Re:In our cashless society, we need to take digital jail ser...
by globular-toast on Wednesday February 23, 2022 @05:57AM
(#30439827)
> It's about being able to pay for basic needs (rent, bills, food) via cash.
One thing many don't realise is just how difficult the banks have made this for us now.
The money supply consists of three parts: physical cash, digital central brank reserves, and digital private bank money. This is how it is in the UK, but the US will be roughly the same.
Physical cash, everyone knows. It's printed (and destroyed) by the government. Digital central bank reserves exist in a ledger kept by the government which private banks use to settle up every night (to handle inter-bank transfers). Digital private bank money is money created by private banks when they issue loans. It is what exists between someone taking out a loan and paying back the loan.
Digital bank money is about 80% of the money supply. Central bank reserves about 18%. Physical cash: 2-3%.
The banks have inflated the money supply so much it's simply not possible to live with cash for most people any more. Assuming someone pays rent, it's not unusual to get paid in digital bank money and for 40% of that to be digitally transferred to your landlord. None of this ever becomes physical. There simply isn't enough physical money to go around.
How do we stop this? It would take a huge government intervention and a brave one. Society is on the brink of chaos at any moment and everyone is too afraid to rock the boat.
One thing many don't realise is just how difficult the banks have made this for us now.
The money supply consists of three parts: physical cash, digital central brank reserves, and digital private bank money. This is how it is in the UK, but the US will be roughly the same.
Physical cash, everyone knows. It's printed (and destroyed) by the government. Digital central bank reserves exist in a ledger kept by the government which private banks use to settle up every night (to handle inter-bank transfers). Digital private bank money is money created by private banks when they issue loans. It is what exists between someone taking out a loan and paying back the loan.
Digital bank money is about 80% of the money supply. Central bank reserves about 18%. Physical cash: 2-3%.
The banks have inflated the money supply so much it's simply not possible to live with cash for most people any more. Assuming someone pays rent, it's not unusual to get paid in digital bank money and for 40% of that to be digitally transferred to your landlord. None of this ever becomes physical. There simply isn't enough physical money to go around.
How do we stop this? It would take a huge government intervention and a brave one. Society is on the brink of chaos at any moment and everyone is too afraid to rock the boat.