For all intents and purposes, cash (at least in the UK) is merely a "cheque" or promise from the Bank of England to pay the bearer that sum
in Gold, on demand. Anyone can go down to the BoE and claim their gold with their cash.
That's how it used to be, but not any more. Almost no countries have fully-backed currencies any more. The concept is that not everyone would take
out all their money on the time, so they only need to have a partial supply on hand to back it up. The banking system has only about half of what
everyone has, and some countries have no gold backing their currency at all any more.
What does this mean? If everyone went to the bank at once to withdraw their money, only half of them would actually get it. A little-known fact that
you probably don't know... the government has the right to make it illegal for you to withdraw money until the economy stabilizes again.
Also, if everyone suddenly refused to accept money, it would become worthless and all you would be left with is paper (or worse, just a digital
Do a Google search on the evolution of money, and you will be quite frightened as to how fragile it really is.
Really, the only thing completely safe are physical objects that you can trade and actually use, like food, tools, and ammunition.
Oh, and another thing about that commercial. When you make a credit card purchase, the bank knows about it. They know everything you have bought and
have a record of it... they know what you buy and what you like. They sell this information to other companies.
See... cash is untraceable. You can buy whatever you want, and nobody knows (except for the security cameras).
Also, a number on your bank card that represents your life savings can be easily wiped out. Cash, or better yet, gold, can be guarded in a safe in
Do you understand why they want to get rid of it so bad now?
[edit on 3-1-2007 by Yarcofin]