious jobs as they migrate to their country. It becomes a vicious cycle that cannot be broken with the same line of thinking.

This is why governments are still using the same line of thinking of negative interest rates and going to the next step. They cannot meet their budges as tax revenues decline with economic activity, so they go off hunting money causing the global economy to shrink even more. As they hunt money, people hoard and invest even less. They tend to buy assets to get off the grid. To further this effort, governmental thinking then arrives at the solution to eliminate cash forcing the end of the underground economy and 100% tax collection.

However, Brussels knows they have a real crisis in European banking. However, this crisis is monumental and cannot be solved with the same line of thinking that has caused this insane nightmare. Obviously, eliminating cash will prevent people from causing a bank run if a member state defaults. The smart money is trying to get out as fast as it can buying rare art, coins, stamps, antiques, real estate, whatever. This is the only way out for when they eliminate cash, chances are they will impose CAPITAL CONTROLS and prevent the movement of money out of a country. That will be the traditional next step this same line of thinking leads to.

So in the end, governments (not Rothschilds) are in a fight for their very existence. They will incite civil unrest to rise sharply between 2015.75 and 2017. We also have to be concerned about the outcome for November 21st, 2018, which will be the Pi target that on previous waves produced 911 in New York and the very day of the Greek economic crisis in 2010. Geopolitically, Obama has undone everything that has been done to make the world safer. He ruined the European economy with his sanctions against Russia and created the alliance now between Russia and China in military action and drills. The USA might be able to defeat Russia on a conventional battlefield, but they cannot defeat China on the same terms. Meanwhile, the strongest economy in Europe, Germany, constitutionally is not allowed to have a big military force. Brussels is talking about trying to now form a European army to further their power. It is all posturing to insanity.

Brussels will lead the charge to shut down cash as we know it. We are moving into the next stage of massive deflation I have been warning about – not HYPERINFLATION. Government are moving to control everything and you will not be able to buy or sell anything without government approval. This is the Economic Totalitarianism I have warned about is on the horizon.

The next step in the game will be CAPITAL CONTROLS. When the European government realizes that they cannot eliminate cash without the rest of the entire world simultaneously, money will move out even faster from Europe driving the dollar to excessive highs. They will most likely follow the same script as they did in Cyprus and impose currency controls to prevent money from fleeing.

The only way out of this mess will be to change the thinking process. This is the real fight. As I have said many times before that the HYPERINFLATIONISTS are dead wrong and we will PRAY FOR INFLATION before this comes to an end. We are in the meltdown mode of Western Civilization all because of debt and lawyers controlling government who think they can be dictators by just writing laws.

If you understand the nature of the beast we are fighting, then you will NOT be surprised and learn from history even though we are compelled to watch others repeat it.

First published on Prison Planet, reproduced undrer creative Commons licence, attrib, non comm, no derivs

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Cashless society: A huge threat to our freedom

Econgularity, a word coined by Scott A. Shay, chairman of Signature Bank as shorthand for economic singularity, is an ugly sound that describes a very ugly trend in globalism. At a time when time when technology makes it possible to conduct all one's transactions electronically and the collaboration between governments and internet technology companies makes it possible for agencies of the state to track and monitor our every move, the econgularity is, according to Shay, the moment when government's desire to control and the corporate obsession with manipulation of the public through big data analysis will converge to push the people's of the developed world into a cashless society in which our privacy and our ability to control our own finances disappears.

This will happen in such a way as to permit governments and corporate cartels to exercise almost complete control over all human behavior.

In an interview with CNBC's "Closing Bell" some time ago, Signature Bank Chairman Scott Shay talked about how close we are to becoming a cashless society and the huge threat it it will pose to individual liberty and personal autonomy.

While this may sound like a paranoid conspiracy theory to those who trust western governments and big authority completely, as a former Information Technology Consultant who spent quite a lot of time working in the banking and finance sector, I have been aware since the late 1980s that such was the long term agenda. The technology is already available, not fully secure or reliable but when were security and reliability ever major issues to corporate entitites like Microsoft or Google, to make total surveillance of all human activity a frightening reality.

Technological advances, mainly in the nature of increased memory capacity and larger processor arrays, have led to the creation of algorithms that can instantaneously review financial transactions, determining the nature, location and even the appropriateness of a purchase decision. This data has been collected by technology companies, sold to and used by banks, credit and debit-card companies.

When cardholders receive fraud alerts after a transaction that looks out of line with the crdholder's normal purchasing the fraud alert they receive is a benign example of this. When I visit the Russia Today website and for the next few days am bombarded with ads offering dates with "gorgeous Russian girls" is a slightly more sininster manifestation. Another example was when researching for an article on the scandalous interest rates charged by payday loans companies I visited a couple of websites for paydal loan providers. Not only did I get adverts for payday loans on my screen as I browsed, but mu inbox was inundated with emails from dodgy money lenders.

As shown above then, the technologies that can serve to protect consumers, but are already being used to manipulate and control control consumer behavior. In 2010, Visa and MasterCard in the USA bowed to government pressure and banned all online-betting payments from their systems. This made it virtually impossible for gambling sites to continue operating regardless of their jurisdiction or legality. Clearly then it is also possible for the health records of an overweight individual could be used to trigger an internet filter which would block their purchase of any sugary drink or snack, takeaway food or anything deemed by government snoopers to be unhealthy. Purchases through a credit or debit card can be declined by the card company, cash purchases cannot. It may seem like a scene from a far-fetched dystopian-future-world television show but it is possible right now.

Now you may be one of those people who believe it is right and proper for government to interfere in the lives of individuals for their own good, personally I value freedom more highly than anything and am also a great believer in evolution. And if we set ourselves up to prevent the natural extinction of those who weaken the race with their self destructive tendencies, we are engineering our own extinction.

Some 'progressive liberals' out there would say this is a good thing, the world would be better off without humans. Such selfish stupidity is obviouly counter productive so people who think that way should be encouraged to remove themselves from the human race and let the rest of us get on with evolving.

We in the developed world are already well on the way to becoming cashless societies. According to a MasterCard study, 80 percent of U.S. consumer transactions are electronic. In Sweden, one observer estimates that only 3 percent of transactions are made with currency. (Swedish friends tell me this is not true, it deliberately ignores a vast trade in contraband liquour and cigaretes and a host of trades in what we might call 'the dark economy'.

Governments and big banks are also supporters of a cashless society as the indeed costs of producing, managing and handling currency and coins are greater than the cost of providing online banking infrastructure. Fiscal policy could also be much more efficiently implemented without currency circulating, since it would then be easy to implement negative interest-rates thus making people pay for the privilege of holding funds in their account.

But there is also a sinister risk to a cashless society. Singularity, a term borrowed from astrophysics, is defined in economic terms as the point at which technological advancement will "radically change human civilization and perhaps even human nature itself." It is impossible to know if this will actually happen, but a cashless society would certainly give governments unprecedented access to information and power over citizens and thus enable those governments to make the entire population debendent on government services / handouts. And once politicians and bureaucrats have the power to do something, we can be sure they will use and abuse it. The U.S. and British governments are already using the snooping and big-data collection abilities of the internet in some frightening ways.

The technological command of GCHQ and the National Security Agency has been widely reported on and does not need repeating here. Suffice it to note, that it would be no challenge for the NSA or certain other government agencies to monitor any company or consumer transaction in real time, if it so desired.

The threat posed by this push towards a cashless society then is no conspiracy theory, but a real and current threat that we must all unite to resist. How? Use cash for as much of your activity as is possible without inconveniencing yourself. Do not respond to the scvaremongring about muggers and theives, these days you are far more likely to be robed or scammed online than mugged in the street. Avoid online banking. Use local stores (Once you take into account delivery charge,Amazon are no cheaper than your local book shop (if you are lucky enough to live in a town that still has one). Support independent local traders when you can, not only does that protect your independence, it helps preserve our communities which are also under threat. And when the time comes, vote for the candidate that opposes globalisation, do you really think a global government will have the est interests of your community at heart.

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Banning Cash Will Stop Terrorism (and end war, poverty, disease and bad smells)says Bill Gates

gates pushing cashless society
If Bill Gates, the man who made 'not fit for purpose' acceptable quality for sale is in favour of a cashless society, you know it has to be good for government and big business and very bad for me and you
(Image source)


If bureaucrats understood how easily We The People saw through their schemes they'd ........ well they would not behave any differently because they are too stupid to change.

It was just a matter of time before the ever predictable Western governments used the trumped up "War on Terror” as an excuse to drastically ratchet up the very real war on the use of cash, and on the basic human right of personal privacy currently being waged against the citizens and taxpayers of the so - called democracies.

Quick to exploit public anxiety in the wake of attacks on Charlie Hebdo and a Jewish supermarket, France is on the way to being first to abolish free speech.

And the most overtly socialist government in the EU or Anglosphere is showing that it has much in common with those 'progressive liberal' regimes headed by Joe Stalin, Chairman Mao, Fidel Castro, Pol Pot and every other socialist leader in its efforts to set up a system resembling the Big Brother regime of George Orwell's novel '1984'. France's socialist government is next planning to ban the use of cash. A series of measures that will be implemented from September 2015 will make french citizens lives more secure by enabling government bean counters to track every bus ride, every glass of wine or cup of coffee, newspaper or they pay for. (OK, I'm exaggerating a bit but that's the direction the control freaks are moving in)

The other leading fascist regime in the free world is not far behind. Washington Propaganda no suggests that only 7 per cent of transactions in the USA involve cash and that the use of cash is now regarded a suspicious activity.

It seems the terrorists involved in the recent Paris attacks and elsewhere partially financed these attacks by paying cash for stuff. (They also used credit and debit cards and paid by cheque but forget that, it's the cash transactions that are dangerous because control freak governments cannot track them.) Ahab the Arab went into a KFC and we don't know what he bought because he paid cash, what a huge threat to democracy.

Yes, now we know the terrorists knew how to use cash, it's clear they may have used CASH to purchase some of the stuff they needed to carry out their attacks.

And because there is no audit trail that the banning of cash and forcing people to use plastic would provide in future incidents, the authorities were not able to use their 'minority report' style software that predicts criminal behaviour to arrest these guys before they committed a crime and thus save lives. Paying cash for stuff you see, is a clear indicator that people are planning to commit crimes.

If you are not planning to do something wrong, you have nothing to fear.

No doubt the murderers who carry out terrorist attacks are also shod and clothed, use cell phones, broadband lines, cars, and public sidewalks during the planning and execution of their mayhem.

Why not ban the use of all? A naked , barefoot terrorist without transport communications is surely less effective than a fully clothed and equipped one.

Defend your personal liberty, pay in cash.


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Cashless Society Equals Cashless People

cashless society

The push towards a totally cashless society gathered pace in 2013. A cashless society in which there is a digital audit trail of every transaction is of course a fascist government's wet dream (spot the fascists amongst us by making a not of those who brand anyone opposed to snooper - friendly technology as "technophobic and opposed to progress."

What is technologically advanced or progressive about a cashless society? Nazi Germany, Soviet Russia and Maoist China all kept the mass of their populations short of cash, and were only prevented from going totall cashless because the technology was not available. Slave economies operate a kind of cashless system, i.e. "You want what? Wages? You'll get a kick up the arse if you don't get back to work."

Medieval serfdom was almost a cashless society. So it is clearly demonstrated that the cashless society will only benefit the elitists. No wonder they tell us money is bourgeois and capitalist.

The modern cashless society, we are told, will be based on electronic money and the internet. Oh great, security is so tight and so reliable on the internet, our bank accounts will be easy pickings for thieves. And that's even without Microsoft selling the secrets of the back door in Windows to the Mafia.

At this stage some science head will usually skip to the comments column to tell me about the wonders of encryption, the https secure socket and them rant on for ten thousand words about prime numbers. Wonderful - except the http socket is the last place anyone with a brain would try to hack. Haven't these nerds read The Girl With A Dragon Tattoo? No, of course not, it's too entertaining for them.

Anyway, if I wanted to grab random people's bank details I would use a widget on a web page to install a key logger on their computer. This would log every keystroke and things like bank account numbers, passwords, security keys could easily be identified and stolen.

A lot of this kind of thing has been going on in the run up to the Christmas period it seems.

A spokesperson for a computer security consultancy reported:

"Computer systems have been compromised either at stores or in the companies handling the processing of card transactions. In other words, a company involved in the flow of payments has been hacked. It could be more than one company. The computer hacking has exposed everyone whose cards are going through those systems. The thieves are using the ATM card information in a way that does not require the PINs.

The way this kind of crime works is once the thieves have stolen a bunch of numbers from a company they print cards with their name on them and your billing information on the magnetic stripe. He said they rarely bother with printing up credit cards anymore. It is fairly small scale stuff, more of a cottage industry than a Dr. Evil type world domination scam, but organisers of the network reap big bucks by selling the gift cards at something like £2 per £10 face value. They clearly understand the old business question, "Is it better to have a penny a billion times or £1 million once."

There has been a spate of cash machine hacking over the last 6 months focused mostly in the Midlands. According to police reports 3 separate professional gangs have been identified all of which originate from Romania (is there a political agenda behind the allegation? I don't know).

The authorities warn us to be on guard against this kind of fraud but do nothing to prevent it and continue to push people towards electronic transactions and online banking. No more cash, no more below the radar deals and no more privacy. We all know this has been on the agenda for some point in the future.

It is not just the crooks we have to fear though, Google, Facebook, Microsoft, all the big players in online technology are known to have been playing fast and loose with our privacy and selling personal data they collect to anyone who can afford the price. They probably do credit checks but you can bet there are no ethics checks.

There will be plenty of cashless people in the cashless society as they find their electronic cash has been siphoned out of their electronic bank account because electronic technology has more holes than a colander.

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Are We About To Return To The Gold Standard

by Phil T Looker

If you listen to conventional financial news, they’ll all tell you that the ruble is in freefall, and that the dollar is the place to be. But if you look at the real data and I am a very data-driven person (so long at is not the fairy story data of climate science) take a stroll through the numbers and make an objective comparison between the US dollar and the Russian ruble. Better sit down though, if you are an Obama fan.

Start from the premise that ALL paper currencies are fundamentally flawed.

The global monetary system based on fractional reserve banking is insane — the idea of letting unelected, virtually unregulated central bankers pull as much new money as they can imagine, that money being underwriten by unsecured debt, out of thin air is simply irrational. But some fiat currencies have a more solid base than others. If you want to understand the health of a currency, you must look at the ISSUER of that currency, i.e. the central bank.

As with any business, one of the most important measures of its financial health is its level of solvency. In particular we look at the capital (i.e. net assets) as a percentage of the total balance sheet.

The US Federal Reserve only has a basic capital ratio of 1.26%, razor thin in real terms. (This is down from 4.5% after six years of Obama's loonytoons economics.) That means if the value of the Federal Reserve's assets declines by only 1.26%, the issuer of the world’s dominant reserve currency becomes insolvent.

Meanwhile back in Moscow, the Russian central bank’s basic capital ratio is 12.5%—literally a much healthier figure than the Fed's.

A comfortably positive capital ration is muck like us ordinary punters having a stash of rainy day money. When the brown smelly stuff hits the fan it's what keeps you afloat. You might be able to keep on living hand to mouth for a considerable time, or even accumulating debt by borrowing against future expectations, but only until your car breaks down, or the domestic boiler blows up and you need a new heating system, for example. Then all of a sudden, your lack of capital can become a serious issue.

As it happens Russia is one of the most financially healthy nations in the world. Thus as they, along with China, have been leading a move to abandon the $US by concluding bilateral currency deals with their main partners, we must assume they have prepared for some response. Being the owner of the reserve currency has kept the American economy afloat for thirty years, they were never going to surrender that position lightly.

So where will this all end? I suggest you look at a central bank’s GOLD reserves as a percentage of the money supply, i.e. how much gold backs the money supply, because all the indicators suggest we will move back to a gold based global currency (why else would China be hoarding gold?).

In Russia, gold reserves are 6.2% on the money supply and rising. Last year it was 5.5%, and the central bank is continuing to heavily stockpile more.

How much gold backs the dollar? Precisely zero point zero percent. All that gold Bruce Willis and Samuel L Jackson prevented Jeremy Irons stealing from the vault at the Fed did not belong to the Fed, the Fed doesn’t own gold it merely looks after it for other people. It loudly proclaims this on its own website: "The Federal Reserve does not own gold. Eff off Irons, there's nothing here for you."

What the Fed holds is paper. Its capital is‘certificates’ which are redeemable for US dollars. But there’s not a single ounce of gold backing the US dollar.

So… with no gold and pitifully razor thin solvency levels, it really wouldn’t take much of a shock to topple the dollar.

By comparison, the ruble is much better capitalized and actually has something backing it.

Not that this means you should invest in Roubles, far from it. People who do that would be lucky to see their any of savings again. However hard, publicly available (but not online, for free) numbers clearly demonstrate the discrepancy between pro - western fervour and objective data.

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Prepare For The Worst Case Scenario

An article on the cashless society our political and corporate overlords are pushing for proposes that as far as privacy and individual liberty are concerned, what is being planned right now in the political capitals and financial centres of the world is the worst case scenarion. An all digital financial system would mean the end of privacy, nothing you bought or traded would be your own business any more, government agencies, internet search operators and social mediaPrepare For The Worst Case Scenario sites (and anybody prepared to pay for the data they collect) would quickly be able to know a great deal about your lifestyle and your likes and dislikes.

One caveat, the author of the linked article, Susan Duclost, does tend to hyperbole so this site will be trying to verify as much as we can of what is reported before bringing you our own view. here's a taster of the article.

Prepare For The Worst Case Scenario: - 'You Cannot Make Up This Level Of Insanity'

With so much going on nationally and internationally, there has been some major changes occurring in regards to US economic news that has been under-reported and basically ignored by the MSM, with Gregory Mannarino telling traders to "prepare for the worst case scenario," and Martin Armstrong, the former chairman of Princeton Economics International, best known for his economic predictions based on the Economic Confidence Model which he developed, saying "You really cannot make up this level of insanity."

Starting with Armstrong, his site one of the few that reported the "secret meeting" in London to "end currency," also notes that a recent Supreme Court decision just laid the foundation for the "seizure of private pension funds," to the tune of $19.4 trillion dollars, by the US government.

READ MORE at allnewspipeline.com:

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How Mainstream Media And The Major Political Parties Are Making Sure Voters Do not Hear The Voices Of Politics' Most Powerful Critics
As the General Election campaign starts to heat up, we try to shift focus away from the squabbling between Conservative and Labour about who can make the most promises they have no intention of keeping and to the real issues concerning jobs, social breakdown , mass immigration, and loss of national sovereignty.

US Presidents Of The Past warned Against Secret, Shadow Government. By now it should be obvious that peacemake, joybringer and putative aquatic pedestrian Barack Hussein Obama was never really in charge of the US Government. Whatever Obama said would happen, all the American government's policies ensured the opposit would happen. The embedded article thows some light on how the US government really works

The American Political System Is "Not A Democracy Or Constitutional Republic" - Thiel
The state of democracy in the USA has become a hot topic of conversation in American business circles in recent years. While President Barack Hussein Obama, not so much a man as an ego on long skinny legs, has increasingly been inclined to rule by executive order in the manner of a despot or tyrant, even Obama's fiercest critics have to admit the American electoral system seems increasingly capable of delivering only political paralysis ...

Virtual ID has arrived – why you should resist taking it up
We told you some years ago when our publication appeared under a different name that the then Labour Government's plan for compulsory electronic ID cards was the step that would take us over the line from a seblance of liberal democracy into oligarchic fascism. Labour's plan was derailed by public opposition but now it has been rehashed and is presented with fluffy window dressing. A vote for Labour, Conservative Or Liberal Democrat is a vote for fascism. You have been warned.

Banksters 1.5 Quadrillion Dollar Conspiracy
How the big banks rigged the derivatives markets to steal one and a half quadrillion dollars from private citizens and businesses. It makes shocking reading but at last people are waking up to the fact this kind of shit has been going on for years ...

Happy Interdependence Day. The New World Order Was Announced In 1975
As America celebrates Independence Day, The Daily Stirrer looks back to 1975 when a document titled declaration Of Interdependence signalled the intent of American elitist liberal intellectuals to destroy the American ideals of freedom and independence and lead the nation into a global totalitarian superstate.

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More On The War Against Western Values

Divrsity Is A Lie -So Who Are The real Racist Bigots?

Since we began publishing in 2009 we have warned that the real enemies of freedom, the ones who would turn certain sectors of the community are not the conservatives and libertarians, but those who try to mask their fascistic politics by calling themselves left, liberal or socialist. If you want to know what socialism is really all about read up on Stalinist Russia or Maoist China and if you want a comparison for the 'liberal values of Labour and Social democrat voters in Europe or American democrats, look no further than the medieval Inquistion and their brutal purges of 'heresy'.

Divrsity Is A Lie -So Who Are The real Racist Bigots?


European Union ConsidersRestricting The Use Of Cash"

Don't say we didn't warn you. A quick perusal of other posts on this page will show we have been warning of the comin ban on cash and its consequences for privacy and individual liberty for years. via
Blacklisted News

Europe Proposes "Restrictions On Payments In Cash"

Having discontinued its production of EUR500 banknotes, it appears Europe is charging towards the utopian dream of a cashless society. Just days after Davos' elites discussed why the world needs to "get rid of currency," the European Commission has introduced a proposal enforcing "restrictions on payments in cash." With Rogoff, Stiglitz, Summers et al. all calling for the end of cash - because only terrorists and drug-dealers need cash (nothing at all to do with totalitarian control over a nation's wealth) - we are not surprised that this proposal from the European Commission (sanctuary of statism) would appear... The Commission published on 2 February 2016 a Communication to the Council and the Parliament on an Action Plan to further step up the fight against the financing of terrorism (COM (2016) 50). The Action Plan builds on existing EU rules to adapt to new threats and aims at updating EU policies in line with international standards. In the context of the Commission's action to extent the scope of the Regulation on the controls of cash entering or leaving the Community, reference is made to the appropriateness to explore the relevance of potential upper limits to cash payments. The Action Plan states that "Payments in cash are widely used in the financing of terrorist activities… In this context, the relevance of potential upper limits to cash payments could also be explored. Several Member States have in place prohibitions for cash payments above a specific threshold." Read more >>>

India's Cashless Society set to fail but slide to fascism goes on

On 17th July 2017, India will elect a new President through a vote of the elected representatives. The contenders are Ram Nath Kovind and Meira Kumar. Few people outside his own family know who Kovind is and voters are only vaguely aware of Ms. Kumar.

India will get a complete nobody as its next President. Both candidates are from the Indian province of Bihar. If it were a country, Bihar with its 119 million inhabitants would be the 12th most populated in the world. With a GDP of USD 420 per capita, it would also be among the world’s ten poorest countries.

While the world has been focused on events in Syria, Yemen, the USA, Europe and its immigration crisis, the USA and the Democratic Party's idiotic attempts to overturn the 2016 election result, and in the South China Sea, there has been little coverage of some serious political trends in the world's second largest nation by population. Adults and juveniles have been arrested all over India for celebrating Pakistan’s victory over in a recently held cricket match between the two countries. They are being prosecuted for sedition, a charge that has serious legal ramifications and could lead to life improsonment. With the British gone for 70 years, India’s laws and institutions seem to have lost their rational anchors and is becoming as fragmented, tribalistic and chaotic as it was before british rule.

Scene from a slum in Patna, capital of Bihar province

In the presidential race Kovind is from the "lower caste" and is supported by the Indian Prime Minister, Narendra Modi, who would like to make up for recent atrocities against the lower classes. While he is a nobody with hardly any public credentials and a machine politician, Kovind is sympathetic to resurgent Hindu fanaticism and has the support of Hindue extremists.

The position of the Indian president is similar to that of The Queen in the British constitution. If the prime minister decides to impose martial law, he needs the president’s signature. With Kovind’s appointment, Modi will have installed the yes-man he needed at the top of India’s institutions.

Many Indian commentators living outside the coumntry hve said Modi India is very rapidly moving India towards becoming a police state, that will have a strong Hindu extremist faction as its core.

To a populace not anchored to reason, if one votes for Hinduism, one will go for Kovind; and if one is pseudo-secular and wants to look pro-women, one will vote for Kumar. Kovind will very likely win for no other reason than the fact that Modi and his party BJP have higher support than Kumar.

Korvind is the favourite to win, despite the fact that he is seen as the candidate linked to the Modi government, which last year caused great hardship for poor Indian people by putting severe restrictions on the use of cash in financial transactions. Many wealthy and allegedly educated people have never used a bank card. Many simply won’t trust a machine. Most are incapable of learning how to use the cards. With people tired of corrupt, untrustworthy and unpredictable banks and payment portals incapable of providing reliable services, cash is coming back with a vengeance.

The economy, however, continues to be stagnant. Businesses continue to fail. If not for economic reasons, businessmen have grown tired of corrupt and rapacious bureaucrats and an extremely uncertain regulatory regime. Look at an Indian businessman and you will see an unhealthy, tired, soulless person.

Even today, vegetables sell for half as much as they normally do. Are poor people going hungry? Do not expect news on this in the media, which must toe the line of the Indian government.

If food is so cheap, does it not indicate that poor people are unable to buy? Are they going hungry? Moreover, if farmers continue to suffer and cannot profit from their produce, what effect will that have on the future food supplies? [Ed. note: the collapse in food prices was originally triggered by the government’s overnight cash ban]

Money — even in fiat currency form — is the blood of the system. Once the blood flow was stopped, even if it is fully revived later, clots will have appeared and organs will have failed. That is happening in India today. Job growth was already stagnant, but the situation is much worse now, making India’s so-called demographic asset, which never was an asset, a massive liability.

Domino effects continue to work their way up the food chain. Formal and big businesses are beginning to show signs of stagnation. Members of the salaried middle class are losing their jobs, but they have so far failed to connect the dots and continue to support Modi.

On 8th November 2016, Modi declared 86% of the monetary value of India’s outstanding currency illegal. Even today, ATMs remain cashless. The banks are clogged with throngs of people. Small businesses — the backbone of India’s economy — keep failing, because people continue to avoid discretionary spending.

People have suffered economically as the smooth flow of the economy was disrupted, and transaction costs for businesses have increased. Food prices have recovered a bit recently, but are still at about half their previous levels. Unfortunately, this is not because production has increased, but because demand has collapsed, with many of the poorest people likely unable to buy food.

Over a billion people in India have no access to internet. When it is available, it is often very slow. Electricity is unreliable. Bank websites are extremely unwieldy. To make an online transaction, the login process is usually very complicated, often requiring several steps and verification codes sent as text messages.

More than a month ago, I paid online for a flight ticket from Delhi to London. The money left my account, but I never got the ticket. It was virtually impossible to get in touch with the Indian company I had bought the ticket from. When I did finally manage to contact them, they told me that they had refunded the money. The bank says it never got the refund. Of course, I have had to personally visit the bank every time and spend a long time waiting to talk to someone. In this electronic day and age, more than a month after the event, no-one knows where my money is.

It is hard to pinpoint who deserves the blame. Indians are extremely unskilled, uneducated (despite paper certificates aiming to prove otherwise), and lack work ethics. They almost never have passion for their jobs or an interest in providing good services to their clients. This is the main feature characterizing many Indian companies. Management and owners lack professionalism and are singularly focused on the bottom-line, by hook or by crook, eschewing true value-addition.

India’s attempt to go digital will fail. Digital cash will fail. E-commerce companies will fail. In India, the national ID-card system, Aadhaar, will fail. The GST system will likely fail, or it will at least create massive problems in implementation. All these programs will impose huge costs on the economy and the well-being of entrepreneurs, including the wretched poor in the large informal economy.

India is looking for totalitarian solutions to deal with problems created by totalitarianism and tribalism. India is trying to use the the facade of the technologically advanced West hoping that the packaging will automatically deal with the lack of inner substance. Fail even with respect to superficial issues seems preordained.

India’s government cannot provide basic services to its people. Ambulances are conspicuous by their absence. But Modi wants to move on to doing bigger things. In the last 70 years of independence, Indians have systemically destroyed the institutions of the rule of law that the British had bestowed on the country.

There is a lot of pain and no gain facing India. If they had any sense they should be begging the British to return and rule the country. That is the only option apart from chaos, disintegration, and eventual never-ending tribal infighting among the fragments.

Sources: India: Why its Attempt to Go Digital Will Fail
India: Cash Is Back

Crusade Against Cash Continues

It seems all the bad and crazy idea that are dragging civilization back towards medievalism emerge from the university system, and by far the most productive university in the western world when it comes to really crap ideas (unless they are covertly intended to lead the world towards an authoritarian version of globalism) come from Harvard University in the USA. One of those crappy ideas, a control freaks wet dream in fact, is the idea of a cashless society.

Harvard professor and chess grandmaster (they're all wankers for a start,) Kenneth Rogoff has said some pretty out there stuff before, in his role as self-appointed crusader against cash, but apparently he’s not done yet. In fact, he might just be getting started.

This time around he sounds like a crossover between George Orwell and Franz Kafka, with a serving of ‘theater of the absurd’ on top. Rogoff wants to give central banks total control over your lives. They must decide what you do with your money. First and foremost, they must make it impossible for you to save your money from their disastrous policies, so they are free to create more mayhem. As we have said before there is an idea circulating among economics academics which proposes that in order to kick start the economies of the developed nations, which are now in the longest economic depression ever, is to abolish cash and let banks charge us for handling our money. Rogoff says all we need is to impose negative interest on savings and deposit accounts.

Prepare For Negative Interest Rates In The Next Recession Says Top Economist

Negative interest rates will be needed in the next major recession or financial crisis, and central banks should do more to prepare the ground for such policies, according to leading economist Kenneth Rogoff. Quantitative easing is not as effective a tonic as cutting rates to below zero, he believes. Central banks around the world turned to money creation in the credit crunch to stimulate the economy when interest rates were already at rock bottom.

Central banks create recessions and crises. Not people, and not economies. Central banks. Punters like us holding cash inour bank accounts is not responsible for rock bottom retail sales, debt, uncertainty and the war on jobs are. The next recession, which is inevitable, that’s the one thing Rogoff has right, will come when the bubbles in housing, stocks, bonds, etc., created by central banks’ QE, ZIRP, NIRP, start to pop. And there’s nothing worse than giving central banks even more tools for creating crises. We should take away the tools they have now, not hand them more sledgehammers.

As we have opined before, the hoped for effect of negative Interest Rates (you pay the bank for letting them gamble with your money instead of them paying you a modest rate of interest to offset the effects of the inflation they create,) will not work. The prospect of negative interests will not scare people into cashing in theiur savings and running out to spnd every penny, it will result in people buying god and precious stones, antiques, art, classic cars, classic guitars, anything they think will hold its value.

In a new paper published in the Journal of Economic Perspectives the professor of economics at Harvard University argues that central banks should start preparing now to find ways to cut rates to below zero so they are not caught out when the next recession strikes. Traditionally economists have assumed that cutting rates into negative territory would risk pushing savers to take their money out of banks and stuff the cash – metaphorically or possibly literally – under their mattress. As electronic transfers become the standard way of paying for purchases, Mr Rogoff believes this is a diminishing risk.

Risk? What risk? The risk of people doing what their money what they choose to do, doing what they think is best? Of people trying to save their savings from being burned by central bank policies? What kind of mind comes up with this nonsense? Who is Ken Rogoff to think that he knows better what you should do with the money you worked for than you yourself do? You’d be a fool not to protect you hard-earned earnings from negative interest rates. Rogoff therefore seems intent on creating nations full of fools.

“It makes sense not to wait until the next financial crisis to develop plans and, in any event, it is time for economists to stop pretending that implementing effective negative rates is as difficult today as it seemed in Keynes time”, he said. The growth of electronic payment systems and the increasing marginalisation of cash in legal transactions creates a much smoother path to negative rate policy today than even two decades ago. Countries can scrap larger denomination notes to reduce the likelihood of cash being held in substantial quantities, he suggests. This is also a potentially practical idea because cash tends now to be used largely for only small transactions. Law enforcement officials may also back the idea to cut down on money laundering and tax evasion.

What makes sense is to not create crises. What does not make sense is negative interest rates. Ultra low interest rates have already destroyed trillions in savings and pensions, and now Rogoff effectively says central banks should take this a step further, and target whatever it is you have left. This is insane megalomania. It’s communism in its worst possible form. Oh, and it’s outright theft. Of a form that’s far more insidious and harmful than money laundering.

The key consequence from an economic point of view is that forcing savers to keep cash in an electronic format would make it easier to levy a negative interest rate. “With today’s ultra-low policy interest rates – inching up in the United States and still slightly negative in the eurozone and Japan – it is sobering to ask what major central banks will do should another major prolonged global recession come any time soon,” he said, noting that the Fed cut rates by an average of 5.5 percentage points in the nine recessions since the mid-1950s, something which is impossible at the current low rate of interest, unless negative rates become an option. That would be substantially better than trying to use QE or forward guidance as central bankers have attempted in recent years.

Forcing savers to keep cash in an electronic format would make it easier to steal it. Central banks could dictate that you lose 5% of your money every year. Or at least, that’s what they think. They want you to spend your money, and they got just the way to force you to do that. Or so they think. Well, go ask Abe and Kuroda how that’s worked out in Japan lately. What actually happens is that when you start stealing people’s money, savings etc., they become afraid of losing the rest too, so they start looking for ways to save their savings, not spend them.

In that sense, Rogoff’s suggestions amount to terror, to terrorizing people into doing things that go against their very survival instincts. What gets people to spend money is if they don’t feel terror, when they see their money and savings grow by a few percent per year. That is the exact opposite of what Rogoff wants to do. When people ‘sit’ on their savings, they do so for good reasons. What do you think has happened to Japan?

"Alternative monetary policy instruments such as forward guidance and quantitative easing offer some theoretical promise for addressing the zero bound,” he said, in the paper which is titled ‘Dealing with Monetary Paralysis at the Zero Bound’. “But these policies have now been deployed for some years – in the case of Japan, for more than two decades – and at least so far, they have not convincingly shown an ability to decisively overcome the problems posed by the zero bound."

No wait, Rogoff is right second time: indeed “they have not convincingly shown an ability to decisively overcome the problems”. Because they’re terribly wrong. Theoretical promise? That’s all? But that means you’re just experimenting with people’s lives and wellbeing. Who gave you that right?

CREATIVE COMMONS: attrib, no comm, no dervs.
KEYWORDS: news, opinion, dailystirrer,

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