Thursday, June 7, 2018

Ron Paul: 'A Cashless Society Is Very Dangerous', Three Crises That Will Synchronize A Global Meltdown

We're going to get a synchronized global dynamic, but it won't be "growth" and stability, it will be DeGrowth and instability.
To understand the synchronized global meltdown that is on tap for the 2021-2025 period, we must first stipulate the relationship of "money" to energy:"money" is nothing more than a claim on future energy. If there's no energy available to fuel the global economy, "money" will have little value.
The conventional economists assure us that energy is now a small part of the overall economy, so fluctuations in energy prices will have a limited effect on global prosperity. But what's left of global prosperity when energy is unable to meet current demand at any price that consumers can afford?

Then there's the fantasy that governments can't go broke because they can always print as much money as they need. Venezuela proves this is correct, right? Oops, sorry: Venezuela proved that this faith in the power of the central bank/government printing press is rubbish.
You can't print more oil. You can print more future claims on oil (i.e. "money"), but all that does is devalue the existing stock of "money." Print enough "money" and all your "money" loses its purchasing power.

Inflation has a peculiar feature: printing more "money" doesn't solve the decline in purchasing power of inflation, it accelerates the decline in purchasing power. The mainstream has grown accustomed to the fantasy that all financial difficulties can be solved by central banks creating more credit / "money." But when inflation in real-world essentials like energy kicks in, expanding the pool of "money" and credit won't solve the supply-demand imbalance--it will only devalue the purchasing power of all existing "money," impoverishing everyone holding "money."
The third crisis is governance: around the world, regardless of the ideology or form of governance, the quality and legitimacy of governance is crumbling. Ruling Elites are doing everything they can to keep the privileged-insiders-plundering status quo intact, but the Elites' policies are hollowing out their economies and weakening the buffers supporting increasingly fragile civil societies.

The financial, energy and governance buffers will all start collapsing in a global synchronized meltdown in the 2021 - 2025 period. Why synchronized? Because the global financial and energy markets are one system. Once the system's buffers collapse, everyone dependent on trade, global finance and energy will collapse in a domino effect that will start with the weakest periphery nations. No nation or empire will be immune, as all the major powers rely on "money" with phantom value and energy that can't be printed by central banks.
Here's my diagram of how buffers weaken beneath the phony facade of "endless prosperity":

Venezuela's "money" exemplifies the future of all "money,", including the euro, yen, yuan/RMB and the U.S. dollar. There is nothing inherently permanent or valuable in "money" printed by central banks or governments; they are nothing but fast-accumulating claims on a diminishing supply of future energy.

We're going to get a synchronized global dynamic, but it won't be "growth" and stability, it will be DeGrowth and instability. The harsh realities of energy, "money" and mis-governance will come home to roost, and all the fantasies that technology and central banks printing "money" will save us will dissolve into thin air.

"A Cashless Society Is Very, Very Dangerous"

As the global war on cash continues to accelerate, outspoken libertarian Ron Paul summarizes the effort to eliminate cash perfectly - as an “attack on individual freedom.”

Restricting and discouraging the use of cash, suggests Paul, has always been a goal of statists as a means to reduce individuals’ independence.
“A cashless society is very, very dangerous,” continues Paul.
Watch the complete interview, which includes an extensive discussion of economic issues and the Federal Reserve, here:

So we know how is hurt by the cashless society, consider just who is gaining from this war on cash.

The banks, of course, are charging as many fees as they can think of. More importantly, your cash card leaves a wide data trail detailing your buying preferences, used by merchants and advertisers to entice you into more buying. How convenient. These thoughtful companies even offer reward points every time you use the card. Cash offers the ultimate in privacy. Your cash card might as well be a walking billboard.
The government, of course, is extremely interested in your spending habits. The taxing authorities use an electronic money trail to monitor your spending and ensure against tax evasion. In addition, cards save the government the cost and trouble of printing and storing additional currency.
Your electronic purchase trail is nirvana to large corporations.Knowing your spending habits allows them to customize their ads to an ever-larger consumer base. They know what you need before you do and are ready to entice you with specials, sales and “act now” deals.

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