Cash kills wealth

I think this might be of interest to this forum

http://business.time.com/2012/05/22/how-cash-keeps-poor-people-poor/?xid=gonewsedit

Government
How Cash Keeps Poor People Poor

Want to help the poor? Start by taking money out of their hands. More specifically, cash — coins and paper bills are the silent enemy of the poor, with costs often out of proportion with their day-to-day convenience.

On one level, it’s ridiculous to think of cash as problematic; if you have a mountain of paper money, you aren’t exactly impoverished. And at times cash seems like exactly what we need. Saying “yes” to cash can seem like saying “no” to overspending and steering clear of big banks, which means saying “no” to credit-card debt, overdraft fees and Big Brother. In the age of zeroes-happy bank bailouts and household credit-card debt on the order of $800 billion, cash stands for individual empowerment and no-nonsense finances. Right?

 

Log in or Sign up to hide this ad.

Cash is best for me. You're up late on the east coast Ruben.

 

Interesting concept, but look at who the writer is. He writes for a tech magazine who espouses everything will be digital someday.

I believe lack of access to bank accounts hurts the poor, but giving them instead electronic cash is just as harmful. I would think a better solution would be helping credit unions get established in poorer neighborhoods to give bank access to these people.

I do like the part about the risks of someone physically being able to take all of your wealth. Those on this section should seriously consider the risk of physically holding a lot of wealth in the form of PM and have a plan to solve this risk.

Interesting article, though. Thanks for posting it.

 

Yeah - something is bothering me tonight.

 

I generally agree with you.

 

A lunatic wrote that article.

 

That leads me to a joke that maybe i won't post.

 

Do not do something "crazy" now that gets you kicked off CT. :smile TC

 

And when some steals and hacks your cell phone, how does this help? Oh I get it, transaction fees, that will save the poor.

 

This post is in no way about politics, It is about the safety and intrinsic value of Precious metals


The Aricle is Just another main Stream Media Commercial for the Banks, in the form of an informative article.

Worst place on the planet to keep any money that you can not afford to lose is a Bank.
They will not only pay you a pittance in interest. But when the bank runs begin here as they
have started in other countries (Greece,Italy,Spain) The FDIC in no way what so ever
will have the ability to cover the losses.
Bank of America's Merrill Lynch division moved over 50 TRILLION dollars in derivatives to their banking division and co-mingled it with bank customers accounts that are covered by FDIC insurance late last year
http://www.zerohedge.com/news/bank-...llion-derivative-book-prevent-few-clients-dep

Who do you think will get covered first ? Customers or Bank of America Derivatives losses ?
Just ask MF Global customers how things worked out for them when their Cash Accounts were stolen about the same time last year
as Bank of Americas tricky moves.
http://www.zerohedge.com/news/someo...l-caught-stealing-hundreds-millions-customers
Of course John Corzine did not go to jail, he raises too much money for some one
Another neat trick with the Precious metals out right owned by people
having receipts for their stored metals At MF Global
"The trustee overseeing the liquidation of the failed brokerage has proposed dumping all remaining customer assets—gold, silver, cash, options, futures and commodities—into a single pool that would pay customers only 72% of the value of their holdings. In other words, while traders already may have paid the full price for delivery of specific bars of gold or silver—and hold "warehouse receipts" to prove it—they'll have to forfeit 28% of the value."
http://jessescrossroadscafe.blogspot.com/2011/12/attempt-to-seize-and-liquidate-customer.html

In this volatile financial world right now Gold and Silver, (which has been money for thousands of years)
Land and anything of real tangible value are basically the best places to be financially.
Paper is JUST Paper. Great for writing on but not a whole lot of real tangible value.

Given the information I have learned in the last three years
of daily research on this subject. These are just three examples.
The Rabbit Hole Goes A Whole Lot Deeper Alice
Just My Humble Opinion

 

I'd have bet pretty good money that nothing in this thread would be less informative or more misinformed than the OPs article.

Glad I didn't find a taker.

 

Cash Less Society...Maybe Yes or maybe Not. So FAR on my behalf most of my transaction is Debit Card Electronics Less Cash on Hand.

 

If your primary source of information is zerohedge and similar internet sites, you've wasted three years of your life. The FDIC doesn't insure derivatives, and it is in no danger of not being able to cover customer deposits up to [I believe] $250K per. Anyone who tells you otherwise is either ignorant or intentionally deceptive.

 

That article is misguided, to say the least. Ugh.

 

I think the credit industry is keeping poor people poor. When people are given credit lines (money they don't yet have) and then they use such credit, they tend to spend more than they make, then it's just a catch up game to pay off but yet some get stuck continuing to use whatever credit they have to pay bills, buy stuff, etc. I won't dive into the mortgage industry and crisis but I'll say one thing, I blame the banks and the people buying. If a bank tells you they'll give you 400k for a house (because you have good credit) but yet you make 50k a year, you should buy that house that costs 150k or less, you can't afford a 400k house and common sense should tell one that, but there lies one problem, most people lack common sense, they're eyes are bigger than their wallets.

The promise of "buy it now, pay later" is keeping poor people poor while the banks profit from people staying in debt. People who don't make that much money should be taught to "save up" instead of buying something they can't afford with their current income.

 

You are right, my apologies, the only place to get the truth in the news is the Main Stream Media.
What a fool I have been for not just listening to the news outlets that are owned by large corporations.:bow:



http://www.businessweek.com/news/20...vatives-transfer-draws-lawmaker-scrutiny.html

http://www.cnbc.com/id/45015743/Why_Don_t_We_Know_More_About_Bank_of_America_s_Derivatives

 

I'll agree with nearly everything you said, except for two things.

First...what keeps people poor is doing poor people things...like, deciding to spend money they don't have.

Candy companies don't make you fat. Eating too much candy does.

Why limit this to "people who don't make that much"?

The wealthiest people I know save up instead of buying things they can't afford.

Indeed...it's almost as though there's some sort of relationship between the two.

The condemnation of one obviously flawed argument is not an endorsement of other obviously flawed arguments.

 

Oh I agree, I didn't intend to make it seem like it's all of the credit industries fault, people are just as much to blame for their own credit/financial woes. I sort of explained this further down about buying homes, people's eyes are bigger than their wallets which extends to just personal buying habits, not just homes.

Nope, McDonald's is what makes people fat.

 

BURGER KING TOO! More Bread and Meat..Whopper number 1 Value meal...

 

GBoultan,

Well said, Point taken, Thank You