Cash replacing the Plastic Card in the USA !?

Question

Well with the cash replacing the credit card in the US . . . . things will change ove the course .

1 - US is US because of the lifestyle and credit card, mortgage etc plays a major role. People own a BMW before they own a house in the US. If US goes cash ..... what is the difference between the developing countries and the US anymore.

US dream is for common people. If common people cant have a better lifestyle as they do now cos of credit and mortgage . . . it is practically impossible for them to wait their entire life to accumulate the cash enough to buy these pleasures.

I feel is US goes cash . . . . it will loose its magnetism for the people around the world.

What do you guys think ?

Answer 1

I agree somewhat but it all depends on how you use it. Whether it be cash of card, if you overspend ...you're still broke. They are just different methods of payments. The latter giving you a slight advantage with post poning the payment or being able to purchase things online.

The biggest thing is people bite off more than they can financially true. The American dream is causing a global nightmare. A lot of people believe that money grows on tree in North America and unfortunately that's how some natives behave as well.

It's the whole kick and stomp of " I want it now", "I'm entitled to it" and " Devil-may care" attitude of so many (not all) that cause credit to be a way of life as opposed to something you use to bridge a temporary gap.

Who do you find nowadays saying "Gee, I think I'll effectively save for a downpayment while denying myself the purchase of name brand clothing and eating out for breakfast, lunch and dinner". Ya right. Grandpa was right "kids these days don't know the value of a dollar"

Answer 2

I refuse to carry cash with me, I once had a roommate who stole it out of my wallet.. ever since I use a debit card only.

Honestly.. plastic is still king.. as long as you can pay it off every month.

Answer 3

Excellent question, one the Fed is dealing with daily, the U.S. becoming a debtor nation.  What was our main export in the last few years:  Bad mortgages!  This has caused banks to close in both Germany, and the U.K., and they are not too happy w/our regulatory systems.  The mortgage brokers were given free rein, people lied about their income on apps, were lied to by mortgage brokeres, and these mortgages packaged into securities, with the mortgages as security.  Bad security, as it turns out.

If the major banks begin to tighten the reigns on credit cards, yes cash will be KING again.  The financials have been taking hits on the stock market, and this is a bad sign for plastic also.  The dollar, previously the worlds benchmark for measuring money has declined compared to all worlds currency, and money managers for the first time suggesting bonds in "third world countries".  America for sale?   Budweiser?  Next G.M?  Austraila has a law that a foreign country can't buy a co. there, if it has any chance of effecting Austrailia's politics, or well being.  Ok beer is one thing, but Chrysler, and now if G.M. gets sold, America hungry for those petro dollars, I agree cash will return.

If the U.S. does not get its act together, banning oil speculation, (the bill shot down in the senate last week, mostly republican opposition, who would have voted for it, if it included a ok for domestic oil drilling) the mortgage situation, and a skyrocketing unemployment situation, (how many jobs outsourced, ban it, google chase Phillipines, Coca-cola India, during election these companies expanding overseas  and not a peep from either presidential candidate) I agree cash will return, and years from now the only people w/credit cards will be the wealthy class.

Great question, as the American public is not aware of how precarious the American house of cards economy is.

America is facing its worse economic crisis since the 1930's, and unless action is taken, a living wage, bring jobs home, social  programs putting people back to work, cash will be king in the future, how long I couldn't guess, but you can expect a few hundred more banks failing between now and 09.

And yes, I'm a little older saw all the other recessions since the 70's this is different.  It is not impossible that your children will seek opportunities in other countries, coming to the U.S. may not be as opportunistic as previously.  I know one computer tech person, already, seeking employment in Australia.

Answer 4

cash may put a dent in credit card debt -- but it will never replace the car or house loans!!!