Saturday, May 2, 2015

CYBER MONEY: Global future Evil .

The root of a future evil
could be cyber money!
There will be a new term that will soon you be hearing , its ##>  CYBER MONEY. Usually you would think of your ***>  CREDIT CARD , or simply use your (2)>  " SMART PHONE" to swipe and make a payment. I have been puzzled , and somewhat perplexed about the new currency of exchange that soon will make the news . If any of you have already heard that (1)>  BITCOIN are making waves . Each of the plastic currency alone with any app on your smart phone is dangerous , worthless money that can bankrupt you into debts . Sound ironically we have a unstable economic system that is based more on credit than your Green paper money , or the gold in Fort Knox . troubling as it is anything "plastic" is a dangerous addiction , and its at most one of the causes of economic destruction here in America .The idea behind plastic money  is somewhat complicated, and a bit obscured on purpose by credit card companies that don’t necessarily want to divulge their secret sauce. But the basic answer is that there are three types of customers whom credit card companies serve: good, bad, and risky.The idea behind credit cards is simple. Essentially a bank gives you a line of credit, and you can purchase almost anything with this credit. This is more convenient than carrying cash around, and can be quite helpful if you need food but don't have the money until your next paycheck. Usually you have until the end of the month to pay, and generally if you pay on time there are no extra fees associated with credit cards. Most of the profits that credit card companies receive are from transaction fees, which are included in the price of products since the merchant pays the fee. This fee is near 3% for each credit card transaction, which yields around $300 billion of profits per year given that the global yearly credit card transaction volume is over $10 trillion. Clearly owning a credit card company is extremely lucrative.

From paper to plastic...
Time to get rid of plastic
money before it's too late.
The future holds some dangerous items , the term digital plastic money is coming , you might have something that looks like a credit card , but thin enough to hold some advanced circuitry in the palm of your hand . You might think of a I PAD but smaller . This device will replace "paper" money in the United States . Much of it comes right out of the Bitcoin's of the early 21st Century . For me I prefer the old paper money that you can fold . You knew that had some value . Credit cards are little time bombs ready explode , they have already  weakened our nations economy  , caused people to commit suicide . A recent paper by John Geanakoplos of Yale University and Pradeep K. Dubey of SUNY – Stony Brook. In the paper, the authors argue that while  (3)> credit cards have made transactions more efficient, they have also led to inflation. “The main effect of credit cards is to increase prices, i.e., they lower the value of money even as they increase its viability,” the authors write. There are also many  dangers associated with having credit cards . Most normal people would have two cards , but to to the addicted , and debt accumulators some have over twenty . yes, twenty is a big number to carry in your wallet , but some credit cards are used to pay off bills and other credit cards . People I know have brought themselves owing creditors hundred's of thousands of dollars . Now imagine a more loathsome figure than the mob debt collector, a.k.a the “hired muscle.” It was this bruiser’s job to get the money owed to the Boss, by whatever methods he saw fit. That might include coming to your house in the dead of night to break your kneecaps. Whatever it took. The collector was promised a cut of that money, and he was going to get itThis means, you, as a consumer, have no idea that a lawsuit has been launched against you. So here’s what happens: you get a default judgment that automatically favors the debt collector. The credit card company can then garnish your wages or freeze your bank account to get the money it says you owe. And you might not even owe it! Banks are sometimes chasing down consumers who have already paid their debts. Other times they are jacking up the size of the debts by adding bogus fees and interest costs. Credit cards are an excellent way to finance purchases. However, if you are not able to pay the cost then why charge? Also, paying as soon as possible is usually best. Therefore, the ecconomy benefits as long as everything gets paid for including credit cards.If a system is allowed to be corrupt legally then it will fail. Some countries like France don't believe in buying on credit, not even houses in the main and rent unless they can afford to buy. But if the banks are deregulated and allowed to lend far more than the 7X amount of total cash they hold, and mortgages over 3-4X annual income, from 10X to no proof of income at all, and 100-125% of the total price society has gone down the drain. And believe me, not a single law has changed here at least, and around the worlds the borrowing is beginning to start all over again, as the banks know they can't lose whether or not people can afford to pay it back, and earn fees for every loan up front. That is pure corruption, people shouldn't be allowed to buy anything except a house on credit, there's absolutely no need to.Digital currency will never replace money. It may come close at some point in the future, but the paper money currency we use is still very effective and a reliable method to keep track of money. The digital age may seem to make it easier to use credit cards, but in the end they still fail us. The paper currency will never make mistakes that credit card companies make today with loss of information at the hands of hackers and government officials.




NOTES AND COMMENTS:
****> Credit cards are made out of plastic, which I know I'm supposed to avoid. But it can't be good for the planet to make all that cash and truck it around the country. …Credit card debt is insidious, it does far reaching damage to your finances and life. If your credit score goes bad due to not making payments on time you will be unable to take out loans of any kind. This can prevent you from  buying a house or car. Even finding an apartment to rent becomes difficult when you have a bad credit score. If your credit score gets really bad it is likely that credit card companies will cancel any accounts they have with you, even if you have always paid on time for a particular credit card. This will leave you in a struggle to live, since if you run out of money between paychecks you'll have nowhere to turn. Also your wages will constantly be eaten up by credit card payments well after your credit card is cancelled, and as stated earlier it might take decades or your entire life to get free of the credit card debt. The brutal reality is credit cards can turn you into a slave owned by the financial system. Oftentimes companies won't hire you if you have a bad credit card score, which creates a vicious feedback loop of impoverishment for someone who is in debt.(1)> Bitcoin is a form of digital currency, created and held electronically. No one controls it. Bitcoins aren’t printed, like dollars or
euros – they’re produced by people, and increasingly businesses, running computers all around the world, using software that solves mathematical problems.and it has the potential to take over a significant fraction of the global monetary transfer market. With Bitcoin you can send money anywhere in the world near-instantly. Bitcoin is completely decentralized, there is no bank or single entity which controls Bitcoin. Instead Bitcoin runs on a peer to peer network between thousands of computers around the world. There are no cash advance fees, service fees, or late fees when using Bitcoin, only a tiny (~6 cents) transaction fee every time you send Bitcoin. Compare this to 3% credit card fees. If you send $1 million with a credit card you'll pay $30,000 of fees, while sending $1 million of Bitcoin costs 6 cents. Also, since Bitcoin is decentralized no one can control your money, even if your credit score is terrible. There is no chance of your Bitcoins being frozen even if you have the worst credit score in the world, making Bitcoin a good option for people who have bad credit.(2)> SMART PHONE as Money . Hearken ye!Google announced a new version of its Google Wallet app, which will roll out this week to all Android phones version 2.3 and higher in the U.S.The new app lets you securely send money using a smartphone to anyone in the U.S. with an email address. Google offered up the ability to send money directly to friends and family via Gmail in May.Other new features include the ability to load loyalty card data and discounts and promotions directly into the Google Wallet app (meaning you can ditch the dozen individual cards per store you have in your non-virtual wallet). The app also lets you see all purchases made via Google Wallet in one place.Now that smartphones double as wallets and bank accounts -- allowing users to manage their finances, transfer money, make
payments, deposit checks and swipe their phones as credit cards -- they are very lucrative scores for thieves. And with 30% of phone subscribers owning iPhones, BlackBerrys and Droids, there are a lot of people at risk. ##> CYBER MONEY: 
What is now happening in many of our markets (globally) is that our phony cyber money is causing a decoupling (a separation) of physical wealth creation from the measure of currency wealth (our cyber stock exchanges)! (3)> If there were no credit cards...hmmmm...well at one time that was true, and yet we did fine. Big businesses on the other hand...Corporate Lions? They would cease to exist. That's why they keep encouraging us to buy, why they have VCR's who get replaced with DVD's, who get replaced with Blueray :) so we can keep on buying and they can get richer. Funny thing is I have DVD's and VHS tapes and they seem the same when I am watching them :) But perhaps we would all be happier, because if we did not have credit, we could only buy what we could afford, which in turn might show us that we don't really need the other things, which in turn means we don't have to work as hard because we don't owe money :)

1 comment:

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