As the annual World Economic Forum in Davos ended on Friday, the ‘Masters of the Universe’ returned home to enact some of the many topics they discussed on finance and the global economy. And in accordance with the growing trend among the elites to ban the use of cash in the marketplace, the biggest bank in Norway on Jan. 23 raised their voice and joined in with the trend.
Norway had long been a poster child for fiscal responsibility, with nearly a trillion dollars stored away for their people from oil revenues in their North Sea production. However, it is because of these same oil prices, and in particular their year long decline, which has led the Norwegian economy to suffer greatly and look for alternative ways to protect against capital flight.
The war on cash is escalating faster than many had imagined. Having documented the growing calls from the elites and propagandist explanations of the “benefits” to their serfs over the last few years, with China, and The IMF entering the “cashless society” call most recently, International Business Times reports that Norway – suffering from its own economic collapse as oil revenues crash – has joined its Scandinavian peers Denmark and Sweden in a call to “ban cash.”
By way of background, as we explained previously, What exactly does a “war on cash” mean?
It means governments are limiting the use of cash and a variety of official-mouthpiece economists are calling for the outright abolition of cash. Authorities are both restricting the amount of cash that can be withdrawn from banks, and limiting what can be purchased with cash.
These limits are broadly called “capital controls.”
Why Now? Why are governments suddenly so keen to ban physical cash?
The answer appears to be that the banks and government authorities are anticipating bail-ins, steeply negative interest rates and hefty fees on cash, and they want to close any opening regular depositors might have to escape these forms of officially sanctioned theft. The escape mechanism from bail-ins and fees on cash deposits is physical cash, and hence the sudden flurry of calls to eliminate cash as a relic of a bygone age — that is, an age when commoners had some way to safeguard their money from bail-ins and bankers’ control. – Zerohedge
Similar to how central banks believed they could control or even eliminate economic downturns through monetary policy, banks, governments, and even think tanks believe that they can do the same through capital controls and ending the use of cash by their peoples. However, in nearly all instances of this throughout history, taking away access to physical money has only led to black market commerce, and civil unrest against the system.
The rise of the digital banking system has many positive perks that have made the carrying and using of money safer and more convenient, and in itself it is not some nefarious beast meant to control the public. But as with any system, it is only as good as its programmers and architects, and once a government decides to use that system to benefit one class of people or entities over another, then the whole purpose behind the system turns into a monster, and no longer as a benefactor.
Kenneth Schortgen Jr is a writer for Secretsofthefed.com, Examiner.com, Roguemoney.net, and To the Death Media, and hosts the popular web blog, The Daily Economist. Ken can also be heard Wednesday afternoons giving an weekly economic report on the Angel Clark radio show.