Bloomberg Writes: Why Cash Costs the U.S. Economy Real Money

 

The use of dollars and coins costs the U.S. economy at least $200 billion each year—roughly $1,739 per household—according to a new study from Tufts University. One reason: Americans waste an average of 28 minutes each month just getting to their cash, with part-timers, retirees, and African Americans likely to spend even more time accessing their money. The worst hit, not surprisingly, are low-income consumers, who are dinged with higher fees, along with the lost time.

For businesses, the biggest cost of cash comes from theft. Even if they can afford armored cars and guards to prevent outsiders from taking their cash, there’s still the risk that insiders will drain the coffers. Government, meanwhile, pays a price in lost tax revenue and the cost of actually making currency.

As technology continues to surge forward there is a considerable push from various interest groups to become a cashless society.  Articles such as the one above are clearly sponsored by the Banking Industry with their own agenda, but there is an important red flag here that you should be aware of.

Call me old fashioned, but I love cash. It’s a great feeling to hold a stack of crispy new $100 bills in your hand and smell them once in a while.  Just one second, I need to go do that…..

All joking aside, this is an important matter that can have real implications on your life.  As I have said before,  cash is king. It is the only thing that you will have control over if something does goes wrong. In the worst case scenario none of your stock holdings or bank database entries will mean anything. They will be worth ZERO.  Cash could be your insurance policy and as such I would suggest keeping a considerable amount of cash that is readily available to you.

Do not buy this nonsense that using cash has real economic cost. The real cost here is losing your freedom and being at the mercy of large financial institutions and/or governments. Remember Cyprus? It reminds me of a time when I tried to withdraw $125,000 in cash from my Bank of America account.  They looked at me and said “Sir, I am sorry, but we do not have that much cash available. It will take us a few days to get it”.

Fair enough, but I do not want to find myself in such a situation ever again. Therefore, I would highly recommend having a considerable amount of cash stashed away somewhere safe for your own good (preferably not in your mattress). It’s a great feeling. Trust me. Mine is buried somewhere in the Nevada desert. 

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