Adventure Ausrama Blog

The Internet has disrupted the security of ordinary money. The economic system controlled by the banks for centuries is now under threat. Bitcoin is an example of new money. Its mere presence in feared by the banks. Money, or at least its value, depends on people having faith that it can easily be exchanged for different goods. In Germany before WWII security in money was severely challenged. There was rampant inflation, so much so that people had to push barrow loads of  cash to a shop to get a loaf of bread. New money is everywhere: PayPal has taken the banking world by storm. These bank-like services are being offered by Google, Apple and eBay. To get Followers on Twitter, many sites are offering seeds. Though the websites deny trading for followers, this is exactly what it is. Google's Wallet is really a bank service. Smartphones can be swiped in store terminals to buy goods. The problem is most money does not really exist it is just recorded in books as they used

Banks are to significantly cut the return on money invested. This is not surprising considering the Reserve Bank of Australia (RBA) is cutting interest rates. As the banks follow the RBA down, which they are not obliged to do, they must cut outgoings on term deposits for example. Considering banks make 60 per cent of their funds from various savings products, it is no wonder cutting what they pay out is on the horizon. If rates fall much lower people will be drawing out their savings and hiding their "loot" under the bed. Customers are borrowing less because the bar for loans has been pushed too high. Well, perhaps that is a good thing. Australians were condemned for not saving enough; now they are criticized for not borrowing enough. With an election date already set the government will push for full RBA flow - ons in the popular media. This does not look good for retirees who rely on money put aside in investments for their retirement. Money is getting cheaper in

As if bankcard fraud is not bad enough a new "easy to cheat" card is released. No pin number is necessary to use cash resources on the card. Just tap it on an Eftpos and a green light comes on to show goods are paid for. Businesses may like this new system because purchases are quick, impulsive and transaction costs are lower. But what if someone gets hold of the card from a burglary. The account can be emptied without a pin or signature. Surely banks will refuse to refund money to the card owner. It is a way for banks to opt-out of their responsibilities. Retailers can also be hit, apparently, because the card can be used with nothing in the bank account. New technology is the culprit. Magnetic strip is now seen as old fashioned. Solid state chips are now the go. Competition is beginning with PayWave and Payless trying to dominate the new market. Thankfully, transactions are limited to $100 at the moment. Takeaway chains and corner stores are adopting the new system for quic