Why Banks & Government Want To Go Cashless

As the financial economy continues to draw the capital, it swallows up the productive economy with every dollar it takes from the printing press. It can get it hands-on we slowly strip consumers of their wealth and ability to create and maintain wealth as well as asset stripping companies that produce goods and services for the economy. The financial economy has become such a massive part of the global economy so as they make riskier choices, we all are affected.

That the neverending search for yield has seen crazier hedges and bets being made and to prop up this economic vandalism we see banks in cahoots with governments trying to make sure consumers fit the bill for what is eventually an end game of epic proportions.

We let them get away with it in 2008, so they never learned their lesson, and as 2020 rolls around the bubble continue to grow each day. I've noticed two distinct trends in 2019 and moving into 2020 that leave me with some rather scary thoughts about where this centralised banking system is going and why we need cryptocurrency now more than ever.

Negative interest rates

A few years ago, the term negative interest rates would be unthinkable, but today more of our more developed economies are moving into this territory, Japan, Australia, Europe and soon the US. America should be on its way there very more quickly if Trump gets his way as he tries to prop up the economy to win re-election. Negative interest rates effectively make retail banks pay central banks to hold the money that central banks give them. In turn, retail banks need to find ways to lend that money to companies and us to earn premiums to make a profit and pay those negative returns.

The negative interest rates squeeze retail bank margins, and they will look at riskier ways of earning from giving access to their balance sheet. Some banks will try to pass the negative interest rates on to the depositors which hurt savers who may pull their capital out and start a bank run further squeezing retail bank margins.

Not a comfortable place to be in for banks.

Image path - pimco.no

The cash ban

So to avoid a bank run, what can they do? Well, they can ban cash obviously, if you're forced to keep your money with the bank you will be forced to pay the negative interest rates and have no way out but to spend your payment if you don't want to lose it. You are encouraging consumers to consume even more and saddle up with debt as a way to get the most out of their purchasing power instead of saving and helping frivolous and non-productive spending.

Banking consolidation

So what happens then? The larger investment banks will start to buy up the retail banks for their balance sheet and depositors savings and strip out the running costs and then consolidate banking with control over the end to end distribution of money. It also helps facilitate bail-ins, so if the government needs cash to pay off it's continuing deficient spending it can quickly raise taxes and pull it from your bank account as if it's their own personal savings tool.

Bankers or Banksters?

I might be wholly loopy and fear-mongering my readers into buying crypto, precious metals and protecting against a downside that may be in years to come. Still, I feel it's important to realise that every concession we make is a step towards absolute control over us if they don't already.

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