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The Cashless Society Conspiracy

A (real-ish) theory on why the Federal Reserve Bank wants an economic system without money (and why you need to prepare for it… now!)

In 2009 I wrote a best-seller titled, Conspiracy of the Rich. If I’d only known then what I know now. If only I’d met George Gammon earlier.

There are two areas I want to discuss briefly before I introduce George Gammon and his theory on the banishment of cash. First, the deliberate and Machiavellian removal of financial education from the school systems and second, the creation of the criminal organization called the Federal Reserve Bank.

The Federal Reserve Educational Conspiracy

Ask yourself this, who controls education, and who determines what is taught in our schools?

In 1903, John D. Rockefeller created The General Education Board. There was much controversy about why he created this organization. Some people say he created it to improve education. Others say he did so to hijack the educational system of the United States.

Around the same time, another Barons, Andrew Carnegie, promoted his Foundation for the Advancement of Teaching. It seems both Rockefeller and Carnegie were working to influence the American educational agenda to determine what students were allowed to learn in school.

The question is, What was their agenda?

While some people will say Rockefeller and Carnegie were working for the good of our children, others say exactly the opposite.

In my search, I came across reports written 60 to 100 years ago—inflammatory reports from credible people—reports that were hard to believe. What they accused Rockefeller and Carnegie of orchestrating is a crime against the American people.

What were the crimes? Destroying any real future these children could ever have by banishing any form of financial education from the school systems. Without this knowledge children could not become entrepreneurs or businessmen. No, they would become something much more important to Rockefeller and Carnegie. They would be forced to become employees and do the work for the mighty financial titans.

Today, looking back on those reports with decades of hindsight, there does seem to be some validity to their concerns. Rockefeller and Carnegie wanted to break the American spirit—and using the education system to do so.

Americans are individuals who left their countries of birth for freedom from oppression and for the opportunity of a better life—a shot at the American Dream. This made the DNA of Americans too strong, too independent, and too ambitious to be subservient to the rich and powerful. Too strong to be just employees.

Those critical of Carnegie and Rockefeller believed that before the rich and powerful could gain further control over Americans and the wealth of America, the American spirit had to first be weakened, that Americans had to be made dependent upon a job and the government for financial support.

Once the spirit was broken, the minds of Americans would be owned by the very people in charge of the school system. This is important to the “Elites” because now that they own our minds, they can manipulate us to do or believe nearly anything. This is the really why there is no financial education in our schools.

One of the major goals in hijacking our minds is the control of our money…

Creation of the Federal Reserve Bank

Let’s discuss the second player in this “conspiracy”, the Federal Reserve Bank. In 1913, after several years of financial instability and the fear of a World War, Congress created the Federal Reserve Bank.

Americans were scared and thought that a national bank would protect them from panics. This happens often. The government uses a time of fear to grab more power. This happened despite the fact that some of our Founding Fathers were against a Central Bank and thought the concept unconstitutional.

American citizens were told that the Federal Reserve would provide a reserve of liquid assets and also allow for currency and credit to expand and contract with the movements of the U.S. economy. The Federal Reserve was created on December 23, 1913, when President Woodrow Wilson signed the Federal Reserve Act into law.

The Federal Reserve, as we know it today, has four general responsibilities:

1. It conducts the nation’s monetary policy by influencing money and credit conditions in the economy. In other words, the Fed changes money and credit conditions in order to get as close to full employment and stable prices as possible.

2. It supervises and regulates banks and other important financial institutions to protect the nation’s financial health and (supposedly) the credit rights of consumers like you and me.

3. It maintains the stability of the financial system and contains any types of systemic risk that arises. (Think: fixing extremely low interest rates during the recession.)

4. It provides financial services to the U.S. government, U.S. financial institutions, and foreign official institutions.

In my estimation, however, the Federal Reserve Bank only has two powers: to create money out of thin air and to lend money they do not have. As a side note, it’s important to understand that the Federal Reserve Bank is not federal, has no reserves, and is not a bank. Yet, as explained above, the Federal Reserve Bank has the power to control the money supply of the U.S.

Note: I am not going to call the Federal Reserve Bank “the Fed”. I want to drive home the absurdity of the FAKE name they use to fool the public.

George Gammon’s Theory On the Creation of a Cashless Society

I met George Gammon a few months ago and have since come to know him as a brilliant teacher. A real teacher. You can find his educational videos on YouTube and I highly recommend them. The other day George was explaining to me some research he has done on the banishment of cash. Pay attention to this because it is going to shock you at the end.

There are two main reasons that most people accept as the reason for wanting a cashless society. The first reason is negative interest rates.

Federal Reserve Sets Negative Interest Rates

Let’s pretend the Federal Reserve Bank sets their interest rate at 5%. All the banks who have money reserves with the Federal Reserve Bank have to pay 5% on that reserve of money. What is important to understand is that the banks are being charged for not lending the money. The banks are being charged for “saving” the money. That is what a negative interest rate means. The banks don't want to pay the 5% so they lend all of that money into the real economy. All this money is now in the economy and this boosts consumption and purchases of goods. It also decreases savings.

None of these people borrowing this money from the banks want to lose money because the banks are charging them interest rates as well. So they need to use the money. What do they do? They spend it. They buy new cars, new houses, new… everything. They don't save a penny.

According to Keynesian economists this will produce a booming economy. As the money keeps flowing through the various hands the economy is being propped up by the purchases. To a Keynesian, nothing is better for society than for everyone to spend every single dime they earn, and save nothing.

But, there is a problem. The problem, as Richard Werner, economist and international banking expert has pointed out, is that the banks do not actually lend the reserves that they have on hold with the Federal Reserve Bank. Since the reserves are not being lent out there is no increase in lending, no increase consumption, and thus, no booming economy.

The negative interest rates explanation is a bust.

That brings us to the second reason: believe the Federal Reserve Bank and governments want a cashless society. A little lesser-known component of a cashless society would be the government's ability to do “bail-ins.” If there's no cash in the system, all of your excess productivity is held in this banking system, in the form of digital currency. Now your money is in danger. You can’t keep it safe under your mattress or in your home safe. Why is that important? Uncle Sam has trillions of dollars of debt. Look at the way governments in debt have acted over history. They take their citizens’ money… your money.

If your money is digital, then there would be no way for you to extract your money from the bank if Uncle Sam wants to come in and take it for himself. He can just swoop in and pay off his $20+ trillion (and growing) debt, using your money.

Now, although this makes a lot of sense, this isn't the main reason why they want to ban your cash. George has a better reason. Keep reading.

The Real Reason For a Cashless Society

So what is the REAL reason for wanting a cashless society? Since the banks can't or won’t lend their reserves, then the Federal Reserve Bank money cannot get out into the economy. So if the Federal Reserve Bank sets interest rates to negative five percent, that basically becomes a tax that all banks have to pay on these reserves that are stuck at the Federal Reserve Bank. That makes it so banks only ask for the bare minimum of reserves. This in turn decreases the amount of reserves in the system. If there's fewer reserves in the system, that means that there is less ability to make loans, resulting in fewer loans.

(Note: To be clear, the banks aren't lending out the reserves, but the reserves are necessary to back up the deposits that are created by the loans themselves. In other words, the reserves make the loans possible without the banks actually lending the reserves themselves.)

Now we are getting to the good stuff. George Gammon explained to me that these negative interest rates put tremendous pressure on small retail banks. The negative interest rates decrease the small banks ability to lend, and increases the small banks’ cost through additional government regulation. This then, increases the cost to the consumer making loans even harder to give.

Because the small retail banks can't make money through traditional lending, they've got to nickel and dime their customers to death. This makes them a lot less competitive in the eyes of the consumer.

So why would the Federal Reserve Bank want to create this type of environment for the small retail banks? George explains that these negative interest rates and the burden they place on the small banks forces the smaller banks to merge while having to close down many branches. As a result, banks that mainly engage in traditional banking, i.e. lending to businesses for investment, have come under major pressure.

Basically, the agenda of negative interest rates is to drive small banks out of business, and consolidate banking sectors in the industrialized countries, increasing concentration and control in the banking sector. What makes this especially problematic is that these small retail banks are responsible for the majority of productive lending in the real economy. These are the banks that lend to the small and mid-sized businesses that increase production, economic growth, lower income inequality and low inflation.

But, George Gammon explains, if you wipe out the small retail banks, that means all the business goes to the big banks. The problem is these banks are not interested in small and mid-sized businesses. These big banks are really only interested in doing large transactions that financialize the economy, and create asset bubbles.

If you are like me, and see the brilliance that is George Gammon, you may want to get his financial newsletter and invest with him and all his incredible knowledge.

It’s about to get crazier…

The Endgame of a Cashless Society

Let’s recap real quick: Cash is banned. The Federal Reserve Bank drops interest rates into negative territory and puts the squeeze on all those small retail banks, putting most of them out of business.

As a result the real economy shrinks, because small and mid-sized businesses (the backbone of economic growth) don't have access to funding. The average people look to the Federal Reserve Bank and the government and say “oh please protect us, we can't get ahead in the real economy anymore.” The Federal Reserve Bank and the government say “no problem, there's a “Federal Reserve Bank Guaranteed Fund (my term not George’s).” So all of the citizens take their hard earned money and place them in the economy through the Federal Reserve Bank Guaranteed Fund.

Now, all the citizens are invested in the Federal Reserve Bank because this is the only “safe” game left in town. They are forced to bet on asset prices, speculation and timing bubbles. So, as the real economy is decreasing in size, the financial economy is increasing in size exponentially, making all of these bubbles bigger and bigger and bigger.

The Federal Reserve Bank knows this and they know that at some point this whole game is going to come crashing down. When it does, the big banks go to the Federal Reserve Bank and say “Bail us out! We've got systemic risk!” That is when the Federal Reserve Bank looks at the big banks and says, “No”.

They let them fail. The Federal Reserve Bank has then wiped out the small banks and the big banks. The Federal Reserve Bank is the only game in town. They have 100% control of the money and the credit.

If they control the money and the credit, they control you. And that control is the real reason for a cashless society. Once there is only the Federal Reserve Bank — with both cash and bank credit alternatives abolished — all transactions, money creation, and allocation of that money, would be implemented by the Federal Reserve Bank.

That is a pretty big conspiracy, but wait, there’s more.

The Cherry-On-Top of the Federal Reserve Bank Conspiracy

Now, imagine how the PR department of the Federal Reserve Bank and the mainstream media will spin this. They will focus on the main concerns we face today: security and safety. How one could increase their security and safety with this digital money? What if one loses one's direct debit card? Easy solution! We should adopt the techniques we have long practiced with our pets. Namely, implanting microchips under the skin as our money of the future.

Whether this spells progress, you can decide. A cashless society, negative interest rates, only the Federal Reserve Bank being the only bank left on the planet, and microchips implanted under your skin.

Has the makings of a great finance-horror novel.

Now, let me be clear, George is not saying this will happen. He’s simply willing to look at the possibility so he can protect himself and his followers. My rich dad used to always say that it is better to be prepared than sorry.

Conspiracies are fun to contemplate but this all they are good for unless you use them to spur your mind you gain more knowledge and become prepared for as many eventualities as possible.

My investment and self-protection strategies remain the same as always. I continue to learn and invest in my financial education. I continually search out brilliant minds, like George Gammon, to learn from and surround myself with people smarter than myself. In other words, not much has changed. I continue to invest in things that are real, especially my financial education.