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Thursday, October 20, 2011

Outlaw cash

When cash is outlawed, only outlaws will have cash.

Louisiana has outlawed cash for second hand goods. They claim it’s to prevent criminals from selling stolen goods. Maybe it is, but it’s also a dandy control mechanism to find out where all the money is going and who’s buying what. When you know where it’s going, it’s much easier to take it away through taxes.

I see some possible outcomes from this law.

It could do exactly what’s intended with no negative side effects. (I give that outcome long odds.)

A lot of businesses could suffer losses. Many could shut down completely.

More and more business could be done “off the books.” That would make more people criminals who weren’t before. When government passes stupid laws that are ignored, respect for all law is diminished. Maybe that’s not totally a bad thing. Too many dumb laws are taken seriously as it is.

One interesting result is that it could be an incentive to develop alternatives to cash that also are not traceable. We could all decide to do business in something like Canadian dollars. We could make up a new local currency. Precious metals could be exchanged. Heck, people could set up a bookkeeping system of credits and exchange them in a totally independent economy. Hybrids of different exchange systems could come into play.

Business could take place totally outside the governmental system. Maybe this law is a good thing in the long run, as it’s a wake up call to the way money works.



  1. Now maybe I'm a moron but are not those dollars good for all debt public and private and if they are not..... what is? Now I'm a big believer in States rights but I do believe that La. has overstep her bounds by declaring cash not good for all debts or private tranaction.

  2. That's what I thought, but I'm not one of those clever politicians.

  3. I hope the first time this goes to trial, the jury will nullify it. Oh wait, juries do not know what that is anymore because judges break the law by not telling them and even out right demanding they do NOT consider it.

    I believe this country is getting more and more stupid every day.

    So we have no cash in LA, police closing down lemonade stands, wild animals set free and then shot and killed, blah blah blah.... I could go on forever.

    So I will listen to some Billy Joel and drink some good coffee and go try to unbrainwash some of my students this morning.

    At least I know my students will know SOMETHING about where food comes from and what ever I can through to them about being self reliant.

    ...where did I set my coffee....?

  4. I noticed that silly law yesterday too and thought, 'way to go, bring on the underground economy.' They're fools if they believe this will stop cash business.

  5. Guess that they need to get traveler's checks. This will put the flea markets and yard sales out of business, for sure.

  6. I can just picture it. Will you take a check for my bag of dope lol