In future, I will use cash for making as many of my purchases as possible. Here is the reason why and by learning from it you will better cope with inflation. Inflation, by the way, is caused not only by the mismanagement of the economy by politicians; it is also blowback from the insane sanctions that have been imposed on Russia, the world’s largest country and wealthiest nation in terms of natural resources.
Why should we pay with cash everywhere instead of a debit card? I have a 50€ note in my pocket. I take it to the restaurant and I pay for my dinner with it. The restaurant owner uses this €50 to pay his bill at the car wash. The owner of the car wash counts his haircut at his hairdresser. The hairdresser uses this €50 to cash out at the supermarket.
After an unlimited number of payments, the value of my €50 note remains the same value. This means it has fulfilled its target for all those who have used it as a method of payment. The banking houses have played no part – in effect we buyers have isolated the usury-based banks.
If on the other hand, I go to the restaurant and I pay digitally with my debit card, the cost of my digital payment billed to the restaurant owner including the transaction fee in percentage is 2.5% on average, which then returns to 1.25€ for each other payment transaction.
This means that each next payment transaction costs €1.25 which go into the bank’s coffers despite their having done nothing to earn it – the useless role of the notorious middleman.
The same costs are implemented if the restaurant owner pays his bill digitally at the car wash, the payments of the owner of the car wash proprietor at the hairdresser, as well as upcoming payments further down the line etc.
Therefore, after the first 36 transactions of this €50, there will be only €5 left and the remaining €45 will become the property of the bank which takes the money but gives no thanks – instead it imposes bank and card transaction charges on you. In addition, the cost of a bank card is on average €2.25 per month, so after saving for a month, your €50 is only €47.75.
If any of thousands of hard-working business owners go bankrupt because of the crooked system – and they do. If the bank goes bankrupt – and they do, these businesses are left to fend for themselves. Many lose not just their businesses but their livelihoods and homes, often resulting in collapsed marriages.
If, on the other hand, the banks go bankrupt – and they do, you the taxpayers including hard-pressed businesses bail the banks out. That is what the banks call a win-win situation. They cannot lose because their pals, the politicians, set the rules. Remember: Cash is King
About the Author
Michael Walsh is the author of over 70 published book titles. He has also ghost-written (book edited) over 40 books, novels and biographies for writer clients. He offers professional help for writers: editing of website content, books, novels and marketing content. You write it HE rights it.