A Quiet Revolution

A number of people in the Yellow West movement are now advocating the withdrawal of cash from banks. If enough people do this, banks will get in trouble for having too little collateral to support their loans. This will in turn destabilize the current political system with its high reliance on banks. It is for this reason illegal to advocate bank runs. It is considered subversive far beyond what can be achieved by a mere street riot.

However, most people live under the impression that revolution has to be fought in the streets. The correct political move under the current circumstances would therefore be to let the protesters back into the streets. As long as they are merely throwing stones at police officers and kicking in windows, the political elite is safe. It is only when cash stars flowing out of banks that things get serious.

Clamping down on street protests was a big political mistake. It has forced people to consider alternative ways to protest. People who never thought that the act of cash withdrawal can be viewed as subversive are now fully aware of this. They may even slowly come to realize what the full damage would be if everyone were to do this at the same time.

Furthermore, it does not take a lot of thinking to go from realizing that cash withdrawals are subversive to the fact that gold is a better store of value than cash. An alternative to withdraw cash directly is therefore to buy gold.

At first glance, this may appear counter productive. The cash spent remains in the system after all. However, gold is in this way extracted from the system, and it is this monetary metal that is at the base of all financial systems. We may not be on an official gold standard, but the financial elite is very much aware that everything they do is measured against the price of gold. If the price of gold starts rising faster than paper assets such as cash in savings accounts and bonds, all hell breaks loose. It would mean that a cold piece of metal is a better investing agent than a banker.

A truly revolutionary move is therefore to withdraw cash for everyday use and put saving in gold. As an added bonus, such a strategy is likely to yield a better return than holding cash in a bank. It may even return better than any other investment strategy. This would be especially so if the revolution was to succeed. Those who joined the movement early would be the ones with the best return.

Anyone feeling frustrated and impotent in the face of the current system can empower themselves by putting cash for everyday consumption under the mattress, and gold coins into a secret hiding place somewhere safe. There is no need to go into the streets to vent anger. There is no need for violence of any kind. What the political elite fear more than anything is a quiet revolution where cash and gold simply vanishes from the system.

Sound money

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