The battle to keep cash may have already been lost, so now it should be about who controls the new and digital so-called cryptocurrencies. If central banks (see mainly, editorial notes) have the exclusive right to issue cryptocurrencies through the private banking market, supervision will undoubtedly increase. This will protect the private banking system and allow them to enrich their owners and employees at depositors' expense. And the bill for insolvent banks is likely to be sent to the taxpayers. With cryptocurrencies, or cryptocurrencies, both politicians and the people will be controlled by money power.
Must prepare. As Norway recently was first out on the DAB radio, it sounds undeniably forgettable and innocent when Prime Minister Erna Solberg wants to be first out with "the cash-free society".
Tom Staavi in Finance Norway thinks it is useless to fight the development: "We become a cash-free society, let us prepare for it, raise important issues and find good solutions." He clearly has full confidence in politicians, central banks and the private banking industry. When asked by Ny Tid if this is not naive, when we look at the bank collapse in 1992 and the financial crisis in 2008, Staavi answers unconditionally "yes" – we can have full confidence in the system.
But have political institutions, from a historical perspective, managed to reconcile freedom with coercion? Norway's prime minister is rhetorical when she wants us to agree – such as the classic that "economic crime must be fought". Is it then to understand that a cash-free society will immediately cause all criminals to give up their criminal career and become law-abiding citizens? Of course not.
Anonymized digital payment services based on new blockchain technology may also be welcomed by an intelligent, predictable and cunning criminal world. At the same time, digital payment services open a political coercive regime through total monitoring and insight into absolutely everything we do.
But who is going to watch over the monitors? Whether you're on a trip to Thailand, take one Facelift or give a gift to the Red Cross, then both the bureaucrat, the bank clerk and possible others will know what you're doing, like in an Orwellian 1984community with News Peak, Double Think og Big Brother.
When your salary is transferred to a bank account in your name, your money is no longer yours.
All power in this bank. Ny Tid has previously written about the situation when the central bank Bank of England was established and its owners, politicians and the royal court
placed worthless paper money. These were lent to the people in exchange for interest, a privilege that the power and money elite still enjoy today. That the bank's power is still great is noticeable where there is currently a withdrawal limit on cash, even if you have more in the bank.
The world's central banks can "print" money, simply create money out of nothing – as if it would save us from economic collapse. Such electronically created "money" applies to us and our descendants, while the privileged owners of central banks, politicians and privately owned banks know that the debt they create must be settled by the rest of us – depositors and taxpayers. An example of this is that when your salary is transferred to an account in your name in DNB, the money is no longer yours. Because the account has your name, you think and act as if they are yours, but what you have actually done is "borrow" the money from the bank. The bank uses them as if they belong to the bank, not you. Using the Fractional Reserve Lending system (see previous articles on this in Ny tid), your deposits create unlimited credit that is used for the bank's own debt-financed investments. Every penny you have in the bank is watered down. When this pyramid scheme collapses, you lose. You also do not participate much in the return on the use of your savings. In a way, your mortgage is in fact a loan you give to yourself created by the bank clerk's keystroke on a PC. You must also provide security for and interest-
Pay to "borrow your own money". The bank thus creates unlimited credit with your savings. They can then use this credit to invest billions in the stock, bond and derivatives markets, in favor of the bank's most privileged customers, shareholders and management – but you and the community are at risk of ending the bill.
Crippling credit party. The banking system rests on this potential debt burden. But when the trust Stavi in Finance Norway correctly describes as crucial to the "system's survivability" is weakened, it will inevitably lead to economic and societal collapse. The question is whether, in a cash-free society, this can be avoided by having full control over people's means of payment.
Therefore, of course, it is OK that cash no longer exists – and that we could no longer claim to have our money paid out in a crisis. Then of course it is okay for politicians to introduce capital controls, as they have done in Greece and Cyprus – and as they will eventually do in Italy and France, Norway and the rest of Europe.
In a cash-free society, the money power and the politicians have achieved what they really want: an Orwellian society where the citizens are monitored 24/7 and where the politicians in beautiful association with the monetary elite do exactly as they want with us. Historically, this has always been to retaliate until the money system collapses, which has happened time and time again. It is the citizens who are left with the hangover after the money party's and politicians' eleven-credit party.
Because we do not want these to lull us into a state of trust and confidence, similar to what President Eisenhower once described: “If all the citizens want is security, we could put everyone in jail. There they have their heads over their heads, enough food and feel safe. ”
Olav has 30 years of experience in finance.
Also read: The battle for cash og Cash off.