Meraglim Blog

China May Be First Major Economy to Go Cashless. Citizens Will Be Helpless

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn

The war on cash has been going on for decades. The U.S. abolished the $500 bill in late 1969. (The old $500 bill featured a portrait of President William McKinley, by the way. I remember seeing a few when I was a kid). Today’s $100 bill is only worth 10 cents-on-the dollar compared to the $100 bill of 1969.

Europe abolished the €500 note a few years back. We all recall what happened in India in late 2016 when India abolished the 500 and 1,000 Rupee notes (worth about $10 and $20 respectively); there was mass chaos as peasants lined up to turn in the old notes for digital credit. ATMs were shut down because replacement notes were too big for the ATMs!

Now the war on cash is being taken to a new level. China, the world’s most populous country with the world’s second largest economy, has said that physical cash may soon become obsolete, according to this article.

China has huge digital payments platforms developed by their own companies, Tencent and Alibaba, in addition to traditional credit and debit cards and mobile phone payments. Movements like this might start slowly, but they gain momentum and end quickly.

Cash can be expensive to handle because vendors have to hire armored cars to move it, buy machines to count it, pay premiums to insure it and risk losses due to theft. Those costs only make sense if they can be spread among a high volume of cash. Once cash usage falls below that critical threshold, the handling costs per unit are too high and merchants quickly abandon cash altogether.

China may be getting close to that tipping point and will get there sooner if the government pushes cash off the ledge by regulation. This is consistent with the Communist plan for total control of their people.

Once physical cash is gone, your liberty is gone because government can easily monitor and freeze all digital payments. The only recourse for the Chinese people once their cash is gone will be physical gold and silver.

IF THE SCIENCE IS NOT ON YOUR SIDE, JUST TRY THREATS

It’s clear that good science does not support the extreme claims of the climate alarmists. Yes, there is such a thing as climate change, but it’s slow, difficult to predict and almost impossible to model because of the complexity of the process. The climate alarmists have grabbed most of the headlines for the past ten

Read More »

WHY TRUMP WILL WIN REELECTION: NOT POLLS OR PUNDITS; JUST COMMON SENSE

Political analysts use polls, betting odds, historic trends and other inputs to make their (usually wrong) political predictions. We all remember that “experts” said Hillary Clinton would win the presidency in 2016 (they gave her a 92% chance on the morning of the election), and that the UK would vote to “remain” in the EU

Read More »

HERE’S ANOTHER ELITE WITH ANOTHER PLAN TO TAX AWAY YOUR WEALTH

The elites never rest when it comes to devising new ways to take your money through taxes, inflation or outright confiscation. The latest Trojan horse the elites are riding to take your money is climate change. The climate does change over long periods of time for reasons that are not well understood except that they

Read More »

KRUGMAN SHOWS HE KNOWS LITTLE ABOUT ECONOMICS AND LESS ABOUT FINANCE

We already knew that Nobel Prize winner Paul Krugman knows almost nothing about economics. Now, we see from this article that he knows nothing about banking either. Krugman claims that the repeal of Glass-Steagall and the actions of banks in general were not the cause of the 2008 financial crisis. The conventional wisdom is that Lehman Brothers,

Read More »
Scroll to Top