On its face, The Curse of Cash is an argument for morality: criminals use cash to operate in the shadows, and there’s nothing an honest citizen can’t do with money electronically; therefore ridding our society of physical money would make for a more virtuous, safe, and honest environment. Physical currency was an absolute necessity to simplify a world of barter, but now technology makes it possible for money to be entirely electronic without that bringing disadvantage to any honest person.
Notwithstanding the numerous flaws and fallacies presented as part of that argument, it’s also not the real reason why the author would like to see pesky cash eliminated. The truth is far more insidious, and essentially boils down to this: the existence of cash makes it more difficult to steal on behalf of a government. That’s because currency serves as a backstop for interest rates, to wit: if central bank governors lower interest rates into negative territory — which means that one’s bank balance could shrink over time, even without the application of monthly maintenance fees — then more of us would resort to shoving big bills into our mattresses. Without those big bills, a whole new realm of possible ways to separate individuals from their money becomes possible.
The notion of negative interest rates is novel enough that when first confronted with it, many people don’t even understand the concept. It’s a sweet deal from the perspective of government, though: just like inflation (which is an intentional act, not the mysterious and uncontrollable force it’s presented as in many news reports), negative interest rates allow money to be scooped up without the politics of raising taxes. Negative interest rates, however, are the scalpel to inflation’s chainsaw. What they have in common is that they are tools used to reduce the value of money, which makes it easier to pay back loans for the people who created that money in the first place, who happen to work in government.
Most government spending is paid for not through taxes, but through bonds, which is how governments (and corporations) borrow money. With inflation, the trick is to add more money to the supply, knowing that each dollar will purchase less as a result and thus the dollars used to pay back the loan will actually be cheaper; this is why people who live on borrowed money such as farmers prefer inflation. Negative interest rates, however, remove money from circulation and transfer it back to the government for essentially the same purpose. Both are nothing but sophisticated ways of stealing, but negative interest rates would specifically punish the people who try to save for the future.
This entire book uses bait-and-switch, dangling a carrot (the fear of the faceless criminal) to get readers on board before acknowledging the true intent of the cashless strategy proposed, which is stealing more efficiently than any criminal could.
I like cash because it’s how debt-elimination programs work, and because it’s how magic works. I’ve yet to find a viable system for reigning in spending and paying off past debts that doesn’t begin with the participant converting to a cash-heavy or all-cash lifestyle. That’s because bills and coins are tangible reminders of the cost of any purchasing decision, and because there’s a much better chance that cash in one’s pocket is not borrowed, and thus not accumulating interest in favor of a creditor. Debit cards are marginally better than credit cards — if one turns off “overdraft protection,” a fancy term for “borrowing money from the bank,” at least — but I find it’s much easier to spend with the click of a mouse than with the opening of my billfold. Electronic money is always out of sight, and therefore it is out of mind even for a thrifty fellow such as myself.
Magically it works much the same way: a physical talisman is a powerful tool to focus one’s will, and it makes spending money with intent a whole lot easier if one has to physically hand it over. Many people write spells or wishes directly on paper currency. Cutting us off from a physical representation of money is a very effective way to cut us off from any control. It’s downright diabolical.
I now seek hundreds out, because I think normalizing the use of the largest-denominated bill in the American money system is our best defense against these and similar shenanigans. Sooner or later government officials, if faced with a populace of people who prefer cash, will have to reissue some of the larger ones, as well. That, or stop inflating currency, which in case anyone reading this blog doesn’t understand yet is entirely intentional and entirely controllable; inflation is increasing the money supply by issuing more money, and no complicated economic explanation will ever change that.
Do not buy this book. The author should not be rewarded for this diabolical scheme of eirs, which is why I have neither linked to it nor even mentioned the author by name.