IT’S TIME TO BRING BACK THE $1,000 BILL…
If you've been following the central banksters at the B.I.S. (Bank for International Swag) or the Old Lady of Threadneedle Street and her calls to end the use of 20 and 50 pound notes, you'll know that the Klaus von Blohschwabs of the world are in earnest when they say they want to move everyone to a cashless society. Their reasons for doing so are effectively reducible to two basic points: (1) cashlessness puts all their activities and transactions behind a one-way mirror, as Catherine Fitts likes to say, i.e., the central banksters get to continue their financial tricks, insider trading, skimming frauds, robo-mortgages, and so on, without any possibility of exposure. They will even continue to conduct their transactions by the exchange of real physical instruments like bonds and stock certificates and gold bars and so one, while the rest of us are forced to rely on electronic blips, because (2) they get to control those blips at the push of a button, and to "regulate", i.e., determine, the value thereof. In short, a cashless society is a one-way road to corporate coupons, and to "you'll do and think as we say, or no food or heating for you." It's a one-way ticket to Ms. Antichrist (note my gender inclusivity).
According to this article from Zero Hedge and shared by K.J., however, some Britons appear to be taking the advice of Catherine Fitts, and are using more and more cash:
"Anything But A Cashless Society": Physical Money Makes Comeback As UK Households Battle Inflation
Now, I'm going to crawl way out on a twig not only of high octane speculation, but of utter lunacy: the inflation that the world is experiencing under alleged President Bidenenko might not be because they're running the printing presses, but because they're dialing up more blips on the computer. The article itself suggests this strange phenomenon, that physical cash seems to be acting in a fashion similar to gold and silver when the printing presses of money are being run, i.e., it is acting as a relatively more stable store of value:
The report pointed out that increasing physical cash demand was primarily due to more people managing their budgets via notes and coins on a "day-by-day basis." It said some withdrawals were from vacationers needing cash for "staycations" in the UK. About 600,000 cash payouts totaling £90mln were from people who received power bill support from the government, the Post Office noted.
Britain is "anything but a cashless society," according to the Post Office's banking director Martin Kearsley.
"We're seeing more and more people increasingly reliant on cash as the tried and tested way to manage a budget. Whether that's for a staycation in the UK or if it's to help prepare for financial pressures expected in the autumn, cash access in every community is critical," Kearsley said.
We noted in February 2021, UK's largest ATM network saw plummeting demand as consumers reduced cash usage. At the time, we asked this question: "How long will the desire for good old-fashioned bank notes last?
... and the answer is not long per the Post Office's new report as The Guardian explains: "inflation going up and many bills expected to rise further – has led a growing numbers of people to turn once again to cash to help them plan their spending."
But why should cash and coins act as stable stores of value?
Note that my original statement was that it is acting as a relatively more stable store of value. By this I mean when banks are running the printing presses and printing paper notes, the more stable store of value is bullion, because bullion cannot be processed as quickly; when paper notes in circulation do not vastly fluctuate over a unit of time, they can be relatively stable stores of value. The trouble is, it's much easier to print notes, than to mine bullion. Similarly, it's much easier to manufacture electronic blips as money, than it is to print paper notes. To use an old conception, the seigneuriage (the difference between the value of money and the cost to produce it) is low in the case of paper notes when compared to bullion, and much lower for electronic blips on a computer compared to paper notes. This means stability of a store of value of any physical medium of exchange is a function of the seignueriage, i.e., a function of the time and cost of production and the amount of units of value produced per unit of time. Store of value as a concept is thus relative, and has nothing to do with some magical or inherent property of bullion per se, but is intimately linked to the idea of seigneuriage. By the nature of this case, then, even though the risks of hyper-inflation are inherent in any system of paper currency, they are even greater by orders of magnitude in any digital system of "cashlessness." And by the very same processes of reasoning, one can also see that the risks of deflationary periods are magnitudes greater in a "digital" system than in an "analogue" system of paper, coins, and/or bullion.
This is the reason for the odd phenomenon being reported in Great Britain of people using cash and coins as a means of budgeting: relative to the creation of electronic "money", the value of the actual physical media of exchange is more stable. Or to put this problem with more bluntness: suppose one wanted deliberately to inflate or hyper-inflate the economy. Would it be more effective to "run the presses", or to create more electronic blips? Answer: create more electronic blips. Which of the two becomes a more stable store of value? Answer: Cash and coins.
We can go further of course, and note that the seigneuriage of printing, say, 1,000 thousand dollar bills will be less than printing 1,ooo,ooo one dollar bills.
Maybe it's time to revitalize the printing of large denomination notes... it would make buying a car with cash so much easier.
But in any case, save your privacy, and your freedom, use cash as much as possible...
See you on the flip side..
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I think you will find this video intriguing. Just as you, Dr. Farrell, and CAF have been saying for years about how Russia has been working to replace the SWIFT fractional banking system, they have announced a new currency based on gold. Asset backed. What a novel idea.
https://www.youtube.com/watch?v=u9qtY7iTZHQ&t=53s
Took me a few days to get it: we’re talking about _frictional_ reserve. 😀 The way I grasp seigneuriage is it works like a friction brake, such as you might have in a fishing reel. Won’t stop a thing but it’ll slow down someone who would like to fcuk around with the money supply.
Glad to see it wasn’t just me who had to do some serious head scratching with how this might affect an economy. I’m not sure how the term can be applied to digital blip money, as there is really no meaningful difference between the cost of creating a $100 or $10k or whatever, just type it in and hit Enter. Thus calculating a lower/higher seigneuriage for each becomes pointless.
Digital money creation as a whole is naturally more cost efficient for the bank than any traditional money.
Get the complete story … we need to stop chasing one crisis after another. The bankers, along with Israel-Russia-China are trying to divide America. The Pentagon is already backdoors, Microsoft and Intel are working in Israel, Amazon Web Services has hired Israeli Cyber-Security Engineers for their DOD JEDI Cloud computer $10 Billion dollar contract … this is a complex story that no one is really talking about in a way people can get their teeth into. Please watch.
https://www.youtube.com/watch?v=0YPO9QeRdU8&list=PLlDxOv3vXbAe3yPHdQn1ML_yD9jC7enX2
Meant “Backdoored” … actually, we’re all backeddoored. This is a fascinating story of espionage, the One Belt-One Road, Consolidation of the Middle East with Jerusalem at the center (Bunting Cloverleaf takes us back to history for the 21st century) … add criminal bankersters, cyber-security/terrorist combo firms and you’ve got a smash hit – something much better than any spy thriller will give you. We’re living it now – so get your questions answered!
Get wise!!! Everything is about ‘crisis. It’s all about ‘a crisis’. Every day a ‘new crisis’ is being transmitted to you over the public, and private avenues. No person, state, or enity has a ‘padlock’ against throwing you into a crisis!!! They all are ‘shoving-you’ into a crisis. It’s your choice whether, or not, you enter into a ‘crisis’. So, get wise, or get swept-up in their diabolcial game. It’s your choice!!!!
To induce crisis, is to rule by fear. It works both ways. When satanic forces begin to move as one, they reveal themselves.
But the US mafia can only maintain focus for a short while, and that is why, it needs a propped up target, a media defamed bad guy.
That someone, who is appointed to be the major fall guy, in the pecking order, becomes decapitated in a hysterical witch hunt.
To succeed, Pope Satan must define his mob rule, as rule of law, to create a New World Order, through communist chaos!
Sorry, hit the wrong ‘REPLY’ button on the post below…. so here is my Reply to your post, which is a good post, and so right…
“Get wise!!! Everything is about ‘crisis. It’s all about ‘a crisis’. Every day a ‘new crisis’ is being transmitted to you over the public, and private venues. No person, state, or enity has a ‘padlock’ against throwing us into a crisis!!! They all are ‘shoving-us’ into a crisis. It’s our choice whether, or not, we enter into a ‘crisis’. So, let’s get wise, or get else, get swept-up in their diabolcial game. It’s our choice!!!!”
“But why should cash and coins act as stable stores of value?”
Why should gold or silver? It all comes down to a mutually shared illusion.
Yes, one can manipulate any shared illusion, and that is the fun part of it.
To enter, into empty void of nothingness, is an exercise in embracing death.
Those, who fight with hidden means, live in constant fear of being found out.
Brutal honesty causes enemy panic, and I am elaborate in merciless sophistication:
https://dl.dropboxusercontent.com/s/c9670bm8xtlvkok/midnight-places.mp4
Word to the wise folks here, go watch “The Illusionist”, https://www.imdb.com/title/tt0443543/
It’s a free movie, and it will expand your thinking beyond what you understand now!!!! Far beyond what you think, or believe is TRUE, far beyond!!!
All those corporate store loyalty programs make even cash trackable; put in your phone number to get a discount, if you don’t you get punished with a higher price. Its the same old shtick. If you are unreasonable, they will persuade you.
A cashless society is a counterfeiter’s wet dream. They don’t even have to create a fake, it doesn’t even exist to begin with.
Loved it!
You ‘nailed-it’ marcos toledo!
ELOHIM
Fraggle tungols sing, by illumination,
running their course in heaven,
sounding everywhere
in music of sphere,
throughout weekdays of seven.
https://dl.dropboxusercontent.com/s/c9670bm8xtlvkok/midnight-places.mp4
BTW, yuletide, as an annual reset, is means to counter any dept based slavery, that is characteristics of predator capitalism, in Assyro-Babylonian and Greco-Roman empire succession.
That is the reason, why YHWH – as yuletide – became banned spoken, in the 1st century BC, and replaced, by lunacy of false passover calculations, under Roman puppet rule.
A fixed calendar, by solstices and equinoxes, is the Druidic trademark of the compass epistemology, that is a proven and documented legacy of Abram & Co.
River rafting in Genesis is annual reset rite of astro-agrarians.
I don’t buy the logic here (in any currency). The only way dollar bills become a better store of value than dollar blips is if sellers of things begin giving bills preference (by which I mean discounts) relative to blips. Otherwise a dollar is a dollar. Interest rates on blips going negative would also do it (the interest rate on paper being zero). Loss of access to blip-based payment systems would also tip the scale in paper’s favor.
But right now? I just think this means that a lot of budgeters in the UK find budgeting easier if they can make little piles for each line item.
I agree. The logic does not compute.
Even if any sort of difference did emerge, arbitrage opportunities would come into being that would incentivize the bridging of those differences.
This article is talking about how cash is easier to budget with because you have it on hand, and you can physically divy it up and set it aside in portions for different budget allocations. I.e. this $100 dollar bill is only for food and it has to last me whole week.
It has nothing to with, nor suggests, that the value in cash and your digital currency is different.
The only real difference between cash and and digital is discounts small businesses give customers for paying in cash because they can avoid credit card transaction fees and it is easier to evade taxes with.
The answer to why a dollar blip has a different value than a dollar bill is counterparty risk. Counterparty risk is the likelihood or probability that one of those involved in a transaction might default on its contractual obligation. Should a government default on its contractual obligations regarding currency, as the Greek government did during its recent financial crisis by limiting her citizens access to their private bank accounts, the physical bill held one’s pocket had greater value than the non-physical blip held in one’s bank account.
pmchenry and ats make good points, correct points in my view. The market would value the FRN the same, you would think.
And yet your comment is correct. Counter-party risk couldn’t be more relevant, especially at this moment in time. During a bank bail-in situation, cash wins. And there’s the intuitive wisdom in the adage, ‘keep cash on hand for an emergency.’
Joe, “I’ll give you $600 tomorrow. They say electricity is back on tomorrow.”
Jim, “I’ll give you $440 now, in twenties. They said electricity would be on yesterday.”
And there’s Amazon, for example. My cash has no value there.
Seigniorage I hadn’t given more thought than premium (premium over spot). Bulk tobacco is less than a fabricated cigarette. And a silver eagle, at today’s prices, would cost more to counterfeit that just buying the silver bird.
If the silver melt value of a coin is greater than face value, the market risks losing the coin. The copper in the coin gives it durability for wear, and it also makes silver/copper separation more difficult.
Hell, forgot where I was going with this. Segue… anyone picked up some Goldbacks? Beautiful notes AND they’re not money substitutes, they’re money.
Only ‘TRUST’ the hard, physical stuff, at best. History reveals that hard, physical stuff has almost always ‘won’ over paper, or ‘digital’ stuff, except in extreme cases of ‘upheaval’, which is now nearing its tipping point.
24k Gold is embedded in each Goldback in precise measured amounts of 1/1,000th, 1/200th, 1/100th, 1/40th and 1/20th of a Troy Ounce.
Gas stations in my neck of the woods give a gas discount for using cash. Since most of our money goes to buying gas this is a very big insentive.
Then I don’t think you’ve understood seingeuriage… the key here is the premise of whether a digital currency IS ACTUALLY cheaper than paper…. at first glance, yes… but look closer at the costs (and energy consumption) of mining cryptos… or to put my point differently, there is a link between volatily and seineuriage….
I think I’ve understood seingeuriage. My point is pragmatic. Until ‘Joe,’ who runs the convenience store down the block, thinks about seingeuriage too, and behaves differently because of it, it’s not relevant. Bills in my pocket or blips in my bank account accessed via my credit card work the same way (with the exceptions noted by some other commenters regarding discounts – which are not the rule, and which I acknowledged also). I also acknowledged the counter-party risk point. We may soon see the financial catastrophe that makes blips go away, leaving paper, for as long as anyone continues to value that over actual stuff, as the only available medium of exchange (visions of Weimar wheelbarrows are now dancing in my head). We’re not there yet, and I’m still just skeptical that this story implies that average people doing budgets are thinking in these terms… yet.
Is digital currency actually cheaper than paper? Is digital currency actually a currency?
There has been discussion of whether cryptocurrency is currency or money. An argument could be made that its neither, that it’s credit (or, a credit) on a ledger. This contention is supported in structure and name; blockchain ledger. If that’s germane, then it comes down to which “company store” is superior. None?
Perhaps that thought can be applied to digital currency in general? The laws have changed and a “deposit” is no longer a deposit; it’s a loan to the institution.
By the way, I had no idea of the time-based specie-redemption feature of the Confederate notes. Fascinating. That makes it a miniature bearer bond? That could have worked. I guess it did work.
How strong would the belief be that it had value? How long did that belief last? And apply that thought to the post-petrodollar untethered FRN (that in no way should collapse, not for several weeks at least). Americans see the world through green-colored glasses. How long before they don’t give a damn about a…
As cash-withdrawal machines disappear and bank branches close, restrict their hours, or make it harder to withdraw more than a fixed, small amount of cash, paper currency will become more scarce. Might that scarcity also make paper currency relatively more valuable than the always-available electronic blips?
Scarcity of ‘hard currency’, i.e. coins, rather than paper will lead to the time where they will become more valued than paper, which has NO intristic value. So, sure I could hand you a $1,000 ‘paper bill’, but there will be a time when there is more ‘value’ in the $100 dollars of coins that I could hand you.
Also makes it easier in the drug trade;
one of the bankster’s primary preferred partners[PPP].
The other PPP[private public partnership]
is another primary preferred partner: fascism.
Talking about fluctuations, I often have quite a few items in my “cart” at the online sales platforms, though seldom actually making purchases. There are lots of messages reporting how “the price of the items in your cart has changed”, sometimes going up by as much as 50% and then mysteriously going back down to previous levels. While this is apparently “normal”, nothing of the sort happens in physical stores, except in end of season sales.
As for large denomination US bills, they will probably not come back into general use until the current Federal Reserve note is driven even closer to zero value and the system definitively cracks. Something is afoot, for example, with the US Mint, which despite having the technical capacity is not producing the gold and silver coins though its institutional mission is to produce such coins to satisfy demand.
Whoever is at the driver’s seat, and not only in monetary affairs, appears to have put the engine in neutral, letting the “car” roll downhill, out of control and with no brakes or reverse gear.
As I have posted before, we are headed into a Civil War. Reason being is the utter distrust in the current Regime, and their ‘antics’. Get prepared, because it’s coming whether or not you want it.
Word to the wise here, Jeffrey Prather…..
Unless real Americans take over several state governments there almost certainly will not be a CW, and if there is one we will certainly lose.
Counting on a CW, apocalypse, or Q to save you is nothing but a cowardly cope to excuse people from sounding out their neighbors and getting into local politics.
High note money frogfest, as declaration of independence:
https://dl.dropboxusercontent.com/s/ftim1j4vq72280g/frogfest-22.mp4