Digital Currency – Blessing Or Curse?

During a recent trip to the grocery store, I observed several mothers with children riding in their grocery carts. I chuckled. When my kids were young, they reached for goodies for mom to buy. Some things never change; but some things do….

A little guy kept pestering mom to buy candy. Mom said, “No.” He kept up the pressure. Frustrated mom said, “We don’t have the money.” He said, “But mommmm, you charge the groceries.” Sadly, the bewildered mom put the candy in the cart. We were probably lucky, credit cards for groceries didn’t exist when my children were small.

Jo sent me a USA Today article, Are we moving toward a cashless, checkless society? Some statistics:

“According to the latest (study from) 2024 Diary of Consumer Payment Choice.

• • Cash was most used by consumers for in-person shopping. It also is the preferred payment method of consumers in low-income households and those 55 years old or older.
• • Consumers younger than age 55 used cash for just 12% of payments in 2023, compared to 22% for those age 55 and older.
• • Use of personal checks declined to 3% of payments made in 2023, down from 4% in 2021 and 2022, and 7% in 2020. Automated Clearing House (ACH) payments, or electronic check payments, accounted for 13% of payments.

…. ‘There is a war on cash,’ said Jay Stanley, senior policy analyst with…the American Civil Liberties Union.”

Quoting Jay Stanley and Jay Zagorsky, (associate professor at Boston University’s Questrom School of Business), they conclude:

“Zagorsky and Stanley don’t think we’re moving to a cashless or checkless society, ‘but this is a very slippery slope,’ said Zagorsky.

…. ‘We’re not saying we think you should pay with cash for everything,” said Stanley. ‘We’re saying that we should preserve the option of cash for people, even if that involves some expenses and some inefficiencies.’

‘I think there is a counter revolution happening.'”

Coincidentally, Chuck Butler writes, The Dollar Buying Ends, devoting a full page to discussing Central Bank Digital Currency (CBDC).

I contacted Chuck, we need his insights.

DENNIS: Chuck, once again thank you for helping educate our readers.

The survey shows most bills are paid by some sort of credit card, etc. Before we discuss CBDC, please explain “digital currency.”

CHUCK: Dennis, as always, it’s a pleasure to write to your dear readers…

Well, one day, you’ll check your bank balance, and receive the biggest surprise of your life, because… Your dollars have been changed to digits… and those digits may or may not be equal to the dollars you previously held.

Digits or units of whatever the Gov’t decided to do with your dollars, will then be how you have to refer to your balance. Bills will be paid by use of a card, like a debit card, and via computer like many are already doing. The idea is to transact business electronically, and not use cash.

There are already retail businesses that don’t accept cash; the idea is to force the process on all of us.

It’ll be a HUGE change for everyone, but that’s just the beginning…

DENNIS: Let’s move on to Central Bank Digital Currencies (CDBC). In the Pfennig you explained:

“Well, it appears now that Central Banks all over the world are on board with the call to move to digital currencies, and eliminate the use of folding cash…

The good folks at GATA sent me this long piece but I cut out a snippet; ‘According to the Atlantic Council’s ‘GeoEconomics Center’, which maintains, 134 countries (which represent 98% of global GDP) are involved in, or exploring, the rollout of a central bank digital currency. ….

Currently, 69 countries are in the advanced phase of readying their CBDC, a figure which covers CBDCs in the development, pilot, or launch stages. Another 44 countries/central banks are in the research stage.'”

It’s one thing to have digital currency, although the two economists didn’t feel we are moving to a cashless society, they added, “I think there is a counter revolution happening.”

Chuck, what’s going on? Consumers still want the cash option while governments want to eliminate cash altogether?

CHUCK: Yes, if we, as consumers were given the option to use either our cash in our pockets, or our credit card, like we do now, that would make living with digital currencies much more bearable…

However, to force the public off their reliance on cash, I feel the Gov’t will NOT allow us to continue to use cash…

I believe that all cash held at home, when the change is made, will be required to be taken to the bank and deposited, and therefore changed into digits…

Dennis, the issue here is the “option” of using cash. Worldwide central banks and governments are working hard to remove that.

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DENNIS: Back in my Casey Research days, I wrote about the Chinese cashless “experiments.” They put money in your bank account, just like our government does with social security.

You were forced to use a digital ID to spend it. If you didn’t spend it all, they deducted money from your account; punishing savers.

They also had “social credits.” If you didn’t spend the money where the government wanted, you would be penalized.

Is this what you are talking about?

“Money…is the nerve center of the economic system. If, therefore, the state is able to gain unquestioned control over the unit of all accounts, the state will then be in a position to dominate the entire economic system, and the whole society.” — Murray Rothbard

CHUCK: Yes, and why not? Governments want control over the people. We are foolish not to expect social monitoring. This is George Orwell’s 1984, version 2025.

If monitoring is available, don’t you think the Gov’t will use it to their advantage? And just how you explained it, is how I see the Gov’t using it.

But it goes further…

Let’s say you want to make a contribution to a particular political cause, but that cause is out of favor with the Gov’t…. Guess whose contribution won’t get made?

Green energy and other social causes???? If you are not supporting the preferred government narrative, there will likely be penalties. As you mentioned, the Chinese just took money out of the citizens’ accounts. You won’t have to worry about taxes, the government will confiscate the money whenever they want.

And you’ll have to digitally pay your babysitter, or the kid that cuts your grass, the list goes on. You can be sure that the recipients of these payments won’t be happy. I suspect a lot of “service” industries will be negatively impacted.

And one more thing… Banks will be allowed to pay minimal amounts of interest on deposits and CDs, if any… but don’t think you can go to the bank down the street for a better rate, they’ll all be in this together…

DENNIS: Why do I suspect donations to the NRA and subscribing to Gas Guzzler Magazine would be heavily punished? Geesh! Orwell has to be saying, “I told you so!”

Two-part question… You really feel this could happen here? If it did, wouldn’t society develop some sort of barter system?

CHUCK: Yes, Dennis… it will all happen here, because it can. There will be a “Black Market” for cash – But you run the risk of being arrested…

Look, the NSA was caught snooping on citizens’ calls, but do you believe they stopped? I don’t, not for one minute… So, to me that’s just the beginning of the Gov’t wanting to know all about you and what you’re doing with your money.

Once they monitor that, Big Brother will move to “engineer” society how they see fit. Dennis it is all about control and power in the hands of the elite. As you mentioned, it’s not just the US, all over the world.

While there will very likely be a “Black Market” for cash deals, we should also expect a barter system where I trade my lawn mower for your edger. Most people in this country still cherish their Civil Liberties… Regardless, people will figure out a way.

DENNIS: I once interviewed three speakers who had lived through hyperinflation in their respective countries and they described a similar barter system.

I suggested “junk silver” – pre-1965 coins containing 90% silver. They said things like that worked well. Thoughts??

CHUCK: Junk silver could be a great tool for barter, it’s recognizable value.

DENNIS: One final question. I started with the idea of blessing or curse. What can our readers do to make sure this never happens in the US? It’s downright scary!

CHUCK: Dennis, digital currency can be a blessing until the government mandates it, eliminating cash, then it is definitely an Orwellian curse.

As to how we can prevent it, hound your representatives – no mandatory digital currency. And you can load up on Gold & Silver, because I do believe that there will be things that you will be able to buy with Gold & Silver…

As I’ve told my readers in the Pfennig for your thoughts, I fear that time for protestation has come and gone… As Gandalf the White said, “Things are now in motion that cannot be undone.”

I hope the two guys are right, that “a counter revolution is happening.” That’s what it will take!

Dennis, much like our cancer battles, never, never give up!

Dennis here.

Governments worldwide are seeing a rise in the populist movement; people are fed up! The struggle continues. The stakes are high.

Chuck’s right – never, never give up!

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On The Lighter Side…

Fall is arriving in southern Indiana. I slowly crept down a back country road following my first combine sighting of the season.

Jo and I love to drive the winding country roads. I agree with her, there is something very peaceful about driving through farmland.

Some cornfields are still green, others brown – ready for harvest, while other corn is already “in the bin.”

She explained this time of the year the “early” planting is ready where the late spring planting won’t be harvested until October; a pretty busy time for farmers in this part of the world.

The hundreds of acres of soybeans are really cool. One huge field of late-planted soybeans looks like a perfectly manicured emerald green carpet. The adjacent field, early planting, was a beautiful rust-covered carpet. I would imagine an aerial photo would look like a county-fair crazy quilt with some vivid colors.

This is a special place in the world; down-to-earth, hard-working, caring people who want the best for their families. World politics has them very worried.

Quote of the Week…

“I warn you that politicians of both political parties will oppose the restoration of gold, although they may outwardly seemingly favor it. Unless you are willing to surrender your children and your country to galloping inflation, war and slavery, then this cause demands your support. For if human liberty is to survive in America, we must win the battle to restore honest money.”

— Congressman Howard Buffett, 1948

And Finally…

Jo sent along some famous quotes for our enjoyment this week:

• “You could not step twice into the same river.” — Heraclitus

• “We have two ears and one mouth, so we should listen more than we speak.” — Zeno of Citium

• “Fate guides the willing, but drags the unwilling.” — Cleanthes

• “There could be no justice, unless there were also injustice; no courage, unless there were cowardice; no truth, unless there were falsehood.” — Chrysippus

• “Let your desires be ruled by reason.” — Cicero

• “I begin to speak only when I’m certain what I’ll say isn’t better left unsaid.” — Cato the Younger

• “We suffer more often in imagination than in reality.” — Seneca

• “Men are disturbed not by things but by the principles and notions which they form concerning things.” — Epictetus

• “You have power over your mind — not outside events. Realize this, and you will find strength.” — Marcus Aurelius

And my favorite:

• “If you accomplish something good with hard work, the labor passes quickly, but the good endures; if you do something shameful in pursuit of pleasure, the pleasure passes quickly, but the shame endures.” — Musonius Rufus

Until next time…

Dennis Miller

“Economic independence is the foundation of the only sort of freedom worth a damn.” – H. L. Mencken

 

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