E Banks Close In Rural Areas As World Cashlessness Advances

In Israel, the move to a cashless society has been urgent, in the name of stopping criminal activity, they say. It faces legal challenges, but the goal at first is to limit check cashing to less than $2000 per check.

In Israel and in all the nations seeking more cashlessness, one major goal is to stop the underground taxless society. But really, destroying a large part of society that then pays into the taxing society seems to be risky, especially where there are large underground economies. This could ultimately hurt the GDP of nations in ways few realize.

And using Denmark as an example for many other nations is flawed, since Denmark has a strong safety net for its citizens. It will be interesting to see if Denmark will go the way of Sweden, ruining banking in rural communities. We will have to watch for stories indicating that people have fallen off the digital grid, the digital money grid, and have suffered inconvenience or hardship.

We know that in Denmark, there is a link between seeking cashlessness and accepting negative interest rates. And we know from Zero Hedge that there is a connection between negative interest rates and housing bubbles. Denmark has a massive housing bubble due to negative interest rates. The central bank, the Riksbank is concerned that massive debt will destroy the economy and the borrowers in the next crash.

Of course, people who have debts that cannot be repaid cannot function in a society that is totally cashless, which is the goal of Denmark! Denmark could force people off the digital grid faster than other nations that don't have such massive housing bubbles. We should watch this potential social catastrophe-in-the-making.

And in Denmark, you are paid to take out a mortgage. You would think the central bank would want that stopped. I don't think they know what they hell they are doing in Denmark!

The experimental nature of the cashless negative interest merger will likely be filled with massive unintended consequences. But this article from a guy on the World Economic Forum, clearly pushes the worldwide nature of the cashless society, from Latin America to Africa and beyond.

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Disclosure: I am not an investment counselor nor am I an attorney so my views are not to be considered investment advice.

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Comments

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Hugh Allen 5 years ago Member's comment

What the author doesn't mention at all is the impact on privacy. Our cell 'phones already let Big Data know all about our movements and interests. When all cash transactions are eliminated in favor of cashlessness, there will be no privacy in our financial lives as well and very little control over who has access to that information. It's a really vile prospect and the only beneficiaries will be the owners of the database.

Cynthia Decker 5 years ago Member's comment

Yes, this is a huge issue, one which I think will take center stage in the near future.

Gary Anderson 5 years ago Author's comment

Oh yes, Hugh, there are so many issues. That is a big one. The issues are endless and as we think of more I hope to write about them. Thanks.

Sigmund Fraud 5 years ago Member's comment

Keep writing.

Gary Anderson 5 years ago Author's comment

Thank you, sir.