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Black money

  1. Jun 6, 2005 #1
    Would it be impossible to bring a cashless society i.e. if you wanna buy anything minor even like a hair pin(most places insist on a certain minimum amount before u can use ur credit card) or something as big as a 40 acre estate(there is a limit on the money u can spend using ur credit card) you have to pay only using credit card.

    Why I'm saying is that in India there is a whole lot of black money. This is estimated to be 3 lakh crores. All this money is lost. My friend told me this in a govt office the officers were collecting bribes(or extra chcarge) when the Income Tax officers visited this place the officers who had taken the money just through the money out of the window in to the gutter so that they dont get cought.

    Would a cashless society end this menace of black money?
     
  2. jcsd
  3. Jun 6, 2005 #2

    Art

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    There is nothing to stop a move to a cashless society but first some serious holes in the current cashless alternatives would need to be plugged. See link below
    http://www.ohiou.edu/police/creditfraud.htm
     
  4. Jun 6, 2005 #3
    A cashless society would require a totally 'Big Brother' type of Government/NWO. Would you really want a nameless/faceless entity complete control of your finances?
     
  5. Jun 6, 2005 #4
    un a cashless society what will be the rol of private banks?? will they be able to create money too... and now that moeny does not exist, will they be making incredeble amounts of profits, just for mantaining the computers and the system???... also will be private banks the ones who will now everything you do...
     
  6. Jun 6, 2005 #5

    Pengwuino

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    I dont know. As for a mandatory cashless society in general however, theres a whole lot of problems. How would say, kids go about their day making those stupid little bets a lot of us did back in the day. Oh $.50 says you can jump over that wall, etc etc. How about all the illegal activity that happens? You'd have every major criminal organization trying to stop it from happening. Then again, we're moving towards the idea already except that im sure anything mandatory woudl be met with great rejection. People seem to be like that... its happening at a fast rate right now and people love it and almost encourage it but the second you try to make anything "mandatory", they'll blow their tops.

    @Burnsys

    Seriously... go learn how banking systems actually work...
     
  7. Jun 6, 2005 #6

    selfAdjoint

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    Banks would rejoice at a true and working cashless society. Not to have to maintain 24 hour ATMs or have cash money to hand out in return for checks would save them money. And all their main business - accounts and loans - is cashless and has been for a century.

    And yes they can create money as they do now, by having more outsanding in loans than they have on deposit in accounts. And this is only indirectly monitored/controlled by the Fed.
     
  8. Jun 6, 2005 #7
    those wanting bribes would just shift to some other small valuable medium
    gold diamonds ect
    and who wants big brother to know where all your cash is going anyway?
     
  9. Jun 6, 2005 #8

    russ_watters

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    Why? What role would it play?

    Guys, we already have a virtually cashless society. Few people use cash for purchases over $100. I personally only spend about $200 a month in cash - the rest is credit/debit card purchases.
     
  10. Jun 6, 2005 #9

    russ_watters

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    Exactly the same as now. The cash part of their business is very small, eliminating it would not require much of a change.
     
  11. Jun 6, 2005 #10
    If cashless society is on... Then everybody will have no choice but to have an account in a private bank?? in that case. isn't it a little scary??

    Banks would have the power to create money, people will be forcer to be their customer, they will make profit for every add to cash in the society and they will now everything we do... Knowing that banks are private corporations in the hands of private citizen like you and me, doesn't this give them to much power over the regular citizens???
     
  12. Jun 6, 2005 #11
  13. Jun 6, 2005 #12

    Pengwuino

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    Banks are regulated. You can say this about almost every corporation on earth and even our government. Most fears are unjustified, especially by people who dont even know how banks worth (ahem...)

    And what hte hell, a blog based solely on monitoring cashless society discussions? This guy better work as a financial analyst or something or hes a loser. But then again this guys probably 17 because hes obviously never had to go to a grocery store or been robbed....
     
  14. Jun 6, 2005 #13

    Art

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    Penqwuino, in the earlier thread money / person ratio it was apparent to me at least that Burnsys understanding of the banking industry exceeded yours so please stop with the put downs.
    In recent years several major banks have been stung to the tune of hundreds of millions of $s by rogue traders in their employ so regulation obviously isn't foolproof.
    As for being robbed on the way to the grocery store, I do not see how a cashless society will help prevent that unless you go shopping naked and use only your fingerprint for ID when you make your purchases. In street muggings these days the victims are stripped of their credit cards, watches, jewellary and even trainers.
     
  15. Jun 6, 2005 #14

    russ_watters

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    Why? What's the alternative - keeping your money under your mattress? That's an awful thing to do.
    Not if they are correctly regulated. I don't know much about how they work in your country, but in the US this isn't an issue.
     
  16. Jun 6, 2005 #15

    Pengwuino

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    Wow, so banks just magically create money without any recourse. magically however, banks fail.... and magically, banks dont own the world... wow... ive been put in my place as far as knowledge is concerned!
     
  17. Jun 6, 2005 #16
    No. they create money out of others resources.
    may be they don't own the entire world. but sure they own my country:

     
  18. Jun 6, 2005 #17
    No. giving my money to someone else who can use 90% of my money at his will, and who keep acount of how do i expend all my money...

    It goes beyond regulation, private banks has in their control almost all of the peoples money, you hope they never pay a bribe to the agency that regulate them...... anyway they have all the money they want to do it...
     
  19. Jun 6, 2005 #18

    russ_watters

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    I don't understand - who are you giving your money to and what are they doing with it?
     
  20. Jun 6, 2005 #19
    I was being sarcastic...
    you said:

    "Why? What's the alternative - keeping your money under your mattress? That's an awful thing to do"

    I think it's more awful to give you money to someone else (Private bank) who can lent your money to anyone he decides and who can also track all your money movements......
     
  21. Jun 7, 2005 #20
    This is one of the key arguements against a totally cashless society.

    Already with credit cards and the like your purchases can be tracked and the information sold to advertising agencies. There are developments of using online purchasing data to target users with concentrated advertising campaigns straight to your computer based upon past purchasing history.

    Purchasing details can also be tied to medical data to influence insurance statistics, tax details, political targeting etc.

    Information is one of the biggest growth markets in the world.

    I work as an Information Analyst for an online multimedia company and I'm well aware that, with minimal investment, I could probably get the credit rating and online purchasing history, as well as your age, sex, location of most people (including most of the members here) and use that as a targeted campaign to sell stuff to you.
     
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