DTEJD1997 Posted January 20, 2016 Share Posted January 20, 2016 Hey all: I've decided to start a new thread rather than glom onto the Outerwall (OUTR) thread. I this thread, I wish to have a discussion about the importance of cash and also about silver & gold. I think cash is very important, and many, many people are taking big chances relying on debit & credit cards. I can give many different examples of why this is, but let me start with a few stories.... A). Way back when (2003?) there a BIG power outage in the the NE & Midwest. I had to travel that day. In fact, the outage hit 5 minutes after I left my house. I heard of it on the radio, and figured out I better fill up with gas. When I got the station, long lines were starting to form. Many people couldn't get gas, as the credit card network was down. The station was accepting CASH ONLY. I filled up (paid cash) and got on the freeway and made it my destination. If there are power disruptions, "plastic" cash is going to have a very difficult time. B). Back in 2008, a lot of business owners I knew at the time paid bills & bought inventory on their AMEX & other credit cards. I'm talking about serious amounts...not $100 here or there. Some of them had EXCELLENT credit...some were skating close to the edge. Some of them went bust, as their credit lines went from $50k+ to $5k...or they were cut off completely as they had outstanding balances which suddenly became their limit. As they paid off their balances, their limits were reduced. Under normal economic conditions, this was not a problem...but in 2008, this became a major problem. Of course, businessmen should not be financing their business off of access to credit limits on credit cards... C). My ex-girlfriend would leave the house with literally PENNIES in her purse. Why should she carry cash? She had a debit & credit card. We were driving after dinner & movie in her car, we went to a different restaurant and all of a sudden she is at 1/16 tank of gas & are in a terrible neighborhood late at night. We pull into a gas station. Her magnetic strip on the credit card had a scratch & didn't work. Her debit card was not accepted for some reason at the station (wrong network?). She needed gas RIGHT NOW! Fortunately, I had plenty of cash...but I made sure she never left the house without a $20 bill in her purse after that... D). Electronic transactions drive the price of everything up for everybody. The merchants are going to add the processing cost back into the price of the item. E). My "wise" uncle also does not like cash. He likes to keep it in the bank to get the juicy, juicy interest! He keeps a minimum amount in his checking account (debit card) & puts the rest into an interest bearing account. Puts everything onto the debit card. One day he forgets about something and miscalculates his balance. This sets off a cascade of overdraft charges resulting in $400 of fees. I ask him how much that cost him vs. the "interest" he made on cleverly managing his money. I can't print his expletive filled tirade here... F). You are relying on a counter party for credit cards & plastic. What happens if the counter party goes under, has stress, is hacked, has problems? Cash does not have this problem. G). CRIME!!!!! How much cash has been robbed from you in the past ten years? How many instances of fraud have you had on plastic accounts? I have not lost a penny from being robbed, having cash stolen. Not the case with plastic... I ALWAYS carry cash on me. I will use plastic if it is convenient & I can get cash back...but I also use a lot of cash. I guess that is enough of a start to get the conversation going. Link to comment Share on other sites More sharing options...
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