Treasury Secretary Tim Geithner wants to change the materials used to make coins and replace paper money with digits on the computer (electronic transactions).
According to Geithner, it now costs 2.4 cents to make a penny and 11.2 cents to make a nickel because rising commodity prices have driven up production costs.
Why are commodity prices rising? Because of inflation created by the Federal Reserve’s money printing. According to an opinion piece in The Wall Street Journal, the Fed bought 61 percent of the total debt issued by the Treasury Department last year.
“The Fed is in effect subsidizing U.S. government spending and borrowing via expansion of its balance sheet and massive purchases of Treasury bonds. This keeps Treasury interest rates abnormally low, camouflaging the true size of the budget deficit,” former Treasury official Lawrence Goodman wrote.
So Fed policies of moving debt around, paying debt with more debt and money printing gives Congress (and Americans) a sense that — even though the deficit is tremendous — it’s not as bad as it really is. Inflation has gotten out of hand and it’s driving up the cost of the money Americans use, so Geithner believes it’s time to steer America into a cashless economy, under the guise of saving what has become a piddling $75 million.
Don’t buy into Geithner’s lie. The goal is to eliminate the underground cash economy and make a way of tracking all purchases in order to collect more taxes.
The elites in government won’t be content until they have stolen every penny possible from every American. The underground cash economy can’t be tracked and, therefore, can’t be taxed. It’s yet another effort to stave off the economic collapse they’ve set in motion.
And, if all purchases become electronic, government will know what everyone is doing. As Gary North writes in his Tea Party Economist blog: “The ATM is our friend. No matter how hard the government tries to stamp out paper currency, people will use it. They buy freedom with it. They buy privacy.”