Govt to abolish paper cash during pandemic?

Knowledgeable confidential sources have said that US has contingency plans to switch to debit type cards (like was given to Katrina hurricane victims) during a worst case scenario Pandemic- abolishing paper cash.

 

However, these plans are ONLY contingent in an EXTREME PANDEMIC and will NOT be discussed in President's plan, due to explosive political reaction.

 

Advantages of abolishing paper cash:

 

1. Hygiene- presumably paper money would be infected and spread germs 

 

2. Tax collection- substantial increase if ALL transactions are of record

 

3. Crime fighting- a significant tool to track and combat crime, particularly drug trade

 

4. Counterfeiting- purportedly decreased by electronic transfer

 

5. Use as a  food  and medical care rationing mechanism, increased government central control 

 

6. Increased profit for banks, less armored cars etc. ALL banking could be then conducted electronically, no live tellers.

 

 

Disadvantages of abolishing paper cash:

 

1. Expected political firestorm- could only occur during an EXTREME emergency

 

2. The US dollar is still the world currency, this would be eroded if no paper cash. Currently the Euro is gaining status as alternate currency. Oil contracts are beginning to be written in Euros.

Edited by JaxMax - April 19 2006 at 4:03pm

IMHO and not desiring to step on any toes but this is all sounding like a familiar book script to me. Hmmm, let's see...the next step; accept the "credit card" as a chip in your forehead or hand and then you can recieve rations and you even can buy and sell. Who do you have to pledge allegiance to in order to accept the chip? (mark) And what will happen to those who do not? If all the economies of the world are linked, isn't it easier to have one government? Especially after the chaos this will bring? So many leaders could become ill. So many implications to this all encompassing event. By the way, on an interesting note...the world population clock says that the number of man will be 6,660,000,000 on roughly October 29, 2006! Maranatha!

standingfirm wrote: this is all sounding like a familiar book script to me.

endman wrote:   No way I will be paying by credit card if they take the paper money away It stated write on the money itself this is legal tender for all debts public and pirate If the stores will not take my money I will walk with my groceries anyway. First the feds started to search our bag now then they wanted to take our money What next microchip in my brain

Not bad idea Yes but what else can they take it away from you
Your kids (they maybe sick with BF)
Your house (because they will burn your house)
Your job  (because you may have to attend to sick people or go to war)
Your right to choose ( because they need you somewhere else)
Your right to vote (because you may elect a different government that dose care about you)
Pandemic is not freedom to take

endman.....PLZ, you misunderstand me. I feel this is NOT a good situation to be in. It would not suprise me that they will use this to take away more of our "Rights".

JaxMax: Your theory would certainly match recent events in Europe where governments appear to be planning to put everything we think, do and say into a database alongside our D.N.A. and other records.

They can do this by stealth or even quite openly. I would guess that the only country in the western world that would offer much resistance would be the U.S.A. and a pandemic might be a one time opportunity to push it through.

Without wishing to upset anyone I would also mention that the early news is what really counts and this is often circumstantial rather than provable. I'm always grateful to those who can sniff the wind and sense the storm.

twoolf-

We will have to carefully analyze the President's proposal on the Pandemic for language suggesting or denying the information. Historically, however there is NO dispute that Executive authority has permitted the "restriction" of cash during ANY emergency and this power was delegated to the Federal Reserve. This authority was originally documented as far back as the Kennedy Administration in Executive Order 11084 http://www.lib.umich.edu/govdocs/jfkeo/eo/11094.htm

and the resulting modificiations, revisions, rescisions, and authorization of authority to the Federal reserve codified in subsequent Executive Orders and statutes.

 

Simply ask yourself, if the Federal reserve can modify, restrict or enlarge the money supply during normal times, do you doubt they could do so during an Emergency? When the cash itself is infected? Look on the dollar bill, it is a Federal Reserve Note after all.

 

The question is not WHETHER cash could be recalled due to health emergencies, and replaced by a type of debit cards,but whether politically it would be done.

 

If cash is recalled, hopefully Congress would have a time limit after which cash would be restored. The law could be called the "Financial Privacy Act"  

Jaxman, if this is true, then it fits in with what I have been studying along other lines, and the near future does not look good for us.

Mountainwinds-

 

I know exactly of what you are speaking.

Edited by JaxMax - April 19 2006 at 5:54pm

Amen Jaxmax.

I was at a conference today with Starbucks.  In their summary of their response to Katrina, they outlined what they did for their employees in the region.  Over 60% of their employees got paid routinely by paper check, they did not have electronic deposit or even in many cases a bank account.  Prior to the hurricane making landfall  Starbucks made the decision to err on the side of taking care of their employees and the "pre-paid" everyone by FedExing payroll checks to everyone by assuming the number of hours the employee would likely work the week of the Hurricane.  Then after it hit, the company pushed out two $500 grants to every employee.  These grants were in the form of American Express Cash cards.  They knew from prior experience that many of their employees (all those without banks) would have a very hard time cashing the checks.  Banks in the region, particularly cash machines, ran out of cash.  But these cards were exactly the same as cash.  It was a good system.  Cash cards (also debit) and credit cards are not the same.  Within a day or so of landfall, they were made aware that many of the payroll checks distributed prior to the Hurricane had not been cashed and could not be cashed in the region.  Starbucks had to make an agreement with Winn-Dixie to cash payroll checks for its displaced people, because the banks couldn't do it.

My point is, thinking outside of the box with things like cash cards, is a good idea.  If nothing else, it gives you more than one way to buy things.  Think about it, what if a store doesn't want its employees to handle cash but its the only option for shopping? 

You can't keep cash in a safe deposit box.

They won't eliminate the toilet paper trail...

Maybe all of us have been unwittingly playing right into the hands of big brother by using cash less and debit and credit cards more. Yes money is dirty but so are the keys and wands on the debit card machines. Using debit cards also gives anyone who can gain the access a list of what you have been buying, including all of those preps in the garage, basement, closet or wherever.

JaxMax wrote: Beth-  Thanks Jaxmax.  That soulnds like a good idea, at least if they could fraud proof it.  On a related topic, it was in our papers this morning that we sent £5 million pounds worth of army ration kits to the Katrina victims but US wouldn't have them because they contained beef.  They thought it was British beef that might have BSE, but actually it was Argentinian.  Love, Beth Good to hear from you.   After Hurricane Katrina the Federal Emergency Management Agency (FEMA) gave victims a $2,000 debit card issued by the government.   They used the card instead of cash, like a prepaid credit card.   There was a lot of fraud which made the news. Victims got multiple cards under different names, purchased luxury items, gambled, prostitution, lap dances, drinking binges etc.   Katrina did however, serve as a successful introduction of mass electronic funds after a disaster instead of cash.This process elimnated transportation bottlenecks of cash delivery.

JaxMax wrote: PS I forgot to add, the story about printing currency outside the US is supposed to be a cover for the switch. The foreign countries are expected to be effected as we are, then only backup is electronic trransfer.

JaxMax wrote: PS I forgot to add, the story about printing currency outside the US is supposed to be a cover for the switch. The foreign countries are expected to be effected as we are, then only backup is electronic trransfer.

standingfirm wrote: IMHO and not desiring to step on any toes but this is all sounding like a familiar book script to me. Hmmm, let's see...the next step; accept the "credit card" as a chip in your forehead or hand and then you can recieve rations and you even can buy and sell. Who do you have to pledge allegiance to in order to accept the chip? (mark) And what will happen to those who do not? If all the economies of the world are linked, isn't it easier to have one government? Especially after the chaos this will bring? So many leaders could become ill. So many implications to this all encompassing event. By the way, on an interesting note...the world population clock says that the number of man will be 6,660,000,000 on roughly October 29, 2006! Maranatha!

Well, it may be a moot point until the pandemic subsides somewhat, as it is doubtful that even if there are stores left open (owner/employees not sick) what do you think they will have left to sell? Possibilty for afterwards temporarily, but they will reprint currancy you can bet. The economy will be hit hard and the job market wide open (if mortality rates run true) I just can't see people accepting "the card" on a permenant basis.

jo007athome-

 

Excellent observation.

 

This is exactly what caused me to question why a major concern of Govt Pandemic prep was printing cash in other countries. I mean, if societal meltdown has occurrred to the point the Govt can not print money, no one will accept money. I would never trade food for cash if all the stores were closed.

Scotty-

 

Good  points.

 

My economist friends tell me the dirty little secret of cash is that cash is the known interface between the legal and illegal economy,and that the Governemnt benefits substantially from the illegal economy.

I have a couple of questions about this.  What if the power is out? Don't the transactions have to be run through some sort of a scanner?  What kind of computer programs would be up and running that are large enough to incorporate everyone? I do know the minute I read the plan for overseas money- I knew something was up.