Cashless society monster coming to a digital wallet near you

Lately, I read several articles about the cashless society. Quite a stories. One person reported about amazing experience going whole month around with plastic money and never using any cash. Even small expenses like a bottle of water or coffee. A real achievement for the whole world to know about.

Then comes even better one. Just 2 days ago somebody wrote a lengthy post about abandoning cash. The writer wrote a whole tirade about certain cashless future. He mentioned Bitcoin in one paragraph. Other than that it was all about the practicality of plastic money and the cost of making and handling paper money and coins. Cashless future was glorified in such a way that I suspect the guy who wrote that article is a banker.

Let’s just say that neither writer got thumbs up from me even that others approved his views a lot though. I was surprised and hurt. Surprised about acceptance. Hurt about my stories never get so many reads. A number of thumbs up I get are not even worth mentioning. Embarrassing, right?

Thumbs up are sure not a reason why I am writing about cashless future. It really worries me. A lot.

Approval means more and more people accepting that path without questioning it and with no resistance. Writer I just mentioned articulated tons of reasons why plastic money is our bright future. Some of them are logical and valid. Like there is a cost of printing and handling coins and paper money.

Also, one long paragraph explained that old good paper money is also the preferred method of payment for the criminals. Since cash is pretty much untraceable, wads of cash are apparently guaranteed signal of criminal activity.

Interestingly enough Bitcoin didn’t get the same bad treatment. Being practically anonymous and untraceable it must be bursting of criminals moving digital currency around. A writer was definitely more concerned about getting rid of coins and paper cash.

Where is all this going to?

Did you notice lately articles and news about a proliferation of the cashless payments? Sweden and Denmark are being mentioned as advanced societies where paper money is all but abolished and kicked out of everyday life. Did you notice that banks and Governments love and support those ideas? When was the last time banks had the population’s best interest in mind? Probably never.

Governments? Even worse. They are in the business of controlling people and their money. Sucking out every penny fits that agenda perfectly. Everything and everybody is taxed to the death and beyond.

Did you know that until 1913 there was no income tax in the USA? Actually, US Constitution, Amendments 16 and 17 say that person earning for living by laboring is not to be taxed. Only companies are to pay tax for commercial activity. Interpretation of those and some other amendments is a matter of court arguments by IRS and those who oppose personal taxation.

Incidentally, in the same year, there was another “invention” that sealed the financial affairs of every person in the USA living and yet to be born. Private bankers helped by then President Woodrow Wilson established the Fed Bank. Fed lends money to US Government at a cost thus enslaving the population to their agenda. Big squeeze started at that time and never stopped.

Did you know that 1 dollar issued in 1913 until today lost more than 98.5% of its original value? It’s worth less than 1.5 cents today. Then and now is a difference like a day and night. Here are just a few numbers to boggle your mind. The average income a hundred years ago was $1,033. A gallon of gas (3.785 liters) previously cost seven cents, a loaf of bread 5 cents, woman’s dress 4 dollars, a medium-priced home was $2,750.

House for 3000 dollars or less! Are you kidding me? Sounds like a science fiction, right? So where is a rest of the money? Gone. Eaten and stolen by inflation, banks, and Government. A person has to pay more and more for the same things. It is like catching a runaway train.

So how this rant explains a cashless society?

Not yet but it is a prelude for other bad things. Governments grew out of the proportion. It’s like a genie out of the bottle that will never get back but will rather become bigger and bigger. Rules and laws were passed a long time ago and are being added as we speak where every dollar is tracked down and a better part of it taken away as a taxes. Criminals get smaller sentences for violent crimes, even murders than accused of hiding money from the taxman. Their own money I daresay.

Out of that twisted idea comes absolute must to track the flow of the money. Banks are forced into a position to police own clients. If you bring 10000 dollars into the bank they will ask you where it came from. Must be some illicit reason. Can’t be just by saving money into the shoe box.

Cashless environment fits Government and bankers plans perfectly. Money is a bunch of numbers flowing through computers. You buy a car or house it is like an e-mail sent from your account to seller’s account and money is there. Quick, easy and clean. And traced.

The only thing you can buy these days at your own accord is an old bike for 50 dollars at Kijiji. Coffee, newspapers, small amount of groceries basically things from chewing gum to small value items. Few tens of dollars tops.

For everything else, there is a plastic money. Debit card or credit card. Checks as well but disappearing. While in Europe I asked about checks and they said that nobody is using them anymore. They transfer money using personal IBAN bank accounts and SEPA. That would be like Interac of ACH transfers account to account here.

There are also Apple Pay, Google Pay, and Samsung Pay. Payments using an electronic watch or mobile phone. Easy and practical you could say. It is just another form of a credit card payment.

Is a cashless next best thing after sliced bread?

The first rule is: ”Money in the bank is not yours, it’s bank’s”. Ever controlling Government and banks are working on making cashless society a stark reality. There is nothing great about it.

In that “great” new world you will not be able to go to pee in public washroom or buy a bottle of water without that be logged in and approved or disapproved from powers above. Payment server might have limits or filters simply refusing payments to take place. Now what?

If you think Google and Amazon know every step we make in digital life you ain’t see nothing yet. Now the picture will be complete. A flow of YOUR personal money will be known up to the last cent. Not only for tax purposes but intrusions in YOUR life will get to a new level.

With cash in the pocket, you can buy a bottle of booze or a box of condoms without anyone knowing. You can buy that old car for 500 bucks from your friend. Fill up gas without somebody knowing where and when. Then just drive off into the sunset.

And if you don’t play nice they’ll simply shut down your account and freeze your existence. You will not be able to buy a bread let alone iPhone. When you go to the doctor he will say: ”You had 36 Cokes last month, sugar is bad. No more insurance coverage for you”.

The biggest beef I have with cashless payment setup is a total loss of privacy. As with any other banking kind of transaction everything is recorded and tracked down.

First, let’s talk about tax

I feel this has to be said since I have a strong impression that most of the people are ignorant of or oblivious to the amount of taxation that is imposed on every citizen. Take any product, really anything, and analyze it all the way from the moment of inception to the moment when it was purchased or consumed in some way. It can be anything from the pencil to a locomotive. Size and price do not really matter at all. For example can of Coke.

It starts its life as a municipal water entering Coca-Cola production facility. It was paid and tax charged on it. Then there was a Coke secret mixture of sugar, chemicals and whatever is in the mixture. Farmer growing sugar cane purchased seeds, fuel for tractor, paid workers and tax charged and collected every step of the way. Same with all other ingredients. They didn’t fall from the trees. Everything was purchased and taxes paid for.

Coke powder is now mixed with water, carbonated and filled into cans that were purchased from aluminum cans supplier, painted by some other contractor or within the production line. Every little thing was purchased, a tax charged again and again. Now Coke is in the can, packed with nylon foil and cardboard, loaded into trucks and driven to the wholesale center.

Drivers, trucks, diesel, parts, warehouse floor space, electricity for lights, heating and cooling all paid tax on every bit and piece or person that came even close to our can of Coke. A truck has 10000 parts and every single screw and nut had a tax attached to it. Same with every other piece of equipment involved.

Smaller truck now takes a load for Coke to the store or variety store.

Same story there. A building, space, lights, people, security, accounting, cash register everything in sight was paid for and tax paid. Finally comes you and buys cold Coke for $1.00 + sales tax.

When dissected like this it is obvious that at least 90 cents of that dollar went into Government greedy hands to finance their financial failures. Doesn’t matter if an item is a Coke or locomotive. Taxes are percentages and are applied to everything. Keep that in mind; EVERY little thing surrounding us is a taxable item. Including land, we are standing on.

How this relates to cashless payments?

It shows the importance of tracking every dollar. Government and banks love the concept of cashless society. Every person will have a plastic card in his/her pocket and kiss goodbye any privacy still left. People like writers mentioned before are already delighted with it and will greet it with open hands!

With cash out of the picture, every expense will be done electronically. Buying anything from chewing gum to car it will be all electronic and only way. No other option will be allowed. Government sanctioned and enforced. Cash abolished and gone forever.

Banks will rub hands with the windfall of money coming their way. Remember: no cash to handle, no coins, no ATMs to maintain, no vaults to build, most of the workforce will get fired. Computers will take the brunt of work. Bankers wildest dreams fulfilled. All transactions electronic. There is a charge however small attached to every transaction. This time it will not be only merchant paying to credit card companies and bank but everybody will pay for everything.

Things paid cash in direct buyer-seller contact and transaction will be a matter of past. It will not be only matter of hiding purchase of joint of marijuana or box of condoms for Saturday night fun, but buying an old bicycle on Craig’s list will be also subject to tracking.

I bet you dollars to donuts that bank charges will be just a beginning. Wait until IRS or CRA lays their greedy hands on every personal expense shown in the report. It will be tax galore.

Similarly to carbon tax which is plain and blunt money grab, there will be tax on everything. The wording doesn’t matter. Money grab left, right and center does.

Spoils of war (on your digital wallet) will be enourmous. But there is more.

Here comes the worst part

If you thought that Google and Facebook tracking our spending habits across the Internet is bad, you have seen nothing yet! When everything goes cashless those records will be brutally comprehensive! Every single purchase and expense will unveil all aspects of personal and intimate data. Medications, alcohol, going places, eating, entertainment habits, everything will be open book for one who can and want to look into it.

Willy-nilly banks will be policing every client for “financial crimes”. Those crimes are of the “highest level”, spending own money. They already do that but when things go completely cashless it will take a whole new level.

Even today. Give it a shot and go to the bank and ask to withdraw 6000 dollars of own money. There is no way in hell that you will walk out of the bank with money in your pocket! First, there is no so much cash in the bank. Cash capitalization of the banks is probably the lowest in the known history. 
For example, Norwegians banks have about 12% cash capitalization. That is a lot compared to one of the 5 largest Canadian banks has less than 0.5%!

Think about it. It is crazy. If clients brought in 100 million dollars in any form bank will have less than 500 thousand dollars in their vaults spread over hundreds of branches. Where is the rest? Just a bunch of numbers shown in the ledger. Money is created out of the thin air.

They’ll hand you a draft check or anything else but cash. It is almost like asking for the rock from Mars.

Secondly, if the amount you want is 10000 dollars or more, in any form, you will have to explain bank what a hell you want to do with your own money. Pay hookers won’t cut it. Go to Las Vegas and have fun either.

It is happening already!

Recently we had a customer from Belize who wanted to buy demo bus ticketing that uses smart cards. Bank flatly refused to wire out $3400.00 to us to Canada. Explanation? They didn’t like what he was buying. Bitch at the counter sent him an e-mail saying that purchase is not approved by the bank. WTF? Since when bank clerk approves what client will buy or not?

Imagine when everybody is 100% on a cashless system. Banks and Government will want form F-YOU-55 filled up for every expense above 500 dollars. For 10000 dollars you will have to pee in the cup and give a blood sample so they can check DNA before handling such outrageous request.

When picking up medication in pharmacy they may say something like: ”No insurance for you, after eating so many burgers last month you got exclusion”.

Total shutdown looming on the horizon

Still, the worst thing can happen is when a computer or big bad wolf Government turns off your payment card. A person will find himself in the impossible situation where there are funds in the account but it is frozen due to a thing you said, purchased, paid or not paid. The myriad reasons, single outcome.

It would be so easy to do that there are no doubts in my mind it would become the weapon of choice. Some little creep sitting in Government or bank’s office will play with people’s lives. Click of the mouse is all it takes to exclude someone from society. No money, no food, no housing, no transportation …

Everybody will have to play by the rules. And rules are created and enforced by the Government. Total domination comes to mind. Have to check definition of word “fascism”.

And then there are audits

Being audited or scrutinized by the Government is no fun. A company I am working for we got audited for tax collection for merchandise sold. Audit lasted almost 10 months. 2 years of sales were dissected and scrutinized. Cost us money, effort, time, endless digging into accounting files, bank reports, calls to the accountant and a lot of nerves. I could write a whole post about that but that is not the purpose of this article.

The worst part of it is feeling like a criminal, being on a constant defense. Explaining every financial move.

You always think and hope that now it’s over but taxman keeps coming back for more. Last he asked for were personal bank records for every major shareholder. Being a family business that practically meant all of us had to go to the bank and pay for old reports. Hand them to the taxman. He comes back in a week or two and asks for an explanation of every amount found in the deposit column.

As you can guess it is easy to explain monthly paycheck entries but almost impossible anything else. The reasoning was that we, the owners, could be stealing money from (own) company.

Now imagine a few hundred million people being controlled and audited that way!

Remember a big squeeze started in 1913? Well, this is a mother of all big squeezes! Constant, relentless pressure 24/7. Can’t remember what was those 200 dollars deposited into your account 2 and half years ago? Too bad. No more (your own) money for you! The account is frozen until further notice or until you refresh your memory and admit to the horrible crime committed!

Remember how just a search for anything on Google produces an avalanche of ads no matter which WEB site you visit. Those ads follow you for months. Google, Amazon, Facebook, and others are known for that.

Knowledge what you actually buy for everyday living will worth pot of gold. There will be no guessing but exact numbers, quantities, locations all recorded in your file. Don’t count on privacy and secrecy. Information like that will be the ultimate advertiser’s galore. It will be exposed, sold, stolen, hijacked, hacked … whatever it takes.

Science fiction? Stupid? Outrageous? Fascistic? Impossible? Wake up. Impossible things happen every day. Especially when Government is involved. Nobody is asking me or you for approval. They’ll do what they want to do and outlaw every other actions or behavior no matter how reasonable they may be.

Cryptocurrencies

And don’t think that cryptos will save anybody. Generally speaking, cryptos may be a thing of future but not the way it is logical and makes a perfect sense.

I don’t think Bitcoin will disappear but it will be suppressed. Same for Ethereum or any other crypto for that matter. Cryptos are practical, portable, fairly secure, technologically advanced. People like it and will widely accept it in the future. They have a lot of good things going.

The government will sure play a crypto card to prove how advanced and acceptable they are for progress. But they will do it with a twist. It will be newly created crypto. Controlled and sanctioned by the Government. Every other crypto shall be declared a danger to the financial system, outlawed outright and holders declared as enemies of the state. Good luck finding exchanges or doing any transactions in such environment.

Cash, credit cards and ePurse cards

A cashless system as it should be done

Money and financial transactions are quite a personal affair. Nobody wants to talk about it, let alone let the whole world know what you are doing with the money. Cash is perfect for that. The electronic system may be the answer but when done in the right way.

We know a thing or two about cashless payment systems. Our company makes something like that based on the smart cards. Privately owned payment system like that is totally opposite of intrusive and controlling. A consumer gets a card and loads it with electronic money.

Yes, it is based on the prepaid smart card. It is not a credit card. A consumer can spend only what he has available. From that point cash is in the card and transactions are cashless. Anonymous? Absolutely! The consumer controls his own card, PIN, balance in the card and re-charges the card when needed.

The system really doesn’t care about cardholder’s identity. He or she is a valued consumer and that is all that matters. Electronic money can be re-charged into the card using cash, credit card, debit card or any other way accepted by the merchant. For the merchant, money is money is money. Name and form are not important. Cashless makes it easier, safer, more practical to handle and buy things.

And notice lack of bank in that equation. It is not needed. The merchant doesn’t pay any fees to anyone since he owns the system. No leaches involved. The government still gets tax charged on merchandise. Buyers spend their after-tax money they way they want to and nobody ain’t tracking nobody.

Example for usage would be a gas station (chain) with fleet customers where company they drive for hands a card to drivers to pay for gas. For example taxi cabs. Or delivery trucks. No money was stolen or misspent.

Talking about taxi cabs. In the city of Sao Paulo driving a taxi was the most dangerous job one could have. Robberies and murders of taxi drivers were a daily occurrence. That is until smart card-based payment system was introduced. From that day until today no taxi driver will accept anything but cashless payment via smart card. After working day driver goes home to a happy wife and his cut gets transferred to his account. No cash involved.

Or children in the school getting a hot meal and instead of paying every day with pocket change use the pre-paid smart card. By loading card once a month parents never forget to hand daily change for a sandwich. Money can’t get lost, stolen, bullied out or spent in variety store for something else. School restaurant doesn’t have a problem handling change and cash register. No bank, no Internet, no rentals of the payment terminals, no bank. Easy peasy lemon squeezy.

There are no unbanked people

Notice that systems just described doesn’t have banks in the picture. Establishments own their systems and pay no fees.

Even more importantly everybody is eligible for such a cashless system as a user. No applications to be filled up, no credit history checks, no lineups, no spilling over personal information. It is plain simple, secure, easy to understand and use.

Again, the main goal is practicality and security. Not intrusion of privacy or tracking of personal spending.

Conclusion

Cashless future is coming upon us and is not something to look for, let alone encourage it. Who wants to be cashless can do it today using debit or credit card. Same with mobile phones and electronic watches equipped with NFC and software.

For the rest of us, and that is about 4 Billion people, leave the cash fuck alone! If people want to use cryptos let them. Criminalizing methods of payments is not a solution.