Coping: The Cashless World Ahead

Been doing a lot of thinking about macro-trends lately – the Big Picture stuff that is slow-moving and yet when you get out a few years into the future, it’s these topics which will shape our world into it’s new direction.  One of these is the future of money.

 

If you’re a long-time reader, you may recall our 2007 coverage of the story that the Council on Foreign Relations house magazine carried an article a couple of years back on the concept of “The end of National Currency“.  Since thinking of the CFR has a way of showing up in life some years after being kicked around, I’ve been watching the international scene seeing whether the concept is taking root, or not.  And just a few weeks back, you saw where Gulf Oil Producers were considering a regional currency.

 

Seems to me that the single global currency concept has merit at some levels, but fails at others. One of the things it would accomplish would be smoothing the way for corpgov to complete the move to take over the entire world, something that was derailed temporarily by the Climategate leaks and the subsequent falling apart of the Copenhagen agenda.  Not saying it’s good, but let’s call it what it is.

 

The danger of a one-world currency is that it would soon become apparent to people in other countries  how well they are doing compared to folks in other places.

 

If, for example, you’re an American software developer and you have hired some programmers in India to develop a new program and you are playing them  35,000 Rupees per month, the $120,000 per year US programmer who doesn’t get that job will probably not take the time to figure Rupees to Dollars and be ticked off at your American export of a good (and except for the Twinkies and coffee which fuels C++ writers) nonpolluting at that.  (The Indian programmer would make about $745 a month, BTW.
 

So the first thing that a global currency would do is reveal that there’s about a 12-15 to one cost saving to hire non-US programmers and when that kind of buzz got traction on the net the US programmers would see why their jobs are going overseas on the one hand and there would be some leveling effects over time.  Not a good thing, if you’re en employer because competitive edges come from chiseling some expense or other down to near nothing.

 

The other thing that a one-world currency would do – and again this is neither bad nor good…it’s just is – is that it would end the foreign exchange trade business.  Billions change hands daily on currency swings and for international stock market investors it’s a key thing.  Often, I’ve been able to trade in a foreign market and even if the trade blew up, the currency swing can save money.  Or, to put it another way, with currencies swinging about, it’s like buying a scratch ticket with two chances to win: Once on the underlying stock or whatever and then a second time on the currency swing.  Of course, they can both run against you…so due caution advised.

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Although I’ve been looking for a ‘one world currency’ I don’t see it happening for a good long while because of these kinds of trip wires.

 

On the other hand what is going on is the diminishing value of cash and even cash equivalents are being phased out.

 

Some examples?  Well, to start with much of Ireland is abuzz today over the report that “National Irish [bank] moves to cashless banking“.  Not that people in Ireland have given up on paper money – at least yet.  They will still be able to get it from ATM’s and such.

 

But underlying there are some interesting moves afoot which you might want to be aware of:

• The National Irish move follows something called the ‘Scandinavian model of banking where cash in minimal.  Almost everything is done by bank check or a credit card.

• Here in the US there has been a large reduction of check writing due to online banking and payment systems such that the Federal Reserve laid out plans in 2008 to have the “Federal Reserve Bank of Cleveland will serve as the single paper check processing and adjustments site and that the Federal Reserve Bank of Atlanta will serve as the single electronic check processing site for the Federal Reserve System“

• In a period of high unemployment (like now?) money moves from the ‘official’ (meaning taxed economy to the underground economy where things like taxes don’t exist.  In a cashless society, the availability of cash for illicit transactions dries up.

• What happens to the drug business?  For years, motorcycle gangs have been using silver as a kind of coin of their realm.

 

Indeed some interesting things to ponder.  While there’s no obvious conclusion to where things are going, I keep collecting data points.  Clearly, cash use is declining to the point where if you have more than a certain amount of cash on hand in your home, it may be legal but it’s also highly suspect and if ever confiscated, you’d probably have to hire a lawyer to get it back – and you might not…

 

Cash has a dicey future ahead – just like old-fashioned hand written checks.  Something to think about:  How do people remain free if government controls the means of free exchange?  Or, is that the whole point?

 

Net Abuse

How much time are you spending on the net weekly?  “Average Net user now online 13 hours per week”.

 

Breaking the Mold

Got a great email from a reader down in the South Pacific worth sharing:

“Hi George,

I have been reading Urban Survival for a couple of years now, and started building my boat about three years ago. A Wharram Tiki 31. As far as being an economist goes, i have NO qualifications whatsoever. But, i can sense danger when i see/smell it, and so, sold up the house and have taken my two boys 12 and 14 out of school and we have taken to the sea to take our chances in the coming years. Have just returned from a six month “adventure” with my boys up and back down the Queensland coast. Fantastic experience in a lot more ways than one. When we started out i had very little experience and my boys even less. But through a careful eye on the weather, and never letting the fear of appearing stupid preventing me from asking questions from more experienced sailors, we did it. Not only that, but with all the humility that the ocean commands, have become quite competent. The lads also. If ever anything should happen to me “while we’re out there”, they can quite competently heave to, MOB, navigate, operate the vhf and sail the boat with experience in winds up to 35 knots. We also have a store of three months worth of food and have made a note of several places where we can “run to” if/when the need arises. Why do i mention all this? Well i know you love sailing for one, and should you decide to post this? I know from my own experience, i like reading what others are doing in an attempt for there and there loved ones future survival. I’m also looking for places with “higher ground” for 2012. Not sure where that will be yet? NZ? Maybe? What i am writing to you about though, is an interesting correlation i have become aware of over the last couple of months. All the people i know, and most people i meet, (for a half decent period of time) I raise the subject of our current and future plights. What I have noticed is. That people who when using there mobile/cell phones, either hold the phone away from there head, using speaker phone, or plug in head phones/blue tooth because the use of the phone, heats there head, or causes headaches. These people seem more receptive and open to discussion. The people who seem closed to any such discussion, also don’t seem to feel any heat or suffer any headaches from the use of their phone. Is there anything in this? I have no scientific evidence to back it up, but i will continue to observe and see if the pattern repeats.

Have a great Xmas with your family mate,

Yep, nice to see some folks get off the treadmill and go have a life.

 

Meantime, Down at the WuJo

My First New Years Resolution

Not sure how I am going to go about this, but I’ve made a decision to involve myself in a past life regression in the coming year.  And with a very specific purpose.

 

I’m starting a search to find the best possible past life regression expert in East or Central Texas because I’ve been reading a fair bit in psychology and seems to me that while some of what goes on in ‘part life regressions’ may be made up by an overly active subconscious, one litmus test would be to do some regressing and try to bring back skills learned in other lifetimes.

 

I am especially interested in skills in areas like music and math.  I absolutely love music – find it very soothing and fun.  But, for whatever reason, the way my brain is presently wired I have a very difficult time telling my right hand to do one thing while the left does another.  Gross motor skills aren’t the issue, just I’m hard wired that way.

 

The way I have it figured, if I have any musical background in a past life, it would be cool as hell to bring those former lives skills forward into this one. 

 

Don’t know if it would be a way to revolutionize education, but worth giving it a try.  If I can bring back really good music skills, then an exploration of past lives might bring other skills to the fore in things like medicine, machining, cooking, and what have you.  Maybe having instant language fluency in some other tongue would be a plus…you know….get hypnotized and wake up with fluency in Spanish, German, or French kind of thing.

 

Not sure how to proceed, or if there anything in the literature about this, but sure seems like it would be an interesting experiment… suggestions are, of course, welcome.

 

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Send your comments to george@ure.net

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The UrbanSurvival Mall:

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“Live on $10,000″ A Year

With another round of layoffs due to start later this month…a round which will start to axe many of the middle managers who have managed to avoid the HR grenades…might I suggest a preemptive tactical move?  Voluntarily dropping your lifestyle back a bit, since we’re all being marched down that road by either circumstances or some out-of-control-PTB types who write checks to Washington lobby and to anti-reformers in California!  A good starting point, at least if you’ve still got $10-bucks is my e-book “How to Live on #10,000 a Year…or less!”

 

 

 

It’s an automatic download.  It’s written in an information dense style: The whole thing runs about 65 pages, but it gives you a vision of how to not only live on the cheap, but also how to migrate up the economic foodchain if you have a little hustle left…  Click here for the index and details.

 

MyGroPonics

My commodity broker JB Slear and I have written a simple book to get you started on high density hydroponics.  It’s an example of how someone with a little creativity, access to a few ‘dollar stores’ and willing to try out some new farming techniques can grow an amazing amount of produce sin a very small space – like even an apartment balcony (if it gets some sunlight).  Sound interesting?  It’s just $10 bucks here…

 

       

 

Pass It On

The business model of this website is base Simply click here and send a link to this site to everyone on your distro list…Nothing more dangerous than sharp, clear-thinking upstarts who ask a lot of questions, eh?  Unless you believe WTC-7 fell over on its own, of course….

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“If you ain’t paranoid, you ain’t payin’ attention!”