Y2K as excuse to "clear the books"?

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The following is written from a U.S. perspective, but it probably applies to other "Western" nations as well...

I am concerned that Y2K may be used as an excuse to "clear the books" on current financial problems. If I understand correctly, the US financial system is based on a "fiat" currency (backed by nothing) and a "fractional reserve system" (subject to back-runs), thus there are inherant vulnerabilities. As I understand it, the "system" is set-up so that it is not possible to pay-off the collective debt. In fact the debt (indirectly M1?) has to grow in order to avoid collapse.

Now, US entitlement programs are largely unfunded in the "out years". The interest on the (growing!) debt will soon exceed tax revenue. The stock-market is at P/E near-records.

Anyone care to calm my fears that Y2K will be the perfect excuse to "clear the books"?

-- Phil Perucci (pperucci@mindspring.com), May 30, 1998


There was no conspiracy to screw up the computers. The conspiracy, if it exists, is only one of silence. The last thing wanted by those in D.C. is the collapse of their world. They love the restaurants, the parties, and the Sunday Morning "Times" and "Post."

The silence will end after the November elections. December. January. February. You can count on it. The Giant will awake.

-- zerad (zerad@my-dejanews.com), May 30, 1998.

There may not be a conspiracy as such, but I would be very surprised if the current administration did not take advantage of the looming crisis to implement a few new policies and change inconvenient laws. As WJC is often quoted (paraphrased here): Americans have way too much freedom. "Somebody" will very likely do something about it. Re: the money supply...I would not discount a "hit" from European based sources. Rumors abound concerning current and future oil contracts being redenominated in Euro's. The dollar might end up being useful for stocking the outhouse and starting fires and not much else.

-- Greg Lawrence (greg@speakeasy.org), May 31, 1998.

I have an uneasy feeling that the governments of the G7 countries and others will take advantage of the Y2k crisis in banking. Those who control the people in government (yes I do subscribe to conspiracy in international banking), have known for at least 20 years about this computer program problem. Technology changed so quickly in the last decade that they could be sure that it might present a problem and it could be used to their advantage if no-one was made aware of it. With some controlled media information, bankrunsmay start in mid 1999, and these could be controlled by imposing limits on withdrawals via some method of identification. This could be a biochip or card like an ATM card but with e.g. social insurance no. which would allow a person to use debits, but no cash. Most companies now use debit cards for banks and I believe that the large banks will be compliant. In Canada we have only a fraction of the numbers of banks in the US, and many of the assets of small banks in US will probably be swallowed by the larger and in that way the banks will centralize. This is too good an opportunity for government and banks to further their control over the people and the economy.

-- Laurane (familyties@rttinc.com), June 01, 1998.


American Eagle Publishing has a book: "The Millenium (sic) BUG - Gateway to the Cashless Society?"

-- B.T. Martin (btmartin@west.net), June 01, 1998.

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