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What are your thoughts on the attack on cash that has been occurring. Visit http://armstrongeconomics.com/archives/30175
as an example. I haven't experienced this personally but it also
appears to be occurring in the US. You have always said that cash is
king (which I believe it to prudent to keep some close by). Is it wise
for people to increase more of a percentage of PMs vs cash? (I know you
don't give financial advice but your input would be appreciated.
- Andrew
Hello Andrew,
Indeed, the global elite is working hard to get people used to the idea. Denmark is moving closer to a cashless society. The Danish government has proposed that retailers should no longer be obligated to accept cash payments as of next year.
http://www.independent.co.uk/news/world/europe/denmark-moves-closer-to-a-cashless-society-10231995.html
Greece prime minister Alexis Tsipras suggested credit card use being made mandatory for transactions of more than €70, a measure which the bankers he supposedly hates would greatly benefit from.
http://www.theguardian.com/world/2015/may/02/greece-tourists-credit-cards-tax-evasion
Our society is already enslaved enough as it is by the fiat economy system which steals our labor as we are forced to use currencies that are beyond our control and can be created at will by the ruling elite. A cashless society would be the pinnacle of this dystopian hell. No matter how much you work, the fruit of your labor would now be directly owned by the bank.
You see, the minute you deposit money in a bank, you no longer own that money anymore. It now belongs to the bank and they can do with it whatever they desire, they simply assume a lax compromise of returning that money to you at their convenience. In a cashless society you wouldn’t even have that choice, the bank would own your wealth by de facto. There would be no obligation to hold, handle and return actual cash to clients. There wouldn’t be a risk of a bank run any more, nor would you have a choice of simply abandoning the banking system and sticking to cash. A cashless society forces every single person to use the bank for 100% of their transactions. All this means trillions of USd worth of profit for the banks and credit card companies. It also means you literally become a slave to these institutions.
What’s the solution then? Go for precious metals. Forget about the market price, just buy some. In my book “The Modern Survival Manual: Surviving the Economic Collapse”, I explain why gold is important during an economic collapse and recommended to have 20% of your savings in precious metals. If governments keep pushing for a cashless society, make that 30%. It’s the only way in which you’ll have any real money any more once cash is downright banned.
FerFAL
Fernando “FerFAL” Aguirre is the author of “The Modern Survival Manual: Surviving the Economic Collapse” and “Bugging Out and Relocating: When Staying is not an Option”.
8 comments:
Even in a cash less regime cash would be king, only not in the official economy, but on the black market. Even then one may keep cash in the bank... in a safe deposit box.
I totally agree. A dark era will come where some third world nations will have some aspects of their society, more free than, say, Denmark.
I would add bitcoin to your portfolio as well. Yes, it's still volatile but it will stabilize in time. I've studied it quite extensively and it most definitely is real money and is also a much better form of currency than PM's. Bitcoin is the money of the future; I'd get into now.
Cash is worth nothing without the backing of the government --it becomes a piece of worthless paper if the government removes the law that cash is valid payment for all debts. That is why it is called fiat money.
A major evil of a cashless society is that everyone becomes instantly dependent upon keeping the government's good will -- since the government can click a computer mouse and instantly make it impossible for you to buy food, gasoline for a car, medical care or public transportation. Or even to hire a lawyer to protest the taking. Good luck finding a lawyer if you don't have money.
Precious metals also become worthless if they are banned for use by the common citizen (as opposed to use by the bankers.) Look ,e.g, at Franklin Roosevelt's seizure of gold.
They do gain value if you can flee to a foreign country where you already have them stored. If you have them at home, then the customs guys will probably seize them if you tried to take them across the border. They will do that today if the PMs are over $10,000 in value and possibly if you don't declare them.
If they outlaw cash then who would take your cash?
Alternative currencies would be whiskey (moonshine), sex and other services, diapers, soap (laundry soap is used as a form of ghetto currency in some US cities already), sugar, coffee, and drugs.
We already have a cashless society and most transactions today in the USA are by credit card or by debit card. The government is not going to ban currency. It has no incentive to ban currency. Congress has other fish to fry. The importance of currency is so minimal in the American economy and in the industrial economy generally, that legislative bodies are not going to consider legislation to ban currency, because the handful of people that this would affect in any significant way are made up of people who do not vote. Illegal immigrants do not vote. They are the ones who use currency.
Gold is a great hedge for inflationary times but not in deflationary times or in a recession.
Work went "Direct Deposit".
Meaning, I no longer have a choice as to what I put in the bank...I have to hope I can withdraw some of it to have.
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