patrick.net

Inflation punishes the holders of paper cash. They can be certain that the value of their savings in US dollars will fall unless they can earn interest on them in excess of inflation.

The way to earn interest on dollars is to put them in the bank.

But that gives the government power, because once the government knows where people have their money, it can be taken away. I just talked to someone in a dispute with the IRS who told me how the IRS simply deducted what it thinks he owed from his bank account, and there was nothing he could do about it.

They don't have that power if you do not have a bank account.

So is inflation also a means of government control over the public, forcing them to use banks?

Patrick