Electronic Money Will Collapse
What is it anyways? We log in to our bank account(s) and see different electronic numbers telling us how rich or poor we are that day.
But how does “electronic” money even work? Let’s take the case of working at a job. Your employer pays you with electronic money that they got from their electronic bank account. They receive electronic money from their clients. Say their client is Big Corporation X. Well Big Corporation X maybe gets their money from “general public customers” (paying with cash & credit) or Big Corporation X gets money from Government Contracts. And government organizations may pay with a check (backed up by electronic funds).
What if you woke up and all your accounts said $0? What if it turned out that every account was $0 one morning?
Scenario 1: this brings people together. We realize that money is just a number and we are still the same person regardless of what’s in the bank account (a quote most likely somewhere in a Disney movie). Perhaps we talk with our neighbors and people agree to pool cash if someone else may need it. Perhaps even the banks have $0 and all of society is very unsure what happened or what to do about it.
Scenario 2: paper cash becomes highly valuable. Each person has their own little panic running around their house looking for all the cash in it. They raid their cookie jars, they pull all cushions off of couches, and they grab every last penny in the coin jar.
Scenario 3: we all just decide to throw another Woodstock and figure out monetary policy after that Woodstock.
Comment below with what you think!