While banks, businesses, and others will gain financially from an electronic cashless monetary system, government will exponentially increase its power over the people. The people who wield power within government are those who are most able to effect this fundamental change in the way the world does business. This is because it will be those in government who will determine, by law, the type of system that will be used to control buying and selling and the form of currency that will be used.

Let us consider a few of the reasons why those who desire power over others want to implement a system of trade that they can control completely.

Since government does not produce wealth, it must take the money it needs to operate by taxing those who produce wealth; that is, those who work. The innumerable layers of taxes that have been heaped on the American worker have caused him to render unto Caesar much of his hard earned wealth. Not only is the worker’s income taxed by the federal government, but in most cases he must pay taxes on his income to the state and sometimes even to the local government. Property taxes must be paid regularly if he wants to keep his property. Other taxes are imbedded in the cost of the goods and services and are paid by the consumer when an item is purchased. Then there are sales taxes that must be paid to state or local governments when an item is purchased. All taxes are paid to the government, and while few people know it, all taxes come out of the pockets of those who produce wealth -- again the workers. While we like to think of ourselves as “the land of the free”, the truth is that there is almost nothing we can do that isn’t either taxed, or regulated in some way by some level of government.

The income tax system as it now exists is one of the most burdensome, corrupt, confusing, and oppressive methods of taxation ever devised by man. One reason for this is that the system is used not only for the collection of money to operate the government, but it is also a mechanism by which those who are in power may increase their power. It is so complex that it is understood by no one. It is easily manipulated by those who write the laws and has been used by politicians to reward friends and punish enemies. Over the years, it has metastasized so that its tentacles now reach into every part of our lives, and the farther it reaches the more it controls.

From time to time many have suggested, and some have worked very hard, to replace this monstrosity with tax systems that would be simpler and less intrusive. All of these attempts have failed. The reason every attempt to replace the graduated income tax with some other form of taxation has failed can be summed up with one word: power. The graduated income tax gives those who control it the power to control every segment of the economy and thereby the ability to control every part of our society and even the behavior of individuals.

At this time a wonderfully simple and much fairer method of taxation, called the “Fair Tax”, has been proposed. It is probably the best thought out, and fairest form of taxation yet offered. Even though it would enable our economy to grow by leaps and bounds and would increase our liberty and privacy, it too will fail to be adopted because it would reduce the power of those who use the present system of taxation to oppress and control the people.

Under our present system of taxation, every part of a person’s life is open to the government. The requirements of reporting income and expenditures for tax purposes creates a record of a company’s or an individual’s life. The government requires that any and all information that is demanded by the tax collecting agencies be supplied to them. This information gives the government the ability to examine not only a person’s financial dealings but their personal and political lives as well.

With the present system, there are various tax rates, deductions, exemptions, and tax credits, enabling those who write the tax laws to exert forces upon the economy, society in general, organizations, and even the individual. Sometimes this is done in order to force industry and individuals to make decisions based upon tax considerations rather than what would otherwise be best for the business or the individual.

The power to reward friends and punish enemies is perhaps the most misused power derived from this complicated and easily manipulated system. Many favors can be bestowed upon those who support the right party, politician, or program. Much misery and even financial ruin can be visited upon those who don’t. For this reason, all proposals to replace our present tax system with a fairer and simpler tax will fail, and we will be stuck with an oppressive graduated income tax. Nothing short of a complete collapse of government will cause a change in our form of taxation.

In order to make certain that people don’t spend their earnings before they meet their tax obligations, employers are required to withhold a portion of each employee’s earnings. The money that is withheld from the employee’s earnings is sent by the employer to the government’s tax--collecting agencies. This enables the tax--collecting agencies to claim their share of a person’s earnings before the person gets possession of their earnings.

When it comes to the payment of taxes, companies and persons who are self employed operate under a different set of rules. The rules under which a company, or someone who is self employed are based somewhat on the honor system. This system requires them to pay taxes each quarter based on their estimated income for that quarter. This gives them access to their money before the tax--collecting agencies of the government. This arrangement means that the government must rely on the honest reporting of income by companies and those who are self-employed. It is also gives the dishonest taxpayer opportunity to conceal income. This is especially so when the business is conducted on a cash basis.

Ever since there have been taxes, there have been those who evade the payment of taxes. Government has had to implement enforcement measures to ensure that it collects the amount of money it demands of the people. Those who are charged with collecting taxes are always seeking better and more efficient ways to collect the revenue they believe should be paid to the government. If the government becomes lax in the collection of taxes, then few, if any, people would pay taxes. The age old problem for governments when it comes to tax collection is that with cash or some other medium of exchange that allows individuals to deal directly with others, transactions are easily concealed from the government. Many people attempt to conceal profits from the tax--collecting agencies of the government by simply failing to report income. Also, by its very nature, income derived from illegal activities is not reported, unless it is reported as having come from some other activity that is legal. The fact that there is a great amount of economic activity concealed from the government creates problems in the area of tax collection.

To minimize tax fraud, the tax collecting agencies must develop accounting procedures and investigative methods that will ensure all income is reported. This is a very complicated and costly undertaking, since it requires the creation a huge bureaucracy which must try to monitor all economic activity. If tax--collecting agencies had a way of knowing about every transfer of money or goods from one entity to another, tax fraud would be eliminated. This would result in a huge windfall of money for the government as a result of increased collections. Tax evasion, though, can never be entirely eliminated as long as our present economic system is in place, because financial transactions can still be conducted privately by the use of cash, or the transfer of other items of value.

Once the cashless monetary system is in place, hidden cash transactions will no longer be possible because cash will no longer exist. All financial activity will take place within the computers of the new electronic economic system. Every financial transaction, no matter how small, whether it involves funds credited to, or debited from a person’s account, will be known by the government. All income and expenditures will be carefully monitored and examined by the government’s computers. The tax--collecting agencies will know all there is to know about every company’s or individual’s financial dealings. They will know the sources of all income. They will also know when, how, and where all money is spent. This will ensure that taxes are paid on all income. Such a system will enable governments to subject everyone to a continual financial strip search.

Since all currency will consist of electronic credits that cannot be removed from the system, the tax--collecting agencies will no longer have to depend on voluntary reporting of income by companies or those who are self-employed. The government will not have to rely on the honesty of those who are reporting income. Tax--collecting agencies, by the use of computers, will be able to immediately calculate for themselves the amount of tax owed by companies and the self-employed. This will be done by comparing revenues to expenditures. Once the amount of tax owed is determined, the amount will be automatically debited from the financial account of the person or business. This will enable the government to claim the taxes that it determines are owed on a more frequent basis than the present quarterly system. Tax payments will be transferred from the taxpayer’s account to the government as frequently as the tax--collecting agencies desire. This means that the government will be able to confiscate money on a daily basis instead of quarterly, if this is the desire of those who collect taxes. This will prevent a company or an individual from coming up short when taxes are due. These features of the cashless system will eliminate the problem of delinquent tax payments. It will also eliminate tax evasion.

Manufacturing paper currency and coins is a very expensive task. Physical currency must be designed and manufactured in such a way as to make counterfeiting as difficult as possible. It must also be manufactured in sufficient quantities to supply the demand of the economy. Since physical money wears out with usage, recalling and replacing worn currency is a continual process. Distribution of money once it is created is expensive in that it must be transported, and security must be provided as it is moved from the treasury to the banks.

Since much of our economy’s business is already transacted electronically, only a portion of the money that is presently in circulation actually exists as paper currency and coinage. Those who control the monetary system know that elimination of all paper money and coins is necessary in order to obtain the power they desire. This transition is already well underway. First of all, the creation of electronic credits is much easier and faster than creating physical money. Creating electronic credits and adding them to the money supply is a very simple task that could be accomplished with a few keystrokes on a computer’s keyboard or by a program that will make automatic adjustments to the money supply. It does not involve the purchase of expensive paper, inks, or metal as does the creation of physical money. It does not require complicated and expensive printing presses or dies. It also eliminates the lag between the decision to adjust the money supply and the actual adjustment. Electronic currency is not subject to wear and tear so it never needs to be replaced. While physical money must be transported from place to place, electronic currency is moved instantaneously to any place on earth through communication networks. By eliminating paper currency and coins and replacing them with electronic currency, the huge expense of creating and maintaining the physical money supply will be eliminated.

Since all commerce will be conducted within the closed electronic monetary system, wages, the prices of all goods and services, as well as the profit margins of companies could be set at particular levels or within certain ranges. In the past we have seen attempts to control prices. Energy and rent are examples. Although this practice has been proven to be flawed, there are still many who subscribe to the notion that the pressures of supply and demand can be regulated in this way. With a closed monetary system, controlling wages and prices will be very easy, and the temptation to use this power to attempt to control inflation and other economic pressures will be too great to resist. Since all transfers of funds must be approved by the system, any wage, price, or profit margin that is deemed too high will result in the transaction either being refused or automatically adjusted to be within the allowed limits. This will be the end of free enterprise and will eventually reduce the availability of goods and services.

The “Holy Grail” of tyrants is to have the ability to force the populous to comply with every command. This goal will be attained when absolute control of all buying and selling is achieved by the convergence of the closed cashless monetary system and the RFID system of inventory control. This will be done by interfacing these two systems so they will perform as one system.

To accomplish this goal requires that the transition to a cashless monetary system be completed, and for all items produced or offered for sale to be identified with RFID chips. This will mean that in order for an item to be sold or for ownership of an item to be transferred from one person to another, it must contain a chip and the item must be registered with a database that is controlled by the government. This will be done to eliminate any possibility of a black market that might circumvent the closed monetary system of trade.

Once this system becomes operational, buying and selling apart from the closed monetary system will become impossible. Bartering will also be impossible, since ownership of items will be recorded within the system. Money laundering will also become extremely difficult, if not impossible The reason for this will be that since the government will have an inventory of all items produced and all items possessed by individuals, they cannot be sold unless they are deleted from the inventory of one person’s possessions and added to another person‘s inventory.

If an item does not have an RFID chip registering it with the inventory system, it cannot be sold. This will be because when credits are to be transferred from one person’s financial account to another person’s financial account, there must be a corresponding transfer of goods which takes place at the time of sale. Even items offered for private sale must first be tagged with an RFID chip and then registered with the government‘s inventory system before there will be an authorization of payment to the seller. Unless these steps are performed, the item cannot be sold.

With the closed cashless system in place, those who control the system can implement any law or program they desire. It will be a simple matter to use the closed monetary system as the engine of social and political change, and as the weapon for enforcement. If a particular activity is deemed to be good by the powers that be, then it will be permitted, or even encouraged. This will be done by allowing the approved activity through the use funds stored within the system. If an activity is determined to be in inappropriate, for example certain religious or political activities, then the funds that are needed by the individual or group to engage in these activities will be denied. All expenditures, and therefore every activity, will not only be monitored, but must also meet the approval of the authorities who will control the closed cashless monetary system.

Once the closed monetary and RFID systems are completed and interfaced one with the other, those who would rule the world will have absolute economic power over us, and with this power they will force compliance with their edicts. The cashless/RFID system will enable the ruling elite to do this without a large military or police force.

The fact that all financial activity must be conducted within the closed cashless system, including all transactions related to illegal activities, will be a powerful weapon for law enforcement agencies. Criminals will find that they cannot conduct their business out of the sight of law enforcement any longer, since computers will enable the government to identify and then eliminate their illegal activities. Since all buying and selling will be done through the closed cashless monetary system, all income and purchases will be monitored for any suspicious activity.

A negative factor of this is, while the monitoring of everyone’s financial activity can be a very powerful investigative tool which can be used to solve crimes, it can also cause innocent persons to be suspected of crimes they did not commit. For example, if a person purchases a firearm of a particular type and caliber they could become a person of interest in a criminal investigation, if a similar firearm was used in the commission of a crime. If someone happened to purchase certain household chemicals for cleaning that could also be used as an ingredient in making poisons or explosives, then he or she might be put under surveillance as a possible terrorist. Suppose someone happened to make a purchase at a business near a crime scene at about the same time a crime was committed. They might be suspected of a crime they did not commit.

An almost infinite amount of information could be gathered about an individual simply by analyzing their financial data, and it is frightening to consider how this information could be used against them. The cashless/RFID monetary system can also be used to do much more than just monitor the financial transactions of individuals. It will also be used to track individuals who are under surveillance, or who are accused of a crime. Of course a person’s identity and location will be revealed whenever they make a purchase, but their location will also be immediately known any time they are within range of any scanner.

As RFID technology is improved, the ability of scanners to detect RFID chips at greater distances will also be improved. The scanning of RFID chips at greater distances will greatly enhance the ability to track people as more RFID scanners are installed in all public places. In addition to having scanners in businesses and public areas, there will be scanners in every home. There will be no need for authorities to surreptitiously plant scanners in homes, since every home will already have a scanner for making purchases over the phone or internet. Since people will not have money as they do today to make private purchases, scanners will be installed in every home which will enable people to access their financial accounts in order to transact their personal business. These scanners could be either continuously activated or remotely activated by government agencies to monitor the identity of any individual who is within range of a home scanner. By using home scanners they will be able to determine how many people are present at a given location, who they are, when they arrived, and when they left. Such a network of scanners would be virtually inescapable.

Prior to the requirement of receiving an implanted chip, someone who attempts to evade the system of scanners by leaving their financial transaction card at home will still be tracked. After the network of scanners is in place, the files of all the purchases a person has ever made can be loaded into the tracking system’s computers. Since all the items a person will have purchased will contain RFID chips, which will be installed at the time the items are manufactured, a person can still be tracked by scanners wherever they go. This will be done by scanning the RFID chips embedded in their clothing or other items they have with them. Since the RFID chips in the items possessed by the subject contain a specific code identifying the items, it will also be possible to have a description of the clothing they are wearing at any given time, and to know what other items are being carried by the person.

Of course, once the implantable chip is required, identifying or tracking an individual will just be a matter of scanning the chip that is in the person’s body.

In our present monetary system, a person who is accused of a crime can find their financial accounts either frozen, or seized by the government. When this is done, the accused can still function economically, though in a reduced capacity. Until now there have always been ways to operate outside the banking system. A few of the ways this can be done are by using cash that is not deposited into the system, by working for cash, by borrowing money from friends or relatives, or by stealing cash from others.

These alternatives for financial survival will be completely eliminated under the cashless system. A person will not have physical possession of any currency, because in the cashless system there will be no physical money as we know it today and currency will exist only as electronic credits within computers. All of the money a person has will be deposited in the closed system; it cannot be withdrawn. All of a person’s funds can be frozen or confiscated by law enforcement, and it will be impossible to obtain funds from any other source.

A person who finds themselves in this situation will be an economic non--entity. Without the proper electronic documentation, it will be impossible for a person to find employment. They will not be able to buy or sell. Since they will not have access to or be able to open a financial account of any sort, they will not be able to secure funds needed to live.

The reason the law enforcement will be able to stop the trafficking in illegal drugs and other illegal activities is that the cashless monetary system will enable government to deny payment from one individual to another for any unapproved sale or activity. Money, which will be in the form of electronic credits, must be transferred from the buyer’s financial account to the seller’s account in order to conduct business, legal or otherwise. It will be very difficult to conceal any type of illegal activity when every exchange of currency will take place under the ever watchful eye of the government. In the example of illegal drug sales, the buyer will not have the ability to pay the supplier for the drugs. If payment cannot be made, then there is no profit to be made from illegal drugs. If there is no profit to be made, then the dealers and suppliers must find another way to make a living. This same principle will impede all manner of illegal activity.

When a child is born in a hospital in the United States, it is mandatory that the child be registered and receive a Social Security number before the parents are allowed to remove the child from the hospital. It is but a small step from this requirement that has already been implemented to mandating that every child be implanted with an RFID chip at birth.

One of the reasons that will be given to convince the public that this is a good idea is that an implanted chip would be useful in ensuring that the child receives proper healthcare. For example, a quick scan could make sure that the child’s vaccinations are up to date. It will also enable quick access to a child’s medical records in an emergency situation.

Another reason that will be given to promote the idea of implanting a chip in every child at birth is to prevent kidnappings. RFID tags are already used by some hospitals to prevent the removal of babies from the nursery area. If someone attempts to take a child from the maternity area they must pass through a door that is equipped with a scanner, and an alarm sounds. This system helps prevent kidnappings in a hospital setting. But what about protecting the child when it leaves the hospital? How about requiring the implantation of an RFID chip in every child before the parents are allowed to take the child home? By doing this, the child would be protected from kidnapping the rest of its life. Any time a child that has been kidnapped is near a scanner, and scanners will be almost everywhere, the child’s implanted chip would be detected and law enforcement would be immediately notified.

One of the so called hot button issues in America today is the control of our nation’s borders. People from all over the world have sought to come to the United States throughout our nation’s history. This is good for our country, as long as those who come do so legally. The problem is that many who come to America today are not willing to follow the law. Instead of applying for legal entrance into the United States, they choose to sneak into the country and take advantage of our open society. Not all who enter into the United States illegally are here to work at an honest job. Some are here to further their careers as criminals. Thieves, drug dealers, terrorists, sexual predators, and others who do great harm to our country enter illegally because they know that they cannot pass a background check if they were to apply to come here legally.

Our present system of border control is inadequate to stop criminals and other undesirable people from entering our country. Today a person who manages to get inside the borders of our country can establish themselves financially by purchasing forged paper documents. The underground industry of creating false documents for illegal aliens has grown quite large and is very profitable for those who are willing to supply the demand. Once an illegal alien has a forged birth certificate or social security card, they can then apply for a driver’s license and other forms of documentation that are widely accepted by financial institutions and government agencies with which we all must deal.

One way that those who are in the United States illegally obtain employment is to use a social security number that has been issued to someone else. Many people have discovered that someone has been using their social security number to work and to obtain benefits. Sometimes the honest taxpayer is contacted by the Internal Revenue Service and made to explain why they have not claimed the income that was earned by someone else.

Still others who are in our country illegally choose not to seek documentation. Those who wish to remain anonymous do so to avoid the payment of taxes and the other responsibilities of living in this country. These illegal workers are hired by dishonest employers who pay them less than the free market would otherwise demand, which depresses wages for honest workers, making it impossible for them to compete for the available jobs. Honest, law abiding employers find themselves at an extreme disadvantage, first of all because they can be easily deceived by someone who is in our country illegally. One way this happens is when the illegal alien assumes the identity of a citizen or someone who is here legally as a documented worker. If the honest employer submits the stolen name and social security number of the applicant to the government for approval, it will come back as being legitimate.

This problem is easily solved by requiring that everyone who is in our country receive an implantable chip. If this is done, then every person will have their government approved identification with them at all times. When someone applies for employment, they cannot claim to be someone else because their true identity will be revealed when their chip is scanned. If they do not have a chip, they cannot be paid.

Another disadvantage for the honest employer in today’s economic system is that the dishonest employer is able to pay his workers less. This is because the business that is using illegal workers does not have the expense of adhering to the employment laws and regulations that are imposed upon the honest business person. They do not provide the illegal workers with workman’s compensation insurance, unemployment insurance, employer social security matching or other required benefits that must be provided to those who are working legally. The employer who hires illegal alien workers does not have to shoulder the considerable expense of record keeping that must be done if they obeyed the law and hired law abiding workers.

When the transition is made from a smart card system of identification to the implantable chip, it will be impossible for someone to steal another person’s identity, or to share an identity with someone else.

 Our nation’s borders will be more secure with this system than if we built fences along the borders, or hired more Border Patrol agents. Our borders would be more secure because even though illegal aliens may succeed in physically entering the United States, they will be shut out of our economic system. There would be a “virtual” fence around our monetary system which could not be crossed by someone who enters our country illegally.

When the cashless monetary/RFID system is in place it will be impossible for someone who has entered the country illegally to obtain the electronic documentation needed to earn a living and participate in our financial system. It will also be impossible to remain anonymous and work outside the system. Unless an individual has the properly assigned electronic identification, which will be obtainable only through a government agency, they cannot receive monetary payments or make purchases. Someone who is in the country illegally will not be able to work for pay, nor will they be able to buy anything, even those things that are necessary to live.

In the cashless system, monetary credits cannot be transferred from an employer to an employee unless the employee has a financial account within the cashless system. Since the monetary system is cashless, there is no money that can be paid “under the table” to someone who is not part of the system. When all items have been marked with an RFID chip, bartering for labor will also be impossible.

Another problem those in government must deal with concerns those who enter the country legally but then stay longer than their visa permits. In the cashless/RFID system, one’s authorization to buy and sell in our economy could be revoked automatically when the visa expires. This would eliminate the problem of those who would stay in our country illegally. If a person cannot earn a living or buy the basic necessities of life, they will be forced to return to their country of origin. They will be compelled to leave not by laws, the police, or by the Border Patrol, but by economic necessity.

It seems as if every time we have an election we hear allegations of voting irregularities. Sometimes we hear that some are not allowed to vote because they do not have proper identification. Sometimes people vote more than one time by using someone else’s identity or by registering more than once with assumed names. These problems will be resolved because poll officers will be able to confirm every voter’s actual identification by scanning their implanted chip.

There are no doubt innumerable applications of the cashless/RFID system that will be used by the government that we have not considered. If there are other ways this system can be used to increase the power of those who would enslave us, they will use them.