1) Loss of Privacy
2) Increased Government Control
Cash is the last bastion of privacy in our society. With cash you and a friend can engage in a totally innocent - and totally private transaction. But the government doesn't want that. What if you sold your friend a lawn mower? And what if you made a profit on it? The government wants to know.
Why else are they making it so difficult to use cash? Why do you have to fill out forms that your bank will send to the government if you withdraw a certain amount of your own cash from your own bank account?
Supposedly this is to crack down on crime. But that is a bogus excuse. Sophisticated criminals have expensive lawyers and accountants who create legitimate businesses through which illicit cash can be laundered. And criminals move truckloads of cash across our borders. The real reason for stripping us of our privacy is control.
I read a novel about a TV journalist whom the government thought might have discovered a secret illegal government program. So they tracked him through the use of his plastic. "He just got a Starbucks." "He walked a block down Third and bought a T-Shirt." "He just took a cab to Grand Central Station." "He bought a train ticket to Philadelphia. Check his phone and see who he knows there."
Too far-fetched? Not at all. The technology exists to track your every move through the use of your credit or debit cards. It's easy - and it's made easier by the fact that many people don't even carry cash anymore.Are they tracking you right now? Probably not. Currently, it would take too many resources. But soon they will automate it, and then it will be easy to store all your movements - just in case. The NSA is already doing it with every phone call, storing the data on its acres of server farms in Bluffdale, Utah.
In his article, "The NSA is Building the Country's Biggest Spy Center", researcher James Bamford revealed some amazing facts about the Million Square Foot, $2 Billion Utah Data Center. "Flowing through its servers and routers and stored in near-bottomless databases will be all forms of communication, including the complete contents of private emails, cell phone calls, and Google searches, as well as all sorts of personal data trails—parking receipts, travel itineraries, bookstore purchases, and other digital “pocket litter.”
Make sure that you always keep some cash on hand. But since it is likely that cash will eventually be demonetized by the government or that hyperinflation will make cash worthless, make sure you also own Precious Metals like Gold and Silver.