Future Economy: Barter, Black Market

Think the days of bartering and black markets are some primitive medieval throwback out of sync with today’s malls and ordering on Amazon? You might want to take a look around you.

Lately you can spot parking lots where a truck has set up a temporary business selling an item or two. They are not permanent, but appear in parking lots or vacated areas. Take a look at Summer Avenue, for instance, and you’ll find some – even a taco truck. Next, economists say there will be a return of the door to door salesman, as well. These are cases where the transaction benefits salesman and customer, without Uncle Sam’s rules, regulations and tax bite.

Think you’d never need or go to a black market? In some cities, it is common to see people selling raw milk that the government doesn’t want you to buy from trucks in lots near grocery stores. How about light bulbs? Can’t you see a black market popping up – one that is happily patronized by good citizens who merely want to control the type of light in their own homes?

If Obama is re-elected, you can see a mushrooming of this kind of commerce. Unfettered by restraints of another election, he can tax to the hilt and regulate through various agencies, bypassing Congress. When that happens, more Americans will wake up to the benefits of bartering. You need a job done, you have a talent to offer and a deal is struck. The lure of that will alter our consumer society.

Nations are already doing it, which is bringing down the dollar. Gordon Change writes in Forbes:

So how can Beijing keep both Iran’s ayatollahs and President Obama happy at the same time? Simple, the Chinese can avoid the U.S. sanctions through barter. China has already been trading its produce for Iran’s petroleum, but there is only so much gai lan and bok choy the Iranians can eat. That’s why Iran is also accepting, among other goods, Chinese washing machines, refrigerators, toys, clothes, cosmetics, and toiletries.

The barter trade works, but Iran needs cash too. As it is being cut off from the global financial system, the next best thing is gold. So we should not be surprised that in late February the Iranian central bank said it would accept that metal as payment for oil. Last year, China imported $21.7 billion in Iranian oil and exported $14.8 billion in goods and services. As the NDAA goes into effect, look for Beijing to ship gold to Iran to make up the difference.

Tyler Durden adds:

In a similar move on a more micro level, the government of Spain in a similar desperation has banned the use of cash transactions above 2,500 euros. How do you think citizens are going to respond to this? People are already in the streets. They are not pleased with what is going on. Then the government is going to tell them they can’t use cash amongst themselves so that the authorities can track every single thing they do and bleed them with taxes until they are slaves on a banker plantation. Everything is going to go black market and to a barter system. It will happen country by country as governments get increasingly desperate and the authoritarian clamp down continues. It will happen on an increasing level until all of these house of cards bureaucratic states fail and something new is reborn. In case you haven’t seen it yet, this one town in Greece is already leading the way. This story outlines what will be a mega trend globally over the next decade:

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