Thursday, May 14, 2015

Bank of Canada- spinning against cash, facts suggest excessive debt/credit card use

Ignore the hard sell against cash designed to mainly serve the interests of big banks? And the hard sell is on. I have seen countless articles deriding the use of cash and linking it to crime
I am personally not here to serves the banks. I don't encourage anyone to serve the interests of big banks, credit card companies and other plundering aspects of society.

To not use cash serves the banks and strengthens the central governmental control grid

No cash = No bank runs
No cash = more fees for banks
No cash = more tracking
No cash = less privacy for you

Continue to use cash, it is after all legal tender, deny the government & banks their control and profit over your life /personal business-

Bank of Canada promotional piece
Canadians are now using cash for fewer than half of their transactions, a survey done for the Bank of Canada suggests.
Fact: Canadians are using cash for almost half of their transactions- Notice how the Bank of Canada chose to present this information? Emphasizing the do not use rather then focusing on those that still do use cash
The research was included as part of the spring edition of the Bank of Canada Review on Thursday.
As stated Bank of Canada 'research' - promoting their agenda

One fact that can be taken away from this piece is people are relying on credit cards because they have no money!
 According to a 2013 method-of-payment survey, credit card use increased to nearly 31 per cent compared with just over 19 per cent in 2009. Debit card usage slipped to 21 per cent from nearly 25 per cent.
 This increased credit card uses coincides very nicely with the huge indebtedness of Canadians- this does not demonstrate a move away from cash use

Canada household debt ratio hits new record of 163.3%

 Therefore credit card use, in this case, does not indicate a move from cash. It actually indicates no income, no savings, no money.

 Here is an interesting fact- dead last sentence 

Cash has held its ground as a percentage of the total value of payments at about 23 per cent.

 Cash has held ground as a total percentage of payments....

Which suggests that those people having cash to use, are still using cash. The only real change has come in the credit card use alongside the level of Canadian indebtedness. You would have never known the actual true fact from the headline that accompanies the agenda pushing 'news'.  This article is really about credit card use and massive indebtedness.



    It's just the beginning

  2. You forgot the huge, major point about cash in your initial rundown:
    No cash = no black market
    No cash means nearly 100% collection on taxes. Full stop.

    IMHO, it's the taxes they want. The black market areas that continually thrive in Canada are always under constant attack, often for safety. That's why they harp on you using registered electricians, registered renovation companies, etc etc. Missing out on those taxes is a huge revenue loss, and . . . they can't allow independent business people making a good living, can they?!? No way!

    But to your point on credit use . . . the wealthy all use credit to their advantage, Pen - you have to game the system to your advantage, and this is where the lower and middle classes miss the boat - they first get caught in the debt trap, and those that escape it, get caught avoiding the use of credit.

    The whole idea is to constantly use this credit to your advantage - never be late paying it off, never spend more than you should, and use that financial leverage to make bigger investments and gain more leverage and make bigger dividends. It's really a "rich dad poor dad" argument that is entirely true and stands up to scrutiny when examining the classes and investment.

    1. Hi slozo

      No cash = No black market?
      To some degree, yes.
      But then people will just barter and the government is aware that barter is ongoing
      I saw a 'pay your tax' article to the affect that when you barter you're to claim it as income- but it's not an income- it's an even trade so there is no gain, only a switch of equals- Therefore there is no income. Though the government would like people to believe there is a 'gain' to be taxed

      Your right about using credit to your advantage- but like everything there has to be a balance.
      So, while I understand where you are coming from, I am one of those that only buys on credit that which I can pay for- however I still also use cash, daily.
      Happy medium, I guess.

      I also think cash use is a terrific form of non compliance!

      That all said. Far too many are way, way, way too deeply in debt (using credit) that is the trap. And it was laid by the banks.
      The debt levels hide the level of real poverty in Canada
      The real poverty is exacerbated by low/stagnant wages. If people wouldn't have been so willing to indebt themselves wages would have had to increase- IMO- but the debt trap was laid

      One last point: If people cannot manage their money properly without indebting themselves then they should stick to using cash and when it's gone, it's gone- learn to budget- live within one's means- I personally know people who have done themselves in with credit- claiming bankruptcy and losing everything- It's ugly. A pain that could have been avoided had they chosen to live with what they had

  3. No cash = no black market . . . essentially, yes. Almost completely.

    Barter is nearly useless. Which is why it never goes very far, if you catch my drift. Unless it gets to communist soviet times . .. in which case, they just end up using a surrogate for cash - just as what was used in WWII - cigarettes. IMHO, we've as a culture passed ciggies, and the new surrogate for black market cash would be alcohol, for sure. but I digress.

    No cash, yes - no black market. No cash, full accountability of taxes. No small business, totally de-incentive for any small or medium sized business, a further movement toward a corporatocracy. Well, we're already there, really.

    You say that I'm right about using credit to your advantage, but there has to be a balance . . . well, the wealthy use that advantage to the limit, and use it well. They push it to the max, but do so in a way where they are usually not quite overextended. It's a fine line though.

    Using only cash though, it's a bit of a sucker's game . . . in that, you'll never be gaining more capital than you actually worked for. With credit, you get that extra 100%, invest it, make a good profit, and then invest again when you get your payout. you can make money quickly, IF you're smart. But smart is the key.

    So credit can be a trap for the foolish, yes. But it's also the way to get rich and move up a class or two. Using the 'control' against the master. So to speak.

    And no, wages have never increased. Inflation is a constant drag on wages . . . so it's all a false paradigm for the lower classes, to hope for wage increases, etc.

    1. slozo- a question for you
      because I understand the no cash- more accountabilility

      BUT... I know at one time all business was done in cash.
      No one had a credit card- they were unheard of
      (going back to the 60's and 70's)

      In fact I received my wages in cash, in an envelope with a slip for deduction(small business)
      And at that time the economy was a booming, seriously
      My city was employment galore and the cash flowed.
      People bought homes and cars just on their wages.
      I would wager that at that time the black market was extremely small, I know taxes were low, wages were real and people were spending the money they actually had-
      In other words the black market has in all likelihood popped up because of the low wages, big taxes and lack of employment
      which suggests to me that barter will thrive- because people will have no choice

    2. LOL
      early morning and didn't ask the question
      all business was done in cash
      small black market
      therefore low wages + heavy taxes = black market?
      is there any reason to really think that the lack of cash will impede the black market replaced by barter or exchange of bootleg liquor etc?
      And is there really a reason to believe the government, any government wishes to stop the black market given the benefit all governments take from the presence of such a market? Including Canada
      Spy agencies and off the books cash for covert ops?