Readers of this publication will know that for some time, I’ve forecasted the creation of a new monetary system by which governments and banks gain total control over all monetary transactions.
On the surface of it, this may seem an impossible goal, as it would be so all-encompassing and would eliminate economic freedom entirely. Surely, it would not be tolerated. However, I believe that it’s not only relatively easy to create, but it will be sold in such a way that the public will see it as an absolute panacea to their economic woes. Only those who are far-sighted will understand its level of destruction in advance of its implementation.
It might transpire like this:
Part 1: The Currency
- Any one of a number of triggers (decline of the petrodollar, dumping of US debt back into the US market, Europe defaults on its debt, sanctions backfire, etc.) causes a crash in markets.
- Deflation kicks in.
- The Fed creates massive QE to reverse deflation, ending in dramatic inflation and possibly hyperinflation.
- Government declares a state of economic emergency, states that cash is (and has been) the problem and must be done away with for recovery to occur.
- A new electronic currency is created, to be issued by banks.
- All economic transactions of any kind—both debits and credits—are to be done through a currency card (purchases as small as a candy bar or as large as a home; all credits, including wages, dividends, sales of goods, etc.).
- Entire economic system becomes greatly simplified, as only the currency card (or smart phone) is now needed by anyone.
Part 2: Taxation
- At this point, every transaction, no matter how small, is on record, so government can assess the cardholder’s income to the penny, without the need to file for income tax each year.
- Government announces that the tax system is a mess and that it must be simplified to relieve the people of the burden. In future, tax will be taken by direct debit from the currency card account.
- Government later announces that, as the annual filing is such a hardship on the average person, tax debits will in future be done monthly.