The money as we know it, will disappear. All the cards we use today will also disappear. In the future, we will transfer with digital currency. Bitcoin is just the beginning. They have been on the marked for six years and many will follow. Ecuador seems to be the next.
But what will happen if the money disappear? Will the Federal Reserve still print money? And what is really money? It`s not what you think it is. Today`s money is a payment transfer system, known as checking.
The presumption is that money is in the bank and is transferred to someone by means of writing a check. That is where the greenback comes in, for it is presumed to be the money one is transferring. The greenback today is the Federal Reserve Note. It is the paper we carry in a wallet and call «cash». We have two kinds of money; the check that is not money and the greenback that is money.
So, what is greenback? It got its name in President Lincoln`s administration. It is a pejorative term in that it was scorned by banks, which paid only part value for it when presented by clients. History had been unkind to the paper money put out by the Continental Congress during the Revolution against England.
To downgrade something, one might say, «not worth a Continental.» The Continental Congress had no taxing authority; so, any paper money it issued could not command payment of a commodity without risk.
History text do not say that the true greenback was as good as gold, until banks persuaded the U.S Senate to strip it of its legal tender feature. The Treasury authorized issue of $150 million of legal-tender notes on February 28, 1862 for payment of all debts public and private. The vote in Congress was 93 to 59. These greenbacks never lost their value against gold coin.
The President in Ecuador, Rafael Vicente Correa Delgado want to quit the money in the Republic of Ecuador and start with digital currency. They have not yet the technical details, but say it will not be like Bitcoin.
Refael Correa was officially declaired President of Ecuador on 4 December 2006 by the country`s electoral court. He say that the socialism will continue. The Ecuadorian people voted for that. We are going to continue the fight to eliminate all forms of workplace exploitation within our socialist conviction; the supremacy of human work over capital, he says.
Correa has criticized the neoliberal policies of pervious presidents, particularly former president Mahuad`s adoption of the U.S dollar as Ecuador`s domestic currency in 2000. He has characterized dollarisation as a «technical error» which has effectively eliminated Ecuador`s ability to set its own currency and exchange policy.
Ecuador`s relationship with the United States has deterrorated considerably in recent years, since Correa took office in Ecuador, mostly due to his Correa`s growing relationship with Cuba, Venezuela, Bolivia and Iran and also his public criticism of the Foreign Policy of the United States.
Last year, Ecuador announced that it will auction more than three million hectares of Amazonian rainforest to Chinese oil companies. The indigenous people inhabiting the land protested the deal, but Ecuador`s Shuar People`s women`s leader, Narcisa Mashienta, said that the government lied when claiming that the people would have given their consent.
The NGO Amazon Watch claims that the reason for the projects is the governments 7 billion dollar debt to China and the desire to get Chinese funding to build a 12,5 billion dollar oil refinery. In fact; they are not talking about dollar debt but a new digital currency debt very soon.
Ecuador is probably not the only one to start with a new digital currency. In addition; many will start to pay and transfer electionically by phone which means the greenback money will disappear. In the future; it will be difficult to say; Cash is King.
10.00 a.m USA ISM Manufacturing PMI
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