I Owe My Soul
By Jeff Thomas, International Man
In 1946, American singer Merle Travis released a poignant song titled “Sixteen Tons.” The lyrics narrate the struggles of a coal miner in Kentucky, whose existence revolved around a small mining town entirely dependent on the local mine.
The mining company operated a “company store,” which had a monopoly on selling essential goods. This store charged inflated prices, effectively ensuring that miners spent their entire paycheck and remained indebted to the company. As the song captures,
You load sixteen tons, what do you get
Another day older and deeper in debt
Saint Peter don’t you call me ‘cause I can’t go
I owe my soul to the company store
Negative Interest Rates
Now, let’s set the song aside and delve into a concept that the European Central Bank (ECB) has been discussing for some time. To prevent the collapse of central banks—an event they claim would be catastrophic—it is deemed imperative to safeguard these institutions at any cost. They have resorted to methods like quantitative easing (QE) and maintaining low interest rates in an effort to stabilize the economy.
However, despite banks reporting record profits and lavish bonuses for top executives, QE and low interest rates have failed to rejuvenate the economy. So, what’s the solution?
One idea on the table is the implementation of “negative interest rates.” At first glance, this might seem reasonable—if low interest rates haven’t sparked economic recovery, then surely negative rates could provide a boost.
But what exactly are negative interest rates? In essence, if you deposit money in a bank, instead of receiving interest, you would be charged for keeping your money there.
This concept has never been realized by any central bank, making it hard to swallow. Nevertheless, the ECB may present it as a necessary measure.
Electronic Currency
Shifting gears again, let’s consider the implications if fiat currencies like the euro and dollar were to collapse—something I believe is increasingly likely. In such a scenario, the EU and the US would almost certainly rush to introduce alternative currencies, as a lack of viable currency would drive people to barter and rely on whatever is available to make purchases.
We live in a digital age, and both the EU and US are leaning towards increasing control over citizens’ finances. Hence, an ideal solution would be an electronic currency. Picture a world where there are no paper bills or coins; all transactions are handled through a simple plastic debit card.
This electronic card would be used for all purchases, whether for a significant investment like a car or even a trivial item like a candy bar.
This system would simplify transactions but also offers a considerable advantage to the government—it would maintain a comprehensive record of every transaction, eliminating any “under the table” dealings.
A bank would facilitate the transactions, receiving direct deposits from employers. Every financial action undertaken would flow through this central clearinghouse.
Furthermore, with detailed records of every penny you earn and spend, the government would no longer need to chase down tax payments. They could simply notify you of your tax obligations and deduct them automatically, perhaps on a monthly or weekly basis.
Taxes would not need to be simplified either. Just like credit cards today are laden with various charges, the government could impose multiple confusing taxes, altering rates without clear communication, thereby diminishing the likelihood of dissent.
How Does All This Fit Together?
Returning to the ECB, if negative interest rates come into play, banks would no longer incentivize you to keep your money with them. Instead, they would control financial transactions completely, ensuring that you remained dependent on their services. In this arrangement, the lines would blur between servitude and governance.
Ultimately, if both the government and the banks wield this level of control, individuals may find themselves effectively “owned” by the system, akin to being bound to the company store. Fees and tax rates could rise in tandem with income, preventing true savings or independence. Financial mobility would become confined to the central banking system.
This, however, is speculative. One might hope that society would reject such a fate, as people generally resist servitude.
And yet, history reveals instances where entire communities willingly navigated into their own subjugation. In regions like Kentucky, during economic downturns, many had no choice but to accept perilous jobs in the mines to support their families. They entered this dangerous workforce knowing it came without benefits, but with the hope of providing for their loved ones.
Fast forward to our current reality—where a looming economic depression threatens to obliterate countless jobs. This time, however, it isn’t just employment at stake; currency itself is at risk. In their quest for financial stability, many may resort to whatever means necessary to secure cash.
Yet, there remains hope! The government may phase out physical cash, branding it as the source of many past troubles. Henceforth, the new Electronic Currency System could ensure centralized control over all monetary affairs.
The media would hail this new solution as ingenious, and those hit hardest by the impending economic crisis might be the quickest to embrace it. When faced with adversity, the temptation for relief can overshadow long-term implications. Just as the miner opted for immediate sustenance, so too might the masses follow suit without reflection.
If this plays out as predicted, the ramifications could extend far beyond Kentucky—potentially engulfing entire nations.
Sincerely,
Jeff Thomas
for Economic Prism
[Editor’s Note: The ECB has recently announced the initiation of a negative interest rate of 0.1 percent on deposits. As anticipated, media outlets are already praising this move. To witness the repercussions of economic mismanagement and comprehend how disaster can insidiously unfold, watch the 30-minute documentary, Meltdown America. It chronicles the stories of three ordinary individuals who endured a crisis, serving as a cautionary tale for potential turmoil in the US. Click here to watch it now. The article I Owe My Soul—Why Negative Interest Rates Are Only the First Step was originally published at caseyresearch.com.]
