You volunteer to pay your taxes or they throw you in jail. Some choice. According to TurboTax the nature of our voluntary tax system takes the calculation of taxes owed out of the hands of the federal government. You are responsible as an individual taxpayer to calculate & pay what you owe.
All that’s changing. The only question is how long till it affects us? The Chinese Central Bank announced yesterday (hat-tip Armstrong Economics) that it will issue a digital currency as soon as possible to
“reduce the high printing and circulation costs of traditional cash notes, make economic transactions more convenient and transparent, reduce money laundering and tax evasion, and strengthen the central bank’s control over money supply and circulation”.
There goes any semblance of voluntary compliance! China is not the only country going cashless. Today’s noncash payments’ share of total value of consumer payments:
- Sweden is nearly 89%
- Belgium = 93%
- France = 92%
- Canada = 90%
- UK = 89%
- Australia = 86%
- The Netherlands = 85%
- United States = 80%
So what’s the big deal?
- Well it takes that voluntary aspect totally away from citizens. The Central Banks can now quite easily impose negative interest rates (NIRP). At least 4 European Central Banks already charge their customers to keep their money in the bank and Canada will announce NIRP today! When “cashless” is imposed they can do whatever they want because you have to use banks, credit/debit cards or checks to buy anything!
- There’s no longer the danger of a run on the banks -you can’t take your money out, it’s all digital! This prevents citizens from hoarding goods or cash (for a rainy day, emergencies, economic collapse), facilitating redistribution of your wealth, however much it happens to be.
- The govt can (will) track your every move and expenditure.
- No need to worry about bail-ins like happened in Greece. Nor to stand in those long ATM lines to withdraw your 60 Euros/day ($65). The bank already has 100% of your money, and as of a couple of G-20 meetings ago ALL your deposits are unsecured, i.e., property of the banks. Same with assets in safe deposit boxes (bank property, not yours).
It gives the govt totalitarian control over our money and therefore us. Of course it’s all done under the guise of convenience, to prevent tax cheats, money laundering and terrorism. But it will be the end of our freedom.
Aloha, Mikie ~just a blogger (fightin’ like a girl)
~Psst, tired of politics? Check out Travel in the Categories drop down menu (right side panel) for my blogs posted from interesting locations during my travel adventures.