Archive for the ‘Politics, News & Issues’ Category

It’s hard for me to believe that paper money will someday be replaced by electronic currency. Paper money and coins have existed for centuries, so it’s hard to believe that digital cash will take over. Or is it?

Here are a few facts to consider:

1) There’s a much larger amount of electronic wealth than paper money. Let me explain this by looking at two aspects of banking:

a) Banks are not required to maintain large cash reserves in relation to their total deposits. Their cash reserves are normally less than 20% of their total liquid assets. Therefore, if you deposit $1,000.00 into a bank account, the bank would be obligated to keep no more than $200.00 in cash. So where does the rest go? Into investments, loans, etc. – banks make their money by lending it. If they didn’t lend it back out, they’d never make any profit. This non-cash 80% or more of your money is effectively transformed into electronic funds and it may never have any physical life if you use payroll direct deposit.

b) Credit cards, lines of credit, etc. represent a form of electronic currency which rarely are converted into cash. In fact, I’ve seen one argument that says that we effectively create currency, in the form of credit, whenever we use one of these debt instruments.

The conclusion that I am drawing here is that much of today’s money is already electronic.

2) There are more and more ways to pay electronically. Credit card purchases are a form of electronic currency that have existed for years. More and more businesses allow the use of debit cards (i.e. electronic payment using some form of deposit). Businesses use electronic funds transfer. Wire transfers are electronic. Finally, consider the growing financial mammoth that is PayPal: it’s not just for eBay! You can use PayPal to send and receive money from almost anyone.

Conclusion: it’s becoming increasingly easy to pay electronically.

3) The final frontier for elimination of paper money would be the remaining forms of cash payment. This includes things like: small businesses, particularly restaurants; pocket money e.g. allowances; underground or unregulated economy (think of yard sales); and charities. Many of these types of commerce are increasingly able to accept electronic payment.

Conclusion: electronic currency continues to preliforate into new channels.

4) However, the last bastion of a cash economy may be the most ubiquitous: the vending machine. Many, many items are now available by vending machine: soft drinks; potato chips and other snacks; toiletries; cigarettes; lottery tickets; toys; and other items that might not be mentioned in polite company. It’s hard to say, but the vast majority of vending machines are cash-only: either coins or paper money. This could take generations to phase out unless the markets or the governments force the change. Many vending machines lack the necessary electronic circuitry to eliminate the use of paper money or coins. This is a significant investment to replace. We would also need some form of cheap, easily produced payment card, plus the payment receiver and processor, to eliminate the paper. But there’s no doubt that it could be done.

It’s becoming increasingly likely that paper money will be completely replaced by electronic commerce. If there’s a will, there’s definitely a way.

Going Green

Environmental issues can be so overwhelming that many people feel that their efforts are insignificant. There are many simple things that can be done by individuals to create and maintain an environmentally conscience household. Most of the following suggestions have been repeated many times, and many are simply a matter of common sense. Mostly it is a matter of retraining your habits.

Naturally recycle and turn off the lights behind you. Have your electronics on a surge protector and turn the power off when not in use. All those little green, yellow, and red lights and digital displays all consume power. Open the windows and let the air in. Both at home and driving the car, use the AC as little as possible. Wood burning fireplaces and wood burning stoves are a great source of heat in the winter time. Always clean chimneys and flues each fall. They also function as a way to cook when the power goes out. Reuse bath and shower water to bath pets and water plants. This is particularly useful during dry months. Upgrade, as the budget allows insulation, windows, and lighting to more energy efficient products. Turn off the water while brushing teeth. Once a week, wash a load of dishes by hand and dry a load of laundry on the line. Do not use plastic bags to shop, remember plastic never goes away. Do not use paper bags. Each bag represents the death of a tree. Instead shop with reusable cloth bags. They can be purchased for $1.00 each or less.

Reusable, there in lies the answer. The mid- twentieth century brought about a serious shift in our culture. We went from a reusable society to a disposable one. Just like diapers, disposable may be easier but it certainly does not mean cheaper in the long run.

Another cultural change is happening now. People are beginning to understand that the human race is not the masters of the earth, but her caretakers. And the last century has proved us to be piss- poor caretakers at that.

The blame cannot solely be placed at the feet of Big Corporations. Each of us is responsible for our own actions, and our children’s attitudes. Every person leaves enough garbage in their lifetime to fill a small landfill. Smokers should field strip their cigarettes as a habit, not carelessly drop their butts and forget about them. For those of you not in the know, field strip means to drop tobacco, paper and fire, and pocket the filter.

So many citizens of the world still have the attitude, out of sight out of mind. This is what needs to change. People who have a picnic at the river, and leave the trash rather then carrying it back to the car. There are still those who will throw anything from a cigarette to a puppy out of their car. Witnessing a polite “Excuse me, you seem to have forgotten this bag of trash.” is how children learn what is socially acceptable. No matter who’s car the trash ends up in the children see it was not left on the riverbank.

We are in the mists of a cultural revolution. Maybe not as hotly fought as segregation in the fifties. And certainly not as personally flamboyant as the bra burning and free love of the sixties. But a huge change in our culture none the less.

We can only hope it is not too late for Mother Earth.