Ian Welsh

Image by TW Collins

Back in 2017 I wrote “The End of Cash”:

Understand, however, that getting rid of cash is part of this. Understand that blockchains, “coins” do not have to ultimately be a technology of freedom, but can easily be a totalitarian technology. Understand that virtually no one in a position of power is your friend on this: They want to know, they want to control, they want to be able to decide how you spend your money and your time, and they want to have an electronic dossier on you which is complete, and which will be usable to destroy you, because no one has never done or said something which cannot be made to look not just bad, but terrible and illegal, especially if you can pick, say, ten quotes or actions out of a lifetime.

In the 80s and 90s it was possible to live the cash economy, or the near cash economy (some checks, but no bank account.) Around 1990 I worked as a dispatcher for a printing company. There was an independent food stall nearby, the sort of place that was all “skilled short order cook” food. I bought most of my lunches there, and the owner ran a tab. When I was paid, by cheque, I endorsed them to him, he took 2%, and paid me cash, minus any tab I’d run up. I paid my landlord in cash, and I bought my food in cash.

At other points I was entirely casual labour: I painted, did light construction work for homeowners, various landscaping jobs, and helped people move. In most cases they paid me cash, if they paid me with a check and I didn’t want to wait the 28 days the banks often insisted on for “clearance” I’d endorse the check, lose 2% and count it not entirely unreasonable.

It’s very hard to do that now. Most people don’t pay with cash, or even checks, and everything goes thru a bank or payment processor and they are very picky about who they allow as customers. Legal activities (say selling nootropics, or porn) are often frozen out, and, indeed, banks have closed down clients accounts without even saying why. Indeed this was done to someone as prominent as Britain’s Nigel Farage, though he had enough fame and political clout to handle it. Perhaps you remember when PayPal, Visa and Mastercard all decided to stop letting people donate to Wikileaks.

Here’s a new case, in Germany, from the EU:

Here is a man, Hüseyin Doğru, a German journalist (of Turkish origins, but not a dual citizen) whom the EU authorities have found a novel, immensely cruel, way of punishing for his coverage of, and views on, Palestine.

The German authorities learned a lesson from my case. Not wishing to be answerable in court for any ban on pro-Palestinian voices (similar to the court case I am dragging them through currently), they found another way: A direct sanction by the EU utilising some hitherto unused directive, one introduced at the beginning of the Ukraine war, that allows Brussels to sanction any citizen of the EU it deems to be working for Russian interests. Clinging to the argument that Hüseyin’s website/podcast used to be shown also on Ruptly (among other platforms), they are using this directive aimed at an ‘anti-Russian asset’ to destroy a journalist who dared oppose the Palestinian genocide.

In practice, this means that Hüseyin’s bank account is frozen; that if you or I were to give him cash to buy groceries or make rent then we would be considered his accomplices and subject to similar sanctions; it also means that if he were a civil servant, he would be fired; if he were a student he would be expelled from his university; if he received a pension it would be suspended; if he received any social benefit it would be frozen. It also, astonishingly, means that he cannot leave Germany!

Last, but definitely not least, it means that Hüseyin cannot sue his government for turning him into a non-person but only challenge the European Commission in Brussels – where he is not even allowed to go!

Beautiful stuff, even cash is forbidden, BUT, of course, cash is hard to trace. Thing is, these days, most payments are electronic.

Back when the Trucker Protest happened in Ottawa Canada I opposed freezing their accounts, even though I thought they were a bunch of fools and opposed their agenda. Why? Because it is punishment without a trial or facing a jury. It’s devastating. And I understood that if it could be done to people I disagree with, it could be done to people I do agree with.

So Germany has made it so Huseyin will wind up homeless and possibly even starve to death simply by making him an economic non-person.

This is made much easier by the fact that there’s barely a cash economy any more

These sorts of administrative penalties are becoming more common. Palestine Action, for example, was designated a terrorist organization recently (at the same time as the terrorists who took over Syria were removed.) I’m going to come back to this, because it’s important.

But, basically, the end of the cash economy has made it MUCH easier for authoritarian governments to crush dissent, and in general, the removal of cases from courts, plea bargains, lack of jury trials, making it illegal to tell juries about jury nullification and the rise of “sanctions” and administravie orders has been extremely chilling.

Europe is trending hard authoritarian, with Britain and Germany leading the way. The US, of course, is working hard to end Habeas Corpus and other legal protections. Canada is moving in the same direction.

We need a new conception of how societies should run and until that happens we need a new conception of how to run organizations that the elite doesn’t approve of.

We’ll cover this more, soon.

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