Sunday, March 06, 2016

Cashless Society, Micro Chips, What's Next?


Central Bankers Are Now Pushing The Public To Accept A Cashless Society - Episode 895a
Published on Feb 16, 2016

REVEALED! Why They Want To Ban Cash
Published on May 19, 2015

ECONOMY COLLAPSE: What Will Happen To Your Savings in the Bank?
Published on Jan 21, 2015
Warning! Coming Soon to a Bank Near You - a Cashless Society
By Marilyn MacGruder Barnewall
March 6, 2016
And With It - A Negative Interest Rate
According to Treasury Secretary Jack Lew who recently signed and sealed America’s current audited financial statements, as of 2015 the United States has $3.2 trillion in assets.
As other corporations do, the United States also listed its liabilities: $21.5 trillion. One does not need to be a mathematical genius to figure out that America’s net worth is a negative $18.3 trillion. We have $3.2 trillion in assets minus $21.5 trillion in liabilities.
In 2014, our negative net worth was $17.7 trillion and in 2013 it was $16.8 trillion. In other words, the United States is bankrupt. If you or I had five or ten times more debt than we had in assets, we would be in bankruptcy court.
Another thing corporations do is have their annual financial statements audited by an independent source... usually one of the major accounting firms. The federal government’s annual financial statement is audited by the General Accounting Office (GAO). This is done so people will more readily trust the numbers provided in the financial statements. Though it is part of the government, the GAO maintains a certain independence from governmental control.
Re the 2015 financials, the GAO told the federal government that it was on “an unsustainable fiscal path.” They also said that the federal government (that would be Congress which approves spending, the President whose policies are reflected in money approved to be spent, and the Department of the Treasury which generates the financial statements) often fails to provide “reliable and complete financial information – both for individual federal entities and for the federal government as a whole.”
Anyone who has been awake and who listens to statistical data about unemployment, job creation, inflation, cost of living and other data could have told them that.
Most of us remember that the Department of Defense in 2015 announced that it had over the past 20 years “misplaced” $8.5 trillion of our money. That’s your money and my money... and our children’s and our grandchildren’s and great grandchildren’s money -- and on and on for many generations.
Thus it will not surprise anyone to learn that the Defense Department was one of the government departments that failed to provide complete and accurate financial information for the financial statements. Until they find the missing $8.5 trillion, or until new people and procedures are put in place to track money spent, no additional funds should be sent to the DoD. Republican crowds attending presidential candidates’ functions loudly cheer when the words "rebuilding our military" are used. It does need to be rebuilt – but not until the system used to track costs has been audited and changed to keep honest records. If you'll recall the day before 9/11, then Defense Secretary Donald Rumsfeld announced that $3.1 trillion had been lost. To my knowledge, it's never been found.
The GAO evaluated Social Security and Medicare and other programs wherein Congress has told the American people that reductions will be made to save the programs. GAO says the weaknesses (meaning errors) they found in the stated reductions total $27.9 trillion. That means we are in much worse financial shape than they are letting on – and the debt they willingly admit to defines bankruptcy without the detected errors.
There are those reading this article who will respond by saying “Oh, they’ll just print more money. Nothing will change.” There are many who won’t read this article who would respond that way if they did read it. They represent the “something for nothing” crowd. They simply cannot conceptualize the idea that irresponsible federal spending – mostly designed to buy the votes of the poor and the disenfranchised (and illegal aliens and other non-hegemonic portions of society as described by Antonio Gramsci) – has bankrupted this once healthy economy. They cannot see in their minds the idea that when you borrow something, it must some day, some way be repaid.
The truth is, they are about to stop printing money so those who say “they’ll just print more money to cover the debt” are wrong.
The truth is, your bank is about to stop paying you the pittance they’ve been paying for your deposit dollars, calling it “interest.” They are about to start charging you money for the money in your bank accounts. It’s already being done in Europe and other parts of the world.
Bank of Japan’s Governor Haruhiko Kuroda recently opted for negative interest rates. It is not a new idea. In the 1970s the Swiss government implemented negative interest rates because its currency was driven up in value and was causing inflation. Sweden used negative interest rates in 2009-10. Denmark used the concept in 2012. In 2014, the European Central Bank implemented a negative interest rate policy.
What is about to descend on your head is Negative Interest Rate Policy (NIRP). NIRP means that banks, rather than paying you interest on your deposits, will charge you a fee (probably a percentage of your deposit amount) for managing your money.
“Managing my money?” you may ask. “I manage my money; not my bank.”
Your reaction is likely: “I’ll just take my money out of the bank.” No. You won’t. Why? Because they are about to remove currency – actual money – from the marketplace. I believe we are about to switch to a digital currency -- and no, not Bitcoin.
Our economy is not recovering from the longest recession in history – some would call it a depression, but that would be too close to an honest assessment for this government to admit. The economy is going into a deflationary spin which would put us into a depression that would make the 1930s look like child’s play. When an economy deflates, there is no growth – no new business start-ups, no new jobs. People do not borrow and spend. Well, some people do – those who often have no alternative but credit cards to buy food and other survival items... like rent or car payments. People who use credit as a desperation move can seldom repay it and that does not bode well for the near-term future. There is a slowdown in real production of all kinds.
Until the 2007 economic debacle, we lived in an inflationary rather than a deflationary economy. During inflationary economies, people borrow money to invest in everything from the stock market to new business start-ups or company expansions. Consumers borrow to buy everything from cars and refrigerators to new homes and lawn mowers. Jobs are created even though the cost of everything is inflating. America’s horrendous debt burden combined with the real estate devaluation which led to the foreclosure debacle sent us into a deflationary period.
The Federal Reserve decided to fight deflation with an inflationary solution – quantitative easing – and it failed. Miserably failed. A lot of already rich people got richer, but no benefits to the economy or the people were realized. That’s the difference in crony capitalism and capitalism. This “mistake” was not an accident. It was planned.
When negative interest rates are imposed, it is a desperation move to avoid the failed government policies that have pushed the world into non-repayable debt. The greed of central banks worldwide has led to the coming demise of that system. The Keynesian model has proven to be a failed system. The central banks tried zero interest rates, then quantitative easing, and now negative interest rates. Nothing has worked. Hail Mary passes seldom do. In his book Currency Wars: The Making of the Next Global Crisis, Jim Rickards envisions the emergence of a world central bank as a result of central bank follies internationally.
I believe Rickards is correct. I further believe it has been the plan from the start. People tend to forget that for ten years I have been saying the objective of those seeking one world government is to put in place a world economic system because until that happens it is impossible to implement one world government. Once the international economic system is in place, creating a world government is child’s play. All that needs to be done once world monetary issues have been defined and implemented is which nations control which land.
To review, we have a nation that is bankrupt thanks to irresponsible and greed-based policies which utilized a zero-based Federal Reserve funds cost and that failed, quantitative easing which failed to stimulate the economy, and the powers that be will now very likely implement NIRP – negative interest rates on funds deposited in America’s banks... which will also fail. It is intended to fail.
Why is it intended to fail? There is little doubt in my mind that many who read this will call me a conspiracy nut. They called me that when in 2006 I predicted (in writing) the derivative mess, the 2007 resultant foreclosure mess that would result from MERS, the 2008 stupidity of zero-based central bank lending rates, TARP and quantitative easing, and now what I think they are about to do: The cashless society.
What is a cashless society? Here is a link to an article about the cashless society recently implemented in Ecuador. What negative interest rate policies will lead to is precisely what they have implemented (perhaps as a test?) in Ecuador.
Like everything else “they” do, this has been tested in various ways. The debit card issued to those receiving welfare benefits was part of the testing process. It was begun in the late 1990s. This article explains how it all began.
Rather than issuing a check or directly depositing welfare funds into a checking account, an amount is credited onto a computer system – we can call it "cybercash," -- no real cash involved. It's just digital money. It can be overseen by banks (though independent banks will fall by the wayside) or it can be overseen by the Department of the Treasury... or even the Federal Reserve System. The recipient of the funds uses the debit card to pay for food, clothes, etc. If it sounds like the government controls what may be purchased with the card that is correct. And now they are ready to expand the program from welfare recipients to you.
Bitcoin, another form of cybercash, was part of the test. Would people accept and use a non-currency form of “money”? Not only did they accept it, it took off like a rocket... until (as I said would happen) some controls were put in place that limited the use of Bitcoin and its stock fell in value as rapidly as it had risen. The test was a huge success.
There will be no cash. If you leave a tip for a waitress, it will have to be placed on the signed receipt which will be deducted from your bank account... or placed on a credit card. Your bank will automatically transfer you tip to the waitress to her bank account... and she will pay taxes on it. If you pay someone for mowing your lawn, it will be via check (no cash) or credit card (or your checking account debit card)... and it will be automatically placed in the mower’s bank account... and he or she will pay taxes on it. When you buy groceries, you will use a check, credit card, or the debit card. The government will have a complete record of your purchases (including cigarettes, alcohol, and other highly personal articles).
I repeat, there will be no cash. Everything you buy or sell will be done via your bank account and it will be tracked for tax purposes. If you can see a clear road to a barter system and an active black market, you’ve got the idea of what I’m explaining.
As I said, it is a desperation move made by a failed central banking system the greed of which convinced those who run it to believe the debt era could last forever.
If this does not give you a clear picture of just how far over the cliff the United States economy is, nothing will. Go to the beginning of this article and read about our debt. Read the article about the cashless society in Ecuador. Then prepare for the only logical future that can result from these economic circumstances. Start a new business that lends itself to being a good source for bartering for food, clothes and shoes.
NIRP and the cashless society will be about as successful as quantitative easing was. If you are prepared, you will make it through. If you are not prepared, you will curse yourself for not paying more attention.
© 2016 Marilyn M. Barnewall - All Rights Reserved
Marilyn MacGruder Barnewall began her career in 1956 as a journalist with the Wyoming Eagle in Cheyenne. During her 20 years (plus) as a banker and bank consultant, she wrote extensively for The American Banker, Bank Marketing Magazine, Trust Marketing Magazine, was U.S. Consulting Editor for Private Banker International (London/Dublin), and other major banking industry publications. She has written seven non-fiction books about banking and taught private banking at Colorado University for the American Bankers Association. She has authored seven banking books, one dog book, and two works of fiction (about banking, of course). She has served on numerous Boards in her community.
Barnewall is the former editor of The National Peace Officer Magazine and as a journalist has written guest editorials for the Denver Post, Rocky Mountain News and Newsweek, among others. On the Internet, she has written for News With Views, World Net Daily, Canada Free Press, Christian Business Daily, Business Reform, and others. She has been quoted in Time, Forbes, Wall Street Journal and other national and international publications. She can be found in Who's Who in America, Who's Who of American Women, Who's Who in Finance and Business, and Who's Who in the World.
Commentary: The View from Europe: The cashless society
By David Jessop
Published on March 5, 2016
(Left: David Jessop) If you read the Financial Times, the Wall Street Journal, the Washington Post or some of the world’s other heavyweight newspapers, you may have seen in recent months, articles discussing the abolition of currency.
However, little if anything has been said about the negative consequences this startling possibility could have for all developing economies or the myriad small enterprises and individuals that live in them and who provide services of all kinds for cash.
A cashless society is an idea that has increasing support among senior figures in international financial institutions, central bankers, security agencies, and many of the governments in the world’s wealthiest nations.
They suggest that the process should begin first by first phasing out paper currency, starting with large-denomination bills such as the Euro 500 banknote and the US$100 bill.
The thinking behind this is that major economies should eventually replace actual currency with electronic money in the form of card payments, electronic wallets on mobile phones, and online transactions.
Those who believe that the future is cashless do so for a number of reasons.
Firstly, they believe that it will address criminality. According to the Financial Action Task Force, the Paris based group that is deeply engaged in anti-money laundering issues in the Caribbean, criminals prefer high value bank notes because they are easier to transport across borders without detection.
Secondly, supporters of the idea believe that it will increase the ability of governments to halt tax evasion and will optimise their tax take and ability to provide social services; the idea being that electronic transfers will enable end-to-end traceability of income and expenditure, information on where individual or business income originates and goes to, and how our money is spent or utilised.
Thirdly it is said that it would enable states to track and even destroy money being moved or used for the purposes of terrorism or by organised crime.
And fourthly it is suggested that a cashless society would address a number of technical financial management issues such as the increasing introduction of negative interest rates on deposits, for example in countries like Switzerland and Sweden, and the consequent flight of deposits into cash.
In addition, a related approach, recently explored in an interesting if sometimes technical speech by the deputy governor of the Bank of England, Ben Broadbent, is the idea that central banks should consider adopting their own digital currencies.
Mr Broadbent’s point is that since central banks issue paper money, there may be a case for them also to issue digital currencies. This would have the effect of enabling central banks to provide directly through settlement technology the verification and recording of transfers with, as an option, individuals being offered the ability to hold some or all of their balances with their central bank rather than, as at present, their retail bank.
This would, he observed, have the effect of making commercial banks safer given their deposits are to a significant extent partially backed in illiquid assets, but could, less helpfully, result in customers’ deposits migrating to central banks, making commercial banks more reliant on wholesale markets, possibly reducing their lending into the real economy.
There are of course many arguments against any move to end the role of physically held currency.
The most important of these is that such an approach would profoundly challenge the liberty of the individual by enabling a state to know exactly where and how individuals are obtaining their income and disposing of it. But there are also other more practical arguments about how individuals would react, let alone the political and psychological implications of a government or central bank telling voters they no longer have physical control of their own money.
Although these are at present just ideas, the fact that they are being explored by influential figures like the deputy governor of the Bank of England suggest that it is an issue that over the next decade we are likely to hear much more about.
When it comes to a region like the Caribbean, however, cashless transactions could potentially become economically challenging.
It would mean that in countries where large numbers are unbanked and depend on cash through tips, fares, purchases of food or other items, many would suffer.
Moreover, any diminution in the use of cash in the Caribbean’s less formal sectors would most likely be anti-developmental, reducing the sums of money that informally enter the economy.
Although any such measures are unlikely to affect directly hotels or the formal tourism sector, which tends to rely on electronic transactions, it could, if it became the norm in feeder markets in North America and Europe, marginalise those who drive taxis, waiting staff, water sports providers, vendors and others in the grey economy who depend on cash.
Cashless transactions are in effect yet another indication of the profound ways in which economic globalisation and information technology are changing the world in a manner that potentially threatens small economies, especially where significant number of citizens are unbanked.
As this column recently noted, there are already moves by the big international banks to cease correspondent banking operations with Caribbean financial institutions; a threat so severe in its implications that Caribbean Community (CARICOM) heads gave it priority at their recently concluded inter-sessional meeting in Belize.
There they agreed to establish a high-level advocacy group to express internationally how so-called ‘de-risking’ by the world’s biggest banks threatens to impact remittance transfers, international trade, and the facilitation of credit card settlements for clients in the region; matters that Belize’s prime minister, Dean Barrow, the present chair of CARICOM, described as ‘existential’ if not addressed internationally at the highest levels.
So far, bringing the use of currency to an end is no more than an idea. But the fact that some government related agencies and financial institutions are now putting considerable thought into how a cashless society might operate, suggests that the implications require consideration.
The idea of virtual currencies cannot be left just to developed nations to debate. The idea has significant negative implications for all developing nations. It requires central banks in regions like the Caribbean to form a view and make clear the practical implications on cash driven economies that for the foreseeable future will continue to depend to a significant extent on banknotes and coins.
David Jessop is a consultant to the Caribbean Council and can be contacted at Previous columns can be found at
Salvation Army donations suffer in 'cashless society'
Charitable church fundraising efforts suffering in Toronto this season
CBC News
Posted: Dec 12, 2013
The Salvation Army is facing new challenges this season in its annual holiday fundraising campaign.
The Christian church and charitable organization says people are giving less to their Santa Claus fundraisers because there is less opportunity to drop money into the iconic red kettles.
"We think there are a couple reasons," said spokesperson Andrew Burditt to CBC Radio’s Here and Now. "Society is becoming much more cashless; people just don't carry cash anymore."
He said often people will walk up to the kettle, reach into their pockets to give, and can't find any coins or bills.
But that’s only if there is a kettle to begin with.
"Salvation Army has had a very good historic relationship with retail outlets," said Burditt. "For whatever reason in 2013, we’re having some challenges. Either we can’t get in at all, or we’re very limited in the number of opportunities in the venue."
Union Station, for instance, has been a hub for the charity that has been collecting donations for the poor for more than 130 years.
It has sent as many as 10 fundraising teams there every holiday season for 50 years. But it then has had space limited from 10 fundraiser teams to four.
This year they were only allowed one — and that’s only because another vendor cancelled.
Burditt says the Salvation Army, which often has a band playing Christmas music, was "deemed to be too loud."
That has quantifiably lowered the donations. Burditt said one kettle will gather an average of $1,000 per hour in Union Station. With 10 kettles over two hours, that’s $20,000. Much of those donations are missed in 2013.
"We’re continuing to evolve," said Burditt, explaining the organization has begun taking online and text message donations in recent years. This year, it launched, a new donation vehicle online.
"We don’t know whether we will achieve the goal of $3 million," he said. “But if for some reason we don’t make it, we’ll figure it out."
Also See:
Venezuela Is Out of Food! Who's Next?
15 February 2016
A Better Way? Barter System vs. National Currency!
26 December 2009
Food Shortage, Then Anarchy!
25 July 2012
What to Expect when the Economic Collapse Occurs!
17 May 2013
Disasters Happen! Be Prepared!
(Part 1)
31 March 2011
(Part 2)
30 August 2012
The Collapse of the Entire World’s Economic System has Begun!
18 March 2013
Economic Collapse! How Did We Get Here?
27 February 2013
Are We Facing a Global Financial Crisis?
31 May 2011
Financial Crunch! Economic Collapse!
(Part 1)
31 July 2008
(Part 2)
20 November 2008
(Part 3)
25 January 2009
(Part 4)
17 April 2009
(Part 5)
23 June 2009
(Part 6)
23 August 2009
(Part 7)
30 November 2009
(Part 8)
23 February 2010
(Part 9)
28 August 2010
(Part 10)
13 January 2011
(Part 11)
29 April 2011
(Part 12)
28 July 2011
(Part 13)
04 April 2012
(Part 15)
02 November 2012
Recession? ... Depression? ... What is Going On?
(Part 1)
06 October 2008
(Part 2)
02 February 2009
(Part 3)
19 April 2009
(Part 4)
02 August 2009
(Part 5)
17 September 2010
(Part 6)
17 September 2010
Jobs, Jobs, Where are the Jobs?
(Part 1)
20 April 2010