What would happen if the US got rid of all paper money?

[Punk_Rocker_22]

From a government standpoint its not that bad an idea. You get to monitor everything everyone is buying. Make sure everyone is paying all of their taxes. And its not like you're going to run down to your drug dealer and offer him a a toaster in exchange for some coke. Theres only so many toasters one drug dealer needs.

How would people make illegal transactions?

I'm thinking people would spend money gold/silver/other rare minerals and then use them to trade for drugs/weapons/ect.

[Chimro]

Since the CIA is running the drug-racket already they'd just build in a back door to allow their drug dealers to receive payments withput detection. Meanwhile, the system would be used to crack down on those who are truly "dangerous", people buying books like The Protocols of the Learned Elders of Zion.

[23]

No. Collapse of infrastructure.

[Jaimie]

Yeah, we'd go to pretty much a precious metal-based/barter economy. Even if we didn't, I'm SURE there are ways to hide electronic transactions from the government. In fact, in the early 90's, some people (erm, at least one writer) thought electronic currency would end up making government obsolete.

http://www.time.com/time/magazine/ar...2610-1,00.html

[Chimro]

Originally Posted by Jaimie

I'm SURE there are ways to hide electronic transactions from the government. In fact, in the early 90's, some people (erm, at least one writer) thought electronic currency would end up making government obsolete.

Duh! SWIM used to receive cheques worth several thousand dollars each month and deposit them in the bank without questions or taxes, and that's just the beginning. All the big drug cartels keep their fortunes in and launder their money through the "regulated" international banking system.

[thatcoolkid]

Originally Posted by 23

No.

This. And what would we use as currency? Money was created in the first place to eliminate trying to figure out how many eggs equaled a lbs of bacon. And what if the nigga wanted tobacco instead of eggs and you only had eggs? Than sir, you'd be fucked.

[Ka]

To the above poster, the thread maker is not suggesting that the US return to a barter economy, but a replacement of paper money with purely electronical money. This is not difficult to imagine as I believe that only about 14% of money is most western socieities is in paper form. There would be some benifits as most moodern macroeconomic theory points to a system of electronic money being idealisitic as it would increase effiecieny and stimulate the economy because increased velocity. Economic trends would be more identifiable and the economic councils of the state like the fed would have more accurate information on which to make their forecasts and therefore more effective policies. There would also be social benifits, as crime would be more detectable for obvious reasons. This of course is the crossroads of the proposal thought as it would definately signal the end of any form of civil liberties, privacy has been completely obliterated, the eradication of paper money would signal a step closer to the closure of any concept of freedom. The British media has beeen slowley introducing the idea of a cashless state into mainstream attention for a couple years now, and it will be ushered in with little resistance and in fact will probably embraced than other publicly rejected 'nanny state' symbols such as identity cards.

Once the precepts of, governments only purpose is to increase there power (which is being realised beyond any historical standard due to technology) and the monetary systems such as the federal reserve is a privately owned banks are acknowledged the only question left on this issue is will it be economically benificial, yes it will.

Originally Posted by Chimro

Since the CIA is running the drug-racket already they'd just build in a back door to allow their drug dealers to receive payments withput detection. Meanwhile, the system would be used to crack down on those who are truly "dangerous", people buying books like The Protocols of the Learned Elders of Zion.

Maybe the Protocols was a dangerous document pre WW2, it is not anymore. This is the tragic comedy of the circumstances of those who are controlled. The system has been so beautifully implemented that the document being in the public domain is irrelevant. The system Im talking about is not surveillance state or the loss of civil liberties, but with peoples thoughts being occupied with american gladiators and paris hilton.

[Einstein]

In my opinion, the only justifiable reason to preserve the use of paper money is to allow paying customers to continue slipping bills inside of stripper's thongs and such!

I'm sorry, but a coin bucket on the side of a stripper pole isn't near as sexy.

[Refterd]

Originally Posted by Punk_Rocker_22

From a government standpoint its not that bad an idea. You get to monitor everything everyone is buying. Make sure everyone is paying all of their taxes. And its not like you're going to run down to your drug dealer and offer him a a toaster in exchange for some coke. Theres only so many toasters one drug dealer needs.

And yet, from a government standpoint, it's a terrible idea. The corner store can't take my money and the child running a lemonade stand won't accept cash.

It'd be terrible, society as we know it would collapse.

There would be riots in the streets.

[nshanin]

It would not be dissimilar to globalization, actually. Far more "cash" is able to flow through the system, thus freeing up capital and causing investment booms, but ultimately spending will either a) go out of control, or b) implode at the first sign of weakness; so ultimately the highs would be higher and the lows would be lower without the stabilizing influence of a cash economy.