If we say it's worth X, as opposed to the government saying it ...

[vaskidmark]

will paper money still be of value?

http://reason.com/blog/2015/05/18/control-freaks-solution-to-shadow-econom

Like precious metals you can't wear it or eat it.  But also like precious metals it is more difficult to track it or what you do with it.

But my biggest fear is not even how easily teh goobermint can take credits away but how very likely teh goobermint's computers are to mis-, mal-, and/or non-function all on their own.

And just for the sake of Godwining this before anybody else has a chance to - why does it seem it's always the Germans who are coming up with crap like this?

stay safe.

[wmenorr67]

They are still pissed that they got beat in both World Wars and think they have something to prove and are still trying to take over the world one way or another.

[MillCreek]

I think it was those wheelbarrows full of marks to buy a loaf of bread during the Weimar Republic.

[Ben]

I think it was those wheelbarrows full of marks to buy a loaf of bread during the Weimar Republic.

After watching prior generations lose all their money in the WW1-2 years, my dad refused to keep a bunch of money in the bank or to invest in the stock market after he came to this country. He only ever bought land because it was "something real that he could see" and could provide if everything else went to crap. Even when people lost all their money in Germany, if they had paid off land, they could at least provide for most of their needs, which is what his family did.

To the OP, there's way too much "cashless society" talk, even in the US for that matter, for my taste. Even that bastion of "staunch conservatism", Fox Business, has way too many Wall St analysts, etc. that come on and talk about the benefits of cashless society.

[Headless Thompson Gunner]

There's a lot of infrastructure and expense necessary to make cash work.  There's also more potential for risk, error, and loss with cash.

That doesn't mean that cashless is better, just that we shouldn't forget the other side of the equation. There are sound reasons, completely unrelated to government control, favoring cashless transactions.

[roo_ster]

To the OP, there's way too much "cashless society" talk, even in the US for that matter, for my taste. Even that bastion of "staunch conservatism", Fox Business, has way too many Wall St analysts, etc. that come on and talk about the benefits of cashless society.

Same sort who want amnesty an a buttload more H1B visas.

[brimic]

The whole 'cashless society' talk is because .gov is getting desperate.
The parasite has outgrown the host and no matter how many more regulations and taxes they put on people, they can't squeeze anything more taxes out.
People pushed hard enough will take their business underground or simply go 'galt' and decide its easier to collect payments from the government than do anything productive.

[Ben]

There's a lot of infrastructure and expense necessary to make cash work.  There's also more potential for risk, error, and loss with cash.

That doesn't mean that cashless is better, just that we shouldn't forget the other side of the equation. There are sound reasons, completely unrelated to government control, favoring cashless transactions.

I can totally see the operational efficiency in going cashless. This is just one area where I'm happy to pay more taxes for an infrastructure that still allows me to make everyday purchases without every damn thing being tracked. Or sell a  car and put the proceeds in a safe if I want to, versus an electronic vault.

[MechAg94]

Also, if the govt wants to sieze your money, they just need to hit a button.  With cash, they at least need to have the uniformed guys show up to do it. 

[MechAg94]

Regardless, if cash goes away, something will replace it as amedium of exchange.  People won't just all go electronic.

[Ben]

Regardless, if cash goes away, something will replace it as amedium of exchange.  People won't just all go electronic.

Guesses as to what? Not calling you out - I'm genuinely curious about what tangible items (i.e., not Bitcoin or other "dark" electronic currencies) that would work as easily as cash and be available in large enough quantities, and also I guess, as desirable to amass and as compact in size.

Gold, I suppose could be one. Gems would be too difficult as they require in-depth knowledge, and often special equipment to separate the natural from the synthetic. Either would be difficult to use at the grocery store or a restaurant.

[Regolith]

Guesses as to what? Not calling you out - I'm genuinely curious about what tangible items (i.e., not Bitcoin or other "dark" electronic currencies) that would work as easily as cash and be available in large enough quantities, and also I guess, as desirable to amass and as compact in size.

Gold, I suppose could be one. Gems would be too difficult as they require in-depth knowledge, and often special equipment to separate the natural from the synthetic. Either would be difficult to use at the grocery store or a restaurant.

Could be damn near anything. I seem to recall we had a thread here at one point about how Tide laundry detergent had become a defacto currency, IIRC in order to facilitate trading EBT welfare for cash or drugs, and how Tide became a major theft item because of it.

Doesn't have to be any one thing, either. Could be a whole slew of things. Anything that people agree has value and is somewhat easily carted around.

[RoadKingLarry]

Who runs Bartertown?

[MechAg94]

Could be damn near anything. I seem to recall we had a thread here at one point about how Tide laundry detergent had become a defacto currency, IIRC in order to facilitate trading EBT welfare for cash or drugs, and how Tide became a major theft item because of it.

Doesn't have to be any one thing, either. Could be a whole slew of things. Anything that people agree has value and is somewhat easily carted around.

The laundry detergent was the first thing in my mind also.  (don't let that scare you). 

I just think the fantasy that the underground economy will suddenly stop being underground is just a fantasy.  Most of it will remain underground and just find a new way to do it.

[Ben]

I just think the fantasy that the underground economy will suddenly stop being underground is just a fantasy.  Most of it will remain underground and just find a new way to do it.

This I understand. I have no numbers, but a guess would suggest that at least 75% of current cash dealings aren't underground economy. I just can't see Joe Suburbia switching from cash to laundry detergent. There either has to be a substitute that's just like cash that Walmart will accept, or else I suspect the majority of current cash users will just submit to electronic money. I'm sure some people will mostly submit, but also jump into the underground economy for some purchases. I'd probably end up being one of those people.