The Shotgun Blog
Wednesday, August 06, 2008
Money and cocaine
The police usually use dogs to sniff for drugs. When a dog identifies you as a possible target, the police are justified in stopping and searching you (I am simplifying here). But what if I were to tell you that most cash has traces of cocaine in them? What does that do to the validity of dog sniffs? Basically the cash we carry contains traces of cocaine, so good luck the next time a dog wags at you - it could just be the cash in your pocket!
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Why not ask THE expert, Tony Montana? Or are you afraid of his "little friend." :) Couldn't resist.
Posted by: Zebulon Pike | 2008-08-06 1:20:05 AM
Another in a long line of calculated attacks on cash. Less cash means fewer withdrawals, which means a lower likelihood of a run on a bank, which means a greater likelihood of even more ridiculous credit expansion.
The other typical angle is to get some Bank of Canada rep on the horn and have him say to people on the radio that vendors do not have to accept paper currency as payment. It's a lie, but it causes a stir every time.
Posted by: Paul McKeever | 2008-08-06 6:58:11 AM
Oh, incidentally: http://www.youtube.com/watch?v=OxxNhQ547u8
Posted by: Paul McKeever | 2008-08-06 6:59:27 AM
"Another in a long line of calculated attacks on cash. Less cash means fewer withdrawals, which means a lower likelihood of a run on a bank, which means a greater likelihood of even more ridiculous credit expansion...."
Posted by: Paul McKeever | 6-Aug-08 6:58:11 AM
That's a pretty far-fetched theory. Credit expansion is a function of the creation of loans, which is heavily influenced by interest rates. When central banks artificially lower interest rates, they encourage people to take out more loans. When people take out more loans, they run up the price of trendy items (tech stocks before the .com bubble burst; houses before the sub-prime bubble burst). For a while, people feel wealthier because of the paper value of the assets they have bought with the unrealistic loans they have taken out. Then somebody notices that the economics doesn't make sense, and the bubble bursts.
The "attack on cash" is largely an attack on black market and illegal activities. Cash is difficult to trace. Governments want to do away with cash so their law-enforcement agencies can monitor everyone's purchasing activities easier. It is all part of the government's attack on individual liberties.
Posted by: Grant Brown | 2008-08-06 10:32:07 AM
Absolutely right Grant. They also want to put a clamp on barter networks. If you have a service or a skill that can be traded there are still deals to be made.
Posted by: DML | 2008-08-06 1:57:09 PM
Right on Grant. When I do biz, I look for folks who will discount for cash. Who can afford the tax his anymore? Whether or not they declare their income is their business.
I also refuse to buy anything that isn't on sale. If it isn't, I will wait. I also never ever use credit. I have no financial problems. It's all in the choices one makes.
Posted by: John West | 2008-08-06 3:42:11 PM
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