This article was first published by me at Talkmarkets: http://www.talkmarkets.com/content/news/will-the-russians-save-us-from-the-cashless-society?post=77136
Sometimes fact is stranger than fiction. It has been reported that the Russians have been observing the cable lines in key areas of the world's oceans. The potential damage that Russia could cause to the United States is not to be taken lightly. Certainly we would all suffer possible financial loss from the destruction, even if temporary, to the digital financial system upon which millions of financial transactions are made.
Since only 200 oceanic lines carry 99 percent of all data and internet traffic, the disruption to those lines could be catastrophic. Trillions of dollars in transactions could be undone.
However, there is a silver lining to this dark cloud. This Russian threat could slow down or even derail the coming Cashless Society! Can you imagine not having any cash when the internet and data systems of the world are brought down? Stealing or starvation would likely be your only choices. Some rural folks could barter, I suppose, but city people? They would be at a distinct disadvantage.
Politicians will be leaned on by bankers and economists who see no other answer to the declining interest rate scenario than to break through the zero lower bound allowing negative interest rates to be charged on customers' bank accounts. Monetary stimulation only works when interest rates stimulate the economy. Otherwise, the central banks are forced to resume QE, which drives up assets and further diminishes the middle classes.
And monetary stimulation will only work in a negative interest rate environment with the implementation of a cashless society. But that society has perils to us all. Even wealthy people traveling could be in a bind without cash.
We can see how strong the desire is for a cashless society by the desperate cries of those economists and bankers who see no other way out. These will become the most desperate people in the next downturn. Americans need to understand this in order to understand that risk off is death to the bankers. Their very lives revolve around risk on and speculation. They are the only people making real money, and if they find themselves at the mercy of permanent risk off, then they will forcefully push for a cashless society.
And that is where the Russians come in. They are just crazy enough to cut these lines under the right circumstances just as the bankers are crazy enough to seek a cashless society in order to create transparency, which is another word for spying. The bankers figure that their digital framework is all that counts, that the world will operate in fine fashion as long as data can be transported freely along the internet byways.
This pressure applied by both in opposite directions is like the San Andreas Fault. At some point, something has to give.We have seen Bitcoin go through the roof lately. Perhaps there is speculation there of a cashless society.
Jem Bendell has an interesting take on the Cashless Society. You think we live in a "Nanny State" now? Well, we nanny the banks and poor people. I think the later is much more moral than the former.
But I digress. Jem Bendell says that if a person has a heating bill to pay, and is booted off the payment grid for bad credit or whatever, it will become necessary for the state to get that heating bill paid. That is the moral thing to do since cash is no longer an option for the booted ones.
Can you imagine thousands of people freezing in winter because they don't have a valid positive balance in their bank account with which to make this sort of payment?
Also, Bendell says that a people who is forced to give up rights to privacy and to not be spied on, will be a people who will no longer have a real democracy at work. I don't like to use the F word lightly, but this sounds like pure fascism to me.
I don't like to find myself rooting for the Russians, but they may be the only counter to the totalitarian banking movement we may find ourselves subject to in the near future.
Like the Pay Cash Only Movement page: https://www.facebook.com/Pay-Cash-Only-Movement-1486591244977682/
Sometimes fact is stranger than fiction. It has been reported that the Russians have been observing the cable lines in key areas of the world's oceans. The potential damage that Russia could cause to the United States is not to be taken lightly. Certainly we would all suffer possible financial loss from the destruction, even if temporary, to the digital financial system upon which millions of financial transactions are made.
Since only 200 oceanic lines carry 99 percent of all data and internet traffic, the disruption to those lines could be catastrophic. Trillions of dollars in transactions could be undone.
However, there is a silver lining to this dark cloud. This Russian threat could slow down or even derail the coming Cashless Society! Can you imagine not having any cash when the internet and data systems of the world are brought down? Stealing or starvation would likely be your only choices. Some rural folks could barter, I suppose, but city people? They would be at a distinct disadvantage.
Politicians will be leaned on by bankers and economists who see no other answer to the declining interest rate scenario than to break through the zero lower bound allowing negative interest rates to be charged on customers' bank accounts. Monetary stimulation only works when interest rates stimulate the economy. Otherwise, the central banks are forced to resume QE, which drives up assets and further diminishes the middle classes.
And monetary stimulation will only work in a negative interest rate environment with the implementation of a cashless society. But that society has perils to us all. Even wealthy people traveling could be in a bind without cash.
We can see how strong the desire is for a cashless society by the desperate cries of those economists and bankers who see no other way out. These will become the most desperate people in the next downturn. Americans need to understand this in order to understand that risk off is death to the bankers. Their very lives revolve around risk on and speculation. They are the only people making real money, and if they find themselves at the mercy of permanent risk off, then they will forcefully push for a cashless society.
And that is where the Russians come in. They are just crazy enough to cut these lines under the right circumstances just as the bankers are crazy enough to seek a cashless society in order to create transparency, which is another word for spying. The bankers figure that their digital framework is all that counts, that the world will operate in fine fashion as long as data can be transported freely along the internet byways.
This pressure applied by both in opposite directions is like the San Andreas Fault. At some point, something has to give.We have seen Bitcoin go through the roof lately. Perhaps there is speculation there of a cashless society.
Jem Bendell has an interesting take on the Cashless Society. You think we live in a "Nanny State" now? Well, we nanny the banks and poor people. I think the later is much more moral than the former.
But I digress. Jem Bendell says that if a person has a heating bill to pay, and is booted off the payment grid for bad credit or whatever, it will become necessary for the state to get that heating bill paid. That is the moral thing to do since cash is no longer an option for the booted ones.
Can you imagine thousands of people freezing in winter because they don't have a valid positive balance in their bank account with which to make this sort of payment?
Also, Bendell says that a people who is forced to give up rights to privacy and to not be spied on, will be a people who will no longer have a real democracy at work. I don't like to use the F word lightly, but this sounds like pure fascism to me.
I don't like to find myself rooting for the Russians, but they may be the only counter to the totalitarian banking movement we may find ourselves subject to in the near future.
Like the Pay Cash Only Movement page: https://www.facebook.com/Pay-Cash-Only-Movement-1486591244977682/
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