Back when paper money was just a warehouse receipt. As the bottom line says "$20 in gold coin payable to the bearer on demand". Fatal words to a spendthrift government.
Posted on 05/13/2015 10:49:15 AM PDT by grumpygresh
A proposed new law in Denmark could be the first step towards an economic revolution that sees physical currencies and normal bank accounts abolished and gives governments futuristic new tools to fight the cycle of “boom and bust”....
But if notes and coins were abolished and the only way to hold money was through a government-controlled bank, there would be no escape.
(Excerpt) Read more at telegraph.co.uk ...
The collapse of said system is happening organically because the people operating it are ignorant of the underlying system variables and behavior.
What we are experiencing over the last century is merely ever increasing amplitudes of a system going unstable and eventually to the null space.
So it will “happen” all by itself. The guys in charge got a tiger by the tail and they have no clue how to control it.
This time it will be different!
The check's in the mail.
Vote (________________) for real change!
Of course I love you.
Panics caused by banks needing an excuse for creation of a central bank no less...
The hilarious part is that in truth, *money creates itself*.
A great example was found in more-wilderness-than-not early America. Farmers planted more crops than they and their families could eat, and wanted to take them to market, a long distance away, over unimproved roads or no roads at all.
A very hard journey, and much of the crop would be lost in the process. So instead they hit on the idea of making liquor with their surplus crop. Liquor takes up very little space, relatively speaking. It doesn’t readily spoil. And it is of high value. It is a great form of *money*.
Importantly, money has rules. And often those rules are “iron rules”, that you ignore at your own peril, because money doesn’t care what you think.
One of the most important is Gresham’s Law, frequently expressed as “good money pushes out bad”. It means if there are two competing currencies, people will save the more valuable one, and spend the less valuable one.
What makes this extremely important is the realization that “anything in abundance can be used as a currency.”
This is because anything in abundance can be used as a means of barter, so that people can sell what they do not want and buy what they do. All it takes is an agreement between buyer and seller. No government needed.
And this is why socialists hate abundance of anything, and try and stop it. Because if anything exists in abundance that government does not control, it automatically becomes a currency.
Now remember Gresham’s Law? Say a government abolishes fiat paper money and assigns people credits for it, so they can control markets, abundance and shortage by fixing prices. As soon as anyone has something in abundance, everyone wants to spend their worthless government credits and hoard whatever it is that has become a currency.
You can’t end Boom and Bust because that is driven by consumer psychology and external events.
When it is all controlled by debit and credit card issued from a bank that only receives direct deposits, then it will be rather easy to implement.
It might take a global economic crash to make the public get on board and we seem to be speeding right towards that.
Gotta admit I am unfamiliar with that one. Interesting pic.
Surprised we haven’t already seen moves toward this. Any government would love to stomp out something as hard to control and random as cash as an obvious power grab.
It seems that we have two forces operating here. China is acquiring gold and the Western economies are trying to keep the currency fraud going.
If cash is gone in the West, PMs will still be valued in China.
We are going to go after the global elites very personally to get anything done.
I’ve pointed this out before, but the Mint/Treasury has coined more than enough gold and silver coinage to operate a PM based economy based on the ratios to what existed before 1933.
It’s out there, in circulation but at super low velocity because of convenience and because it’s holding value. You have to “opt in” to the debt based system, there’s always been alternatives and after 1986, a glaring one.
I've been calling it "systemic" and a "natural phenomena". "Organic" is also good.
What we are experiencing over the last century is merely ever increasing amplitudes of a system going unstable and eventually to the null space.
I perceive that you know something about feedback control systems. (PIDs) Indeed, the 16th amendment is one of those places where we cut out part of the feedback loop. As a matter of fact, many of our subsequent amendments were also examples of where we cut out parts of the feedback loop.
The leadership of the nation has often worked to throw off the regulating devices that force them to follow good behavior.
As you know, the oscillations will become increasingly violent and unstable and eventually wreck things.
So it will “happen” all by itself. The guys in charge got a tiger by the tail and they have no clue how to control it.
It can't be controlled at this point. Too many stupid people have a say in how the government is constituted. They are too stupid to understand that the government is not some magical never ending supply of money.
As long as they can vote, and especially since their numbers are ever increasing, we are doomed.
It wouldn't be money. It would be credits in an account. Government would skim off their take and the banks would skim off theirs. What's left would have automatic deductions for housing, insurance, monthly utility bills, local financing initiatives. Your every move would be controlled.
We're already being conditioned this way. I could see younger generations accepting this kind of slavery. Think of a cruise ship, which uses a no-money system.
Problem is, there will be people and not just criminals who will go off the grid and use barter or old coins with real metallic value. That will become a criminal act.
It won't end well.
It won't end well.
Not if you are one of the little people anyway. The Apparatchik always does well in this system.
If the government banned cash, then private currencies would be born to fill the demand.
I believe there will be a reversion to some sort of gold standard. It will not involve gold and silver being exchanged for clothing or Big Macs but gold will back up the money.
There is an expression of faith here over currency. The fact is all the money is actually blips on an electronic ledger. The $1 bill is at root the physical representation of a government obligation to the bearer. When a bank finally turns it in, the entry is made electronically on the ledger.
We are very near the point where cash is not needed. Everyone can have a paypal or similar sec cure account, even perhaps with the local bank and a card reader on their I phone. To take payment from a friend, the friends card is swiped into the reader and the money is zapped from one personal account ledger to another. The ledgers are maintained at a bank.
I have only one vendor that requires cash on a regular basis, my barber. All other transactions are made by zapping my credit card. The banks are is the places where my electronic ledgers are maintained.
Any private currency would need to have some type of sovereignty to be effective. The crypto-currencies have been infiltrated by the Feds.
Why sovereignty? Because governments will simply not allow competing private systems to exist. Ultimately, the current fiat money system is backed by a gun ie brute force.
China has not signed on to subordinate status with the Western elites. That’s why China is accumulating gold; the Chinese want to run things and they are willing to undermine the West by enabling a free market in PMs. If China hoards enough gold, they will be able to supplant London/NY gold markets and make the rules.
Back when paper money was just a warehouse receipt. As the bottom line says "$20 in gold coin payable to the bearer on demand". Fatal words to a spendthrift government.
By far, he's ahead of all the other idiots who call themselves "economists". Eventually we will have a whole field of Computational Economic Modeling based on a real understanding of nonlinear systems; right now the field is dominated by itinerant Applied Math majors and Physics post-docs who couldn't find work, and have never been exposed to controls theory.
It's not like it's unknown. CS financial models have been around for decades. But no one really pursued it, more fun to do missile control systems.
So yes, the oscillations will become increasingly violent and unstable as we both know. And the saps running things with their JDs and MBAs will be utterly at a loss to explain any of it.
Which is why, as you say, they have been gleefully shorting the feedbacks to ground. And adding feedforwards...which will accelerate the system collapse.
We really have to change the nature of the Idiocracy. Currently we have famous Mad Monkey flying the airplane.
It's in the process of going down.
There need to be far higher qualifications for getting your fingers on the throttle.
What is this, the world of “Star Trek”?
Never, or only very rarely, is the concept of “money” ever touched upon, apparently there is an element of trust so broad, so unchallenged, that even deadly adversaries take each other’s word in matters of exchanging SOMETHING for goods and services rendered. And never a moment spent haggling over the terms of the exchange, just BOOSH! and it’s done.
Hell of a way to run a marketplace. I don’t see humanity, or any other entity in the Universe, ever evolving that far up the scale. There shall have to be SOME instrument of obligations and discharge of incurred liabilities, so long as there is any sentient capability left.
Amoebas have no need of cash.
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