You may have seen all the slightly comical stories in the news lately about banks offering patrons incentives in exchange for their spare change. For example, one bank in Wisconsin paid people $5 to bring in their extra coins that have probably been laying around for years. Most of the mainstream media coverage about this alleged “national coin shortage” has been somewhat lighthearted, not treating it as any kind of real issue.
However, I think we have every right to be more concerned about this, but not for the reasons you might think.
During a virtual hearing with the House Financial Services Committee last Wednesday, Federal Reserve Chairman Jerome Powell tried to explain the shortage. Powell said, “What’s happened is that, with the partial closure of the economy, the flow of coins through the economy has gotten all — it’s kind of stopped,” he continued, “The places where you go to give your coins, and get credit at the store and get cash — you know, folding money — those have not been working. Stores have been closed,” he said. “So the whole system has kind of, had come to a stop.”
This has resulted in many businesses putting signs out that they cannot take cash, only card, because they don’t have any change available.
Obviously, the pandemic played a role in the coin shortage. We don’t need Powell to explain that. What we do need is for him to say exactly how he is going to resolve the issue.
Tennessee representative John Rose agrees.
Rose said during the same hearing, “In a time when pennies are the difference between profitability and loss, it seems like it might be a bigger concern than the announcement from the Fed would indicate that it is,” he said.
To step up their response, the Federal Reserve has since announced they are creating a U.S. Coin Task Force whose sole job will be to, “identify, implement, and promote actions to address disruptions to coin circulation,” although they suspect that the problem will quickly resolve once the economy reopens.
What I would like to know is why the Fed was so lackadaisical in addressing this problem. America is already dealing with a law and order crisis, a pandemic, vast unemployment, and a recovering economy. It doesn’t need another financial problem on its hands.
Like Rep. John Rose mentioned, it is critical that we maintain accuracy during this time when our country’s economy and finances are in such a fragile state. Furthermore, we are spending what will soon be trillions on stimulus payments, so we literally cannot afford more inflation or debt problems because the Federal Reserve just didn’t address the problem.
Banks cannot be rounding up or rounding down due to a “coin shortage” when people’s personal finances depend on how much money they have, particularly those who live on low incomes. It seems trivial to argue over pennies here, but when banks are not maintaining accurate accounting on a scale of more than 300 million people, it adds up.
An important reason to be skeptical of this national coin shortage is the fact that cash is already threatened by a growing digital marketplace. If we lose coins, people can’t pay with cash. This is a problem because if people can’t pay with cash, they lose that right to privacy of not being digitally tracked. It forces you to use a debit card, which tracks your every purchase.
This is dangerous for a variety of reasons.
Now, what I’m about to say isn’t a conspiracy, it’s a genuine concern about future implications. Keep in mind, we are living in unprecedented times. The state can force you to wear an ankle monitor if you don’t sign a quarantine order, you can be mandated to wear a mask to walk into a business, and you can be required to report to contact tracers.
Same thing goes for cash. If cash is eliminated, we will be denied service at businesses and forced into a tracked way of life. Losing our ability to use it is dangerous because it makes us vulnerable to the whims of anyone who can obtain access to bank records, like politicians, courts, and other powerful people. The bank will know our every transaction and ultimately our habits. Whoever has access will know where we live, shop, and go.
Hypothetically, let’s say we live in cashless world and the Left gains government control. This is not far-fetched, by the way, it is very feasible. Then, let’s say, the Left employs cancel culture, and they come after banks. Will the banks be forced to refuse service to people the Left disagrees with politically? There’s no cash to rely on. You can’t go to a store and buy food with dollars and coins. Your bank cancels you, so you have no way to live. Again, this isn’t far-fetched; it can happen if bad people gain control.
If your information gets into the wrong hands – say the hands of someone who wants to dox you—it can pose a threat to your safety and way of life. We should not be forced into getting on a digital commerce system against our will because of a poorly managed “pandemic.” Or, perhaps that was part of a Deep State plan to gain control over the people in the first place. Who knows? Either way, losing our ability to use cash has potentially devastating effects on our way of life.
By the way, the Founding Fathers staunchly hated the idea of becoming dependent on banks, as they also saw the threat they pose to Americans.
Thomas Jefferson warned, “If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their Fathers conquered…. I believe that banking institutions are more dangerous to our liberties than standing armies…. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs.”