Cash is King and Should Remain So

I am sure that many have heard the expression, cash is king, but did not waste any time thinking about what that means.

The Federal Reserve System (the fed), our central bank system, has control over our money printing and monetary policy, but has no control over the cash in the underground economy, i.e. gambling, drug activity, illegal employment; it is an economic activity that they cannot control and thus our government cannot tax it via its fiscal policy.

The fed publishes the amount of money stock in the economy and control the interest rates values. How accurate is the money stock when one considers the amount of cash that circulates in the underground economy.

The rub of cash for the government is that they cannot tax and control all of it. How can they change that? By issuing digital currency, central banks digital currencies (CBDC), around the globe, and giving bankers the power to control EVERYTHING we and governments do.

Cash is the most liquid form of money and harder to trace and control by the omnipotent government. They measure the quantity of money in our economy as M1 and M2. M1 is the sum of all coins and paper money plus checkable deposits at banks and savings institutions. M2 includes M1 plus shares in money market mutual funds. There is an M3 which includes M1, M2, and all financial institutions.

Then there are near moneys, close substitutes for money, and credit cards which can be counted as what one owes on the credit cards or what their credit line is.

Cash is most liquid and often untraceable, especially the cash involved in the black market, do it yourself jobs, rainy day funds in safe deposit boxes, cash under a mattress, hiring a neighbor or an illegal to do a job that is not taxed in any way, babysitting jobs, grandmas’ cash gifts, etc.

How can the government then control everything and tax everything? Remove all cash from circulation and install the CBDC (central bank digital currency) where everything will have to be approved and paid for by electronic transfer by appointed bankers each time a transaction is requested.

Working for the government, the banks would tell you what to eat, how much to eat, when, what to purchase, where and when you can go on vacation, what to do with your money, how much money you can keep, what car to buy, how much money you can withdraw, if you are allowed to buy gasoline, a car, a house, tickets for a show, have TV, heat, air conditioning, food, go to doctor, buy medicine, buy a plane ticket, anything that keeps you alive and well as long as you behave according to government dictates, you obey them, and your social scoring is good.

Before 1945, most people paid for everything with cash. By 1990, about $30 trillion was moved annually by checks. By 1998, $1.3 trillion was moved electronically daily through the Federal Reserve System, our central bank with 12 regions, all owned by private investors.

By 2024, some central banks have already installed digital currencies and have removed cash from circulation altogether. One example is Australia and some third world nations. The central banks of Brazil, China, the European Union, India, and the United Kingdom are moving in that direction.

In 1862 the U.S. government issued its first paper money called greenbacks, printed in green ink to distinguish them from gold certificates.

The first European notes were printed in Sweden in 1661and France issued paper money in wide circulation in the 18^th century.

The British Empire issued promissory notes to Massachusetts soldiers in 1690. There were, of course, paper monies issued in different historical periods, but their strength depended on the economy of the country issuing them; Kubla Khan issued paper notes in 1282 made of mulberry bark; the kwan, issued by the Ming dynasty in China in 1368-1399, is the oldest surviving paper money.

Although not real paper money, the Babylonians of 2500 B.C. wrote bills and receipts on clay tablets.

Before paper money, people bartered with goods and services, but it was less convenient because it depended on “coincidence of wants,” whereas money did not require such a coincidence. Barter was not always fair because animals are not divisible. Barter restricted productive capacities.

Live animals and sacks of grain were accepted as money. In 1393 Europe, “a pound of saffron was worth one plow-horse; a pound of ginger would buy a sheep; two pounds of maize would buy a cow.” (WSJ, Guide to Understanding Money and Markets, 1990, pp. 98-99)

Commodity currency such as gold and silver, pelts, salt, cigarettes, chocolate, medicine, beads, cattle, sheep, was eventually replaced by fiat currency, the money of today, where governments decide what is money and their value based on the amount they print which is or is not backed by goods and services. If too much money is printed, way above the value of the yearly GDP, like today, inflation occurs, and the value of the currency goes down.

In the last four years, prices for most goods Americans consume have doubled in prices because of the inflation caused by the policies of the current administration. One shopper at Walmart bought the same basket of goods in 2024 that he had purchased in 2022 and the total cost has allegedly quadrupled.

The most frequently quoted hyperinflation is the Weimar Republic when in 1923 a German homemaker burned mark notes in the stove because it was cheaper than buying firewood and people carried a wheelbarrow filled with cash to purchase a loaf of bread. Such glaring mismanagement of the economy, by printing money for out-of-control government spending to boost the post World War I sluggish economy, gave rise eventually to Hitler’s Reich.

The Continental Congress issued paper money during the American Revolution because it was short on gold and silver to mint coins. They printed so many paper bills, causing such a high inflation that the price of corn rose 10,000 times and by the end of the war, a dollar dropped in value from $1 worth of gold to 2 ½ cents in gold. Congress did not issue money again for 70 years. They did issue currency with abandon during the Civil War and disastrous inflation occurred again.

What will happen once the central banks eliminate cash and install CBDC? The central banksters, which already run monetary policy, will also run the fiscal policy, replacing the legislative branches, and thus eliminating each country’s sovereignty and all individual sovereignty.

Cash is king. Keep it this way if you want to maintain independence and freedom as a country and as individuals.